The pizza industry is the number-one meal choice for Americans. In fact, it is consumed so frequently, that in the United States people, on average, consume 100 acres of pizza every day. The Industry is mainly classified into two different sections, pizza chains and independent pizzerias. The top four businesses in this industry are Pizza Hut, Domino’s, Papa John’s, and Little Casers, respectively. In fact they account for 32 percent of the industry sales (Thompson, C-42). The pizza owners not only compete with each other, but there is a new entrant to the industry, the frozen pizza. Furthermore, the industry typically has four options of service for their customers. These include the dine-in option, delivery option, carry out option, and take n’ bake option. Most pizzerias position their stores in convenient areas for their customers. The customer segment that holds 46.3 percent of the pizza industry is people that are 25 to 44 years of age. It is believe that this is due to a majority of these customers having children and needing quick meal options for their family. The overall performance of the industry is strong, however each company varies in their internal strengths and weakness. Also external forces play a role in the growth of the pizza industry. When the economy was week this affected customers and forced them to spend less money. People would cut their spending on eating out. If they did chose to eat out then families chose to purchase pizza that was less
The objective of this report is to analyze the business situation wherein Domino 's operates in the market and to obtain an understanding on the strategic analysis tools that can be used to acquire a new competitive advantage against their major rivals such as Pizza Hut, Eagle Boys, La Porchetta, etc. The intent of the assignment is to learn the factors that caused increase in profitability and sales and defining the actions necessary to further improve the QSR segment rank.
2005 will mark the 100-year anniversary of the first pizzeria in America. Americans eat approximately 100 acres of pizza each day, which is about 350 slices per second. According to an American Dairy Association random sampling survey, pizza is America’s fourth most craved food behind cheese, chocolate, and ice cream. American’s obviously love pizza; we have even designated the month of October as National Pizza Month. But whether you bake your pizza in your kitchen oven, in a wood-burning stove, eat it in a restaurant, or choose delivery, there is no denying this phenomenon has become as American as apple pie.
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers.
People today believe that the government is supposed to eliminate any possible danger from the food they consume, but that is not the case. In the book Fast Food Nation: The Dark Side of The All-American Meal written by Eric Schlosser, he discusses numerous problems with food production. Some of these issues are discussed in the “Epilogue”, “What’s In Meat”, and “Most Dangerous Job” chapters where Schlosser elaborates on the government’s role and how workers are mistreated. In the article, “U.S. Meatpacking Under Fire: Human Rights Group Calls for Line Speed Reduction, ERGO Standards,” it explains how the working conditions in the meat packaging industry are hazardous and are violations of basic human rights. Although workers are affected by the government’s role in the food industry, consumers are affected as well. The consequences of the lack of governmental oversight, like food contamination and others, are discussed in the film Food Inc. “Escaping the Regulatory Net: Why Regulatory Reform Can Fail Consumers”, an academic journal written by Henry Rothstein, explains how “putting consumers first” is difficult for the Food Standards Agency (FSA) to accomplish because with consumer’s interests that means regulatory reforms are most likely going to fail.
The pizza market can be very lucrative, therefore it is very competitive. There are low barriers to entry for this market because there is
The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).
The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at
The Pizza Delivery Quick (PDQ) Industry service in America is considered to be a very successful market in the quick service restaurant industry. Although the industry success is very appealing, managing the day-to-day operations needs significant planning and a clear tactics to create, implement, execute and have successful results. However, the PDQ last report sales are on the level of 30%, which places the company in a serious difficult position to continue operating competitively.
The market studies consisting of the forecast of the estimated demand show that the pizza
Domino’s Pizza Inc. is a leading retailer of pizzas with about 12,000 stores as well as operations in 80 international markets. The company’s sales in 2014 amounted to $89 billion which was a significant success that earned that company Top 10 listing in the Entrepreneur magazine’s listing of great franchise opportunities. However, the company has in the recent times suffered a slump in sales owing to intensified competition and increased demand for healthy foods amongst its target market. The following is a review of the current challenges facing the company including recommendations for improvement in market communication for the company.
Buyers: While the original strategy was to offer only high-quality pizza, customer preferences began to shift gradually which required expanded menu options for items to complement pizza such as desserts and other creative menu items. Declining sales in the quick-service and sit-down restaurant dining increased the propensity for people to cook more meals at home as well.
Shakey’s has been serving the people for how many years with their quality products using the finest ingredients and dough prepared fresh everyday keeping their tradition of great food and family entertainment. For generations, Shakey’s has been the neighborhood gathering place, where family and friends come together to share great food and good times. Shakey’s wanted to reach families and remind them that Shakey’s is not just all about food but about fun family and pizza. With its vision to be the leading and preferred pizza restaurant, it consistently serves the best tasting, high quality food through fast, efficient and friendly service in a clean, fun and wholesome environment.
Social Factors - The California Pizza Kitchen sells pizzas, pastas, salads, etc. and the ambience of the restaurants is quite informal and homely. Its primary key to its success has been that they were the first pizza restaurant that offered fresh and non-traditional ingredients for its pizzas. On a whole, the American consumer base is traditionally not very nutritional conscience when it comes to dining out. Regionally, the consumer preferences are suiting the business model of the company in most areas; however changes in the consumer
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.
When it comes to pizza, everyone has an opin ion . Some of us think th at our current pizza is just fine the way it is. Others h ave a favorite pizza joint th at makes it like no on e else. And m any pizza lovers in America agreed up until recentl y that Dom ino 's home-delivered pizza was amo ng the worst. The home-delivery market for pizza cha ins in th e United States is approximat ely $15 billion per year. Domino's, which owns th e largest home-delivery market share of any U.s . pizza chain, is find ing ways to innovate by overhauling its in-store transaction processing systems and by providing other us eful services to customers, su ch as its Pizza Tracker. And