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Pizza franchises battle for market share

Sarah Stowe

Two franchise pizza brands are jostling for market share in this competitive sector. AustraliaÕs third largest pizza maker Eagle Boys Pizza will open one new store every 19 hours during the last eight days of the financial year, capping off 12 months of strong store growth and sales while Pizza Hut, which has had its strongest start to a year in eight years, has announced a new, permanent pizza range offering everyday value to families: purchasing three medium sized Pizza Mias costs just $5 each.

The Pizza Mia range (available in five flavours: chicken, beef, pepperoni, cheese and vegie) will be launched through a six week major national advertising campaign that begins this week with the focus on tv and online media.

Online sales at Pizza Hut have contributed to the franchise networkÕs performance; online was the fastest growing channel for the company this year and the recent launch of its new single page ordering system is a first in the Australian market.

Pizza Hut ceo Albert Baladi explained “It gives consumers the benefit of being able to see Pizza HutÕs entire menu on one page without the need to click through to multiple pages, speeding up the ordering process.”

Pizza Hut will also be unveiling new digital enhancements to its online systems and will be announcing further product launches.

Baladi said 2009 will be the companyÕs most significant in terms of regaining market leadership in Australia. “This is a year of growth and investment for Pizza Hut, making significant changes in all areas of the business. It began with the hugely successful introduction of pasta and will continue,” he said.

However Eagle Boys is eyeing the number two slot and expects to overtake Pizza Hut as the nationÕs second biggest pizza chain within the next 12 months. The company is on track to have 400 stores operating by 2011.

Eagle Boys Pizza managing director, left,Todd Clayton said a revamped pizza menu had helped spur double-digit year-on-year sales growth in recent weeks.

“In the current market, pizza has proven to be recession-proof. Today, Australian families are looking to feed the family without breaking the bank. They are eating out at restaurants less, but still want to enjoy a quality meal,” he said.

Between 22 and 30 June 2009, Eagle Boys will open 10 new stores across the companyÕs Standard, Micro, Local and Express store models. The new stores are located in Queensland, New South Wales, and Western Australia.

Clayton said inquiries from people interested in becoming Eagle Boys franchisees had grown significantly during the past six months.

“Eagle Boys has been operating for more than 22 years and experience has also shown us that during tougher economic times we actually have an increase in inquiries from potential franchisees.”

Eagle Boys Pizza was named the nationÕs 2008 Supreme Retailer by the National Retail Association and received the Best Franchise award for the second consecutive year.