Study: Michigan is Pizza Capital of the U.S. (and World?)

Michigan is the pizza capital of the United States and, quite possibly, the world, according to a new report from the McNair Center for Free Enterprise at Northwood University and the Michigan Chamber of Commerce.

The study, Michigan: The Unlikely Pizza Capital of the United States (and the World?), analyzes the size and scope of the U.S. and global pizza industry and the economic role the state of Michigan plays in the industry, globally. The study also looks at the history and economic role in growing the U.S. and global pizza markets, and what role eight entrepreneurs from Michigan had in fueling the size, scope, and quality of the growth.

“We found that across the U.S. and around the world, millions of people speaking different languages were brought together by the common pleasure of consuming pizza, whose origins emanated from entrepreneurial activity within a 60-mile radius of downtown Detroit, Michigan,” stated Dr. Timothy G. Nash, who leads the McNair Center for Free Enterprise and Entrepreneurship at Northwood University and is one of the study’s authors. 

Highlights from the study include:

• Michigan is home to four of the Top 10 quick service pizza chains in the United States by sales in 2023. The “Michigan Four” includes: Domino’s Pizza (No. 1), Little Caesars Pizza (No. 3), Hungry Howie’s Pizza (No. 8), and Jet’s Pizza (No. 9).

• The “Michigan Four” accounted for 30.5% of the U.S. pizza sales in 2023, recording a combined $14.36 billion of the $46.98 billion industry total.

• These four Michigan pizza companies recorded nearly 15% of global pizza sales with $23.6 billion of the $159 billion total.

• The headquarters for the “Michigan Four” are all located within less than 60 miles of each other in Southeast Michigan (Ann Arbor, Madison Heights, Detroit and Sterling Heights). 

“This study shines light on another important facet of American and Michigan entrepreneurship and the American competitive free enterprise system,” noted Professor James Hop, who chairs Northwood University’s Entrepreneurship Degree Program and is a McNair Scholar with the McNair Center for Free Enterprise at Northwood

“Michigan is the home to hundreds of great entrepreneurs ranging from Henry Ford, Louis Upton, Elijah McCoy, and Barry Gordy, to Herbert H. Dow, Rich DeVos, Dan Gilbert, and Roger Penske,” noted Bob Thomas, chief operating officer for the Michigan Chamber of Commerce and study co-author. “This study recognizes other notable Michigan entrepreneurs who were instrumental in creating some of the largest pizza companies in the world.”

To view the study in its entirety, visit https://bit.ly/49HMKZj

McNair director and Mackinac Center policy expert discuss alternative energy

What does the future hold for American energy? Some are working to mitigate the impact of climate change while others claim many alternative energy solutions are flawed. This program by Delta Broadcasting features McNair Director Dr. Timothy G. Nash and Jason Hayes, director of Environmental Policy for the Mackinac Center for Public Policy, who co-authored the Grading the Grid energy report.

New Study Explores Impact of Minimum Wage in Ohio

Other states will gain the competitive advantage if the Buckeye State adopts a $15 minimum wage & eliminates tipped wage

MIDLAND, MI — Ohio will serve its neighboring states a competitive advantage if it adopts a $15 minimum wage and eliminates the tipped wage, according to a new study by the McNair Center for Free Enterprise at Northwood University.

“In addition to giving states like Indiana, Kentucky, Michigan, Pennsylvania, West Virginia, and Wisconsin a competitive advantage, it will increase the costs of doing business in Ohio and make dining out more expensive,” explained the study’s lead author, McNair Center Director Dr. Timothy G. Nash.

“The Impact of Minimum Wage in Ohio” is a scholarly research study commissioned by the Ohio Restaurant & Hospitality Alliance. It examines the complex debate surrounding whether Ohio should raise its minimum wage and eliminate the tipped wage. The paper examines arguments for and against an increase in the Ohio minimum wage, and the economic impact of proposals like the One Fair Wage, which was recently rejected as a ballot proposal earlier this year by Ohioans.

Additionally, the study examines:

• The theory of minimum wage

• The competitiveness of Ohio’s economy

• Ohio and America in a post-COVID economy 

Ohio currently has many strategic advantages, including one of the strongest manufacturing sectors in the United States and the sixth largest energy market in the country. Also, Ohio is a growing hub for AI and computer chip manufacturing. Ohio’s geography is advantageous, as its location is at the crossroads of the U.S., and it has ports that allow shipping to the Great Lakes, Mississippi River, Atlantic Ocean, and Canada. 

Also, Ohio ranks high for having a very reasonable cost of living, and it is experiencing positive net population migration after decades of negative net population migration. 

But Ohio does have challenges, as it is one of the highest tax states in the country, ranking 36th by The Tax Foundation in terms of business tax friendliness. Also, Ohio is currently among the 10 slowest growing states based on GDP data from the U.S. Bureau of Economic Analysis.

“Raising the minimum wage will exacerbate these challenges and cause problems for many employers and workers alike, negatively impacting job creation and business success,” Nash said. “Interestingly, 93% of all tipped workers surveyed want to keep the current tipping system, and it is becoming clear that non-Ohioans are lobbying for it.”

“The McNair Center study illustrated the excellent business climate in Ohio, which includes a very reasonable cost of living compared to other parts of the U.S.,” said John Barker, President & CEO of the Ohio Restaurant & Hospitality Alliance. “We don’t want to lose that competitive advantage, so when activists from California pushed for an initiative that would have raised the minimum wage by 43% in 14 months and eliminated the tip credit, we battled to keep it off the ballot in Ohio. Our survey work showed clearly that servers and bartenders want to keep the current tipping system, as they average $27 per hour from wages and tips, and our victory saved operators an average of $157,000 annually in higher labor costs.”

Read the full study here and the executive summary here.