August 27, 2020
Pizzerias Present Promo Opportunities
The classic pie has seen renewed popularity during the pandemic.
In 2019, Americans consumed about 4.1 billion pizzas, according to IBIS World. Beloved for being low-cost, versatile and quick (not to mention delicious), the pizza pie has long been a fast-food favorite. Now, with COVID-19 proving difficult to quell, this beloved comfort food has seen huge leaps in demand this year, and that may present opportunities for promotional products.
Virus-traumatized consumers appreciate anew the takeout and delivery options pizza’s long been known for. While Domino’s, the largest pizza chain in the U.S., has effectively competed for market share by adopting and perfecting technologies for quick delivery, like its mobile app, others like Pizza Hut and Papa John’s have struggled to do so.
But COVID-19 has infused each brand with new life. Papa John’s saw a 28% increase in North American sales in Q2, which capped off three consecutive months of double-digit growth. Between March and June of this year, the company hired 20,000 people to meet demand and has plans to hire 10,000 more in the near future.
When I say "more," you say "cheese."
— Papa John's Pizza (@PapaJohns) August 23, 2020
More!
Cheese!
MORE!
CHEESE! pic.twitter.com/yNggwJHaEW
“Papa John’s numbers demonstrate that value and convenience is likely to be a powerful combination even in a post-pandemic environment,” R.J. Hottovy, an analyst at financial services firm Morningstar, told CNN Business.
In early May, Pizza Hut had its best week for delivery and takeout sales in eight years. And Domino’s raked in $240 million in net income from January to June, a 30% increase over last year. Along with two new pizzas, the chain now offers Carside Delivery so reticent customers don’t have to leave their vehicles to claim their orders.
This doubling-down on the convenience that pizza offers could pose opportunities for distributors as people continue to mine their local areas for easy dinner options. Edgerton, MN-based Fey Promo (asi/54040) has seen renewed demand in its patented World’s Best Pizza Cutter (Mi1036). The plastic blade is safe enough for use by kids and the elderly, says marketing services manager Beth Friese, and it’s easy to take apart for deep cleaning.
Friese says pizzerias have been targeting home kitchens and virtual pizza dates. The cutter has also been an ideal thank-you gift for remote employees, with its optional mini pizza box as gift packaging.
It also helps meet a need created by another recent trend: the option to order uncut pies. “Before the pandemic, it was marketed as a way to keep the crust crispier,” says Friese, whose team even made a fun video on the trend. “But we’ve seen a surge of new interest in it as a ‘touchless’ option for customers.”
Since many regions have seen increases in virus cases in recent weeks, pizzerias should be prepared for long-term health and safety practices along with cautious customers. Labelcraft in Pickering, ON, the parent company of Premiums Plus (asi/79392), has food-safe Quality Seal Stickers that pizzerias have been using on cardboard boxes, and paper and plastic bags. Once they’re affixed to a takeout item, they’re only removable if they’re torn. “It offers customers peace of mind that their food hasn’t been tampered with,” says sales and marketing manager Brandon Gomes.
Tracie Domino (no relation to the pizza chain), managing director of Event Outfitters in St. Petersburg, FL, has been doing a variety of items for local shops, including cutters, magnets, takeout boxes and bags, seal stickers, cups and bottle openers. “These are all great items to keep brands top of mind with customers,” she says. “Takeout and delivery are especially strong since the public is still tentative about eating in restaurants.”
Even with low- and no-contact ordering options, that reticence to dine in person has greatly affected smaller eateries with restricted outdoor space and limited delivery capabilities, if any. Robin Pinkiert, owner of Logos & Images Anywhere in upstate New York, says pizzerias in her area aren’t ready yet to invest in promo. But she’s found another opportunity to sell pie accessories: Real estate agents want cutters and pizzeria gift cards as self-promo items to give to buyers and sellers, since pizza makes an easy meal for homes in various states of flux during the moving process.
“In time, restaurants might be inclined to buy less expensive promo items to show that they’ve survived,” Pinkiert says.
Richardson Seating (asi/82365), a supplier of high-end bar stools, chairs and tables, has been targeting reopening restaurants, including those in regions with lower COVID levels that can allow for more indoor seating. “Our logo bar stools have been really strong,” says owner Ira Lichtenstein, “and we’re seeing good volume in residential furniture as well.”