Subway & Dunkin' Donuts: Pizza-Makers?

More than a decade ago, even McDonald's (MCD) tested pizza before tossing in the apron. But with consumer interest in pizza high and pizza-dominated chains' sales lagging, the temptation to roll out the dough is once again peaking.

Of all meals eaten at restaurants, 9% now include pizza, reports NPD Group.

"The demographic of pizza eaters is about the same as oxygen breathers," says Steve Green, publisher of PMQ's Pizza Magazine, a trade publication.

Recent pizza growth has been in artisan, take-n'-bake and rising-crust pizzas, Green says. Now, Subway and Dunkin' think faster, smaller pizzas may find a niche.

Subway is dishing out personal-size pizzas at about half its stores nationally, and Dunkin' Donuts is testing personal pizzas at 15 prototype stores in six states.

"Everyone in the industry is keeping an eye on the new entries," says Mandy Detwiler, managing editor at Pizza Today.

Subway's $2.99 thick-crust pizzas arrive frozen.
They're defrosted, then baked in the toaster ovens in about 90 seconds.
Meat toppings are a buck each. Veggies are free.

Winograd won't discuss sales but says franchisee feedback "has been positive."

Dunkin', too, is coy about plans.

The test began late last year in a handful of
units and is now in 15 stores. The made-to-order pizzas, at $2.49 to
$2.99, are oven-cooked in about three minutes.