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There is great dynamic change in the Pizza production and marketing Scenario, which is taking over as the Number 1 category in respect of Food service sales overtaking the burgers. One of the reasons is because of Pizza Hut still number 1 Pizza in Sales Average very closely followed by other Pizza giants like Domino’s and Papa John’s.
Considering the drift of burger’s downward trend McDonald’s is almost ready for launch of its “McPizza”, which is presently under testing phase.
No one can now deny that Pizza is a very hot category marked by active competition having neck to neck war among each other domination by Pizza Hut, Domino’s and Little Caesar.
Pizza Hut still number 1 Pizza in Sales Average and Pizza hut specializes in Pizza sit down and eat service at it’s establishment and is now encroaching upon Pizza online home delivery sector. Presently Domino’s leads in the home delivery and Little Caesar are leading in Pick up service.
Pizza Hut in the past attempted to try its success in Pizza online home delivery service and has geared up its related services to corner maximum share out of Domino’s present market share.
On the other hand Little Caesar is forging ahead in its own segment of pick up delivery and spreading its services more widely.
But one gets puzzled by observing that Domino’s has of late set its goal of overtaking Pizza Hut’s gross sales. It may take many years before such an eventuality can happen.
Domino’s has already succeeded in narrowing the gap which is by recording sale of $2.6 billion system wide sale, in comparison to $3.1 billion recorded by Pizza Hut. This means, Pizza Hut has 37.7% of market share, whereas Domino’s is 31.6% with Little Caesar at 14.6% out of eight pizza chains, which lead in the market.
David Black, who started his career with Domino’s as delivery driver and now has moved up from Domino’s its earlier designation of Vice President operations to the capacity of President, has expressed his intention to overtake Pizza Hut by becoming the No. 1 pizza chain. He plans doubling of number of units, from present strength of 5,000 to 10,000 during the next ten years period.
Keeping in mind the competition moves Pizza Hut has made final preparations and plans to be ready for extensive home-delivery pushing efforts making ready special kitchens at many of its units. Considering the seating capacities, where Pizza Hut scores very high presently it can further augment its current sales of $570,000 of average per-unit business volume.
Considering the moves of Domino’s, new product launching of deep-dish pizza, shall be fetching only $440,000 on an average per-unit basis home-delivery sales.
In case of Domino’s managing for overtaking Pizza Hut during the next ten years, such a decision seems ill-advised. Domino’s needs to maintain focus on increasing its profits instead of treading the path of elusive chase.