Is Technology Closing Independent Pizza Joints?

Digital and online ordering for big chains has revolutionized the pizza category.

March 09, 2016

CHICAGO – Technology is slowing killing mom-and-pop U.S. pizza places, RestaurantNews.com reports. The category has been revamped by new technology rolled out by pizza chains, which led to the closing of around 2,500 independent pizzerias in 2015.

What’s driving the change? Digital and online ordering, which the three largest U.S. pizza chains have embraced. These chains—Domino’s, Little Caesars and Pizza Hut—process close to 15% of all pizza revenue through their digital platforms. Of the 50 U.S. pizza chains with the largest sales in 2014, 62% had their own mobile app and an additional 88% had an online ordering platform.

Domino’s in particular has had phenomenal success with online and digital ordering. The CEO even said that he considers the company to be a technology business that sells pizza. The chain now registers more than 50% of its sales from online platforms.

The numbers all add up to one clear conclusion: Pizzerias not investing in digital, social and mobile are becoming irrelevant faster than users can type “pizza” into Google and get their instant local listings.

Pizza chains aren’t the only ones with mobile apps and online ordering. Last month, Casey’s General Store debuted its mobile app for ordering pizza, among other things, from its stores. In January, a new poll revealed that pizza is America’s number-one comfort food.

Tune in to the April issue of NACS Magazine for a feature story diving into the future of pizza.

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