Profiting From Pizza Toppings

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A complete guide to pizza toppings and their impact on operations trends, tastes, cost, usage and marketing.Sponsored

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  • 1.A guide from PizzaMarketplace.comProfiting with Pizza Toppings A complete guide to pizza toppings and their impact on operations trends, tastes, cost, usage and marketing. Developed and published bySponsored by

2. ContentsProfiting with Pizza Toppings Page 3About the sponsors Page 4Introduction | Toppings make the bottom line Page 5Chapter 1 |Trends: Focusing on the numbers Page 11 Chapter 2 |Cost and use analysis: Toppings profitsWeighty mattersIn a pinch Page 16 Chapter 3 |Marketing: As important as what is being soldOrder takingSocial mediaWidening the marginIts what is being sold, too Page 21 Chapter 4 |Safe handling: As important as tasteNot fail-safe, but close Page 24 Chapter 5 |Meats: Still the top toppingsBe specificCost controls Page 31 Chapter 6 |Vegetables and fruits: A healthy alternativeShip it or shape it?Heat-seeking customersMoisture mess Page 36 Chapter 7 |Seafood: Gaining popularityFor the shell of itHandle with care Page 40 Chapter 8 |Healthful pizza: New dough and toppingsPiling on the veggiesBase caseProfitable positioning Page 44 Chapter 9 |Multitasking: Salads, appetizers and entresFinding the marketing benefitLooks matter Page 49 Chapter 10|Organic and sustainable: The new buzzwordsFrequent deliveries a key 2011 NetWorld Alliance LLC | Sponsored by Burke Corporation 2 3. About the sponsorsBurke Corporation manufactures and markets fully cooked meatproducts that can be used as ingredients in pizza, entres and appetiz-ers prepared by restaurants, foodservice establishments and manu-facturers of prepared foods. Product lines range from traditional pizzatoppings such as pepperoni and Italian sausage to other popular fullycooked meats, including beef crumbles, meatballs, Mexican fillings andbreakfast meats.PizzaMarketplace.com is the worlds first and only website devotedto publishing fresh, original news and in-depth articles centered on thepizza industry. Launched in November 2001, the website has quicklybecome a leader in electronic publishing for the foodservice industry. Itscontent, updated every business day, is free to site visitors and read byindustry professionals worldwide.Published by NetWorld Alliance LLC. 2011 NetWorld AllianceWritten by Steve Coomes, contributor, PizzaMarketplace.com.Updated by Richard Slawsky, contributing editor, PizzaMarketplace.com.Dick Good, CEOTom Harper, presidentAndrew Davis, executive vice presidentJoseph Grove, vice president and executive editor 2011 NetWorld Alliance LLC | Sponsored by Burke Corporation3 4. Introduction Toppings make the bottom line W elcome to the latest edition ofThis guide is a tool for the businessBy Steve Coomes Profiting with Pizza Toppings. side of pizza. Chapter 2 providesContributing writer , PizzaMarketplace.com At PizzaMarketplace.com, simple, mathematical instructions on we constantly strive to provide readersstandardizing toppings amounts for Updated by Richard Slawsky with the most accurate and up-to-dateevery size of pizza, while Chapter 4 Contributing editor, information; therefore, we revisit our covers safe food handling. Chapter PizzaMarketplace.com special publications annually to make5 outlines USDA specifications sure they continue to provide the highestfor different meats and their possible level of value. composition, while Chapter 10 providestips and techniques for incorporating In this guide, there are several updates and organic and sustainable products into a a host of new information. pizzeria menu. To make a good pizza, its necessary toYes, toppings exist to add taste, but that have dough, sauce and cheese. But to taste cant be taken to the bank unless make a pizzeria a success, great toppingsan operator knows how to use and sell are needed. Unlike the past, whentoppings effectively. pepperoni, sausage, mushroom and green peppers were the only choices, todays Bottom line: This guide is an information toppings reflect the cultural diversity that tool for operators. It tracks todays characterizes the United States. These toppings trends and examines their history. days, pizzas are regularly topped with It details the ingredients of authentic everything from Latin-American chorizo Italian sausage and looks at whether fully sausage to Asian-influenced teriyaki cooked or raw toppings are best for an chicken. operation. In essence, it provides the samethings toppings provide to customers: Franchising grew the pizza industryoptions, which lead to decisions and and delivery made it unique. Overdollars. the years, pizza has evolved into the ultimate customizable food, and todaysPizzaMarketplace.com would like to thank pizzeria can transform dough, sauce, Burke Corp., a fully cooked toppings cheese and a dozen or so topping choices manufacturer in Nevada, Iowa, for into innumerable dining options, withsponsoring this guide. The companys something on the menu to please nearly generosity brings