Pizza Sales Update

The pizza category is enjoying a revitalization following a demand by dairy farmers to reverse the trend of sagging mozzarella sales. A three-year strategy created by America’s dairy farmers is seeing positive results with cheese sales to the top four pizza chains up 48 percent since August 2009.

January data from the NPD Group shows dollar sales and traffic at pizza quick-service restaurants also are up. Domino’s leads the way with sales and traffic up 12 percent. Pizza Hut’s sales and traffic both grew 4 percent and Papa John’s increased 3 and 4 percent, respectively.

The result comes as national chains are refocusing on pizza as their core business, rather than promoting items such as sandwiches, wings and pasta. Chains are getting behind the effort with tens of millions of marketing dollars on pizza/cheese advertising and promotions. Domino’s and Pizza Hut in particular are experiencing such success with their current cheese-heavy pizza promotions that they are extending the length of these promotions.

The good news for farmers is that the entire pizza category is growing with companies, including frozen, not cannibalizing one another. The shift back to pizza has allowed Dairy MAX to implement these national programs on the local level and, along the way, build community awareness of the dairy industry and its local economic impact.

Dairy MAX worked with Dominos on a “customer appreciation week” promotion in October. The partnership featured a “more cheese for less dough” push in 482 restaurants in Dairy MAX region where customers could purchase an extra-cheese pizza for $5.99. Dairy MAX created “pop-up cards” that were placed in pizza boxes to provide consumers educational facts about the dairy industry. Finally, the “Lots a Cheese For a Few Greenbacks” coupon promotion saw a 7-10 percent lift in sales in 482 restaurants in the tri-state area.