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HUNGRY? get the (deep) dish on AUGUST 2018 | ISSUE 56 | the latest trends YOUR FREE DATASSENTIAL TREND REPORT FB 65% OF CONSUMERS HAVE EATEN PIZZA WITHIN THE PAST WEEK

DATASSENTIAL’S PIZZA KEYNOTE REPORT

DATASSENTIAL’S FOODBYTES: PIZZA KEYNOTE SNEAK PEEK 2 FB IZZA P ROGNOSIS Is there any food that’s more well-known or more beloved than good ole’ pizza? Not really. According to Datassential FLAVOR, virtually 100% of consumers know of pizza and nearly as many (91%, to be exact) say they love it or like it, making it America’s #1 favorite food. In 2014 Datassential published its first Pizza Keynote Report, and though the percentage of restaurants offering pizza has remained relatively consistent since then, the category is continuing to see tons of innovation, making it a topic worth revisiting in 2018. For example, the dish is breaking out of the traditional dinner daypart and making its way onto breakfast menus – just this month New York City’s East Village got a combined pizzeria and coffee shop named Baker’s Pizza & Espresso that’s dedicated solely to serving breakfast by the slice. Offerings at the fledgling eatery include the Benedict pizza, featuring hollandaise, over-easy eggs (fried eggs are one of the fastest-growing proteins on pizza, increasing 164% in the past 4 years, according to Datassential MenuTrends), and Canadian bacon (found at around 20% of all pizzerias).

Aside from expanding to new dayparts, pizzas are also beginning to take on a range of new flavors, with sauces like sriracha showing up on globally-inspired creations like Chicago-based Aroma Pizzeria’s pizza, Thai One on Pie, which combines grilled chicken, basil, peanuts, and mozzarella. Toppings are being reimagined, too. Operators are going beyond just traditional sausage and and experimenting with more forward-thinking, premium options like kale or pork belly. To get at the heart of consumers’ preferences when it comes to ordering and customizing their own pizzas (customization is an increasingly common expectation among consumers as they seek out a more personalized dining experience), for this report Datassential created a pizza ordering simulator in which consumers built their own pizzas, choosing their preferred option for everything from crust type to sauces to toppings. The results of the simulator, which are detailed in the full report, reveal slight differences between men and women when it comes to topping choices (men are more likely to choose indulgent proteins like pork belly, for instance) and demonstrates that consumers are, in fact, willing to pay more for premium options.

In addition to examining consumers’ preferences when it comes to away-from-home pizzas, Datassential’s Pizza Keynote Report also takes a look at their purchasing behavior with regards to at-home pizzas. With nearly a third of consumers saying their last pizza was prepared at home, it’s important for manufacturers to continue innovating retail pizza products such as frozen pizzas (which account for over half of consumers’ most recent at-home pizza eating occasions). Much like their restaurant counterparts, retailers can also benefit from offering a mix of classic and trend- forward options. This month’s FoodBytes is just a small slice of the 2018 Pizza Keynote Report. For more information or to purchase the report, call Brian Darr at 312-655-0594 or email [email protected]. FB 70% OF CONSUMERS SAY THE LAST PIZZA THEY ATE WAS PREPARED AWAY FROM HOME DATASSENTIAL’S PIZZA KEYNOTE REPORT

DATASSENTIAL’S FOODBYTES: PIZZA KEYNOTE SNEAK PEEK 4 FB WHAT MOTIVATES CONSUMERS IN CHOOSING A PIZZA RESTAURANT?

Consumer loyalty to pizza restaurants is strong – according to Datassential’s Pizza Keynote Report, half of consumers order from the same pizza restaurant, regardless of deals at other pizzerias. We asked consumers what motivates them to choose one pizza restaurant over another. Below are the top five reasons:

HAS THE BEST- TASTING PIZZA 67%

OFFERS THE BEST VALUE 55%

CONVENIENT LOCATION 49%

OFFERS COUPONS 29%

FAST SERVICE 28%

RETAIL PIZZA OPPORTUNITY

OF CONSUMERS PURCHASE FROZEN 64% PIZZA AT LEAST 56% ONCE A MONTH

OF CONSUMERS’ LAST Convenience and affordability are top drivers for purchasing frozen or take-and-bake PIZZAS WERE EATEN pizzas, while factors like healthiness or variety of toppings are weighed less heavily. FOR DINNER Focusing on improving and highlighting top However, breakfast pizzas are one attributes like convenience may help increase of the fastest-growing varieties, at-home pizza occasions. growing 63% on menus since 2013.

IN THE REPORT Amy’s, a brand of organic frozen Learn about how operators are reimagining foods, specifically highlights pizza to introduce it to nontraditional dayparts ingredients with a health halo like breakfast. that are used in its pizzas, like organic tomatoes.

