Pizza Franchises Still Making Dough in Tough Times

Last year, the pizza industry faced one of the most challenging times in recent memory. Soaring gas prices were squeezing deliveries, while rising costs of cheese, wheat and other pizza essential sliced into operators’ profits. Then, as if things weren’t tough enough, the economic meltdown hit and nervous consumers closed their wallets.

The good news today is that things have gotten better. Of course, the economic roller-coaster ride is by no means over, and pizza franchises still face plenty of challenges. But for smart operators, there are also plenty of opportunities.

In a tough economy, affordability is key with consumers. And as Americans have settled into a more frugal attitude, pizza franchises have benefited from diners trading down from upscale restaurants to pizza delivery or takeout. To capture budget-minded consumers, franchises are using tactics such as value meals and rebates. Some are also adding menu items, such as sandwiches, pasta, hot wings and appetizers, to become “one-stop” eateries.