The following is a research writing sample based on actual data for the town of Burley, Idaho and the surrounding areas. I did the research as if business owners planned to open a new pizza restaurant in the area and needed to know what factors would lead to their success. Sources for the data are listed at the bottom.
Burley, Idaho, is a small town that boasts ten pizza restaurants, according to the Mergent Intellect database. Four of these (Domino’s, Pizza Hut, Little Caesar’s, and Papa Murphey’s) are well-known national chains. According to Google Maps, three of the restaurants (5 Buck Pizza, Al’s Pizza Shoppe, and Cassia Mini Pizza) are in gas stations, and may not be in direct competition because of this. Seven of the ten had their sales listed on the database and ranged in sales from $114,272 to $252,424, with the median being $161,855 (Mergent Intellect). We can expect that the business will bring in sales closer to this median number. The data can be seen and compared in chart 1.
Chart 1: Yearly sales for six competing pizza restaurants in Burley, Idaho (data for Little Caesar’s, Pizza Hut, and Papa Kelsey’s was unavailable).
The three competitors with the highest sales are those restaurants based in gas stations. As those are likely not direct competitors to a sit-down or delivery pizza restaurant such as ours, their success is unlikely to be a threat to the new restaurant.
The greatest strength of the new pizzeria is that similar restaurants seem to appeal to the typical Burley, Idaho, resident. Data from MRI-Simmons helps one to understand the customers of one of the restaurant’s top competitors, Pizza Hut. The highest index numbers are for those who earn between $40,000 and $75,000; who are between the ages of 19 and 44; and who do not have college degrees (MRI-Simmons). According to the most recent census data, Burley Idaho residents have a median household income of $52,086, which is within the target range. The median age is 30, and over half of the population has no college degree (U.S. Census Bureau, Burley City, Idaho). Its neighboring town, Heyburn, has similar demographics with a median income of $52,500, a lower percentage of residents with college degrees, and a median age of 27 (U.S. Census Bureau, Heyburn City, Idaho). This makes the demographics of the Burley area one of Burley Pizzeria’s greatest strengths.
Understanding this, targeting the residents of both Burley and Heyburn may be the best strategy for marketing and placement. For example, placing the restaurant on Overland Avenue north of the river in Burley is convenient to both towns and in a location with higher traffic. The competitor pizza restaurants that bring in the most sales are also along Overland Avenue (Mergent Intellect). Building on that road may play to the strengths of the demographics in the area, as the competitors’ success there implies.
One of the restaurant’s greatest weaknesses is the fact that it is simply not well-known. This is unavoidable as the restaurant is new, but it creates unique challenges in online marketing. A search on Google Trends shows that in this area of Idaho, people tend to look for the names of specific pizza restaurants, rather than more general queries such as “pizza near me.” In Burley, people were more likely to look up “pizza hut” and “little caesars” than “pizza burley” (Google Trends). This suggests that the new restaurant would have a hard time competing online with well-known chains. While this may change as the restaurant becomes better known, relying only on Google searches to be found by new customers would be a mistake.
The placement of the restaurant on Overland Avenue north of the Snake River may help combat this weakness. This is one of the more commercial areas of town where people may already be passing through or running other errands, which allows for more traditional advertising rather than relying on online searches. More targeted ads on social media may also be beneficial in increasing brand awareness in the area.
Due to the amount of competition in the area (many restaurants, including Puder’s Pizza, Little Caesar’s, and Domino’s), the new restaurant should take advantage of the opportunities available. One opportunity is to create a unique type of pizza restaurant that directly plays into the cravings of the typical pizza fan. According to a 2023 consumer report on pizza (Varchasvi, 2023) pizza has gained a greater reputation as a comfort food. This may be why in suburban and rural areas such as Burley, consumers prefer traditional toppings over new and unique varieties of pizza. Familiarity brings comfort. However, the same report shows that consumers favor small customizable options, such as adding parmesan or dipping sauces to the side or customizing the crust. An emphasis on one of these may appeal to customers more, while keeping traditional toppings will keep it familiar, appealing to the comfort food perception. Advertising “crust-omizable pizzas (e.g. garlic parmesan, cheese-topped, ranch drizzle, etc.) may even be a selling point that makes the restaurant unique from other pizza parlors, bringing in more curious first-time customers and increasing brand awareness. With the recommended placement, advertising, and menu options, research shows that the new Burley Pizzeria has a good chance for success.
References:
Google Trends (n d.). “US — ID — pizza”. Retrieved November 21, 2023, from https://trends.google.com/trends/explore?date=now%201-d&geo=US-ID-760&q=pizza&hl=en.
Mergent Intellect (n.d.). [List of pizza restaurants( SIC code 581206) in Burley, ID]. Retrieved November 21, 2023, from https://www-mergentintellect-com.byui.idm.oclc.org/index.php/advancesearch/runAdvanceSearch.
MRI-Simmons. (2021). 2021 Spring MRI-Simmons USA. [Target/ Pizza Hut] [Demographic profile]. https://simmonsinsights.com.
U.S. Census Bureau. (n.d.). Burley city, Idaho. U.S. Department of Commerce. Retrieved November 21, 2023, from https://data.census.gov/profile/Burley_city,_Idaho?g=160XX00US1611260.
U.S. Census Bureau. (n.d.). Heyburn city, Idaho. U.S. Department of Commerce. Retrieved November 29, 2023, from https://data.census.gov/profile/Heyburn_city,_Idaho?g=160XX00US1637360
Varchasvi (2023, October 23). Pizza Restaurants — US — 2023. Mintel. https://clients-mintel-com.byui.idm.oclc.org/report/pizza-restaurants-us-2023?fromSearch=%3Ffreetext%3Dpizza%26resultPosition%3D2