Pizza Magazine the Pizza Industry’S Business Monthly Source: CHD Expert
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FEATURE STORY PIZZA POWER REPORT The Power of PIZZA2014 STATE-OF-THE INDUSTRY REPORT December 2013.indb 36 11/12/13 3:44 PM Click here for exclusive video coverage of the 2014 Pizza Power Report. The Power of PIZZA2014 STATE-OF-THE INDUSTRY REPORT PMQ’s annual Pizza Power Report provides an in-depth look at the current pizza industry and an insightful glimpse into its future. By Rick Hynum here’s an invasion under way in the pizza industry. still like inexpensive, quick-service pizza, and they still enjoy Everyone from baristas to burger chefs, it seems, the upscale “slow food” experience, but there’s an in-between wants a slice of the action. The founders of Wetzel’s niche—called “fast casual”—that’s ripe for exploitation. Where TPretzels, for example, put their own twist on pizza last year do you fit in? with Blaze Pizza (blazepizza.com), while Chili’s Grill & Bar By reviewing the past year’s overall numbers and examining rolled out a line of pies and flatbreads in early 2013. Smash- the trends in some detail, the Pizza Power Report has been burger founders Tom Ryan and Rick Schaden launched Live designed to help you plan for a more profitable 2014. We’ve Basil Pizza (livebasilpizza.com) in Denver earlier this year. culled data from a range of key industry sources, including And leading the offensive were Scott and Ally Svenson, who CHD Expert, Technomic, Mintel, the National Restaurant co-founded Seattle-based MOD Pizza (modpizza.com) in Association (NRA), Euromonitor and RestaurantData.com. 2008 after making their fortune with Seattle Coffee Com- Let’s get started! pany in the United Kingdom. For independent operators, all of these big names—and the Predicting Pizza big bucks they attract—add up to stiffer competition at the It has been particularly difficult this year to estimate the pizza higher end of the market. But this trend also reveals something industry’s growth because our sources have not been unani- about consumers’ tastes—more discerning, increasingly sophis- mous in their analyses. But after weighing a wide range of fac- ticated, and, yes, a little pricier than you might expect. People tors, PMQ is predicting a modest increase of 1.16% in overall December 2013 pmq.com 37 Pizza Power Report_December13.indd 37 11/19/13 10:06 AM State Rankings: Independent Pizzerias The chart below illustrates which states boast the highest percentage of independent pizzerias. GRAB A SLICE OF State Indepen- Chains Total % Inde- dent Units pendent PIZZA KNOWLEDGE! CT 940 137 1077 87% NY 4269 876 5145 83% MASTER THE BUSINESSES OF VT 150 31 181 83% PIZZA AND ICE CREAM AT NAPICS ’14! NJ 2125 460 2585 82% MA 1929 429 2358 82% February 9-10, 2014 NH 410 101 511 80% RI 276 82 358 77% Greater Columbus Convention Center • Columbus, Ohio PA 3152 1003 4155 76% ME 281 124 405 69% AK 94 45 139 68% DC 78 42 120 65% DE 190 107 297 64% OH 2025 1650 3675 55% Source: CHD Expert NV 341 296 637 54% pizza restaurant sales for 2013. Bear with of independent pizzerias vs. chain pizza FL 2302 1999 4301 54% us for a moment, and we’ll explain how stores for that period of time—both IL 1602 1421 3023 53% we arrived at that figure. chains and independents added and lost MD 706 628 1334 53% Technomic’s figures indicate a sales stores at a roughly equivalent propor- CA 3371 3259 6630 51% increase of 4.75% for the Top 50 pizza tion. Finally, we also factored in data WI 627 620 1247 50% chains for 2012. CHD Expert, on the submitted by industry researcher Keith IN 898 908 1806 50% other hand, showed a 2.4% decline in Gellman from RestaurantData.com. His MI 1389 1431 2820 49% SC 469 510 979 48% LEARN. EARN. SUCCEED. total pizza restaurant sales for the year research shows that, as of November 1, KEYNOTE MT 113 129 242 47% ending October 1, 2013. Also weigh- 2013, there had been a record number EVERYTHING YOU NEED. NAPICS ’14. WA 630 735 1365 46% ADDRESS FOR 2014! ing in on the subject was Euromoni- of pizzeria openings. Additionally, Gell- VA 779 932 1711 46% KEYNOTE SPEECH: tor, which predicts a 4.04% increase in man’s data shows that pizza store open- Taste a little or a lot! Thousands of food WV 286 344 630 45% pizza sales in North America (including ings have increased by an average of 13% samples, plus expert advice on using them. ID 157 192 349 45% Canada) for 2013. PMQ also took into per year