 "Are Americans ditching pizza for Mexican food?")
Mamma mia! Pizza is no longer America’s favourite fast food. People in the United States have started preferring Mexican food over the greasy pie.
From New York slice to California thin-crust, pizza was once everywhere in America. The cuisine came to the country with Italian immigrants in the late 1800s and became an integral part of the US. So, what changed?
We take a look.
Is pizza losing its ‘king’ status in America?
Pizza was America’s favourite fast food for decades, with people eating it for dinner or packing it for their child’s school lunch.
Over the decades, as America’s love for pizza grew, independent shops and then chains such as Pizza Hut and Domino’s sprang up across the country. With pizza becoming readily available for home delivery, it turned into a takeout staple for many.
But now, pizzerias, which were the second-most common US restaurant type, have been outnumbered by coffee shops and Mexican food eateries, The Wall Street Journal (WSJ) reported, citing industry data.
The dominance of pizza among American fast food is fading fast in the US.
“Pizza is disrupted right now,” Ravi Thanawala, chief financial officer and North America president at Papa John’s International, told the financial newspaper in an interview. “That’s what the consumer tells us.”
Pizza players have started feeling the brunt.
The parent of the Pieology Pizzeria chain filed for chapter 11 bankruptcy protection in December. The parent of Anthony’s Coal Fired Pizza & Wings and Bertucci’s Brick Oven Pizza & Pasta have also filed for bankruptcy.
An investor group bought California Pizza Kitchen in December for under $300 million, less than the $470 million it sold for in 2011 when the chain went private, people familiar with the matter told WSJ.
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View AllThe growth in pizza sales has also stagnated.
After hitting its peak in 2019, the number of pizza restaurants in the US has declined, according to the market-research firm Datassential.
In 2024, pizza ranked sixth among US restaurant chains by sales, a drop from second place during the 1990s, as per market-research firm Technomic.
Why is this happening?
A number of factors have made pizza unappetizing for Americans. First is price. The average cost of a basic pizza is currently around $17 (Rs 1,528). This could feel expensive compared to other fast food alternatives, such as burgers, which cost about $8 (Rs 719), or burritos, which are priced at about $13 (Rs 1,169), as per Daily Mail.
Joe’s Pizza, one of New York’s popular spots, hiked its slice price by 45 per cent in just over a decade — from $2.75 (Rs 247) in 2014 to over $4 (Rs 360) today.
There is also a surge in competition between pizza companies. Food-delivery apps such as DoorDash and Uber Eats have increased the number of choices for Americans by offering a wide variety of cuisines available at the touch of their fingertips.
In New York City, the ‘pizza principle’ was coined in the 1980s, a phenomenon that says the price of a pizza slice tracks the cost of a subway fare.
This unwritten rule broke in 2022, when the average slice of cheese pizza rose to $3.14 (Rs 282), surpassing the then-subway fare of $2.75. Now, the base MTA fare stands at $3, while the average slice has jumped to around $3.71 (Rs 334).
Can companies bring back pizza lovers?
Major pizza brands are reconsidering their business strategies.
Pizza Hut, Papa John’s and the parent of Papa Murphy’s are mulling selling the companies or other turnaround methods.
Executives at Papa John’s have been exploring a total revamp, from its franchising strategy to how it cooks its pizzas, reported WSJ.
Thanawala, the chain’s CFO, said as consumers become more choosy, they have increased their menu offerings, including more side dishes.
Midsize chains such as Blaze Pizza and Mod Pizza have shut shops over the past two years to rebrand.
Domino’s has expanded its sales after the popular pizza chain launched deals such as a $9.99 (Rs 898) offering for a large pie with toppings.
The new owners of California Pizza Kitchen are confident people will not ditch pizzas but outlets need to diversify their menu.
“There are certain things you can depend on in life, and death, taxes and pizza are among them,” Cory Baker, managing partner at Consortium Brand Partners, the firm that purchased the pizza chain with other investors, said to the newspaper.
Moreover, it is not all bad news for the pizza industry. Americans still love the pie. In 2024, pizza chains generated around $31 billion in sales from their restaurants, Technomic said. As per the US Agriculture Department, around one in 10 Americans eats a slice on any given day.
With inputs from agencies
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