ARKO Corp Launches Highly Relevant, Delicious $4.99 Pizza Program

Rhea-AI Summary

ARKO Corp. launches a $4.99 whole pizza, featuring premium attributes and a self-rising crust, available in cheese and pepperoni. The pizza is part of the Company's focus on delicious food offerings, with a strong emphasis on growing hot food capabilities. ARKO partnered with Alive and Kickin' Crust and PepsiCo for this initiative, offering exclusive deals for loyalty program members and non-members.

Insights

Market Research Analyst

The introduction of ARKO Corp's $4.99 whole pizza represents a strategic move to capture a larger share of the convenience store market by leveraging a competitive price point. The decision to offer a high-quality product at such an aggressive price is an attempt to create a unique value proposition that could potentially disrupt the current market dynamics within the convenience store segment.

From a market research perspective, the combination of a self-rising crust and Wisconsin cheese at this price is noteworthy. These premium features are likely to appeal to cost-conscious consumers who are increasingly seeking value for money, especially in an inflationary economic environment. This strategy could increase foot traffic and drive loyalty program sign-ups, given the price incentive for enrolled fas REWARDS® members.

Furthermore, the partnership with Alive and Kickin' Crust and PepsiCo Beverages North America could enhance the company's brand perception and customer experience. These collaborations might not only improve the product quality but also create cross-promotional opportunities that could increase average customer spend.

Financial Analyst

ARKO Corp's launch of a competitively priced whole pizza could have a positive impact on the company's revenue streams, particularly if the product gains traction among consumers. By offering the pizza at a lower price to loyalty program members, ARKO may see an uptick in program enrollment, potentially leading to more consistent sales and the collection of valuable customer data.

However, it is crucial to monitor the cost implications of producing a higher-quality product at a lower margin. The long-term financial success of this initiative will depend on ARKO's ability to manage production and distribution costs effectively, as well as its capability to scale the offering without sacrificing quality. Investors should look for future financial disclosures to assess the impact of this product launch on ARKO's profitability and market share within the convenience store sector.

Supply Chain Analyst

The scalable pizza offering across ARKO's footprint indicates a well-considered supply chain strategy, especially in terms of logistics and inventory management. The capability to distribute frozen pizzas for both take-and-bake and hot-to-go options requires a robust supply chain infrastructure. ARKO's focus on frozen grab-and-go and hot food capabilities suggests that they have invested in the necessary equipment and processes to ensure product availability and quality consistency.

However, the challenge lies in maintaining the balance between supply and demand, especially when introducing a new product at a competitive price point. The supply chain must be agile enough to respond to potential spikes in demand without leading to product shortages or overstocking, which could result in increased waste and reduced profitability. The success of this initiative from a supply chain perspective will be a critical factor in determining its overall impact on ARKO's business performance.

RICHMOND, Va., Jan. 31, 2024 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO), a Fortune 500 company and one of the largest convenience store operators in the United States (“ARKO” or the “Company”), announced today that the Company has launched its delicious, inflation-busting $4.99 whole pizza in stores across the Company’s Family of Community Brands.

“Having a value pizza offering is table stakes for convenience store operators, and we have raised the ante with the exceptional quality resulting from a thorough research and development process executed in concert with a premier pizza innovation team,” said Arie Kotler, Chairman, President, and Chief Executive Officer of ARKO. “We strongly believe this pie will resonate with consumers who are seeking a delicious, crispy, and cheesy whole pizza, at an inflation-busting $4.99. The relevancy, quality and value of this pizza marks a new milestone as we continue our food journey.”

In development for over a year, the pizza is available in both cheese and pepperoni and features highly relevant and sought after premium attributes, including a self-rising crust and Wisconsin cheese, signatures of exceptional quality that are hard to find at such a price point in convenience stores. Relevant and delicious food offerings are a key strategic priority for ARKO, and supporting a scalable pizza offering across ARKO’s footprint is possible because of the Company’s innovative and early focus on frozen grab-and-go, as well as a continued emphasis on growing hot food capabilities.

Frozen pies are now available to take-and-bake and will be available hot to go in select stores on February 7^th. Offered at $4.99 to enrolled fas REWARDS® loyalty program members, it is also available for the non-loyal price of $7.99.

ARKO developed the pizza in partnership with Alive and Kickin’ Crust, an industry leader in pizza innovation. Pepsi is the official beverage partner of pizza, giving customers exclusive offers for budget-friendly meal deals.

“We’re proud to partner with GPM in developing this delicious pizza with Wisconsin cheese and a bready, perfect crust so their customers can enjoy a substantial, hot pie right from the store or take-and-bake from the freezer. Either way, it’s an outstanding meal at a great price, which delivers just the right amount of pizza perfection,” said Shawna Link, Foodservice Sales Manager with Alive and Kickin’ Crust.

"PepsiCo Beverages North America is proud to join forces with GPM as the official beverage partner for this initiative," said Noel Rodriguez, PBNA Retail Vice President, South Division. "This partnership allows us to contribute to an already fantastic meal deal, making it even better with our range of beverage brands. We are committed to working alongside GPM to provide customers with a delicious meal and dining experience.”

Visit a store or download the free app today to begin saving today. To learn more, visit: www.fasrewards.com.

About ARKO Corp. and GPM Investments

ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable family of community brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. Our high value fas REWARDS® loyalty program offers exclusive savings on merchandise and gas. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites; and fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

About Port City Bakery, Inc.

Port City Bakery, Inc., d/b/a Alive & Kickin’ Pizza Crust, is privately held and based in Green Bay, Wisconsin. AK is an industry leader in pizza innovation. AK manufactures finished frozen pizzas, pizza crusts, and dough balls. They are constantly developing new recipes and custom products to stay ahead of the trends in the pizza industry.

About PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $86 billion in net revenue in 2022, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

FAQ

What did ARKO Corp. announce?

ARKO Corp. announced the launch of a $4.99 whole pizza in stores across the Company’s Family of Community Brands, available in cheese and pepperoni.

What are the premium attributes of the pizza?

The pizza features a self-rising crust and Wisconsin cheese, offering exceptional quality at a low price point.

Who did ARKO partner with for the pizza initiative?

ARKO partnered with Alive and Kickin’ Crust, an industry leader in pizza innovation, and PepsiCo Beverages North America for this initiative.

What are the pricing options for the pizza?

The pizza is offered at $4.99 to enrolled fas REWARDS® loyalty program members, and at $7.99 for non-loyal customers.

When will the pizza be available hot to go in select stores?

The pizza will be available hot to go in select stores on February 7th.