OAKBROOK TERRACE, Ill. -- Fresh or frozen? When it comes to pizza, convenience retailers constantly face this toss-up. Fresh programs take dollars, expanded kitchens and training, but the profit margin potential is high. Frozen’s easier, sure, but with quick-service restaurants (QSRs) upping their game via “hot and ready” whole pies, customizable options and higher-quality, more varied offerings, many c-stores find they need to up their game, too.
One thing’s for sure, though: consumers are still clamoring for pizza. Research continues to point to pizza’s popularity, particularly at QSRs. According to Chicago research firm Technomic, 75% of consumers eat pizza three times a month or more, and 55% purchase their pies from fast-casual eateries.
“Foodservice is the No. 1 category in c-stores right now, and pizza still ranks in the top three categories for sales,” said Dana Evaro, vice president of marketing for Land Mark Products Inc. in Milford, Iowa, which offers the Piccadilly Circus Pizza program for fresh pies. “In order for c-store operators to grow business and compete with QSRs, they must offer a variety of products to win, and the better the quality, the more business they’ll see because consumers are beginning to demand better food.”
In fact, Evaro added, Piccadilly fresh pizza programs—which look and operate like a Pizza Hut Express—can generate over $200,000 a year in revenue.
Value and Variety
“The difference is quality, because that’s what will drive traffic to the c-store when customers would otherwise go somewhere else,” Evaro said.
At the Maple Mart convenience store in Mapleton, Minn., manager Nancy Sohre works almost exclusively within the Piccadilly Circus Pizza program for consistency and to boost brand recognition. Not only does she serve all Piccadilly food products, but she also uses branded boxes, napkins, wrappers and other merchandise showcasing the logo. This helps send a message of quality, she said. And, slices stay fresh because they sit for no longer than 1 or 2 hours, or they’re heavily discounted.
Variety also remains key. About 75% of consumers prefer a wide variety of toppings when it comes to their pizzas, according to Technomic. More than half of consumers (59%) purchase take-home pies at least once a month, another key opportunity for convenience retailers.
Piccadilly Circus Pizza offers traditional pizzas like cheese and pepperoni, but also unique pies like the Philly Cheesesteak, Zesty Italian, Buffalo Chicken, and breakfast and dessert pies, among others. These flavor options generate excitement and give retailers a competitive edge.
“You really have to keep your menu flowing, just like a quick-serve chain, because this adds interest and drives traffic,” said Evaro. “I’m seeing a trend toward ethnic, regional and other non-traditional flavors for pizza.”
Competitive Customization
Newer quick-serve concepts like MOD and Blaze Pizza are driving the pizza renaissance with made-to-order customizable pies with Chipotle-like service. Even non-pizza QSRs are getting into the market—Subway recently launched Flatizza, a square, thin-crust flatbread with customizable toppings.
At Maple Mart, Sohre has tried to introduce more customizable options by using the refrigerated prep table, traditionally used for preparing fresh-to-order sub sandwiches, for pizza toppings, as well. Customers can choose among the various signature pies or choose their own toppings.
Click here for part 2 of this series to read about the challenges—and advantages--Sohre encountered when switching her Maple Mart to a fresh pizza program.
This post is sponsored by Land Mark Products