this guide to you at no any palate.cost. While most customers still cling to the tried-and-true choices of old, operators areUnlike the past, when pepperoni, sausage, demonstrating that when offered variety,mushroom and green peppers were the only customers will try something new. Uniquechoices, todays toppings reflect the cultural toppings generate a buzz in customers diversity that characterizes the United States. mouths and in their conversations. In other words, give them something tasty, and theyll talk about it. 2011 NetWorld Alliance LLC | Sponsored by Burke Corporation4 5. Chapter 1 Trends: Focusing on the numbers RAccording to the National Restaurantestaurants, like almost every othertype of business in the United Associations Expectations Index, 42 percent ofStates, have struggled in the face of restaurant operators expect to see higher sales in economic uncertainty over the past several years. Cash-strapped consumers have cutthe first six months of 2011, while only 14 percent back on dining out, and many of those expect to see sales volumes decline compared to who continue to patronize restaurants arethe same period in 2010. trading down to lower-priced alternatives. The worst, however, could be behind us.dipped slightly in the 2010 third quarter,but the company is projecting North Restaurant operators began seeingAmerican same-store sales to increase increases in same-store sales andfrom 1.5 percent to 2.5 percent and customer traffic counts in the latterinternational same-store sales to increase half of 2010. The National Restaurantas much as 30 percent in 2011. Associations Restaurant Performance Index, a monthly composite index thatAnd its not just the big three pizza chains tracks the health of and outlook for the that are seeing improvements. Even U.S. restaurant industry, hit a three-year medium-sized chains report an increase high in November 2010. Fifty-one percent in revenue, with Pizza Inn reporting sales of restaurants reported an increase in increases of 20 percent in company-owned same-store sales, and 41 percent reportedrestaurants. increased traffic (up from 38 percent the previous month). Still, there are some challenges ahead. Itsa likely bet that menu labeling laws will And the outlook continues to improve.eventually be enacted around the country. According to the National Restaurant With literally dozens of variations possible Associations Expectations Index, 42 for even the simplest of pizzeria menus, no percent of restaurant operators expect toone is completely sure how menu labeling see higher sales in the first six months ofwill affect the industry. 2011, while only 14 percent expect to see sales volumes decline compared to theFollowing are some of the top trends same period in 2010. likely to affect pizzeria operators as a newdecade opens. By many estimates, pizzeria operators are especially poised to take advantageFluctuating commodity costs: After of improvements to the economicdropping to near-record lows in 2010, environment. At Dominos, same-store cheese prices rebounded in the fall of 2010 sales increased 11.7 percent in the thirdbefore dropping at the end of the year. Still, quarter of 2010, compared with flateven at their highest levels, cheese prices same-store sales for the same period inwere nowhere near the levels they reached 2009. Pizza Hut saw its U.S. same-storein 2008. As of the beginning of 2011, sales increase 8 percent in the 2010 third cheese prices on the Chicago Mercantile quarter. Papa Johns same-store salesExchange hovered around $1.47 per 2011 NetWorld Alliance LLC | Sponsored by Burke Corporation5 6. CHAPTER 1Trends: Focusing on the numbers pound, off from a high of $1.75 per pound in October 2010. The U.S. Department of Agriculture is projecting prices in the high $1.50 range for the rest of 2011. And flour prices are likely to rise in 2011 as well, thanks to rising demand and diminished harvests. A drought ruined wheat fields in Russia, while excessive rain hurt harvests in Canada. Still, wheat prices are about one-third of what they were in 2008. Lower corn harvests are likely to boost expenses for meat companies as livestock feed prices rise. That in turn will affect the price of meat toppings. According to USDA data, meat costs as much as 12 percent more than last year.Apps on smartphones are becoming an integral partof pizza sales. Beef tenderloin has risen in cost by $2 per pound in recent months, while pork has gone up approximately $1 per pound.Hyperlocal coupons also are playing a role The cost of fuel is likely to be the top in the online world. Sites such as Groupon commodity story of 2011. Oil pricesand Living Social offer users the ability approached $100 a barrel near the endto purchase items at a discounted price, of 2010, and some experts are predicting encouraging visits to restaurants who offer gasoline prices to top $4 a gallon in thethe sales. upcoming year.New technologies. The app is one of Importance of connecting online. Socialthe latest phrases to become part of the networking applications such as Facebook Ameri

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