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Most consumers have their go-to pizza place. But that devotion is in flux as app-based delivery post-pandemic has become mainstream — and changed the way pizza fans discover and solidify attachments to favorite spots.
These changes impact every kind of pizza brand. Whether it’s a dough-slinging icon like Frank Pepe, a perfectly greasy neighborhood joint, or quick serve chains such as Domino’s, Pizza Hut, Papa John’s, or Little Caesars, instilling loyalty is part of grabbing the bigger slice of the $46 billion U.S. pizza market.
But all brands, from the widely known to the strictly local, have to compete in a backdrop of practically endless choice and instant gratification. It forces pizza shops to collectively ask: What does true loyalty look like?
At heart, pizza consumers are like any other consumer at this moment. And consumers over the last two years have been driven by price. It’s something that brands need to recognize to drive genuine loyalty.
"We can describe someone as ‘super loyal,’ which might be somebody who doesn't order in the category all the time, but only ever chooses one brand every time," says Sean Claessen, chief strategy officer at customer loyalty and engagement analytics provider Bond. "For the ‘not very loyal,’ they may order a lot in the category and a brand wins one out of five jump balls."
This nuanced view of loyalty challenges the traditional notion that frequency alone equals customer dedication. In the digital age, true loyalty may be more about capturing a larger share of a customer's overall pizza spend, rather than simply driving more frequent purchases.
Recent analytics from Attain provide fascinating insights into the pizza-ordering habits of Americans. Looking at transaction data from major chains like Domino's, Pizza Hut, Papa John's, Little Caesars, and Papa Murphy's across all payment channels, clear patterns in our collective pizza cravings emerge.
The data reveals that pizza ordering peaks during the colder months, with February seeing the highest average transaction amounts – $26.82 in 2023 and $26.33 in 2024. This winter surge likely reflects a combination of factors: the desire for comfort food during chilly weather, post-New Year's resolution relaxation, and major sporting events like the Super Bowl driving group orders. In fact, the week of February 11, 2024 (Super Bowl week) saw an average transaction amount of $31.23 for third-party delivery orders, one of the highest weekly averages of the year.
When it comes to orders placed specifically through third-party delivery apps, we see some distinct trends. These orders consistently have higher average transaction amounts compared to overall pizza purchases, suggesting that customers tend to order more or choose pricier options when using delivery apps. For instance, in February 2024, the average third-party delivery order was $31.12, compared to $26.33 for orders across all channels.
However, the frequency of third-party delivery orders is generally lower than the overall average, indicating that while customers spend more per order on these platforms, they use them less often. This could reflect the additional fees associated with third-party delivery or a preference for using these services for larger, possibly group-oriented orders.
Conversely, Attain’s data suggests a dip in both transaction amounts and purchase frequency during the summer months, particularly in August and September. This summer slump might be attributed to warmer weather inspiring more outdoor grilling and lighter eating habits.
By understanding when customers are most likely to order a slice — and how much they're willing to spend — companies can tailor their marketing efforts, adjust staffing levels, and create timely promotions to maximize sales during peak periods while potentially stimulating demand during slower times, notes Madi Bradford, manager of Data Strategy, Measurement & Insights at Attain.
To inspire frequent orders, the pizza marketplace is less about slogans suggesting “You’ve tried all the rest, now try the best” and cheesy commercials. Instead, focusing on apps, analytics, and a complex web of delivery partnerships are the way to deliver pizza customers.
According to data from Bond's data, pizza places actually inspire higher-than-average loyalty compared to other industries. However, there's a catch – they lag behind their QSR counterparts in key metrics.
“Across stay [i.e., retention], spend [i.e., check amount], and say [i.e., word-of-mouth] — the three pillars we use to measure loyalty — pizza chains score about 85%," Claessen says. “That's higher than the national average of 80%, but it's still below the rest of QSR at nearly 87%.”
The difference between pizza and other fast food is slight, but there is a perceptible difference. In part, it reflects the view that while there are indeed great pizzas available practically everywhere, many consumers may view the vast majority of pizza as a commodity. So placement on apps is a way for pizzerias to solve that discovery issue.
The rise of delivery apps like Uber Eats, DoorDash, and Grubhub has fundamentally altered how many consumers interact with their favorite pizza brands. These platforms offer unprecedented convenience, but they also create a layer of separation between restaurants and their customers.
"For all intents and purposes, you might as well be wearing a disguise," Claessen says of ordering through third-party apps. "The brand —Papa John's, Domino's, whoever — has no idea that's you hearting it."
This anonymity poses a significant challenge for pizza chains that have invested heavily in building direct relationships with customers through their own apps and loyalty programs. Domino's, in particular, has long touted its digital-first approach and resistance to third-party delivery as key differentiators.
But the siren song of convenience is hard to resist. Even established players are exploring partnerships with delivery aggregators, recognizing that they need to be where their customers are.
Case in point: Frank Pepe Pizzeria Napoletana. This century-old institution is based in New Haven, Conn. With 17 locations along the east coast, pizza aficionados make pilgrimages from across the country to try it. Despite its renown, Frank Pepe’s turned to the ridehail giant’s delivery offshoot Uber Eats to navigate the new app-driven market landscape.
The pizzamaker has embraced a dual strategy: partnering with Uber Direct for deliveries placed through its own website while also maintaining a presence on the Uber Eats marketplace. This approach allows Frank Pepe's to maintain its direct relationship with loyal customers while also tapping into the vast user base of delivery apps to attract new diners.
The strategy appears to be paying off – 73% of the company's delivery orders now come through Uber platforms. The pizzeria reports a 6-7x return on its marketing spend through Uber Eats, a testament to the power of data-driven targeting in the digital age. But does ROI translate to lasting loyalty?
“My measure of success for Uber Eats is constant growth,”says Victoria Pierce, director of Marketing at Frank Pepe's, in a statement. "We've seen real success with ads and promotions that bring in new customers and increase order frequency and order values.”
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