Pizza company projects 15% sales growth despite food delivery downturn
Despite a challenging economic environment and a downturn in the food delivery sector, The Pizza Company remains optimistic about its growth prospects, projecting a 15% increase in sales this year. This confidence stems from its 20-minute delivery guarantee and strategic initiatives aimed at attracting younger customers.
The company, a subsidiary of Minor Food, continues to focus on providing a value-for-money experience for its customers, according to Thunyachate Ekvetchavit, the firm’s Chief Operating Officer. Amidst dwindling purchasing power, especially in rural areas, the company’s Buy One Get One Free offer and the launch of a small pizza set for individual diners have been introduced to cater to shifting consumer trends towards smaller meals, reported Bangkok Post.
Despite a general decline in food delivery in Thailand, The Pizza Company has seen a considerable surge in demand for its delivery services. Currently, 45% of the company’s total sales come from delivery channels, up from 25% before the pandemic.
To further enhance its delivery services, The Pizza Company has committed to a 20-minute delivery time for orders from 40 selected stores in the Greater Bangkok region within a 3-kilometre radius, accounting for 30% of total pizza delivery sales. This initiative addresses customer concerns about long waiting times and ensures that pizzas are delivered hot and fresh.
According to the company, roughly 95% of all orders are currently being delivered within the guaranteed time. To compensate for any late deliveries, customers are offered a free pizza order coupon. For other locations nationwide, which represent 70% of total delivery sales, the company provides a 30-minute delivery guarantee.
On average, each outlet in Thailand records between 2,500 and 3,000 delivery transactions per month. The company’s delivery speed sets it apart from other online food delivery platforms, which generally take longer to deliver orders, said Thanyachate.
Expansion plans
Further expansion plans are also in the pipeline, with Patt Pongwittayapipat, General Manager of The Pizza Company, revealing that the company aims to open 25 additional outlets in Thailand this year, with a budget of 300 million baht. Of these, 10 will be in Bangkok, and the remaining 15 will be located in rural areas and second-tier cities.
The company’s expansion strategy involves opening not only mall-based outlets but also standalone stores, extending its late-night delivery services and attracting a larger customer base. As of the end of 2023, The Pizza Company had more than 420 outlets in Thailand and 170 outlets overseas, spanning eight countries.
The pizza chain contributes approximately 13-14% to Minor Food’s total revenue and commands a market share of over 70% in a sector valued at 10-11 billion baht. The brand has reached over 60% of Thailand’s 7 million households.
In 2023, The Pizza Company reported a 10% sales growth, spurred by a significant rebranding campaign and the launch of its loyalty programme, The Pizza Club Card. The company aims to double club card sales this year, building on its existing base of 300,000 members.
This year, the company has engaged Putthipong “Billkin” Assaratanakul and Krit “PP” Amnuaydechkorn as brand ambassadors, to increase its young generation customer base from the current 25%.
