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Too Many Slices In The Pizza Pie! What's Behind Recent Pizza Promotions?

Too Many Slices In The Pizza Pie! What's Behind Recent Pizza Promotions?

It is raining offers for pizza fans, as pizza companies announce promotions left, right and center in a bid to perk up sales. This unusual high-intensity, high-pitched campaigns have been the order of the day since late last year, and the trend is continuing into the new year.

Offers Galore

Some offers of Domino's Pizza, Inc. (NYSE: DPZ), include a discount of up to 20 percent on group purchases, two menu items for $5.99 in a mix and match deal, a large of one-topping pizza and an eight-piece order of chicken for merely $14.99, etc.

Papa John's Int'l, Inc. (NASDAQ: PZZA), not wanting to be left far behind, has had its share of offers. Upon Visa Inc (NYSE: V)'s Visa checkout, Papa John's offers a free large one-topping pizza, redeemable using a promo code, 25 percent off offer, free large one-topping pizza, etc.

Yum! Brands, Inc. (NYSE: YUM)'s Pizza Hut offers free cheese sticks on becoming a Hut Lovers member, any large pizza for $11, $10 for any large carryout pizza, large two-topping pizza for $7.99 each and other deals.

Papa Murphy's Holdings Inc (NASDAQ: FRSH)'s offers included $3 off family pizza; $2 off large pizza or $1 off medium/delite pizza; $2 off any pizza, any size; $6 off two family-size pizzas; large cowboy pizza for only $10, and more.

What's Driving The Promotion Spree?

There are several reasons a company might want to offer promotions. Some of these could be:

  • To attract the attention of consumers to a particular product offering.
  • To promote a new product.
  • To win the goodwill of customers or buy their loyalty.
  • To lure repeat customers. Some of the promotions require that a customer visits the store again to claim a reward.
  • To zero in on marketing efforts, targeting the customers. The swiping of loyalty card each time a customer makes a purchase at the store presents the stores with the data on buying behavior.
  • To take on competition: Pizza sales have now become highly competitive. Even the beleaguered Chipotle Mexican Grill, Inc. (NYSE: CMG) has a pizza concept now. To stay afloat, companies are forced to undercut prices or offer promotions.
  • To stimulate sales in a saturated market.
  • To combat food deflation, which makes the takeaway option expensive relative to eat at home, could also force companies to cut prices to attract customers to their outlet.

Posted-In: News Restaurants Trading Ideas General Best of Benzinga


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