Over the past few years, food inflation has hit consumers really hard in their pocketbooks not only at grocery stores but especially at restaurants. One of the most impacted foods is pizza and more people are opting to buy frozen pizza at the store rather than go out or order takeout from pizza restaurants. Vericast is a marketing firm that just published the results of 2,000 U.S. customers’ dining habits in January 2023, and the results say that 69% of people that used to visit pizza restaurants have switched to frozen pizza and frozen pizza sales were up 11% in 2022.
Domino’s reported a big drop in delivery sales according to Restaurant Business and the Vericast survey found that the top four U.S. pizza chains made 3% less profit during 2022 as compared to prior years. In addition, frozen pizza promotions at grocery stores increased by 214%.
People are also buying less expensive food options such as private label items versus name brands and according to Vericast 45% of those surveyed plan to spend less on eating out in 2023. 64% of people are unhappy with inflation and are eating out less and it’s not only at pizza restaurants. It would appear that the restaurant industry is in for some tough times if food inflation prices can’t be reeled in and frozen pizza is becoming the preferred choice for many customers.
Source: TastingTable