A number of structural factors in combination explain why Pizza delivery brands, among all fast-food segments, experience the most fierce battle for customers.
Demand for pizza delivery is driven by a desire for convenience, the primary considerations for consumers are, can it be delivered when and where I want it, and how much does it cost. As a result, customers are less loyal to specific brands and are instead more sensitive to price. This may explain why Meaningful Vision’s data shows pizza players raised prices more modestly than burger chains who were hit by inflating beef prices.
While burger pricing trends are tied to protein type, pizza pricing is largely uniform, whether the topping might be beef, chicken, ham, or vegetarian. In March, QSR pizza prices rose by just 2%, compared to an average 5% across the broader QSR category.
Even within pizza delivery menus, price increases vary by item. Sides, snacks, and drinks went up by around 2%, pizzas by 3%, with small pizzas rising the most and large pizzas the least.
Focusing solely on base prices however, risks missing the larger picture. Across major pizza delivery brands like Domino’s, Pizza Hut, and Papa John’s, a medium pizza costs nearly 40% less than at casual dining pizza chains like PizzaExpress, Franco Manca, or Bella Italia (£15.50 vs £22). But almost no-one pays the full price. Pizza delivery is driven by a constant cycle of meal deals and discounts.
This year, the share of meal deals in pizza delivery menus grew from 16% to 20%, outpacing other fast-food segments, which grew from 15% to 17%. Despite inflation, the average price of pizza meal deals has actually declined by 2%.
The Delivery Dilemma: Both Partner, and Competitor?
An additional layer of complexity plays a role in making the pizza business so uniquely competitive since unlike other fast-food segments, most pizza chains attract very few in-store customers. Their core business is of course delivery, but while many pizza brands partner with delivery platforms, they also compete with them. Several facts uncovered by Meaningful Vision’s research highlight the intensity of competition between pizza delivery chains and platforms like Uber Eats, Just Eat, or Deliveroo.
In most fast-food categories, e.g. burgers or chicken, menu prices for delivery are approximately 20% higher than in-store, excluding delivery fees. But for pizzas, the price gap is much smaller, or even non-existent. For some pizza brands, their own delivery option is 2–3% cheaper than placing an order through aggregators. For others, it’s only 6–7% more and significantly lower than the average markup in other categories.
Menu prices for ordering pizza directly from the restaurant or through a delivery platform are quite similar. However, own-brand delivery fees remain around 30% cheaper than those charged by platforms like Uber Eats, Just Eat, or Deliveroo, which add both delivery and service fees depending on basket size. Additionally, considering the number of promotions and deals offered by restaurants, pizza delivered directly from the restaurant is usually cheaper than the equivalent order delivered by third parties.
Platforms Push Promotions
While previously pizza restaurants themselves were the front runners in promotions on their websites and apps (eg. buy one get one free), now delivery platforms are also running a wider variety of promotions. We see a similar trend across other fast-food segments, with the number of delivery-related promotions almost doubled year on year.
The % discount remains the most popular promotional technique, accounting for 57% of all pizza promotions on delivery platforms. This is higher than the median average of 43% for the fast-food segment. Next in popularity is a free product or buy one, get one free offer, which appears in 15% of cases, slightly lower than in other segments, where the average is 20%. The third most common promotion is a special price, usually applied to meal deals, accounting for 17%, again, higher than the fast-food average. For other fast-food categories, free delivery is a more common promotion, but it remains relatively unpopular for pizza.
The average discount offered by delivery platforms for pizza increased from 23% to 27% this year, further confirming that competition is intensifying. For comparison, the average discount across fast-food is 25%, suggesting pizza is being discounted more than rival products.
Meaningful Vision CEO Maria Vanifatova comments: “Despite the fierce competition and low brand loyalty, pizza loyalty programs are surprisingly underdeveloped, especially compared to highly competitive segments like chicken restaurants, where digital stamp cards, tiered rewards, and gamified apps are common.” Comments CEO of. “ This means pizza chains not only face intense price and delivery pressure, but also underperform in customer retention, losing out to both QSR rivals and the platforms they rely on.”
“In such a highly competitive segment, staying reactive is no longer enough. The dynamics of the pizza delivery market, from rising promotional and platform rivalry, to shifting consumer price sensitivity, demands a more strategic, data-driven approach to decision making. To remain competitive, brands need to be closely monitoring their rivals, tracking price trends and meal deal structures, thinking about current and future trends, and developing their ability to adapt quickly to changing consumer behaviours.”
“Equally important is taking omni-channel strategy seriously. Whether through direct apps, in-store value offerings, or platform partnerships, businesses must ensure every touchpoint is alignment and working efficiently. In an environment where promotions are constant and margins tight, those who can leverage real-time competitive intelligence and optimise pricing accordingly will be best positioned to win share and loyalty.”
In light of the intense competition and evolving promotional landscape we’ve just explored – exemplified by challenges in segments like pizza – understanding how to truly maximize the impact of your promotions is more crucial than ever. Join our upcoming webinar, “Maximising the Impact of Promotions in Foodservice in the UK,” where our experts will delve into these dynamics, providing actionable strategies to ensure your promotional efforts drive real results and competitive advantage in today’s market.
