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Report: Fast casuals seeking huge slice of $41B pizza market

Combined with increased fast casual restaurant competition, many pizza restaurants are improving their menu offerings.

September 25, 2015

Pizza is Americans’ second-most popular cuisine at quick-service restaurants, according to "Pizza Market in the U.S.: Foodservice and Retail, 2nd Edition," a report by market research publisher Packaged Facts. Sales at U.S. pizza restaurants reached $41 billion in 2014, up 3 percent from 2013. The restaurant pizza segment will have sales approaching $43 billion by the end of 2015, according to a company press release.

An improving economy that gives consumers more reason to dine out, the release stated. Pizza restaurants, especially the major chains, are also capitalizing on digital ordering, allowing customers to order anytime/anywhere. Approximately 50 percent of Domino's and Papa John's sales come from the online/mobile channel, and half of Pizza Hut's online ordering is performed via mobile, the release stated.

Combined with increased fast casual restaurant competition, many pizza restaurants are improving their menu offerings. Domino's and Pizza Hut have moved aggressively to improve food quality, the release stated.

Also according to the release, restaurant pizza has succeeded by leveraging the take-out/delivery meal option. As a way to compete with quick service and fast casual restaurants, Little Caesars offers its $5 Hot-and-Ready one-topping pizzas for $5 as well as lunch combinations. The market for take-and-bake pizzas has grown in recent years with Papa Murphy's, Noble Roman's and ZPizza catering to this niche.

Growth of fast casual
Convenience has prompted growth for fast casual pizza restaurants that cater to customization and individual servings, using sourced ingredients, the release stated. Fast casual trailblazer Chipotle backs Pizzeria Locale, but chains such as MOD Pizza, Pieology, Project Pie, PizzaRev, 800 Degrees, Pie Five and Live Basil are all growing quickly. More recent competitors in the market include Uncle Maddio's Pizza, Blaze Fast-Fire'd Pizza and Pizza Studio and Custom Fuel Pizza.