By Charlie Pogacar
Last week, Pizza Hut announced it would be selling $2 personal pan pizzas and later extended the promotion. This was just another example of a pizza chain offering a deep discount on its product—Domino’s continues to pull out all the stops in this area, as do other chains. It seems the so-called “value wars” won’t cease any time soon.
While national franchises and even regional pizza chains can slash prices to drive volume, independent pizzerias operate under a different set of circumstances. If consumers feel they are in uncertain economic times, so, too, do indie pizzeria operators, who have dealt with years of labor and food-cost inflation.
So how can the indies compete with chains—especially as it pertains to value—without eroding their bottom line? According to Tim Powell, managing principal of Foodservice IP, the real opportunity for independents lies in understanding how flexible, and personal, the concept of value has become.
Related: Pizza Power Report 2025: Major Chains Lean into Value in So-Called ‘Pizza Wars’
“Value is not price,” Powell said in a recent conversation with PMQ Pizza. “Value is feeling like you got a good deal. It’s feeling like you got what you paid for—and maybe even a little more.”
Powell’s firm recently released its “Outlook & Opportunity for Pizza in Foodservice” report, a deep dive into how consumers are dining in 2025 and what that means for pizzeria operators. The topline findings? Consumers are still eating plenty of pizza—but with greater scrutiny over where and how they spend their dollars.
The report found that only 1 in 5 consumers report having enough financial flexibility to dine out freely. Dubbed “free spenders,” they represent the most financially confident segment but make up just 19% of the market.
The largest share of consumers—45%—are what the report calls “pressured patrons,” or people who still dine out but are cautious about their choices. “These ‘pressured patrons,’ or occasional diners, are the sweet spot for independent pizzerias,” Powell said. “They still want the experience of dining out. They just need to feel like they’re getting something for their money.”
Again, however, Powell would caution against that “something” being interpreted as a discount or free item. Here, Powell argues that “value” varies widely and depends on who you ask and where they are located.
“Value is a moving target,” he says. “To a Gen Z customer in Miami, it might mean clean ingredients and an Instagrammable dining experience. In Omaha, it might mean portion size and knowing the guy behind the counter. Neither of those is about the cheapest price.”
It’s this personalized definition of value that gives independents their edge, especially in uncertain times. Powell—who is, after all, not just a researcher but also sometimes a diner—recalled a recent experience at an independent pizzeria in Denver.
“It was this heavy Detroit-style pizza served in a pan, loaded with cheese,” Powell said. “I could barely eat two slices. But I’ll remember it: It was unique, personal and over-the-top in a good way. That’s what people respond to: something memorable.”
Powell isn’t suggesting independents should ignore pricing altogether. Smart, strategic offers can still move the needle—especially if they’re targeted at the right audience. For example, digital loyalty programs and social media promotions can be highly effective with Gen Z and Millennials, who tend to respond to personalized engagement and mobile-first communication. Often, those price-driven offers are what get people to sign up for a loyalty program in the first place.
“My kids are teenagers,” Powell said. “They’ve got every restaurant app under the sun. If it’s their birthday and they get a free entree, they’re all over it. To them, that’s value.”
For older generations, the personal touch can be less digitally driven: remembering a customer’s name; delivering on a “double cheese” order without measuring it out with corporate precision; being a dedicated, embedded part of the community. These are examples of traits that have always set independent pizzerias apart, and there’s no reason to believe that won’t continue.
“Chains have CFOs who are obsessed with food costs,” Powell said. “And sure, that will help with margins. But it’s not always good for the customer. At a chain, you ask for extra cheese, and you’re still getting whatever meets the spec. At an independent place? They pile it on. It feels generous—that’s value.”
At the end of the day, Powell believes pizzerias that lean into their strengths—their hospitality, their community ties or their ability to offer a satisfying, unique product—are best positioned to win in this value-conscious environment.
“This isn’t rocket science,” Powell said. “People want to feel like they matter. That their business is appreciated. If your pizza’s good, your staff knows the regulars and you create a space that feels authentic, you’re giving people a reason to come back.”
