Pizza Restaurants in the US Industry Market Research Report Now Available from IBISWorld

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The Pizza Restaurants industry has felt the heat over the five years to 2012. Operators have been substantially affected by changes in consumer spending, intense external competition and an increase in health consciousness. Despite these challenges, the industry still expanded as pizza restaurants adjusted their products to adapt to consumer preferences and consumer spending returned in 2010, which increased the demand for overall restaurant food. As the economy continues to improve, consumers will increase their purchases of nondiscretionary goods, such as restaurant pizzas. However, the Pizza Restaurants industry will continue to be negatively affected by increased competition from grocery stores and increased health consciousness from consumers. For these reasons, industry research firm IBISWorld has added a report on Pizza Restaurants industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

By adjusting to consumer preferences, pizza restaurants were able to ride out the recession

The Pizza Restaurants industry has felt the heat over the five years to 2012. Operators have been substantially affected by changes in consumer spending, intense external competition and an increase in health consciousness. “Despite these challenges, the industry still expanded as pizza restaurants adjusted their products to adapt to consumer preferences,” says IBISWorld industry analyst Mary Nanfelt, and consumer spending returned in 2010, which increased the demand for overall restaurant food. From 2007 to 2012, industry revenue is forecast to grow an estimated 1.5% per year to $42.8 billion. In 2012 specifically, revenue is projected to grow 4.5% as consumer confidence in the economy improves and people indulge in luxuries such as eating out.

As the economy continues to improve, consumers will increase their purchases of nondiscretionary goods, such as restaurant pizzas. However, the Pizza Restaurants industry will continue to be negatively affected by increased competition from grocery stores and increased health consciousness from consumers. Grocery stores will continue offering a variety of unique goods, such as made-to-order pizza, which will entice customers away from pizza delivery shops. Also, says Nanfelt, consumers will steer toward healthier foods, so pizza restaurants are expected to use fresher ingredients and add products on their menu that cater to the more health-conscious diners, such as entree salads. In line with greater competition, the industry will face higher ingredients costs as the price of milk and wheat rise. Higher costs will hamper profit margins in the next five years.

As revenue continues to expand in the next five years, establishments' numbers will follow. More players will enter the industry as revenue grows steadily and Americans keep demanding pizza. While there are well-established and well-known pizza brands in the industry, there is also a large number of small, independent and locally focused pizza restaurants across the United States. Over the five years to 2012, concentration has increased slightly. As unprofitable operators have exited the industry, survivors have captured a larger portion of demand, increasing their presence in the Pizza Restaurants industry. Most of the industry's largest operators have also grown by successfully introducing new products and expanding their marketing and promotional activities. Major companies include Yum! Brands Inc. (Pizza Hut), Domino’s Inc., Papa John’s International Inc. and Little Caesar Enterprises. For more information, visit IBISWorld’s Pizza Restaurants report in the US industry page.

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IBISWorld industry Report Key Topics

This industry is comprised of establishments that primarily prepare and serve pizza and other related items.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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