🍕 Pizza Defies Inflation

How chains outsmart inflation game

Author

Chris Wright
March 06, 2025

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🍕 Pizza Chains Create a Pricing Paradox

It's strange that Domino's and Pizza Hut haven't raised their pizza prices like other fast-food restaurants have. The trick? Sell tons, add hidden charges, and people keep buying.

Key Highlights:

  • A large one-topping carryout pizza at Domino's cost $6.99 in 1999 and just $7.99 in 2025, while a Big Mac Extra Value Meal skyrocketed from $4.59 in 1993 to nearly $11 today

  • Pizza Hut's full-price large pepperoni pizza costs $15.98 in 2025, barely up from $13.49 in 1997 — though its pizzas have shrunk an inch in diameter

  • American pizza consumption has exploded from about 1.4 billion pizzas annually in the 1980s to a whopping 3 billion pies per year in 2025

  • Domino's has doubled its market share to roughly 20% of all pizza sales, with Americans now gobbling up 8.8 pizzas per person annually versus just 5.6 in 1988

  • Delivery fees have quietly ballooned from zero in the '90s to about $5 today, creating a hidden price increase that doesn't show up in the advertised pie prices

👉️ Why It Matters:

Pizza franchises have cracked the code on how to maintain the illusion of value while preserving profitability in an inflationary world. The "first pizza pays for overhead, the rest are nearly pure profit" model allows franchisees to push high-volume, low-margin operations that keep customers feeling like they're getting a deal. For franchise owners: super low prices can be surprisingly profitable if you move enough product to make up for the lower margins.

📊 Why MUMBOs Are Reshaping Franchise Recruitment

With recruitment costs soaring to nearly $300 per lead, smart franchisors are ditching the traditional franchise development playbook and going straight to the source of accelerated growth: multi-unit, multi-brand operators. These franchise power players—cutely nicknamed "MUMBOs"—are becoming the secret weapon for brands looking to expand at warp speed.

Key Highlights:

  • Brands like Crumbl and 7 Brew Coffee rocketed to 100 units in just three years by targeting experienced operators—proving that partnering with the right MUMBOs can compress a decade of growth into 36 months

  • Industry boundaries are disappearing as franchisees diversify portfolios—your local Dunkin' owner might also run healthcare centers and schools, creating opportunities to cross-sell franchise concepts across sectors

  • Winning over these sophisticated operators requires hard data and technology demonstrations, not the emotional brand stories that work on first-time franchisees

👉️ Why It Matters:

Whether you're a franchisor or potential investor, understanding the MUMBO strategy changes everything. For franchisors, targeting these operators means faster growth with lower recruitment costs. For investors and operators, developing a multi-brand portfolio creates leverage and diversification that single-brand operators simply can't match. There are 4,635 unopened franchises—brands that can team up with experienced folks to open them quickly will grab the biggest market share.

💪 "Employee First" Strategy Supercharges Franchise Success

Keeping customers coming back isn't about apps or sales; it's about valuing your staff. Franchise owners with multiple locations are learning that happy employees mean happy customers and bigger profits.

Key Highlights:

  • A whopping 82% of employees say workplace engagement directly drives their productivity, according to a 2023 Slack survey that should surprise exactly no one

  • Customers who've had stellar past experiences spend a mind-blowing 140% more compared to those who dealt with your grumpy, underpaid staff

  • High employee turnover doesn't just drain your bank account — it destroys the stability and consistency that customers (especially in industries like home care) desperately crave

👉️ Why It Matters:

In a franchise system, the relationship domino effect is real: how franchisors treat franchisees influences how franchisees treat employees, which determines how employees treat customers. When you invest in workplace culture and employee satisfaction, you're not just being nice — you're making a strategic business decision that directly impacts your bottom line.

✂️ Snippets

Trevor Rappleye turned $80K debt into a seven-figure business by narrowing his focus exclusively to franchise video content, investing heavily in industry events, and turning down lucrative non-franchise clients to establish his company as the go-to specialist now serving 85+ franchise brands. (Source: Entrepreneur)

Taco Bell's "R.I.N.G. The Bell" plan aims to reach $3M AUV and 10,000 U.S. stores by 2030 through doubled menu innovation, eight new dining occasions, and boosting digital sales to 60%. The strategy builds on existing success with digital customers spending $3.50 more per order and loyalty program members nearly doubling their annual visits. (Source: QSR Magazine)

Subway's revival of its $6.99 Footlong promotion has ignited franchisee rebellion despite a $1-per-sandwich subsidy from corporate. The North American Association of Subway Franchisees urges operators to reject the "menu-wide discount" that they claim devalues premium sandwiches normally priced at $13+. (Source: Restaurant Business Online)

Franchise lawyers make sure brands are protected by dealing with complicated laws, safeguarding intellectual property, and creating strong franchise agreements. These strategic advisors help brands expand confidently while preventing costly disputes and regulatory issues that could derail growth. (Source: 1851 Franchise)