Pizza chain sales are down:
- Pappa Johns: -5.7%
- Pizza Hut: -12.9%
- Dominos: -6.5%
- Sbarro: -6% domestic, -13% internationally (taking into account increase in US dollar)
Sbarro’s attributes a drop in sales to a drop in mall traffic.
What is up? Frozen pizza sales.
Frozen pizza sales rocketed to $4.4 billion in America last year from $3.1 billion in 2000, the Minneapolis Star Tribune reported this week, citing market research by Datamonitor Inc. Sales of private-label brands (produced by chains such as Walmart, Jewel, Dominick’s and Target) have risen more than 20 percent in the past year. Clearly, cost and an acceptable level of quality is at play here.
In related news, Kraft Foods Inc., maker of DiGiorno, Tombstone and Jack’s, said it selling their brands to Nestle so it can fund an acquisition of Cadbury.