Pizza Franchising: A Price War

TheFranchiseHound:

The pizza sector is laden with high competition. The Big 3 (Pizza Hut, Papa John’s and Domino’s) continue to introduce new products to their menu to lure customers back to the store. And they are doing it. Take a look at the Domino’s website. They recently introduced Artisan pizzas which I haven’t had the chance to try but they look great from the advertisements. But if you look at the Pizza Hut and Papa John’s websites, you will notice one thing, a price war. Papa John’s is giving away large specialty pizzas for $11 and Pizza Hut is competing with a $10 large with unlimited toppings. What’s next?

This price war is nothing new. Basic supply and demand tells you that this sort of environment is expected since there is one pizza shop at every street corner, probably three. So how do the smaller chains compete? Carry on reading.

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