This month's Pizza Puzzler focuses on a question many brand leaders are mulling over at this hour, "How should I change my brand in the coming year for maximum business benefit?" In this two-part "Pizza Puzzler," restaurant industry trend predictors, brand leaders and professional organizations give their best informed guesses for the year ahead.
December 18, 2019 by S.A. Whitehead — Food Editor, Net World Media Group
Without going into all the sordid details, most folks with a pulse in the U.S. these days are aware that these are trepidatious times in the "States" for a whole lot of reasons which you're already well aware. And, while many pizza leaders might fail to see how the nation's skiddish mindset has all that much to do with what they do, some of this country's top restaurant trend watchers and predictors warn that restaurateurs ignore this overall national state of well being at their own brand's peril.
After all, food and particularly pizza food, is one of those relatively few fun and delicious area we can all go to seek refuge from the storm of political, cultural and economic upheaval, not to mention the trials of everyday living in a world moving at lightspeed. That's why trend and restaurant business soothsayers strongly urge pizza restaurant brand leaders to stay mindful of the nation's mindset in times in all the actions they take with their brands or they too may be among those pining for the good ol' days.
"Right now, is not the time for extremes. Any that are out there are sitting on a very weak branch likely to break. It is okay to move slightly lateral to where you are, but don't test extremes."
-Suzy Badaracco, Culinary Tides
That's also why when recently asked what one thing pizza restaurateurs should know about keeping their menus on track and on trend in the coming year, the president of food industry think tank, Culinary Tides President Suzy Badaracco, said knowing the nation's "mental temperature" remains critical to all pizza brands do.
"Do not enter a trend unless you understand its origins, trajectory and longevity," she said in an interview with Pizza Marketplace, while imploring pizza brands to just do what they do best in the year ahead. "Spend more time researching the personality of a trend then what your competitor is doing, after all they may be idiots.
"Know what and why you are doing it before you do it. We are in a economic stall, so consumers have moved back to a more conservative position (and are) not in an experimental mood right now. ... Right now, is not the time for extremes, any that are out there are sitting on a very weak branch likely to break. It is okay to move slightly lateral to where you are, but don't test extremes."
At least one pizza restaurateur was in total agreement with Badarracco's assessment. In fact, Hungry Howie's CEO Steve Jackson pointed restaurateurs' attention to the last real bout of economic uncertainty America faced beginning in 2008.
"Economists believe that the country is headed for an economic recession in 2020-2021," he told Pizza Marketplace. "During the last recession, brands implemented a variety of tactics to adapt to the change in consumer attitude and behaviors and by meeting those changing needs and fulfilling them in unique ways. ...
"In 2008, while most pizza brands thrived during the economic downturn, Hungry Howie's sales were flat. So, our strategy was to reassess our brand positioning and focused on highlighting the core values of the company.
"Reinventing the company can be a critical strategy for business growth. We remodeled our stores, changed advertising/marketing strategy and invested in technology for the business to be more efficient and effective. With real-time information and live updates, teams can make quicker strategic business decisions. Since then, Hungry Howie's has grown adding new product, new pizza flavor options, and opening 500 stores."
"Retailers, and their customers, crave simplicity. They want it to be as easy to use as a smartphone or tablet. The fact is, the typical merchant uses less than 20% of the capability of their POS solution -- and not often very well."
-Chris Lybeer, Revel
Using technology to give brands boosts in the worst of times as well as the best, is something that many pizza concepts have latched onto in recent years. One of those primary game-changing technologies has been the rapidly evolving POS system that no longer just has to be a mere record-keeper, but a brand directional compass to better business.
One POS provider executive, Revel Systems Chief Strategy Officer Chris Lybeer, said pizza restaurateurs have to keep this extended functionality in mind in the year ahead as a way to stay on top of the game. But just as important — particularly in the relatively complex world of pizza customization that consumers now demand — is that POS systems stay as simple as humanly, or digitally, possible. Lybeer said that as of late, POS suppliers have been caught in a "more is better" loop, always adding functions, data, device support and integration, as a way to please customers.
"As a result, we build more bells and whistles--more complexity--into POS technology," he said. "But retailers, and their customers, crave simplicity. They want it to be as easy to use as a smartphone or tablet. The fact is, the typical merchant uses less than 20% of the capability of their POS solution — and not often very well. ...
"Fortunately, technology has evolved to help pizzerias simplify their operations and keep their business running smoothly. In the case of a POS, operators need a technology partner that goes beyond 'recording revenue' to encompass customer loyalty, online ordering, future ordering delivery management, kiosk ordering and real-time analytics and reporting."
And that final element may be among the most important for today's pizza brands in Lybeer's view because such real-time reporting is like WD-40 to any brand's process of making pivotal business decisions. Reported quickly and in the right way, data can not only relay everything a brand needs to know about customer buying, but also tell leadership what's making money on the menu and what isn't.
"More broadly speaking, pizzeria operators need to anticipate customer needs in the year ahead," he said. "Recent research reveals that by 2020, 51% of customers will expect businesses to know what they want. Guerrilla marketing, in-store marketing and intuitive technology will all be key in understanding the customer as we move ahead."