DATASSENTIAL’S FOODBYTES: PIZZA KEYNOTE SNEAK PEEK FB

2 3

1 4

6 5

WHAT’S ON YOUR SLICE? 1. Trendy toppings are turning up the heat – spicy buffalo chicken has increased on menus nearly 30% over the past 4 years, and Calabrian chili peppers are one of the fastest-growing, non-protein pizza toppings with over 80% growth on menus in the same time period (Datassential MenuTrends). 2. Around half of consumers say they’re interested in Roman-style pizza, a regional variety characterized by its thick, soft, airy crust that’s often cut into rectangular slices. It can feature a wide variety of toppings, such as tomatoes, anchovies, and olives (for more on Roman-style pizza, check out World Bites: Regional Italian). 3. Roughly one in three operators menuing pizza offer margherita as an option, which has grown around 20% on menus in the past 4 years (Datassential MenuTrends). 4. Pepperoni is one of the most popular pizza toppings. In a build-your-own pizza simulation, nearly half of consumers chose pepperoni as a protein option, while the second most-popular topping, sausage, was selected by nearly 30% of consumers in comparison. 5. Shrimp is loved or liked by roughly 70% of consumers, but only shows up on 15% of pizza menus, indicating that there’s an opportunity for operators to menu it as a familiar yet unconventional topping. 6. Mushrooms are among the most- menued non-protein topping options, appearing on three-fourths of pizza menus. Trendy vegetables such as kale and broccolini are also showing up on pizzas as premium toppings that reflect growing interest in plant-forward items.

DATASSENTIAL’S FOODBYTES: PIZZA KEYNOTE SNEAK PEEK 6 FB

80% OF OPERATORS SAY THEY USE A MIX OF PRE-MADE AND MADE-IN- 20% HOUSE PIZZAS OF CONSUMERS WISH THEIR LOCAL PIZZERIAS WOULD OFFER MORE While most operators (78% in the restaurant PREMIUM, INNOVATIVE TOPPINGS segment) serve solely pizzas that are made in- house, around a third use some form of pre- The majority of operators say they are made pizza product. Pre-made pizza usage is focused on offering classic pizza toppings highest at retail, where operators may not have such as pepperoni or mushrooms, but the time, resources, or space available to consumers are hungry for something new. A create pizzas from scratch. third of operators say they would be interested in receiving suggestions for new toppings, proteins, and cheeses, indicating that ingredient innovation is an area where suppliers may be able to provide assistance. IN THE REPORT See how operators are taking pre-made pizza IN THE REPORT 2/3 products and adding a Find out what consumers and operators OF OPERATORS personal touch with are looking for when it comes to pizza CUSTOMIZE PRE- additional toppings and toppings, from trendy options like kale or MADE PIZZA ingredients. pork belly to cheeses ranging from PRODUCTS IN-HOUSE mozzarella to asiago.

What promotions work for getting customers in the door, and what don’t? OPERATORS SAY Offering trendy toppings may be one way “Being in a smaller market, direct to attract customers, but operators shouldn’t discount the effectiveness of LTOs mailed coupons have always been the either. Loyalty programs or combo offers can also be leveraged to encourage more most effective [promotion]. Usually frequent pizza purchases. dollars off of a particular pizza or a IN THE REPORT meal that includes breadsticks, Learn about the strategies pizza operators in a range of markets are implementing to drive desserts sticks, and a 2-liter of pop.” sales, and also gain insight into their most common pain points and challenges.

DATASSENTIAL’S FOODYTES: PIZZA KEYNOTE REPORT SNEAK PEEK 7 FB

PIZZA? FLATBREAD? WHAT’S THE DIFFERENCE?

According to operators, both pizza and flatbread have seen increased sales within the past year (by 44% and 40% respectively). But what exactly is the difference between the two? As it turns out, the answer isn’t exactly clear-cut: CONSUMERS SAY… Around two-fifths of consumers view flatbread as being a more premium or upscale option compared to regular pizza, while around a third believe flatbreads tend to have more unique toppings. OPERATORS SAY… The leading distinction operators make between pizza and flatbread is that the latter is more of an appetizer rather than an entrée (nearly 45% point to this). Operators are also less likely than consumers FASTEST- GROWING to see flatbread as being a more premium option. FLATBREAD INGREDIENTS

salsa apple

corn peanut

honey chipotle

egg balsamic

DATASSENTIAL’S FOODBYTES: PIZZA KEYNOTE SNEAK PEEK 8 FB 49% OF CONSUMERS ARE INTERESTED IN FROZEN PIZZA THAT CAN COOK IN ITS BOX DATASSENTIAL’S PIZZA KEYNOTE REPORT

IN THE REPORT See what next-gen technology consumers are most interested in for at-home pizzas, and discover their perceptions around top frozen pizza brands. FB DELIVERY PIZZAa keynote IS HOT 31% Consumers today are busier than ever, so it’s no surprise that a significant number of customers are getting their pizza via delivery services. Phone orders are the most common method for ordering consumption & attitudes pizza (both delivery and takeout), but digital ordering is preferred by just over half of consumers. OF CONSUMERS’ LAST AFH ordering behavior The rise of third-party delivery services like PIZZAS WERE DELIVERED , UberEats, or DoorDash as well as proprietary apps from pizza companies themselves operator perspectives has made it easier than ever for consumers to order pizza for delivery with just the touch of a few buttons. As more operators look to get into the delivery space, they’re also seeking ways to restaurant menus & innovate and stand out from the competition. consumer appeal California-based Zume Pizza, for example, is pioneering the use of ovens on-board its delivery 38% trucks, a type of next-gen pizza technology that regional & city profiles 73% of consumers say they’re interested in, according to Datassential’s Pizza Keynote Report. demographic influences & segment skews OF OPERATORS SAY THEY OFFER PIZZA DELIVERY brand rankings for quality, value, & convenience

