In the 12 months to March 2016, almost 5 million Australians over age of 14 visited or ordered from a pizza shop at least once in an average four weeks, slightly more than the 4.8 million who did so in March 2012. The research showed that back in 2012, 1.8 million people dined on Domino’s Pizza, 1 million ate Pizza Hut and 850,000 opted for Eagle Boys Pizza at least once in any given four weeks. Fast forward to 2016, and Domino’s Pizza is up to 2.3 million customers but the other two aren’t looking so good.
“The fast food industry is in flux, with many of the chains we measure losing customers since 2012. The pizza sector has not been immune to this downward trend, with Eagle Boys’ recent collapse into administration a particularly high-profile example. Domino’s, on the other hand, has managed to swim against the prevailing tide and grow its store network and customer base.” Angela Smith, Group Account Director, Roy Morgan Research commented.
Ms Smith explained that between 2012 and 2016, Eagle Boys’ visitation plunged from 852,000 to 336,000 people per average four weeks – a 61% decrease. Pizza Hut’s 25% decline from 1 million to 745,000 seems moderate in comparison. Adding to Eagle Boys’ woes is the fact that its customer numbers were overtaken 12 months ago by smaller gourmet-focused pizza chain Crust Pizza (400,000), which Roy Morgan started measuring in July 2012 (along with its sister chain, Pizza Capers).
“Domino’s strength lies in its clever use of technology at all stages of the ordering, delivery, pick-up and purchasing process: whether it’s allowing customers to place an SMS order using an ‘emoji’, providing an app to track a delivery driver’s progress, or offering a tech-enabled ‘fresh fast bake’ certification. It is no surprise that growing numbers of Aussies (including those who also eat at Eagle Boys) are taking advantage of its easy and convenient service. Meanwhile, by appealing to customers’ more ‘gourmet’ sensibilities with their creative pizzas, Crust and Pizza Capers are carving their own distinctive niche in the market. Like the countless gourmet burger bars that have sprung up in recent years, these smaller chains are offering an exotic alternative to the predictable and somewhat interchangeable menus of the major chains.” Ms Smith commented.
“Eagle Boys has been slow on the technological uptake, yet doesn’t stand out with its menu either. Over the last few years, increasing numbers of its customers have been eating at rival fast-food (and specifically pizza-focused) chains, making its current situation almost to be expected. It will certainly be interesting to see how this pans out, and how the different the Australian pizza market looks this time next year…” Smith added.