Low-cost delivery pizza gains popularity amid rising dining costs

Domino’s best-selling Potato Pizza. [Courtesy of Domino’s Pizza Korea]

As dining prices continue to rise, delivery pizza is once again gaining traction as an affordable meal option.

According to industry sources on Sunday, Cheong-O DPK, the franchise operator of Domino’s Pizza Korea, saw its operating profit skyrocket by 348 percent last year, reaching 5.1 billion won ($3.84 million).

Despite challenges faced by the broader dining industry due to the economic downturn, Cheong-O DPK’s sales grew by 1.1 percent, totaling 209.5 billion won.

Papa John’s Korea also nearly doubled its sales during the same period, increasing from 38.5 billion won to 68.1 billion won, placing it alongside Domino’s and Pizza Hut as one of the country’s “Big Three” pizza chains.

“Both Domino’s and Papa John’s primarily focus on delivery,” said an industry insider. “As inflation and high interest rates persist, more consumers are turning to delivery pizza as a hearty meal option.”

Over the past two to three years, dining prices have surged due to rising costs of raw materials, labor, and delivery platform fees.

Including delivery charges, a single meal at most restaurants now costs between 15,000 won and 20,000 won. Even HMR meal kits have seen significant price hikes.

In contrast, delivery pizza—with discounts from telecom companies and credit card providers—offers a large pizza for around 30,000 won, enough to feed two to three people, including delivery costs.

According to market research firm Euromonitor, the size of Korea’s franchise pizza market grew from 1.36 trillion won in 2019 to 1.82 trillion won in 2022. With Domino’s sales increasing, the overall pizza market reached nearly 2 trillion won last year and is expected to surpass that mark this year.

Experts attribute the pizza industry’s resurgence to the success of Korea-only menu items tailored to local tastes.

Unlike American or European pizzas, most Korean pizzas come with generous toppings that make them a filling meal. One standout is potato pizza, which uses wedge potatoes as a topping, a practice unique to Korea. Domino’s Potato Pizza, introduced in 1999, remains a bestseller, with 1.5 million pizzas sold annually.

Domino’s U.S. headquarters gives local branches the flexibility to develop menus suited to regional preferences.

Pizza Hut’s Bacon Potato Pizza and Papa John’s Irish Potato Pizza are also top performers. The demand for pizza potatoes has even boosted imports of frozen frying potatoes from the U.S. and Australia, with last year’s imports reaching a record $236.95 million, up 5.4 percent from the previous year.