Eying pizza pies

Experts have released a report noting that if the number of original-crust pizzas consumed in the U.S. each year were stretched end to end, they would reach from Earth to Pluto and back. Actually, I just made that up. You know how it is – you’ve got a tasty story subject but no hot news peg.

Fortunately, earnings season is in full steam this week, and at least until the end of the month there’ll be no shortage of financial updates and other timely tidbits on which to hang colorful and informative stories. (If you haven’t already, check out Yahoo!’s excellent earnings calendar.)

Tomorrow, for example, Domino’s Inc. releases its third-quarter financial report, which is as good a time as any to pause for a look at the nation’s pizza industry.

There’s no shortage of angles: Local mom & pop shops, giant delivery chains, national eat-in chains, frozen grocery pizzas, take-and-bake chains, novelty pizza bites and upscale ready-to-use crusts. By some estimates, pizza is a $41 billion a year industry in the U.S. – with some 69,000 retail pizza purveyors nationwide.

If you don’t have a pizza empire in your territory, you might have a supplier. One real concern to the pizza industry is the volatile wholesale cost of cheese, as illustrated in this University of Wisconsin graph. In fact, DairyReporter.com says in this recent article that non-dairy, rather scary-sounding cheese substitutes are being developed to help pizza makers evade cheese-price fluctuations.

Aside from dairy products, the pizza biz kneads through who-knows-how-many bushels of wheat each year and its other toppings - from pineapple to anchovies to garlic - have to come from somewhere. Poke around and discover your regional link to the pizza supply chain.

So far, signs are mixed regarding the recession’s effect on pizza sales. One school of thought has it that people are turning to the comparatively inexpensive pies as an alternative to more costly dining-out options; other analysts indicate that consumers are eschewing prepared food in favor of cheaper home-cooked meals. Pizza Hut, a division of Yum! Brands, reported last week that its sales were off 13 percent in the third quarter, and California Pizza Kitchens said its sales were down 8 percent in the same period.

Perhaps that’s why you’ve noticed a flood of two-for-one pizzeria coupons and other promotions in your junk mail, which is one place to look for indications of how your local pizza scene is coping.

Other resources:

Pizza Magazine
Pizza Today
PizzaWare.com, a compilation of global industry statistics and recipes.
Food Industry News

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

Taking the Temperature of Tourism

Even though the calendar says it’s been summer for less than a month, we’re about halfway through “fiscal summer” – the vacation and tourism season that runs from Memorial Day weekend through Labor Day.

This midway point is a logical moment to do a checkup on the travel and tourism business in your state or region. And even though by most accounts the weather and the economy are conspiring in 2009 against a blockbuster season, a tourism story is hard to beat for a lively and engaging business read.

They’re also good opportunities to incorporate multimedia features – like video or a slide show – into your Web presentation. Interact with your audience by asking your Web editor to post a survey (“How much are you spending on vacations this year?”) with the story, or a showcase for readers’ own travel photos. Perhaps a weather outlook graphic or a map of road construction projects would be a good fit, depending on your angle. Bring your stay-at-home reader into the experience with a camera’s-eye view from a new thrill ride or tour of a cheese-making plant.

Sources abound. Generally, you’ll want to start with your state statistics office to get a feel for how large the industry looms in your territory. (And rest assured there is some angle – not every region can boast Disneyworld but someone, somehow in your neck of the woods depends on travelers for part of his or her livelihood.) This directory of government Web sites includes links to all of the state tourism offices; while aimed primarily at consumers, most feature a media page with contact information, FAQs and economic impact figures. The visitor info will provide you with leads on attractions you can call for input, from state parks to motorsports tracks to tribal casinos. Each state’s AAA branch keeps tabs of tourism activity, too.

Other voices you’ll want to hear from are as diverse as vacation-rental managers, local motel franchisees, campgrounds operators, chambers of commerce, RV sales and rental dealers, marinas, tour guides, bars and boutiques. You may want to home in on one sector, if it’s huge in your area, but try to avoid the trap of the perfunctory annual “boat sales” story if that’s commonplace to your readers. Find something quirky and off the beaten track instead. Festivals.com offers a fascinating 40,000-strong list of gatherings and shows; sign up at the site to sort by date and locale for events in your area.

And of course, get out there and talk to tourists, whether they’re on a full-time road trip or area residents splashing away a day at the water park. Ask what they’re spending on, what they’re scrimping on and how their leisure budget stacks up this year compared to previous seasons.

Anecdotes are appealing, but keep in mind that most industry representatives will put a positive spin on even the most dismal season. Make sure you probe for hard numbers. Don’t overlook the financial performance of publicly traded travel and leisure companies headquartered or having a large influence in your area. If you’re not sure, here’s link to MarketWatch Inc.’s tracking site for the Dow Jones Travel and Leisure index, which will point you to major players. The companies’ investor relations Web sites generally will post a list of industry analysts you can call for comment. While some analysts are guarded in discussing specific stocks, many will give you an overview of this year’s seasonal ups and downs.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.