Reduces the “boom” of pizza due to the epidemic economy

Reduces the “boom” of pizza due to the epidemic economy

Ann ArborAfter the rise in pizza sales due to the epidemic in the United States, the rise in demand for this product appears to be easing again.

Domino’s and Papa John chains said on Thursday that their store sales slowed in the fourth quarter compared to the significant increase they made before in 2020. Marketing is expected to continue to decline as the year progresses compared to the same previous periods.

Pizza deliveries are still very popular, although go-to options have increased as more restaurants now offer to serve food. In a survey / survey of 3,500 restaurant operators in the United States released this fall, the National Restaurant Association found that 27% added shipments through a third company such as DoorDash and 17% established their take-out service. The pizza business could be hit hard as the epidemic recedes and dining rooms reopen.

Ann Arbor-based Domino’s said store sales – that is, sales from stores that have been open for at least a year – rose 11% in the October-December period. The number was below Wall Street expectations and exceeded it by a 17% increase in the third quarter and a 16% increase in the second quarter.

Dominos CEO Rich Allison said the lack of federal stimulus checks affected demand in the quarter and that the increase in coronavirus cases negatively impacted orders. But he also acknowledged that many independent restaurants, which had not emphasized delivery before the pandemic, are now stronger competitors.

“They quickly embraced delivery to stay alive,” Alison said in a conference call with investors.

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Louisville, Kentucky-based Papa John’s said store sales in North America increased 13.5% after jumping more than 20% in the second and third quarters.

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