CSP Magazine

Foodservice: Win Your Slice of Pie

Today's pizza consumers are pickier than ever. What do they expect from c-stores?

Lunchtime’s calling. Instead of your regular convenience-store grab-and-go fare of prepackaged salad or yogurt, pizza is your craving. It’s fine, more or less, cheesy enough, but not exactly the Neapolitan-style, crispy-crust, fresh choice you expect from your neighborhood pizza joint or even from the take-and-bake aisle at your grocery store.

You’re slightly disappointed. OK, a lot disappointed.

That’s the thing. I’m not the only target demographic—a woman, with a child—behind this pizza revolution. Even my husband’s standards are rising.

The fact is, consumer taste preferences for authentic, fresh and natural are dictating trends in all food categories, especially pizza. Add to that the fact that pizza consumption has increased over the past few years, and c-stores are realizing the need to up their game.

“Consumers increasingly view pizza as the ‘go-to’ food when they don’t feel like cooking,” says Darren Tristano, executive vice president of Chicago-based research firm Technomic. Just this year, Technomic reported a whopping 75% of consumers eat pizza three times a month or more. More than half (55%) purchase their pizza each month from fast-casual eateries, according to Technomic’s 2014 Pizza Consumer Trend Report.

Fast-casual chains and even some newer quick-service (QSR) concepts are driving the pizza renaissance, with authentic, fresh, made-to-order and customizable pies, says Tristano. MOD and Blaze Pizza both offer build-your-own pies in a very Chipotle fashion, with many specialty options and gourmet ingredients. Even the big chains such as Dominos, Pizza Hut and Papa John’s have launched marketing campaigns touting a higher quality, better-tasting product at competitive prices, Tristano points out. And non-pizza places are getting into the market; take Subway’s recent launch of Flatizza, a square, thin-crust flatbread in cheese, pepperoni, spicy Italian and veggie options, for starters.

C-stores have a unique conundrum: the need to compete with both traditional operators in slice offerings, and with retail and grocery outlets for better take-and-bake options. So it’s a good thing equipment innovation has arrived.

Here’s a look at some of the top trends bursting onto the pizza scene.

Authentic and Artisan

Neapolitan-style pizza is the rage these days, with that crispy but doughy, slightly charred crust and a gooey, cheesy center, says Tristano.

Jim Bressi, director of product development for La Crosse, Wis.-based Kwik Trip, agrees. “We’re getting back to traditional, Italian-style pizzas you’d find in the North-east or out West where they’re based on olive oil, garlic and fresh herbs,” Bressi says.

Technomic’s report found that consumers agree that brick-oven (45%), hearth-oven (43%) and wood-fi red (32%) pizzas taste better and are of higher quality.

The problem is, how many c-stores offer wood-fi red or brick-oven pizza, or even have the space for it within their smaller footprint? Then there’s the added cost of ventilation and, of course, the cooking skills.

Obviating much of these obstacles, TurboChef released its Fire pizza oven at the National Restaurant Association Restaurant, Hotel-Motel Show in May. And Ovention uses another type of high-heat, convection technology to achieve the crispy, craveable, uber-rustic crust.

“The ROI is pretty quick for operators,” says Dave Shave, vice president of global sales and marketing for TurboChef, pointing out that the cost is far less than a typical $20,000 to $30,000 wood oven.

The unit uses two high-powered convection fans—no microwaving—on the top and bottom to cook fresh or par-baked pizzas at 750 to 840 degrees Fahrenheit in 90 seconds to 2 minutes flat. No vent required and all toppings possible, at just the press of a button.

TurboChef’s Fire also matches the other intriguing element of hearth ovens: aesthetics. With a see-through front and bright red exterior, the oven offers customers that theater appeal and opportunity to watch their food being cooked to order, says Shave.

The Matchbox Oven from Ovention has seen fast growth in the c-store channel as a result of its rapid-cook, ventless technology. The dual-sided, touch-screen oven can cook product at varying temperatures from one food item to the next; pizzas can be followed by subs, then back up to temp for another pie. Hot air, four times the industry average, can take a raw dough to crisp and ready in about 3 minutes, according to Steve Everett Jr., general manager of the Milwaukee-based company. “Convenience stores are looking to produce higher-quality pizza than in the past,” Everett says. “Gone are the days of frozen and microwaved pizzas; the foodservice dollar is too competitive.”

CONTINUED: Light and Fresh Fare

Light and Fresh

Much of this story is one playing out across the channel’s foodservice challenge: the desire for freshness and perception of healthfulness.

“Our buyers are looking for something a bit lighter,” says Bressi, though he’s quick to point out that light doesn’t equal “healthy” per se. Still, women customers in particular, who buy whole take-home pies for quick dinners on their way back from their kids’ activities, are looking for pizza with fresher toppings and perhaps a few more vegetables. Think fresh mozzarella, basil and garlic, without all the heavy sauces and cheeses.

“Women are what’s driving the quality,” says Everett of Ovention. “If the product’s not good, the women customers won’t eat it, and they’re not going to feed it to their kids, either.”

At press time, Kwik Trip was still hush-hush about a new lunch pizza line due out in October that caters specifically to females and lighter eaters. “We want to capture women and the 18- to 35-year-old professional who stops at our stores to buy salad but always walks by the pizza,” says Bressi.

Deerfield Beach, Fla.-based Pizza Fusion knows the power of the female market, too. A leader in the sustainable-pizza category for years, the company continues to see demand for a more natural, “farm-to-table” pizza featuring fresh, seasonal vegetables and herbs, and locally sourced where possible, according to Vaughan Lazar, founder and CEO.

