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A cheap pizza from Aldi is £1. A regular pizza with some toppings and maybe meat is £2-3 in most supermarkets. Could be £4 in higher end supermarkets. You see

A cheap pizza from Aldi is £1. A regular pizza with some toppings and maybe meat is £2-3 in most supermarkets. Could be £4 in higher end supermarkets. You see where this is going. Pizzas are worth nothing, supermarkets are making money on these (it's not allowed to sell an item at a loss in Europe). Domino produces for £1-2 and sell for £10-20. The accepted number in the restaurant industry is that food cost must be less than 30% of the listed price. Pizzas are pushing this to an extreme by selling for double digits while they're so cheap.

the-dude 6y ago
> (it's not allowed to sell an item at a loss in Europe). Do you have a source for this?
- eloisant 6y ago
  It's not a European legislation, but a law in some countries (including France). This is dumping, and considered anti-competition.
bluedino 6y ago
You can't really compare a cheap frozen pizza to a chain pizza. They are bigger, for one. I've read before that a Hot-n-Ready from Little Caeser's is sold for $5.55 but costs $3.50 in just ingredients. They don't make any money on those. The breadsticks that they sell for $3.99, the cup of marinara for $1.99, the $13 veggie pizza and the $15 supreme pizza is where the money is made. Do you think there's an extra $10 in toppings on those supreme pizzas? Don't forget the bottles of soda.. http://www.unhappyfranchisee.com/little-caesars-what-franchisees-make-on-a-5-pizza/ http://www.unhappyfranchisee.com/little-caesars-what-franchi...
- user5994461 6y ago
  That was the price for fresh, not frozen, and they're not small. Smaller than the large £20 pizza from the chain, sure, but not necessarily smaller than the £10-15 one. The link is talking about a $11 pizza, that was briefly on sale for $5 (and still making a profit). It's not a $5 pizza.
  - bluedino 6y ago
    Are you familiar with a hot n ready? That is a large one topping pepperoni, they are always $5-6 depending on location. It’s been this way since 1997
TuringNYC 6y ago
You are forgetting rent, ovens (energy), staff, and delivery vehicles. Those push the margins down quite a bit.

the-dude 6y ago

> (it's not allowed to sell an item at a loss in Europe). Do you have a source for this?

eloisant 6y ago
It's not a European legislation, but a law in some countries (including France). This is dumping, and considered anti-competition.

bluedino 6y ago

You can't really compare a cheap frozen pizza to a chain pizza. They are bigger, for one. I've read before that a Hot-n-Ready from Little Caeser's is sold for $5.55 but costs $3.50 in just ingredients. They don't make any money on those. The breadsticks that they sell for $3.99, the cup of marinara for $1.99, the $13 veggie pizza and the $15 supreme pizza is where the money is made. Do you think there's an extra $10 in toppings on those supreme pizzas? Don't forget the bottles of soda.. http://www.unhappyfranchisee.com/little-caesars-what-franchisees-make-on-a-5-pizza/ http://www.unhappyfranchisee.com/little-caesars-what-franchi...

user5994461 6y ago
That was the price for fresh, not frozen, and they're not small. Smaller than the large £20 pizza from the chain, sure, but not necessarily smaller than the £10-15 one. The link is talking about a $11 pizza, that was briefly on sale for $5 (and still making a profit). It's not a $5 pizza.
- bluedino 6y ago
  Are you familiar with a hot n ready? That is a large one topping pepperoni, they are always $5-6 depending on location. It’s been this way since 1997

TuringNYC 6y ago

You are forgetting rent, ovens (energy), staff, and delivery vehicles. Those push the margins down quite a bit.