The pizza industry has experienced some recent promising years, accounting for nearly $426 billion in 2017 alone. As the franchise industry continues to evolve, adjusting to consumer demands, technological innovations, and market trends, the pizza industry by 2020 is giving franchisees and potential franchise owners plenty to look forward to.
The Rise of the Fast-Food Market
Fast-food in America and the rest of the world is not going anywhere anytime soon. In 2017, the fast-food market was reported to be worth $134 billion. It is expected to reach $690.80 billion by 2020, with an increase in quick-service restaurants (QSR) of 2% per year by 2020. Overall, the fast-food industry is expected to grow at a compound annual growth rate (CAGR) of 4.20% between 2017 and the end of 2020.
Within the fast-food market, burgers and sandwiches still hold the most significant slice of the pie, pizza following right after, then pasta, and chicken. The pizza market still accounts for 15% of the fast-food industry, with about 93% of Americans eating at least one slice of pizza per month in 2017.
The Consumer Demands
One of the most significant changes that will impact the fast-food industry as a whole will be consumer demands. So far, consumers have asked for more transparency coming from franchises, healthier food choices, faster responses to their demands, and more.
Consumer Behavior
Consumer behavior changes the way franchises market their products. For example, 1 out of every 3 kids age 9-12 eat at a quick service restaurant every day. This means a more parent-driven marketing strategy could be highly successful.
Healthier Options
Consumer demands are also changing the way fast-food restaurants plan their menus. It's predicted that by 2020, 54% of consumers in the UK, for example, will prefer healthier eating-out options. Last year alone, overall menu calories dropped by 12%.
Going Mobile
By now, consumers are expecting franchises and local restaurants to offer some type of mobile ordering system. Having the right online ordering system can mean a huge difference for a franchise. Mobile orders are anticipated to account for $38 billion by 2020, which is a 10.7% of total QSR revenues by that year. It is expected that by 2020, there will be 55 million mobile devices, which it is not surprising that mobile orders will continue to grow at a 57% CAGR.
The Pizza Market
The pizza market, as always, remained in the top 3 growing markets within fast-food. 350 slices of pizza were eaten every second in 2017. The pizza industry in 2017 was filled with success, opening 954 locations last year. By 2020, the pizza market is set to report a CAGR by 3.7% per year.
The biggest forecast for the pizza market? Pizza delivery. By 2020, it's projected that 40% of all pizza franchises revenues will come from pizza delivery sales, most likely made through online ordering or a mobile app.
Overall, the pizza franchise industry is stepping on solid ground. Pizza industry forecast for 2020 reports that the industry will continue to grow in value and through innovations. We are even seeing some of these right now, with self-driving cars, drone pizza delivery, and other innovations.
Sources: https://www.zionmarketresearch.com/news/fast-food-market
https://www.shopkick.com/partners/blog/the-fast-food-industry-growth-sta...
http://www.businessinsider.com/mobile-order-ahead-market-forecasts-top-a...
https://www.reportlinker.com/p04259376/Global-Pizza-Market.html
http://www.restaurantbusinessonline.com/potential-sales-mix-delivery-40-...
