Delivery- and carryout-focused pizza franchises vied for market share in 2023 as consumers continued to spread their spending around. Major value players Domino’s and Pizza Hut reversed their systemwide sales declines from 2022 and continued to push unit growth, especially outside the United States.
Franchise Times recently released its annual Top 400 list, a ranking of the largest franchises based in the United States by total systemwide sales.
For No. 8 Domino’s, a 4.2 percent increase in sales translated to a jump of $736 million and a 2023 sales total of $18.3 billion. CEO Russell Weiner in the company’s year-end earnings call noted the Hungry for MORE strategy is delivering results. “You’re probably also noticing a shift in our advertising as we’re beginning to romance the product more to showcase the deliciousness of our food,” he told investors. Service times, he added, are back to pre-pandemic levels.
Domino’s continued to lean into promotions this year, such as with its “Moreflation” campaign and the recent return of its “Emergency Pizza” program.
Related story: Meet the 61-Unit Franchisee Behind the Domino’s ‘Moreflation’ Promo
Pizza Hut, No. 13 on the Top 400, turned in 3.6 percent sales growth to hit $13.3 billion. The pizza giant, part of Yum Brands, went on an international new unit tear in 2023, with 800 net new openings outside the U.S. The brand’s global store count hit 19,866 in 2023.
Marco’s Chief Growth Officer Steve Seyferth says the brand is investing more in national marketing to enhance brand awareness.
Papa Johns, meanwhile, pushed systemwide sales across the $5 billion mark for the first time, up 4.1 percent. Boston Pizza finished 2023 up 10.7 percent in sales even as its net unit count dropped by 11, to 418 restaurants.
At Marco’s Pizza, Chief Growth Officer Steve Seyferth said a “challenger brand mentality” underpins the company’s approach. Marco’s, which moved up to No. 70, grew total sales to $1.1 billion, up 7.5 percent, and finished 2023 with 1,206 stores.
Seyferth, brought on in 2017 when Marco’s had about 700 units, said national advertising campaigns, which the brand started in 2019 after establishing its first national ad fund, helped push aided brand awareness to 79 percent last year.
“We still have a ways to go to catch the top four ahead of us,” said Seyferth. “They’re all at 99 percent awareness, so we’ve got a lot of white space out there.”
Menu innovation proved key to attracting customers, he noted, as Marco’s deployed an “artillery of new products” in 2023, such as its Mike’s Hot Honey limited-time offer and a lineup of $5.99 handheld Pizzolis. Pricing, he continued, is a balancing act to achieve “the right value proposition and continue to empathize your ingredient quality.”
Investments in technology—the company rolled out a new cloud-based tech platform to franchisees last October—are helping operators better understand key performance indicators, he added.
Elsewhere in the segment, Donatos Pizza saw a 7.8 percent sales dip and Hungry Howie’s was down 2.3 percent. A missing slice in this year’s ranking is Little Caesars, which did not submit its sales and unit data.