Pizza chains limit price hikes to stay competitive

Major pizza chains cost 40% less than those at casual dining chains.

Pizza prices saw a more modest growth than the broader QSR categories, highlighting the industry's price-sensitive nature, data from Meaningful Vision revealed.

In Q1 2025, QSR pizza prices saw a modest increase of just 2%, significantly lower than the 5% average across the broader QSR category. 

This restrained price growth for pizza is in contrast to, for example, burger chains, which have been more aggressive in price adjustments, particularly due to fluctuating protein costs. Interestingly, pizza pricing remains largely uniform regardless of topping, further highlighting the industry's price-sensitive nature.

Delving deeper whilst pizzas themselves saw a 3% rise, sides, snacks, and drinks only increased by 2%. Smaller pizzas experienced the highest price growth, whilst larger pizzas saw the least, suggesting strategic pricing to maintain perceived value on family-sized orders.

However, focusing solely on base prices misses the dynamic reality of the pizza market.  A medium pizza from major delivery brands like Domino’s or Pizza Hut costs nearly 40% less (£15.50 vs £22) than at casual dining chains. 

This gap underscores the fundamental reliance on promotions. Meal deals are king, with their share in pizza delivery menus growing from 16% to 20% this year, outpacing other fast-food segments. 

Crucially, despite inflationary pressures, the average price of pizza meal deals has actually declined by 2%, whilst in other fast-food meal deals prices grew by 8%.