QSR May 2023

BRAND INNOVATION

LITTLE CAESARS IN RECENT YEARS INNOVATED AROUND TECHNOLOGY.

be a longer-term headwind for pizza delivery. Data from The NPD Group show demand for quick-service delivery in general, not just pizza, declined in the high-single digits last year. “As consumers returned to many of their pre-COVID eat ing habits, some of the sit-down business that was a source of volume for restaurant delivery orders returned to that chan nel,” Weiner told investors in February. He added that because Domino’s business model is focused on carryout and delivery, the shift back to dine-in has bigger implications for the company compared to non-pizza restau rants that already offered sit down and carryout, but added delivery to their distribution channels during the pandemic. VALUE AND INNOVATION Pizza’s ease and affordability made it a go-to meal for cash strapped and homebound consumers as stay-at-home orders and mandated dining room closures swept across the country in 2020. Now, the category is doubling down on value plays in a different environment marked by new macroeconomic and external roadblocks. With inflation and changing consumer dynamics weigh ing on delivery, brands are emphasizing deals and promotions to engage price-sensitive consumers in a time of soaring costs. Pizza Hut launched Menu Melts, a handheld item featur ing two slices of pizza that are folded, baked, and served with a dipping sauce. The product, which Graves says was specif ically crafted with an individual meal occasion in mind, is priced at $6.99.

external delivery drivers. A renewed focus on efficiency and execution helped it shave 10 minutes off its out-the-door time for orders taken in corporate restaurants. Building on those efforts, the company late last year unveiled a “Back to Better” operations initiative. “It really is about us returning to one of the things that made this brand great to begin with, which was great company oper ations,” Lynch says. “During the pandemic, we were so focused on keeping everyone safe and keeping these restaurants open, that we moved a little bit away from some of the really impor tant KPIs that drive operational productivity and performance.” Inflation comes and goes, and most pizza chains reported improvements in staffing levels heading into 2023. Challeng ing year-over-year comparisons offer a partial explanation for the softness in delivery, too. But the normalization of consumer behaviors and a return to in-person dining experiences could

LITTLE CAESARS (2)

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MAY 2023 | QSR | www.qsrmagazine.com