A look at a few recent coupon magazines in my area shows
Cicis: $4.99 Buffet or $4.99 large 1 topping pizza C/O only
Dominos: $6.99 Lg 1 topping, 5+5+5
Godfathers: $3.99 Buffet, Lg Pepperoni $7.99 C/O Only, BOGO any pizza
Gumbys: $6.99 Lg Cheese, $9.99 20" Cheese, BOGO any pizza
Hungry Howies: $3.99 Lg Cheese C/O only $4.99 Lg Cheese delivered w 3 or more, $3.99 Buffet
Little Ceasers: $5.00 LG Cheese or Pepperoni C/O only
Papa Johns: Lg 1 topping $5.99 C/O only. 2 LG 1 toppings 12.99, Med 3 toppings $7 with purchase of three
Pizza Hut: Pizza Mias $5.55 each $6 off any two pizzas, $9 off any Three pizzas, $12 off any four pizzas, $5 big eat menu
Competing with these prices while still maintaining one of the highest volume stores in my town my food cost has been 27% using what I feel are top quality ingredients.
Times are tough for the consumers and they are more then ever looking for a bargain. As pizza shops lose volume, it seems easy to compete on price alone. So far this year, cheese and flour prices have remained relatively low. The problem they will face will be what happens the next time these commodities spike in price? The customers of these stores have come to expect prices that will not be able to be maintained as costs increase. These customers will search for a new supplier when they suddenly feel they are getting gouged when prices are increased so dramatically.
In the meantime, do what you need to remain profitable, knowing that the pizza market will get thinned out with the weakest of stores closing, and not as many opening. People who paid $5.99 for Dominos this week will be shocked when they call next week and get quoted $11.99 for the same pizza. Plus you know many are not putting out a representative product as the short sighted manager skimps on cheese and toppings to try to still meet his food cost goals this week.