In fact, that kind of less-is-more mentality might well be a theme for pizza restaurateurs to remember as we enter a new decade, when that old acronym, KISS, for "Keep It Simple, Stupid" has a whole new meaning that goes back to the idea that when times get tough, simplifying the inner workings of any business can compensate for a world of hurt.
A poll of the trend reports for the coming year, as well as a check with some of the nation's trend watchers and predictors shows that simplification, relaxation and just a good old break from life's stresses is after all, what diners want from their neighborhood pizza place. And that holds true for everything the brand touches, from ordering and menu innovation, to packaging and delivery. Make it familiar. Make it easy. And if at all possible, make it fun.
We'll sink our teeth a little more deeply into the art of simplification for pizza brands in the year ahead in the second part of this feature on Monday. But, for now, we will direct brand leaders' attention to one of the areas where they can play a little "fast and loose" in the year ahead, according to Badaracco: drinks.
"Beverages definitely have to play the supporting role to the menu, but the drinks also should have a strong enough personality to be drunk on their own," Badarracco said, for example. "Pizza has a strong voice, so should the beverages. Now is not the time for a shy house California red — for gosh shakes, at least make it an Italian red!"
Along the subject of liquid refreshment, the women's professional and philanthropic culinary organization, Les Dames d'Escoffier International, identified what it sees as the emerging, established and finally, the pretty much "over" potables that restaurant brands should know about in the coming year.
Among their top choices for beverages pizza brands might want to put on their shopping lists in 2020 are just about any CBD-infused liquid, as well as low-alcohol cocktails or mocktails that capture the abstainers in the group that are either driving, dieting or heading back to the office.
For those who still want a little vino, Les Dames d'Escoffier point pizza brands' attention to populating their drink menus with the names of wines of lesser-known varietals and regions, playing again on that idea that all diners love to "discover" a new flavor or drink they can share with their friends.
The organization also sees artisan and locally produced beverages, as well as that array of fermented drinks as now being established on the restaurant stage and possibly even expected by some diners. On the way out or having run their courses, are cold brews, sparkling waters/seltzers, and even cold-pressed juices, the organization said.
"Restaurant unit growth has been increasing for years, despite lower guest traffic. One way restaurants have been able to offset this is through more LTOS."
-Steve Jackson, Hungry Howie's
Pieology's Sweet & Smoky BBQ Pulled Pork Pizza LTO.(Photo provided)
As far as what pizza brands pair with all those locally brewed brews and kombucha, many brand leaders and data watchers feel 2020 will be an especially good year for LTOs that dabble in diners areas of interest, keeping customers engaged and coming back to see what's new.
For instance, at Hungry Howie's, Steve Jackson views LTOs as a key to pizza brand business growth strategy even at a time when traffic may actually be down.
"Restaurant unit growth has been increasing for years, despite lower guest traffic. One way restaurants have been able to offset this is through more LTOS," Jackson said in an interview with Pizza Marketplace. "Whether it's offering an over-the-top product, dine-in-only BOGOs, or value deal, LTOs effectively create the promise of a short-lived and scarce opportunity that creates a sense of urgency among consumers.
"Restaurants are incorporating them into their marketing plan and finding creative means to boost sales and drive traffic. At Hungry Howie's, we've launched several LTOs from innovative products to deal specials for our value-conscious customers and seen a boost in traffic and drive sales across our stores. SuccessfulLTOs need unique ingredients, a novelty factor, and the right price."
He warned though of too frequently rolling out new limited-time offers by any one brand, saying that practice can ultimately damage a brand's top and bottom line. But there's plenty of inspiration for the LTOs a pizza brand does promote.
For instance GrubHub said its substantial quantities of cross-industry ordering data makes it quite clear that both now and in the new year, plants and plant-based foods have tremendous momentum going, and only promise to continue their popularity.
As examples, the company said cauliflower pizza showed an eye-popping 650% growth in popularity over the last year, while increases in other vegetable concoctions, like spicy brussel sprouts (up 622%), portobello (mushroom) empanadas (up 601%) and black bean and sweet potato tacos (up 513%) also have proven that consumers no longer need to be prompted to eat their veggies, as they're ready and waiting to do so.
In fact, vegan orders made through the service ticked up 27% in popularity year over year, with that lab-created concoction, the Impossible Burger, coming in first for the year's top meat-alternative options, followed by black bean burgers, tofu, mushroom burgers and even that potentially meaty-tasting plant, the jackfruit.
Editor's note: In the second part of this Year End Pizza Puzzler on Monday, we'll take a closer look at the changes expected in the pizza itself as the new year dawns and progresses.
Inset photos: iStock, except where indicated otherwise.
Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.
Revel Systems is an open cloud order management platform at the heart of our clients’ business. Through flexible architecture and open API, Revel ensures brands have the freedom they need to design a full tech stack that meets their needs, enabling them to provide an unmatched customer experience, diversify revenue streams, and scale with ease.