since 2011. Gellman also esti- New, modern and money-saving: See the NC 883 1091 1974 45% consideration CHD Expert’s report on mates that nearly 10% of all restaurant latest equipment and tech gear for 2014. CO 465 575 1040 45% Cameron Mitchell, the rate of pizza store openings and clos- openings are now pizza concepts. UT 238 312 550 43% Go ahead, shop on site: Get show-only discounts. founder and president of ings between October 2012 and Sep- With these positive projections in Cameron Mitchell Restaurants OR 374 506 880 43% Experienced Help: Our pizza experts and tember 2013. In the latter case, we have mind and since the increase in the Top AR 282 419 701 40% peer-to-peer operators answer your questions “From Dishrags to Riches” reasoned that there was not a substantial 50 chain sales would strongly suggest a AZ 452 672 1124 40% difference between the open/close rates roughly equal increase in independent about everything pizza and ice cream. Listen to Mitchell’s inspirational story of GA 637 959 1596 40% starting as a humble dishwasher, climbing to HI 67 101 168 40% Is your pizza ‘The Best of the Midwest?’ executive chef and finally founding his own MN 518 789 1307 40% Compete in Pizza Pizzazz for your share dynamic restaurant company. After opening TN 470 779 1249 38% of $15,000 in cash! JUST Cameron’s, his first restaurant in Columbus ND 66 110 176 38% in 1993, Mitchell grew CMR to become a NM 105 188 293 36% $39 33-unit multi-concept operation with annual WY 50 91 141 35% sales of $120 million. Mitchell sold two of his KY 327 615 942 35% brands in 2008 to Ruth’s Chris Steakhouse TX 1507 2868 4375 34% NAPICS is always a bargain! for $92 million. CMR now has eight unique OK 290 568 858 34% restaurant concepts located throughout • Register before Feb. 5, 2014 for JUST $39! the eastern U.S. LA 230 466 696 33% • Still a deal even on Feb. 9-10, 2014 for ONLY $59! MO 450 1051 1501 30% • Register at napics.com. AL 225 538 763 29% SD 62 155 217 29% IA 303 815 1118 27% MS 124 347 471 26% NE 107 315 422 25% Follow us—Twitter.com/napics SPONSORED BY: KS 187 558 745 25% Like us—Facebook.com/napics Official Media Sponsor Source: CHD Expert TOTAL 38008 33379 71387 38 PMQ Pizza Magazine The Pizza Industry’s Business Monthly Source: CHD Expert December 2013.indb 38 11/12/13 3:45 PM GRAB A SLICE OF PIZZA KNOWLEDGE! MASTER THE BUSINESSES OF PIZZA AND ICE CREAM AT NAPICS ’14! February 9-10, 2014 Greater Columbus Convention Center • Columbus, Ohio LEARN. EARN. SUCCEED. KEYNOTE EVERYTHING YOU NEED. NAPICS ’14. ADDRESS FOR 2014! Taste a little or a lot! Thousands of food KEYNOTE SPEECH: samples, plus expert advice on using them. New, modern and money-saving: See the latest equipment and tech gear for 2014. Cameron Mitchell, Go ahead, shop on site: Get show-only discounts. founder and president of Cameron Mitchell Restaurants Experienced Help: Our pizza experts and peer-to-peer operators answer your questions “From Dishrags to Riches” about everything pizza and ice cream. Listen to Mitchell’s inspirational story of starting as a humble dishwasher, climbing to Is your pizza ‘The Best of the Midwest?’ executive chef and finally founding his own Compete in Pizza Pizzazz for your share dynamic restaurant company. After opening of $15,000 in cash! JUST Cameron’s, his first restaurant in Columbus in 1993, Mitchell grew CMR to become a $39 33-unit multi-concept operation with annual sales of $120 million. Mitchell sold two of his brands in 2008 to Ruth’s Chris Steakhouse NAPICS is always a bargain! for $92 million. CMR now has eight unique restaurant concepts located throughout • Register before Feb. 5, 2014 for JUST $39! the eastern U.S. • Still a deal even on Feb. 9-10, 2014 for ONLY $59! • Register at napics.com. Follow us—Twitter.com/napics SPONSORED BY: Like us—Facebook.com/napics Official Media Sponsor December 2013.indb 39 11/12/13 3:45 PM sales, the staff at PMQ is splitting the difference be- Top 50 U.S. Pizzerias: Ranked by Sales tween the reports of CHD Expert and Technomic, Based on 2012 Sales thus arriving at our prediction that, when all the 2012 U.S. Sales % Change Rank Chain Name numbers come in, total pizza industry sales in 2013 (x1,000) from 2011 will have grown by 1.16% compared to 2012. 1 Pizza Hut 5,730,000 * 4.2 So what’s our final total? By our estimates, total 2 Domino's Pizza 3,504,000 * 3.1 sales for the period ending September 2013 amount 3 Papa John's 2,442,203 9.2 to $37,375,108,000.