Continued demand for retail pizza eating into pizzeria sales

Technomic’s latest industry insights report suggests that while retail pizza formats such as frozen pizza sold at grocery stores continue to be in demand, independent pizzerias can use customization and innovation to gain back sales from these competing formats.

Compared to 2020, the report says, two of the three retail pizza formats – frozen pizza from a grocery or other retail store, pizza prepared at home from ingredients, and take-and-bake or refrigerated pizza from a restaurant, retail prepared-foods area or other food-service operation increased.

Separately, consumers increasingly call for more retail products that make it easier to prepare pizza at home. More consumers likely turned to the retail channel due to dining restrictions during COVID-19.

Pizzerias can compete with retailers through innovation and customization. –Technomic’s Industry Insights

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According to Technomic, retail will continue to be a key source for pizza for its convenience and affordability. As inflationary pressures drive up prices, some consumers may stick to take-and-bake or frozen pizza, which are largely considered more affordable alternatives to restaurants.

How can pizzerias compete with retail?

The report suggests pizzerias can compete with retailers through innovation and customization. Creating new and unique pizza offerings and highlighting the ability to build your own pizza may help attract consumers to restaurants.