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I was intrigued and really tried hard to get my crystal ball to work here. No matter how many times I gave it a crack it didn’t want to cooperate! Predictions to me are like opinions, because that is exactly what they are. We like to focus on trends and results and make sure what we can really control is what we are focusing on. If you have been reading my article from the past you know that is how we run our brand. But I think this is a fun exercise. One thing I have always done is monitor the brands that are growing and also look outside of the pizza industry to find efficiencies to keep our business ahead of our competition. That being said, here is my best attempt to let you know what I feel is going to be the buzz in the industry for 2006.
1. Dough Developments: I see two new and exciting trends in the marketplace that I think are going to see more manufacturer activity and more operator acceptance in 2006. First off, we have had a lot of our operator partners moving to add items and efficiencies. One buzz item we are seeing more and more of is par-baked dough usage. People are starting to see high quality results from dough makers and the ability to regulate their consistency and deal with labor turnover more effectively. Every time you lose people that are aware of your recipes and your proprietary formulas it lends itself to two different problems. One is that the formula can be replicated and used by that employee. More often though you need to go through the training and process of educating a new employee to make the product and your consistency suffers. And as Tom Lehman would happily tell you, even something as simple as different temperatures between locations on your thermostat will hurt consistencies. The other development I predict is the addition of dough variations from different regions and different formulas. For instance, we have built our business on a thicker, single style dough formulation. In the last year we added a NY Style pie and deep dish Sicilian Style dough. Without adding any other ingredients, equipment, or overhead, we have added more options for our customers and as a result moved pizzas we would never have sold. I think what you will see in 2006 is a lot of pizzerias adding a deep dish pizza option for their customers. Personal Pan Style pizza replicas with their own sauce, cheese, and toppings will pop up on menus more aggressively. Just adding dough variety will increase your ability to give customers what they need and therefore increase sales. 2. Appetizer Developments: If this doesn’t start to be the hottest menu item for apps I will be shocked. Boneless Buffalo Wings is the item to be adding. You have seen the success and now saturation in the market with wings coming out of nowhere in a 10 year period to be the appetizer of choice for pizzerias. What we have been missing all along in this trend is the women and children. Women and children hold the decision making power and they prefer boneless chicken options. Pizzerias will follow the lead of their national brands and the KFC’s of the world and offer a new option for their customers that will again increase the bottom line. It also allows for the operator to take advantage of a huge national advertising push and to get some piggyback marketing to drive a new item. 
3. Keeping Customers: Now is the time. Follow the advice and look at the trend. 2006 is the year for the Pizzeria Gift card and Loyalty cards to take hold. We have just integrated both in our stores and I suggest it for everyone. The redemption percentage along with the exposure and reach are awesome. You have some upfront expense, but at the same time it can replace some softer advertising options that do not drive business your way. With the gift card, the amount that they pay up front hits the register immediately. With that in mind be cautious about your accounting and how you manage that income. The cost will come later and you need to probably think about pooling your revenue and redemption and monitoring that separately. With the loyalty cards, a one for ten works and both of these items keep your pizzeria as the one of choice for those that use them or receive them as gifts. 4. Raising the Cost Bar: This is more of a hope to more than a going to prediction for the industry for 2006. So many times we talk to our partners and other industry experts and the same discussion pops up again and again. How do we compete with the 2 for 1’s and the inexpensive buffets of the world? Our prediction and hope for 2006 is that operators will increase quality and their price to market and stop bowing to competitions deep discounts. We see the buffet pricing raising as an industry average into the $5-7 range and the independent pizzerias of the world serving premium products and understanding that people will pay for quality and choose quality over price if they feel the value is there. And with pizza it is there! Where else do you get a balanced, full-meal options that can even be delivered to your home for the prices that we are charging our customers? Do not be afraid to sell good items and charge fair prices. Every time we hear operators scared of their competition it makes us scared for them. We hope in 2006 to hear more folks confident about the quality of their items and fearless to charge reasonable prices for them without undercutting and pricing our industry below its real value. Those are the trends and ideas that I see taking hold in 2006. I’m sure that we will see some positive movement in these directions. I am hopeful as always that we grow to be stronger as a segment of foodservice and find new and exciting ways to make people think pizza! It is up to us to be leaders in our industry and to take responsibility for how customers feel about the value of pizza and how it is perceived in the marketplace. I hope that this time next year we are more successful than we are today and that the simple fundamentals of hard work, integrity, and customer service lead us to better things in the future. – PMQ – |