Maximizing Pizza Sales

How supermarket delis are turning pizza into a profitable destination.

In recent years, supermarket delis have evolved far beyond the traditional cold cuts counter. Many in-store deli counters have commercial electric or gas ovens now, rivaling standalone pizzerias in quality and convenience. As consumer demand for ready-to-eat and premium food options continues to grow, delis are uniquely positioned to capture a larger share of the pizza market.

Pizza remains one of the most frequently consumed foods in America, with about 40% of Americans eating it at least weekly.

“Consumers want restaurant-quality experiences at home without restaurant pricing. A fresh dough program allows retailers to compete in high-growth segments like Detroit-style and Grandma-style pizzas, while driving incremental sales across toppings, sauces and prepared foods. It shifts pizza from a single item to a full merchandising platform.”
— Dan Lucchesi, Gonnella Baking Co., Aurora, IL

“For delis, the opportunity is to bridge that gap,” says Dan Lucchesi, sales manager for Gonnella Baking Co., which produces dough from their headquarters in Aurora, IL. “Consumers want restaurant-quality experiences at home without restaurant pricing. A fresh dough program allows retailers to compete in high-growth segments like Detroit-style and Grandma-style pizzas, while driving incremental sales across toppings, sauces and prepared foods. It shifts pizza from a single item to a full merchandising platform.”

INVESTING IN EQUIPMENT

One key lesson from successful deli pizza programs is the importance of proper equipment. Mike Kurtz is founder of Brooklyn, NY-based Mike’s Hot Honey. His product, a sweet-hot combo of honey infused with spicy chiles, has become a staple in both pizzerias and retail locations across the country.

Kurtz points to Whole Foods’ successful pizza program as an example. “They installed top-of-the-line ovens in all of their new stores and retrofitted existing locations with professional-grade equipment similar to what you might see in a pizzeria,” he explains.

This investment in quality equipment serves two purposes. First, it ensures the functional ability to produce superior pizza. Second, it acts as a visual signal to customers that they can expect pizzeria-quality products. When customers see professional equipment in their local deli, it builds confidence that they’ll receive a product on par with dedicated pizzerias.

“Consumers are increasingly seeking healthier pizza options, including gluten-free crusts, plant-based toppings, low-calorie and high-protein choices,” says Heather Stammler, product manager, pizza at Rich Products, a family-owned global food company, headquartered in Buffalo, NY. “They also value authenticity and quality, gravitating toward products made with ’00’ flour and fermented doughs that deliver a premium dining experience — an upgrade Millennials are willing to invest in.”

BUILDING EXPERT TEAMS

A key factor in developing a successful deli pizza program is having personnel who understand how to handle dough and how to cook pizzas properly.

However, managing staff education and turnover remains a challenge, which means delis need to develop efficient systems and documentation that allow new staff to quickly learn and maintain quality standards. “You need to be able to execute with a limited amount of training,” notes Kurtz. “You can’t have people in there training for weeks.”

‘SOLUTION CENTERS’

One of the deli’s strongest advantages in the pizza market is convenience. Shoppers are already at the grocery store, so they don’t have to make another trip to go somewhere else to get a slice or a whole pizza to take home for dinner. This natural advantage can be leveraged by ensuring consistent quality and availability during peak shopping hours.

“The demand for quick and convenient meal solutions in the deli is on the rise, with pizza leading the way as a top choice for busy families,” says Stammler.

One innovative approach to boosting pizza sales is the creation of dedicated “solution centers” within the deli area. These centers bring together all the components customers need for a quality pizza experience, whether they’re buying ready-made slices or preparing pizza at home.

“The most successful programs place pizza dough with sauce, cheese, and toppings, making it a one-stop shop for everything you need on a pizza night,” says Joseph Piraino, director of sales for Belmont, NC-based DePalo Foods Inc., which sells pizza dough to grocery delis.

Customization is key. Lucchesi says most consumers who assemble pizza at home want to make it their own favorite way.

“Retailers should merchandise dough as part of a complete solution,” says Lucchesi. “Pizza is typically an entrée and often paired with other items, making it ideal for meal kits and cross-department promotions. Operationally, extended cooler life and format versatility reduce shrink and allow retailers to scale programs confidently while minimizing waste — a top operator concern.”

Gonnella’s dough is marketed as being versatile enough for Detroit-, Sicilian-, and Grandma-style pan pizzas that is also stretchable for thin-style formats.

And whatever format of pizza you offer, provide instructions for success at home.

“I think a lot of times, delis make assumptions that people know what they’re picking up and know what to do with it,” points out Jill Falgiano, national sales director for Hackensack, NJ-based Losurdo Foods, which manufactures dough, mozzarella and ricotta cheeses. “People don’t always know what they’re doing with pizza.”

