III. Industry Analysis
The Pizza industry has grown over the past five years due to rising consumer spending and changing preferences. Consumer spending is expected to increase an annualized 2.9%, as unemployment declines and economic conditions improve. As a result, the pizza industry has benefitted.
Changing consumer preferences have altered the industry over the past five years. Americans have become more concerned about their health and the food they eat, moving away from food high in fat, salt and sugar. Organic, locally grown and gourmet food has become more popular, and pizzerias are offering a greater array of flatbreads and whole-wheat and gluten-free crusts as a result. Consumers have also been indicating a preference for quick-service pizza shops, where pizza can be ordered online, rather than traditional, sit-down pizza restaurants.
The way operators use technology will also become increasingly important to the industry’s performance as consumers increasingly use their smartphones or tablets to order, expecting seamless internet interfaces that make it easy to customize pizza preferences.