“Just like people are curious about where their ground beef comes from, they’re paying closer attention to the toppings on their pizza,” he says.

Cheap and Fast, But Good

Convenience-store pizza’s most competitive advantage—price—still has to be there, even with better quality.

“The fact that Little Caesar’s now offers a large, 14-inch pizza right out of the oven for just $5 is a big deal,” says Tristano. “C-stores are finding they may need to compete with that.”

Keeping artisan-style, fresh pizzas at a low cost is no small feat. But doing so helps lure millennials looking for a better-quality but still fast and convenient meal.

Knowing that millennials have become a target audience for pizza sales, Ankeny, Iowa-based Casey’s General Stores introduced delivery at nearly 200 locations and is seeing a 20% to 30% increase in sales at its 24-hour sites. Technomic’s latest pizza report found that 45% of millennials would pay delivery fees for their favorite pizza.

At Kwik Trip, basic cheese and pepperoni still take the top spot in pizza sales. And, of course, your basic plain cheese pie remains a top item, especially among kids.

“But we relaunched the product using a specialty, fresh crust made for us by a quiet company that makes pizza for a lot of high-end restaurants,” says Bressi. “The half-inch-thick crust toasts up nicely, and sales have quickly improved.”

CONTINUED: Variety ... and Chicken

Variety and Chicken

While there’s no shame in plain, our pizza palate is expanding into the world of exotic.

“We’re definitely seeing the growth of specialty pizza and more variety, from Hawaiian to Asian-style and BBQ chicken toppings,” says Tristano. In fact, Technomic’s latest pizza report found that 74% (up from 70% in 2012) of consumers say a wider variety of toppings is important.

Kwik Trip offers an Asian pizza with pork meatballs, scallions, cheese and a sweet and sour sauce, says Bressi. He’s also tested Latin and Southwestern flavors using ingredients such as fajita chicken, chorizo, pepper Jack cheese, Anaheim or ancho peppers and a tomatillo-based salsa verde.

In the chicken category, Kwik Trip has offered various LTOs, including a white chicken pizza with Alfredo sauce and a lighter, “California-style” version with broccoli, black olives and peppers.

“Chicken’s adaptability has contributed to its widespread use as a top protein in both the full- and quick-service segments,” says Tristano. Combo-meat varieties and calzone-style stuffed pizzas stand out as growth areas at fast-food or limited-service restaurants (LSRs), Technomic research has found.

Pizza Fusion recently delved into sweet pizzas with a dessert option featuring house-made, natural chocolate-hazelnut spread, toasted walnuts and powdered sugar. And both TurboChef and Ovention ovens can be programmed to different recipes dictated by a wider variety of toppings, from white pizzas with delicate herbs to heavier, meat-based pies.

Gluten-Free and Vegan

Though pizza is still a growing category, some manufacturers have begun catering to gluten-free, lactose-free and vegan customers. While vegetarian might be simple enough, finding a quality nondairy cheese can be a hurdle. “Fortunately, we’ve been committed to the celiac and vegan community for over seven years,” says Lazar of Pizza Fusion, who spent years testing different products for a winner and is finding the gluten-free variety a valuable niche.

Convenience stores competing with LSRs in the pizza category might find they need to offer these products, too. The number of manufacturers of vegan-friendly cheese and gluten-free crusts have virtually doubled in recent years—and their products taste better now too, he says.

At the same time, those going for the “natural” appeal need to watch the ingredient lists closely. Many gluten-free crusts come tightly wrapped to prevent cross-contamination in stores.

“Gluten-free isn’t necessarily a driver for consumers, but it presents a veto vote issue,” says Tristano. “Let’s say you’re having a party and you want pizza, but Joe has celiac disease and needs it to be gluten-free. The restaurant or c-store that offers gluten-free alternatives are not only going to get his order, they’re going to get the whole party’s order that may include other pizzas.” The same goes for allergen- or lactose-free pizzas, particularly when children are the consumers.

Taking into account these trends and the latest equipment on the market, convenience stores need not shy away from the growing, quality-driven market “fast food” pizza has become. Their piece of the pie awaits.

Five Steps to a Great Pizza Program

  1. Decide on the type of pizza you want to serve. Do you want to offer a doughier, gooier Neapolitan-style pie, or one with a thinner, crispier crust? Do you want lots of variety or just the basics?
  2. Purchase the right equipment. Research the different rapid-speed and convection ovens on the market. Many newer models can cook fresh pizzas in minutes and create that hearth-oven appeal.
  3. Find a foodservice provider. Assuming you won’t make your own crusts or even whole pies, do your diligence to find the best pie/crust maker. Consumers want superior taste, freshness and variety.
  4. Test, test and retest. Pair up the product with the equipment you bought and make sure the pizza tastes great before rolling it out for good. LTOs should get the same attention.
  5. Keep things new. While cheese and pepperoni pizzas always sell well, especially among families with kids, don’t be afraid to dream up new toppings and flavors, even less common ones such as Southwestern or even Asian blends. Consumers can get bored with the same old stuff, so this will help compete with fast-casual restaurants and grocery stores for lunch and take-home business.

Pizza by the Percentages

 ▶ 75% of consumers eat pizza three times a month or more.

 ▶ 55% purchase their pizza each month from fast-casual eateries.

 ▶ 45% agree that brick-oven pizza tastes better.

 ▶ 43% prefer hearth-oven pies.

 ▶ 45% of millennials would pay delivery fees for their favorite pizza.

 ▶ 74% prefer a wide variety of toppings.

 ▶ 22% say pizza preferences are dictated by health.

 ▶ 59% purchase frozen take-home pies at least monthly.

Source: Technomic’s 2014 Pizza Consumer Trend Report

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