1. U.S. Pizza Restaurant Industry
Robert Carroll
Carrie Esch
Cara McGarry

2. Background

3. Historical Background
The lower class of Naples, Italy is believed to have created pizza in today’s familiar fashion
The first pizzeria opened in 1830 in Naples, Italy--it’s still in business today
Pizza made its way to the inner cities of the United States, New York and Chicago most notably, in the early 1900s thanks to the large population of Italian immigrants
American soldiers further prompted the dish to become very popular at the end of World War II, having been exposed to it while serving on the Italian front
Today’s largest pizza chains (Pizza Hut, Domino’s Pizza & Little Caesars) began popping up all over the U.S. in the late 1950s, early 1960s
Source:

4. Traditional Types of Pizza
Traditional Crust Pizza: The crust is not too thick and not too thin. Usually it is created by rolling the dough into a round circle then topping it with sauce and cheese Deep Dish Pizza: A thick crust and dense toppings usually characterize deep-dish pizza, also known as pan pizza New York Style Pizza: The crust of this pizza tends to be much thinner than traditional and deep dish.
Source:

5. Four Channels of Distribution
Sit-Down Dining - custom pizzas made for in-restaurant diners
Typical Pizza Restaurant Establishments: Pizza Hut Red Roofs, Independents
Delivery - custom pizzas made, baked and delivered by restaurant personnel to call-in customers
Typical Pizza Restaurant Establishments: Domino’s Pizza, Pizza Hut, Papa John’s
Carry Out - custom pizzas made and baked for walk-in or call-in customers to pick up
Typical Pizza Restaurant Establishment: Little Caesars
Take ‘N Bake - custom pizzas made for walk-in customers who then take the pizza home to bake themselves at their own convenience
Typical Pizza Restaurant Establishment: Papa Murphy’s

6. Aggregate Industry Information

7. U.S. Pizza Restaurant Industry
U.S. Restaurant Industry
$399 billion
U.S. Fast Food Industry
$135 billion
U.S. Pizza Restaurant Industry
$29.4 billion
2001 Industry Data

8. U.S. Pizza Restaurant Industry
63,873 pizza restaurants in the U.S.
4,233 new restaurants opened and 4,300 restaurants closed between July 1, 2001 and July 1, 2002
Less than 30,000 pizza operators own all of America’s 60,000+ pizza stores
One pizza store for every 4,330 U.S. residents
Pizza restaurants make up approximately 7.7% of the nation’s total restaurants
Industry sales for pizza were up 1% for 2001, which gave the pizza industry overall sales of $29.4 billion
Total pizza market is projected to grow by 17% by end of year 2003
Pizza is the only food category to show consecutive growth for the past 20 years
Source:

9. Chains vs. Independents
Independent restaurants own 59.48% of all pizza restaurants (37,992 restaurants)
Average unit sales was $366,720 per year between June 2001 and May 2002
Sales represent 47.38% of the industry’s sales
Independent operators holding ground in the North East portion of the U.S.
Chains
Average unit sales for the top 25 pizza chains increased to $598,000 to $583,000 the previous year
“The Big Four” pizza chains (Pizza Hut, Domino’s Pizza, Papa John’s and Little Caesars Pizza) represent 36.8% of industry sales at $10.81 billion
Pizza Hut, Domino’s, and Papa John’s represent a larger % of the industry total sales than they do industry total stores
Source:
Pizza Today, August 2002

10. American Pizza Stores Per Capita
No. of Pizza Store Per
10,000 Population
Source:

11. 2002 Year-End Sales Trend Source: SalesTrac® Weekly
Weeks 43 through
QSR Pizza: • Domino's • Mazzio's • Papa Gino's • Papa John's • Peter Piper Pizza • Pizza Hut • Pizza Inn • Round Table Pizza •
Source: SalesTrac® Weekly

12. Competition

13. U.S. Market Share: $29.4 billion
Little Caesars
4.25%
All other
Chains
15.85%
PJs
5.94%
Independents
47.38%
Domino’s
9.58%
Pizza Hut
17%
Source:

14. U.S. Share of Pizza Stores 63,873 stores
Little Caesars
4.8%
All other
Chains
12.05%
PJs
4.05%
Domino’s
7.54%
Independents
59.48%
Pizza Hut
12.08%
Source:

15. Top Chain Growth Trends
Source:

16. Company Synopsis

17. Top Chain Financials
Source: Hoover’s Online

18. Market View

19. Pizza Customers

20. Who Eats Pizza?
Source: Chain Leader, June 2000

21. Fun Facts About the Pizza Customer
94% of America’s population eats pizza.
Each man, woman and child in America eats an average of 46 slices (23 pounds) of pizza a year
93% of all Americans eat at least one pizza a month
37% of kids say pizza is their favorite food
Children between the ages of 3 and 11 prefer pizza over all other food groups for lunch and dinner
Americans eat approximately 100 acres of pizza each day, or about 350 slices per second
Source:

22. When Do Consumers Eat Pizza?
Source: Chain Leader, June 2000

23. How Do Consumers Pay For Pizza?
Source: Chain Leader, June 2000

24. Where Do Consumers Eat Pizza?
Source: Chain Leader, June 2000

25. Industry Developments

26. Industry Trends to Watch
A rise in convenience store locations
A shift in delivery/sit down restaurant pizza occasions to packaged pizza occasions (frozen)
New product introductions
Competitive deep discounting
Source:

27. Industry Sources

28. Sources www.pmq.com - store census, market share, industry trends
- history, types of pizza
- industry statistics
Pizza Today, August sales information
SalesTrac Weekly - weekly sales growth
Hoover’s Online - financial outlook
- sales growth
- sales growth
- sales growth
- pizza facts
www. pizzaware.com - pizza facts
Chain Leader, June customer profile