IN THE REPORT Learn the top methods consumers use to order pizza for delivery, and discover operator perspectives on how third-party delivery services fit into their businesses. Pizza is fired up. Two-thirds of consumers have eaten pizza in the past week, and 20 percent of Millennials enjoyed a slice in the past day. Pizza varieties are growing on menus, expanding on favorites like pepperoni and mushroom to include upscale ingredients such as pulled pork and ricotta cheese. And operators who menu pizza say business is booming, both among national and regional chains and local independents. Find out why and get your piece of the pie with 10 actionable insights into the world of crusts, sauces, cheeses, proteins, and toppings. PIZZAa keynote

consumption & attitudes

ordering behavior

operator perspectives

restaurant menus & consumer appeal

regional & city profiles

demographic influences & segment skews

brand rankings for quality, value, & convenience

Pizza is fired up. Two-thirds of consumers have eaten pizza in the past week, and 20 percent of Millennials enjoyed a slice in the past day. Pizza varieties are growing on menus, expanding on favorites like pepperoni and mushroom to include upscale ingredients such as pulled pork and ricotta cheese. And operators who menu pizza say business is booming, both among national and regional chains and local independents. Find out why and get your piece of the pie with actionable insights into the world of crusts, sauces, cheeses, proteins, and toppings. PIZZA: a keynote

Topics covered From the report

consumption & attitudes CONSUMERS o explore how often consumers eat pizza and for which occasions 70% of most recent pizza occasions were compare at-home versus away-from-home behavior o prepared away-from-home o identify consumption drivers and barriers 46% feel strong loyalty toward their regular ordering behavior pizzeria o understand preferences around customization through a simulated ordering exercise 52% say they add chicken wings to their o track price sensitivity for premium ingredients order at least occasionally when o delve into demographic shifts by age, gender, and ordering pizza; even more consumers geographic region order garlic knots

operator perspectives OPERATORS o understand how foodservice operators are menuing and marketing pizza 53% expect their sales of pizza to increase in o learn which formats are commonly purchased and which ingredients inspire brand loyalty the next year o identify operational challenges and opportunities for supplier support 34% either purchase pre-made pizzas or use a mix of pre-made and made-in-house restaurant menus & consumer appeal 43% have no preferred brand for pizza o follow the growth of pizza varieties, crusts, sauces, cheeses, ingredients proteins, and toppings o pinpoint emerging ingredients and flavor profiles o see consumer affinity for pizza-friendly ingredients 1,000 consumers 309 restaurant, on- regional & city profiles from all generations site, and retail and regions operators o uncover differences between census regions and DMAs for chains and independents o review profiles of notable pizza operators around the country

consumer brand rankings

o see which pizza chains perform best on food quality, value, and service report x-tab tool webinar o track brand loyalty versus convenience as a purchase driver

GET FIRED UP. ORDER TODAY. Contact Brian Darr at 312-655-0594 or [email protected] FB

WHAT YOU MISSED IN LAST MONTH’S TRENDSPOTTING

INTERNATIONAL DINE AROUND CONCEPTS Last month we took you Last month we revisited to Louisville, home of the chain restaurants in , Kentucky Derby, where China we covered regional eats which we last covered in like burgoo and hot 2014. Learn about a fast brown as well as Southern casual chain that menus farm-to-table cuisine. curry, congee, and hot dogs, and read about authentic IN SEPTEMBER: Raleigh- Sichuan cuisine. Durham, NC IN SEPTEMBER: Denmark

ON THE MENU FOODBYTES In last month’s On the In last month’s FoodBytes, Menu, we explored we featured top trends from Southern fried green and this summer’s Fancy Food tomatoes cornbread Show, including and also showcased unique global flavors, clean ingredients, applications for coffee and functional foods. rubs and pawpaws. IN SEPTEMBER: Foodscape IN SEPTEMBER: Wild boar, is coming Sept. 19-20. If you toaster pastries, sumac, have to miss the event, don’t , and polenta. miss our recap next month.

CREATIVE CONCEPTS TIPS Robot bartenders? The idea In , we isn’t as far off as it might TIPS: Summer 2018 covered , seem. Last month we cultured butter rhubarb, fennel, bitters, explored cruise line branzino, combo meals, concepts that showcase , and . tech-forward dining spelt michelada experiences and interactive FALL ISSUE: Figs, sambal, menu formats. and more. IN SEPTEMBER: Retail Beverages

For information about an issue or to subscribe to a title, contact Datassential Business Development Manager Susan Cohen at 312-219-6428 or [email protected]

DATASSENTIAL’S FOODBYTES: PIZZA KEYNOTE SNEAK PEEK 13