Saturday, August 13, 2011

Profitable Pizza

Here's an idea that I've been telling my friends and colleagues about for a few years, in the hope that someone will quit their job, work on it, and prove that it works, just so I can say, "huh, I thought so."

What equipment and consumables does a bakery use?
  • An oven
  • Racks to display the finished goods
  • Those things that hold all the metal containers full of ingredients
  • Vegetables, cheeses and meats to make their tasty products
  • Lots and lots of flour
  • Mixing and slicing equipment
And what equipment does a pizza store use?
  • An oven
  • Racks to hold trays and pizza boxes
  • Those things that hold all the metal containers full of ingredients
  • Vegetables, cheeses and meats to make their tasty products
  • Lots and lots of flour
  • Mixing and slicing equipment
And when is a bakery open or in use?
From around 3am until around 5pm, depending on the bakery.

And a pizza store?
From around 6pm until midnight, or so.

So, basically, the idea is to have two businesses running from the exact same premises, using the same equipment and consumables.

The extra buying power that two businesses could bring would save a small amount of money, and there is clearly less outlay required for equipment, but the big saving is in rent. There would also be savings in power, because there would be less hours during which things like refrigeration would be required where the business isn't actually operating.

In any neighbourhood, there are pizza stores and bakeries changing hands all the time. I've never asked the proprietors about their financials, but I assume in those conditions, each is probably a marginal business, with competition from the big chain "pizza" stores and the supermarkets.

So, if one business can exist marginally, and then hire some extra people to run another shift, which if totally independent would itself be a marginal business, then the cost savings should turn the entire enterprise into a reasonably profitable business.

I like baking pizza and bread, but I'm not going to do it, so who will? Any existing pizza store or bakery owners out there willing to try it out?

2 comments:

  1. Domino's opens 11:00am to 11:00pm..

    Staff work from 9am till about 1am (at least the domino's that I have worked at anyway) on prep for the day ahead and cleaning afterwards, then you need a few hours overnight for the floors to dry after the floor cleaning is done at 12:45 roughly, you also need time for the cleaning chemicals to dry up on the surfaces.

    The logistics of keeping the place clean would be a nightmare.

    The other thing to consider is the difference between the equipment in use, fast-food pizza is cooked in large conveyor-belt driven ovens with top mounted heat coils or gas, where as bread is cooked in industrial conventional front-loader ovens, so the kitchen would need to be equipped with both ovens anyway.

    Pizza dough is all the same, just spread thinner for different bases, so there is only 1 giant mixer for 1 kind of dough, were as the bakery would need to be more specialized.

    It sounds like an idea that is good in theory but wouldn't work in the real world.

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  2. Sorry, but Dominos isn't pizza. It's "pizza".

    Lots of pizza stores use the kind of metal ovens with doors, into which you slide the trays. These ovens are usable by bakers.

    And there are 24 hour McDonald's stores, which manage to keep clean.

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