You know, this is the time you really want to build loyalty with your customers. If you se some of your guys going to them, you may have to do some thngs to bring them back or remind them of why they came to you in the first place. Naturally some people are going to try the new place in town…it is expected. Try promoting a free order of breadsticks or a free soda (and list your menu price for the breadsticks or soda on the promotion to give it a value) with each order when they bring you a reciept from the new competition because many will try them and those are the ones you want to bring back to your place. Do yo have a better pizza? Maybe set up a table outside and put a big sign challenging them to take the Pepsi Challenge…samples of your pizza Vs theirs. If you pizza is not superior that could be risky though. If you don’t want to do that, maybe at least have an employee standing outside with bite-size samples of yoru best selling pizza and offer samples to those who may be walking towards the new place. I think the main thing you watn to avoid it getting in a price war. I would not try to undercut them on price because this will de-value your pizza and once both of you drop teh price it will be very difficult to bring it back up. Look for quality and value advantages you have. If your large pizza is 16 inches and theirs is 14 inches, push that fact. If you cut fresh veggies and they buy precut, push the fresh factor. These are jsut some suggestions. I am sure others here have some tips too. Just remember that people will be trying to new kid on teh block, to start thinking abotu how you are better and push those points. Good luck