Upstart Pizza Chains Close Locations as Domino's

[GennGreymane]

https://www.bloomberg.com/news/artic..._medium=social

A push by upstart restaurant chains to challenge the dominance of Domino’s Pizza Inc. and Pizza Hut isn’t going well.

Pie Five, a business that’s attempting to bring a fast-casual approach to pizza, is shuttering locations in Illinois, Colorado and Minnesota. The Wisconsin-based Toppers Pizza chain, meanwhile, is closing four locations in the Chicago area.

“It’s just tough,” said Michael Halen, an analyst at Bloomberg Intelligence. “They could be opening in bad locations, or bumping up against mom-and-pop places that have a strong customer base.”

Pizza entrepreneurs have long been trying to duplicate the success of fast-casual chains such as Panera Bread Co. and Shake Shack Inc. But it’s been an uphill battle to create a successful national business.

Domino’s has used technology such as mobile ordering to solidify its market share. And a broader restaurant slump has made it hard for upstarts to find their footing.

Pie Five, which is based in Texas, is closing 14 locations. Its same-store sales -- a key indicator -- tumbled 17 percent in the most recent quarter. The company blamed the broader industry slowdown, as well as more competition.

Pie Five, owned by Rave Restaurant Group Inc., said in February that rivals are taking a bite out of sales. “Increased competition within the fast-casual segment and general industry softness contributed to weakened trends,” the company said at the time.

But the slowdown hasn’t brought much of a speed bump to Domino’s. It’s been able to draw customers with mobile-ordering technology and discounts, including a deal offering two items for $5.99 each. Domestic comparable-store sales jumped 12 percent in the fourth quarter, a sign that it’s taking market share from rivals.

Toppers, meanwhile, plans to focus on areas such as Minneapolis and Indiana, where it sees more opportunity for growth.

“We’re just going to concentrate our growth on areas where we’re already expanding," said spokeswoman Bridget Vetter.

The chain may take another stab at the Chicago market if it can return in force, she said.

“We’re going to come back when we have a better opportunity to really saturate the market,” Vetter said.

As a New Yorker, this hurts me.

[Dextroden]

https://www.bloomberg.com/news/artic..._medium=social



As a New Yorker, this hurts me.

Welcome to reality. Mass produced pizza moved rapidly is a service lower income people will use more than a relaxed pizza diner.

In other news. Holy fuck has it been busy at Domino's.

[Damajin]

No surprise, working against already established places and people generally cutting back on restaurants/fast food in general.

[Rennadrel]

Supply and demand, really. There isn't enough room in a market for too many players in any industry today.

[Elegiac]

Supply and demand, really. There isn't enough room in a market for too many players in any industry today.

Economy of scale is more the principle at work here. Chains like Pizza Hut and Dominos are much larger and can afford the capital to make the whole process significantly more user friendly - automatic order postings, delivery tracking, to say nothing of the fact they can produce acceptable pizzas much faster and in greater quantity.

[Dextroden]

Economy of scale is more the principle at work here. Chains like Pizza Hut and Dominos are much larger and can afford the capital to make the whole process significantly more user friendly - automatic order postings, delivery tracking, to say nothing of the fact they can produce acceptable pizzas much faster and in greater quantity.

Also, if you don't have delivery, you potentially isolate a chunk of customer base. Because some people don't have a car/don't want to drive/won't drive unless they can complain for free food.

[Faroth]

For my area, Pie Five doesn't have the greatest location. I personally don't go there because it's a long drive.

Pizza Hut takes all of 10 minutes, so it's my fast food cheapo choice.

If I'm going for legit pizza, I have a local place that can't be beat for me. Sure, it's expensive to get a 16" large, but why would you NOT get their 16" large?!

The local place also snagged a top pick location. They're a walk across the street from a college.

With their beers on tap, pizza, and live music on the back patio in the spring/summer, they've done well for a long while now. I hope they continue to for a long time.

[Alvito]

The food industry is a tough one with an extremely high failure rate. It isn't enough to just make a good product at a good price. The location and atmosphere of where you are is huge. The strength of your staff, the speed of service and economic issues aroundnyou are just the start of the pitfalls you face daily.

[Puupi]

Pizza is something I eat at home (whether delivered or self made) slouching in my fart pants on computer chair/sofa. It's not something I'd go out to eat at a restaurant. If I make the effort to go eat out, I eat something else - steaks, fish, texmex, other ethnic food, veggiethings.

[lockedout]

Domino's is amazing. I don't mean their food, but that they're as successful as they are despite still being as terrible as they are. Despite half a dozen "new and improved" recipes it's still the worst pizza I know of and while I like their non-pizza items, quite frankly they're relatively expensive aND their deals just aren't very good.

Everything they sell is terrible. Except maybe the bottled water.

[lockedout]

The chicken is fine, though too expensive. The chicken alfredo is fine for what it is, though also too expensive.

Ill steer clear of the processed foods thanks. Chicken from Dominos lol.

[lockedout]

Oh no, food processing.

Oh no 100 chemicals to keep the shelf life.

[lockedout]

Oh no, not chemicals!

Sorry I try to eat clean.

[lockedout]

Can you tell me which chemicals you're looking to avoid and why it's important to avoid consuming them, as well as the minimum hazardous dosage and the dosage found in the chicken? Furthermore, can you name the chemicals that are your unprocessed chicken itself and explain to me why they're not hazardous if orally consumed?

Read about your precious Dominos: http://nutritionbeast.com/2013/11/do...nts-unhealthy/

[Drakpower]

I would love for ANYTHING to come to my town. We have a Domino's and questionable local pizza options. Our Papa John's, while not the best but I liked them better than Domino's, closed at some point during my three month's of no fast fooding. I wish for a Pizza Hut...

How is Pie Five's pizza anyways?

[zenkai]

Make your pie at home, it taste better and you have real ingredients.

[Berndorf]

I blame all the people who eat their shit pizza. Same goes for Pizza hut and Papa John's.

[kail]

This applies well beyond pizza joints. Small businesses have always suffered and continue to suffer under massive stores like Walmart, Gamestop, McDonalds, Amazon, etc. It sucks in many ways but it's the reality we live in.

I'll be sad when Belindas Pizza near me ever has to close.

[lockedout]

This is a partial list of components, but answers none of the questions I asked.

Try reading it. If you're ok with putting that stuff in your body than it doesn't matter.

- - - Updated - - -

The second-worst pizza I've ever had in my life was at one of the "favorite" / "authentic" New York pizza places in NYC. I tried three different pizza places recommended by people who grew up in NYC. They ranked at the bottom of my list of pizza-like substances.

The only place that takes the absolute worst place is the place near work that claims to serve "authentic NY pizza." I'll give them the "authentic" part.

Names of said places?

[Swizzington]

I blame all the people who eat their shit pizza. Same goes for Pizza hut and Papa John's.

I don't think papa johns and pizza hut are too bad. Pretty greasy but edible. Dominos on the other hand is fucking terrible and I don't understand why anyone would go there.