Promotional pressure mounts in the pizza delivery segment.

Some delivery platforms are intent on undercutting pizza brands on promotions.

Pizza delivery chains have to contend with the most competitive market environment amongst all the varieties of fast-food, and in this toughest of contests, the most significant battles are fought in the promotional arena.

Unlike other segments, where brand loyalty plays a prominent role, demand for pizza delivery is driven chiefly by price and convenience. Resultingly, consumers appear to shop around for the best deal, which is most likely to be one of the numerous promotions on offer.

Delivery platforms like Uber Eats and Just Eat have entered the fray with intent, launching promotions that rival, and even undercut, those offered directly by pizza brands. On these platforms, straightforward percentage discounts are the most prevalent pizza promotion, accounting for 57%, a figure notably higher than the 45% fast-food average, according to data by Meaningful Vision.

"Free product" or "buy one, get one free" offers rank second, appearing in 15% of cases, which is slightly less frequent than the 20% average seen in other fast-food segments. Special pricing, often applied to meal deals, comes in third at 17%, again exceeding the fast-food average. Interestingly, while free delivery is a common promotion in other fast-food categories, it remains relatively uncommon for pizza.

This intensifying competition is further evidenced by the increase in the average discount offered by delivery platforms for pizza, which went up from 23% to 27% this year. For comparison, the overall average discount across all fast-food categories is 25%, indicating that pizza is being discounted more heavily than rival products.

Direct restaurant delivery remains a cheaper option, as third-party delivery fees can inflate total costs. But even here it appears brands are challenged to retain customers, since loyalty programs in the pizza segment lag behind those offered by chicken or burger chains.

“In this hyper-competitive environment, pizza chains can’t afford to simply react to changes in the market, after the fact — a forward-thinking, data-led strategy is essential”, Maria Vanifatova, CEO of Meaningful Vision said “Success will belong to those who can track market shifts in real time, optimising promotions intelligently, and co-ordinating a seamless omni-channel presence.”

With the intensity of competition for a slice of the pizza delivery market, promotions are not merely a tactical reserve, engaged to plug gaps and shore up defences, but are deployed as the main strategic asset in the battle to win and retain customers.