I don't know why people are starting these companies with such unattractive economics and stiff competition. As noted in the Article, Zume raised 375m and faile

I don't know why people are starting these companies with such unattractive economics and stiff competition. As noted in the Article, Zume raised 375m and failed (plus their pizza was almost comically awful). From the photo it looks like this company makes a better pizza but there are still some serious problems: 1) Margins on pizza are not very high. Dominos has a 30% gross margin and that's with all the non-pizza crap they've convinced people to buy over the years. The quote a $10 price in the article (though it's not clear if that's their cost or what they're selling for). Say their magical pizza robots instead allow for a 50 or 60% gross margin. If they're selling for $10, you still gotta sell a crap-ton of $10 pizzas to make any real money. That might not be impossible except for the fact that... 2) Competition is incredibly difficult. There are a zillion pizza places everywhere in the US. In addition to the major chains, there are also mom and pop pizza stores too. They are not going to sit idly by while this company scoops up marketshare with its cheap pizzas. They're going to market aggressively (which hurts net margin) and cut prices (which further compresses gross margin). It's going to be especially hard for this company because they're going up against established brands that everyone already knows - they're going to have to outpromote these giant companies. If you really have this magic pizza robot tech, go sell it to Dominos. They will happily pay you vast amounts of money and you can juice your margins with a subscription model for parts and service.