What do you get when you cross pizza and lipstick with an economic recession?

Aug. 14, 2014

New research by CMC Markets suggests that pizza profits are a sign of the times for Australian consumers.

CMC's "Pizza Index" findings indicate that rising pizza profits, such as Domino's recent announcement of its 50.4 percent increase in profits, are a sign of consumers tightening their belts, replacing expensive items with value meals, according to the company's website.

CMC compared its research with that of the "Lipstick Index," which suggests that the more lipstick women buy, the more fractured the economy, as lipstick can be easier to afford than larger luxury items.

However, CMC makes it clear that pizza sales don't spell disaster: "Taking a balanced view, data today also showed rising business confidence and better than expected lift in house prices in Q2. Nevertheless, the geo-political tensions that belted markets (Ukraine and Iraq) are unresolved, and a weakening consumer could add weight."

Topics: Franchising & Growth, Trends / Statistics

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