Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 28, 1995 TAG: 9507280082
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: F.J. GALLAGHER STAFF WRITER
DATELINE: LENGTH: Medium
With the big three national franchises seemingly rolling out new products every other day, the competition for a bigger slice of the pizza market continues to grow more heated.
Just as Domino's introduced chicken wings and Pizza Hut now offers stuffed-crust pizzas in an effort to draw new customers, Little Caesars has introduced an expanded menu and added seating in some of its stores.
The "Italian Kitchen" format, according to Michael Ilitch, the chain's founder and chairman, is intended to appeal to a broader age group than the chain's traditional younger carry-out customers.
"It's a very discretionary buyer today and it's a very difficult culture," Ilitch said. "You've got to be able to serve their needs, and today, that's get and go."
The Italian Kitchen concept, Ilitch said, features a variety of Italian entrees served in a cafeteria-style setting that emphasizes quick service and value pricing.
Mike and Pam Pietrzyk, who own 31 Little Caesars franchises in Southwest Virginia, put themselves at the forefront of the change. The Pietrzyks have implemented the expanded menu and seating in four of their stores - in Rocky Mount, Lynchburg, and at Lakeside Plaza and U.S. 460 locations in the Roanoke Valley.
"This is a new concept. Across the country, it's in only 30 or 40 stores," Pietrzyk said. "In the past, Little Caesars didn't fare too well with lunch business. This is a new avenue that we hope to use to increase business."
Because they were pioneers, Pam Pietrzyk said, the chain's home office in Detroit had little to offer them in the way of incentive or guidance as they made the change.
"We just kind of felt our way along," she said.
Mike Pietrzyk said business has increased since they adopted the new format and menu in mid-June.
The pizza business, Ilitch said, has become increasingly competitive in the past several years, dominated by three corporations: Pizza Hut, Domino's and Little Caesars.
"There's a battle for market share between the three," Ilitch said, "and any new business - and maybe this isn't the best word to use - is going to come from the independents," meaning smaller franchises and family-owned pizza shops.
Indeed, competition within the industry has grown so intense that corporate franchises constantly have to research and test the market with new products, said Gerry Durnell, executive director of the National Association of Pizza Operators.
National franchises, Durnell said, account for half of all pizzas sold in the United States and claim more than 60 cents of every dollar spent on the pies. The recent spate of new product offerings reflects a frenzy of competition among the three for a bigger share of the American pizza dollar.
And the stream of new products will not dry up any time soon, Durnell said.
"Every pizza business is going to be looking for a way to diversify and intensify their menus to get a bigger share," he said.
by CNB