Pizza may be the ideal product to examine deep changes in Israeli consumer behavior. A basic, simple product, with well-known ingredients: Flour, water, oil, salt, tomato sauce, and mozzarella cheese. No advanced technology, no rare raw materials. Yet, for years, pizza became an expensive product, with a family tray with toppings easily exceeding NIS 90.
The major international chains, led by Domino’s and Pizza Hut, built strong brands, sophisticated marketing systems, apps, campaigns, and an advanced ordering experience. Prices gradually increased, almost without resistance. Every topping became a premium product, every deal was temporary, limited, and conditional. Meanwhile, the cost of living in Israel continued to rise. Families sought simple solutions: Food for children midweek, a quick dinner without feeling wasteful. This is where the assumption that pizza must be expensive began to break down.
Into this vacuum stepped local pizza chains operating completely differently. Pizza Shemesh and Pizza Story became well-known names in almost every city, bringing a clear model: Fixed price, simple menu, cost control, and wide coverage through franchising. A family tray for NIS 25. A topping for NIS 7–8. No one-day promotions, no asterisks, no hidden conditions. The price itself is the message. It’s not just cheap. It’s understandable. And this clarity created trust, a critical factor in a consumer world full of promises.
The strongest measure of change is not a survey or a campaign, but the number of branches. While international chains reduce physical outlets, close weak branches, and focus on digital and delivery, Israeli low-cost chains do the opposite. Pizza Shemesh has over one hundred active branches nationwide. From north to south, in the periphery and the center, in neighborhoods, strong cities, and commercial areas. This growth is not random; it is the result of precise adaptation to the consumer’s economic reality. People don’t need to be told where it’s worth it. They just come. And when they return repeatedly, it’s no longer a trend—it’s a choice.
But the competition doesn’t stop at expensive versus cheap. Even within the low-cost pizza segment, a real battle is underway. When a competing brand enters a territory, the response is immediate. Not slogans, but real deals: A second tray for a shekel, two trays for NIS 30, four pizzas for NIS 40 in local promotions. These are not timed nationwide campaigns, but competition on the ground.
The implications go far beyond pizza. For many families, it’s a children’s dinner at the price of a falafel plate. A solution that is available, fast, filling, and affordable. In a period when every expense is scrutinized, this is a decisive advantage. Low-cost chains do not talk about fighting the high cost of living—they are simply doing it in practice. Through price, accessibility, and the ability to offer a basic product without making the consumer feel cheated.
Here lies the real challenge for international brands. How do you compete with pizzerias that offer 100% mozzarella, high kosher standards, reduced prices all year, without gimmicks or misleading shelf promotions? When consumers understand that a pizza tray with toppings can cost around NIS 32–33, it’s hard to convince them to pay nearly three times more unless clear, meaningful value is provided. There, user experience or brand name is no longer always enough.
Pizza Story and Pizza Shemesh have long ceased to be marginal phenomena, and they are not the only players in the field. The low-cost model is expanding, evolving, and attracting additional players. The market learns quickly. Those who understand the change grow. Those who ignore it shrink. And for anyone who still believes it’s impossible to get a good product at this price, they just need to try. The reality is already here, and it is active on the ground every day.