Nearly 40% of consumers say they have no preference when choosing a pizza restaurant2—a pizza marketing opportunity to create preference and win new customers who are looking to reduce spending. How can pizza marketers create preference?
It starts with value. As menu prices continued to rise in early 2023, 8.2% higher than 2022, consumers were choosing restaurants who offered more value for their dining dollars. During the first quarter of 2023, 27% of restaurant visits included a “deal,” a 7% increase over 20221.
Consumers who have eaten at a pizza restaurant in the past 90 days chose the following pizza restaurants:
- Domino’s, 18.5%
- Pizza Hut, 13.8%
- Local Pizza Restaurant, 11.6%
- Little Caesars, 11.1%
- Papa Johns, 7.4%
Value is Important to Consumers Across Geographies
Consumers across rural, urban, and suburban geographies ranked value as the most important attribute when selecting a restaurant. The chart pictured left includes consumers who ranked value as important, somewhat important, and very important.5
Value will become even more important to the 44 million consumers who resumed student loan payments effective October 1st. This brings a potential $9 Billion impact on consumer discretionary spending EACH MONTH.
Return of Student Loan Payments a Significant Impact on Discretionary Income
The biggest impact is on Gen Z and Millennials, who also purchase the most pizza and represent 53% of consumers overall. 22.2% of Gen Z and 24.6% of Millennials have student loans with an average monthly minimum payment of $292 and $330 respectively. We estimate that the overall impact on restaurant traffic could reach 2.5 to 3.0% based on consumers with a loan and looking at all the ways they say they will cut back, and dining out is at the top of the list.
Student Loan Payments Will Be Paid for By Cutting Spending in Other Areas
Engage these consumers and earn their loyalty with appealing deals and offers that give them more value for their money.
Your Customers Say Value Has 3 Important Ingredients
From big cities to small towns, value is important to consumers. Across all geographies, research shows three key ingredients must be present to meet the expectations of your customer and create their value perception of your restaurant.
Shared Mail Is the Secret Ingredient that Drives Restaurant Trial
Engage value-seeking diners with a pizza marketing strategy that prioritizes deals and offers that will prompt action. 69% of consumers who received advertising mail from restaurants tried a new restaurant over the past year4.
This trend crosses all generations from your core Boomers and Gen X to the new Millennial and Gen Z generations4; you must actively build relationships with and earn their loyalty.
Shared Mail Is a Digital On-ramp
51% of consumers who receive advertising mail report they visit the brand’s website. This is particularly true among the important Gen Z group with 67% going online4.
Read our pizza and restaurant case studies to see how other pizza brands have benefitted from integrated shared mail marketing solutions. Fill out the form below to connect with an expert to plan your strategy.
Sources: Circana, formerly NPD/CREST1; Prosper Insights & Analytics, Monthly Survey – February 2022/2023 and August 20232; USPS Mail Moments Survey, Spring 20233; USPS Mail Moments Survey, Spring 20234; Mintel/Kantar Profiles, January 20235