Why pizza leads the promotional charge in UK fast-food
UK pizza delivery deals now make up 20% of menus, outpacing other fast food at just 17%.
The UK pizza delivery market faces the fiercest price competition in fast food, driven by high discount reliance, low brand loyalty, and minimal price gaps between aggregator and in-house delivery, a report by Meaningful Vision revealed.
Consumers rarely pay full price for pizza, as the segment thrives on a relentless cycle of meal deals and discounts. Whilst a medium pizza from major delivery brands costs nearly 40% less than at casual dining chains, the real story lies in promotions. In Q1 2025, the share of meal deals in pizza delivery menus surged to 20%, notably higher than the 17% average for other fast-food segments.
Remarkably, despite inflationary pressures, the average price of a pizza meal deal has declined by 2%.
Adding to this complexity is the "Delivery Dilemma." Pizza chains primarily rely on delivery, partnering with platforms like Uber Eats and Just Eat, yet simultaneously competing with them. Unlike other fast-food categories where delivery prices are often 20% higher than in-store, pizza's price gap is minimal, with own-brand delivery sometimes even being cheaper than aggregators.
While platform delivery fees remain higher, the sheer volume of promotions pushes the competitive envelope.
In Q1 2025, the average discount offered for pizza delivery stood at 27%, exceeding the 25% average across the total fast-food market. This greater discounting in pizza reflects a reluctance to raise base prices, as QSR pizza prices rose just 2% in Q1 2025, compared to a 5% increase across the broader QSR category.
Meaningful vision said this preference for promotions over overt price hikes is a direct response to consumer price sensitivity.
"Despite fierce competition and low brand loyalty, pizza loyalty programs are surprisingly underdeveloped." This leaves pizza chains vulnerable, facing intense price and delivery pressure while underperforming in customer retention. To thrive, brands need a strategic, data-driven approach, actively monitoring rivals and optimising their omni-channel strategies to win share and loyalty in this high-stakes market," Maria Vanifatova, CEO of Meaningful Vision, said.
