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Independent Pizza Shops Take It On The Chin As “Big Pizza” Thrives On Web Ordering

February 6, 2014: 12:00 AM EST
The move by big pizza chains to Web-based ordering systems – now accounting for 40 percent of total sales – has put the squeeze on less technologically savvy, poorer independent chains and shops. Large pizza chains, which already have marketing clout and lower cost ingredients, accounted for 52 percent of pizza orders, while the share for independents dropped to 29 percent from 31.5 percent. One pizza shop owner in Ohio reports a 20 percent decline in sales as a result of the Webification of pizza ordering. One possible solution for the little guys is online food ordering companies like Chicago-based GrubHub Seamless, which usually take a cut of online sales transacted via their platform.
Julie Jargon, "Big Pizza Chains Use Web Ordering To Slice Out Bigger Market Share", The Wall Street Journal, February 06, 2014, © Dow Jones & Company, Inc
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