How Tech is Killing Off Independent Pizzerias
by Aaron Allen
Restaurant Consultant, Speaker & Industry Analyst
Aaron Allen & Associates
Technology is killing off independent pizzerias in the United States at the rate of roughly 2,549 locations per year (in 2015 alone). The pizza category is being reshaped by both big new tech deployed by chains and fresh threats from sophisticated emerging brands that are taking slices of the pie from tens of thousands of ill-equipped and low-tech independent pizzerias.
A few highlights of our findings:
- In the last decade, independent pizzerias in America have lost 21 percent market share in terms of sales and 19 percent market share in terms of units to chains. Put more plainly, that’s about 7,800 restaurants that have closed-up shop.
- Domino’s price per share has grown more than 3,000 percent since 2008, from $3.86 to $132 (as of March 2nd, 2016). It’s market capitalization was less than $300 million then, to now $7.42 billion (a fantastic fortune was made accurately forecasting and betting on tech).