Independent pizzerias are competing against brand giants to attract pizza lovers. According to restaurant consultant Aaron Allen, technology is killing off independent pizzerias in the United States at the rate of roughly 2,549 locations per year (in 2015 alone).
There's a stark difference between brand pizzerias and independent pizzerias. Even though 93% of Americans eat at least one pizza per month, 7,800 independent pizzerias have closed in the last decade, unable to compete with Domino's, Pizza Hut, and other enterprise pizzeria companies.
Many restaurants fail. But yours can succeed with the right strategy. Check out these pizzeria survival tips below.
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3 Reasons Why Pizzerias Fail (And How Yours Can Succeed)
1. Brand giants like Domino’s dominate the market.
Chain pizza shops only account for 48% of all pizza restaurants, but they’re pulling in 61% of the revenue
The 3 largest pizza chains process nearly 15% of all pizza industry revenue via their digital platforms
For example, Domino’s price per share has grown 3,000% since 2008 with their smart delivery app and branding campaigns.
Price per share $3.86 in 2008 to $132 in March 2016
Market capitalization $300 million in 2008 to $7.42 billion in 2016
Pizzeria Survival Tip: Invest in restaurant software that makes the guest experience -- from ordering, to payments, to delivery -- more convenient, without breaking your bank.
2. Online ordering vendors take a commission of your revenue.
In 2010, roughly 1.39 billion delivery orders were made via phone. In 2015, only 1.02 billion guests called in an order, a 27% decrease.
Online orders grew from 403 million to 904 million, a 124% increase, with 47% of Americans ordering food online.
However, Foodler, GrubHub, and Seamless take a 13.5% commission on the average delivery order
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