Good news for independent pizzerias! The pie is only getting larger, and it’s all thanks to pizza technology. According to the latest analysis from Aaron Allen & Associates, specialized tools and technology (like the ones Slice shops have access to) have helped boost the global pizza market to $160 billion — and independent shops can reap the benefits.
(Small) Business is Booming
“[While] larger players continue to gain share,” the restaurant consulting firm sees “smaller players embracing new technologies to level the playing field.”
The conglomerates aren’t going anywhere, but us so-called little guys are thriving and closing the gap. Big chains like Domino’s and co. have been leveraging technology and online ordering for years in order to drive more sales. Now that independent pizzerias are embracing similar technology, the industry as a whole is growing. Since we’re all about keeping you plugged into the latest in pizza technology, let’s take a deeper dive into what lies ahead.
Pizza Technology Fueled Unprecedented Growth
Offices were closed, schools were out of session, and dine-in service was all but wiped out. Still, through the peak of the pandemic, pizzerias outperformed the rest of the restaurant sector. Why is that?
For big pizza chains with $1B+ in sales, Aaron Allen & Associates cites a median revenue increase of 11.6%. Meanwhile, as founder and CEO Ilir Sela told Peter Saleh of BTIG, Slice shops doubled their average weekly income.
So, how did pizza technology factor into all of this? Obviously, online ordering played a major role in driving revenue towards independent shops when they needed it most. On the flipside, many also lost up to 30% of every sale with third-party aggregators like DoorDash and Uber Eats. Fortunately, more and more shops have shifted their business to first-party partners like Slice. Last year, that meant a whopping $112 million in savings for America’s pizzeria owners.
Beyond pickup and delivery, independent shops embraced pizza technology just as social distancing restrictions were eased in many states. POS (Point Of Sale) systems like Slice Register have streamlined brick-and-mortar operations, increasing customer satisfaction and loyalty in equal measure.
Quick Bites: Pizza Technology Trending Upward
Some of us are already selling pizza in Metaverse, but, for now, these are the trends to watch over the next five years:
- Some chains won’t be able to cut it: The “Big Pizza” elites will continue to outperform many of the medium-sized chains. For every location closed by companies like Sbarro’s, Domino’s has opened 1.2 new storefronts. Fortunately, independent pizza can adapt quicker than fast casual corporations through pizza technology and savvy branding.
- Food costs will increase: We’ve all felt it. In 2021, food-at-home prices went up 3.5% while menu prices rose 4.5% on average, according to the USDA. Inflation is out of your control, but you can tamp down commodity, rent, and labor costs with advanced planning.
- Digitized restaurants will deliver: “As delivery expands and more convenient options become ubiquitous,” the report cautions that “innovation will continue to take a toll on low-tech operators.”
The good news is that it’s never too late for an old-school shop to learn about new tools in pizza technology.