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Heating Up The Case
by Richard Mitchell
January 28, 2010

ARTICLE TOOLS
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Pizzas are literally becoming hotter deli revenue generators.

More operators are positioning pizza as a key tool for attracting budget-cutting consumers who want to serve restaurant-quality meals at home without the fuss of cooking.

Many of the retailers are merchandising higher-end selections and offering larger varieties of both fully cooked and take-and-bake items.

Merchandisers include Rochester, N.Y.-based Wegmans Food Markets Inc., a chain of 75 stores in New York, New Jersey, Pennsylvania, Virginia and Maryland that operate pizza stations and offer more than 20 varieties of toppings.

Selections include Artichoke Supreme, Cheesy Broccoli, Greek, Spinach & Mushroom, Spinach Ricotta, Veggie, Zucchini, BBQ Chicken, Buffalo Chicken, Cheese Burger, Chicken Cordon Bleu, Dijon Chicken, Lasagna, and Seafood.

Austin, Texas-based Whole Foods Market Inc., meanwhile, regularly rotates its hot pizza selections.

An associate in the Glenview, Ill., Whole Foods says the store offers five varieties—and three after 6 p.m.—with each day’s preparer determining the flavors.

Among the toppings are Bell Peppers, Red Onions & Sausage, Bacon, BBQ Chicken, Pesto Potato, Grilled Vegetables, and Spinach.

Such options are helping to bolster category activity.

Deli pizza accounted for approximately 106.6 million dollar and 33.3 million pound sales between 10/5/08 and 10/3/09, compared to 97.1 million dollar and 30 million pound sales in the year-earlier period, reports the Madison, Wis.-based International Dairy-Deli-Bakery Association (IDDBA) and Hoffman Estates, Ill.-based Fresh Look Marketing Group LLC.

“Delis see pizza as a restaurant meal replacement,” says Darren Tristano, executive vice president of Technomic Inc., a Chicago-based foodservice research and consulting firm. “Offering pizza in the deli enables consumers to pick up dinner, dessert and other items in just a single shopping stop.”

The key to sustaining activity is to ensure that the deli pizza is superior to products offered at foodservice locations or from delivery companies—such as Domino’s Pizza, says Dave Ostrander, an Oscoda, Mich.-based pizza consultant.

“People can tell after three bites if a pizza has better dough and cheese,” he notes.

Merchandisers can accentuate freshness by preparing pizzas in front of customers and having the oven in plain view, he states.

“Many shoppers think you are just a reseller if the pizza is created in a back room,” Ostrander says. “Having an oven in the deli also entices shoppers with the aroma.”

Providing hot pizza samples also is a highly effective way to attract new buyers, he notes.

“Shoppers must know you’re making pizza, and then be able to compare the taste to other pizzas they have tried or there is no sale,” Ostrander says. “Because delis are not known for pizza, the best strategy is to first give it away.”

Ostrander says delis should market the popular selections that are available at local pizzerias, and also offer four or five unique items. Consistently offering new toppings and crusts helps maintain excitement in the category, he notes.

“Some varieties, such as pepperoni, have become commodities,” adds Bill Marvin, a Gig Harbor, Wash.-based restaurant advisor. “Deli customers should be getting different tastes. Otherwise, why should they spend the money?”


Richard Mitchell
mitchellr@bnpmedia.com

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