One size of pizza does not fit all, for either cheese or dough. The cheese you offer will vary based on the type of pizza you’re offering. “Detroit-style pizzas use their own type of blend of cheeses where fresh mozzarella isn’t as much a part of it,” Falgiano explains. But, she says, “In your very Italian, affluent type of backgrounds and demographics, they’re going to demand more of a Margarita style or a Neapolitan style.”

Test out your market by offering featured pizzas, even if you think you are confident about what your audience wants. For instance, do you need to create a Philly cheesesteak pizza? Is there another flavor or combination that could become a really good local favorite?

Falgiano shared a personal example: “When I opened a little local empanada shop, I thought for sure the authentic empanada would be the key. I wound up having my pizza empanada and my Philly cheesesteak empanada fill the door in what was predominantly a Latin American neighborhood.”

“Consumers are looking for high-quality, authentic pizza options that include better-for-you and regional options — like Detroit style and Roman style, all having a variety of toppings,” says Stammler.

PREMIUM INGREDIENTS

Pizza is viewed as both an indulgent food and one that can be healthy. Delis have access to both fresh and premium toppings, such as premium meats and cheese and fresh vegetables, which gives delis a marketing advantage.

Emphasizing pizza doughs with simple and clean, plant-based ingredient lists and premium ingredients, such as extra virgin olive oil or flours sourced from Italy, can strengthen the view of pizza as a healthy choice.

DePalo Foods sells a premium ready-made dough designed for high-heat, wood-fired ovens. The dough bakes into a thin crust with a puffy, charred edge.

“Neapolitan pizza is an old-world style pizza originating from Naples, Italy,” says Piraino. “Crafted with simple, high-quality ingredients, including finely milled type ‘00’ wheat flour, this dough is characterized by a thin, soft and chewy crust for the ideal Italian style pizza.”

INNOVATION AND CROSS-UTILIZATION

Successful delis are finding innovative ways to maximize their pizza ingredients. “Everybody needs to hire multiple products to do multiple things in their establishments to make ends meet these days,” advises Losurdo Foods’ Falgiano.

She suggests considering how ingredients can be cross-utilized: “Can your dough translate to a Detroit-style? Can it translate to a New York-style pizza? Can it translate to artisan?”

If you’re only buying one product as a deli owner, use it for garlic bread, garlic knots, calzones, or other products where that type of dough could be successful. The same with your fresh mozzarella and your pizza cheeses — can you use those ingredients in a lasagna dish or a chicken parm dish?

“The latest trends in pizza dough profiles garlic and herb pizza dough, and Neapolitan-style pizza dough which is specifically made for ovens with high heat, such as Ooni ovens, as well as traditional pizza dough,” says Piraino. “These flavors are ideal for family entertaining. Also, these doughs can be used for garlic knots, calzones, stromboli, and even flatbreads.”

MERCHANDISING MATTERS

Offering plant-based cauliflower crust, parbaked crusts, and dough balls provides consumers with more variety and options, says Rich Products’ Stammler. And, these are all usable with the same toppings and cheese you already have.

“Merchandising matters and so does pizza crust,” says Stammler. “In addition to fresh dough, grocers can offer a variety of crust options to entice consumers to buy more, more often. Grocers that offer more premium options can differentiate themselves from competitors.”

Delis offering pizza by the slice could keep a display of premium topping options on the counter, and upcharge customers to add a premium topping of their choice to their slice.

“While consumers value the ability to customize their pizzas — choosing from a variety of crusts, sauces and toppings — manufacturers like Rich’s are bridging the gap between fresh and pre-made options,” says Stammler. “Offering high-quality products helps labor-strapped grocers deliver exceptional pizzas without the intensive preparation, meeting the demand for authentic, on-trend dining experiences.”

Nearly half of pizza consumers are enrolled in a loyalty program, and consumers are increasingly using coupons and rewards. “Retailers can leverage that behavior with ‘Pizza Night’ bundles, cross-merchandised fresh pizza sections and loyalty tie-ins,” says Lucchesi. “Taste remains the primary driver of repeat purchase, so marketing should emphasize premium quality, freshness, and signature flavor profiles — not just price.”

Create a platform, not a product, Lucchesi says. “By offering a bundled deal on a specific day, retailers can drive traffic and sales with programs built around America’s favorite food. Just as some delis offer Cheap Chicken Mondays, by anchoring pizza kits to a weekly deal day, retailers can form shopper habits, traffic and cross-merchandising opportunities.”

SPECIAL OCCASIONS

Mike’s Hot Honey founder Kurtz says stores can promote their offerings by advertising around key pizza consumption timeframes, such as football games and holidays — data shows that Halloween is a top day for pizza sales in the U.S.

Consider implementing a loyalty program that rewards repeat customers with discounts or free items to drive repeat business and strengthen customer loyalty.

“Additionally, special deals and promotions, such as limited-time offers (LTOs), combo packages, and discounts, not only attract new customers but also encourage existing ones to explore and try new products,” says Stammler.