I think you may be right on the quality vs price thing, or perhaps the market is getting segmented and the folks only interested in price are not calling me and those interested in quality have figured out they are not going to get it from the nationals or the little fly-by-night independant shops.
We have heard that the indi competition is getting very skimpy with the toppings which is hurting the perceived value, and the nationals persist with focusing on low price which is driving them to poor quality toppings and frozen dough.
Our ticket average is increasing and pretty much accounts for the sales growth. I have been able to scale back the average discount value as a percentage of sales.
Food cost is up but a period of focus on staff training is bringing it to a better point.
Labor is tough. Wages are rising and I am paying more now to get and keep good help. We have a construction and an oil/gas boom in the region and hourly wages are increasing. I now start pizza cooks at $10 and raise them pretty quickly to $11 if they work out.
My advertising costs are down both in actual dollars and in percent of sales.
I started charging for sides like salad dressing packets and marinara etc and raised the delivery charge to $2. (Not one comment so far)
Cheese is coming down, but if it does not go back below ~$1.80 a pound we will be raising prices after the Fall slow season.
