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$1.50 for ingredients, 1 minute of labor? I am skeptical of those numbers, and "my brother in law says" is not a reliable source. Costco charges $10 for a whol
by stickfigure 3y ago
$1.50 for ingredients, 1 minute of labor? I am skeptical of those numbers, and "my brother in law says" is not a reliable source.
Costco charges $10 for a whole pizza (which you pick up, no delivery). Given their business model, I suspect that number is pretty close to the actual cost of production.
- lnxg33k1 3y agoI make pizza at home, to be honest with 10 euros i make 6-7 pizzas, and the issue would be just that the dough finishes, adding 1.50 euros for another kilo would make for another 6-7 pizzas. now its italian prices so might need adjustments but lets see 50 cents yeast 1 euro flour 50 cents salt 2 euros tomato passata 1kg 50 cents basil The rest mozzarella Now you might want to go over budget a bit and get some olive oil that is expensive, but you just put half a tablespoon per pizza so… Making pizza is really good business with high margins
- stickfigure 3y agoSure, flour and yeast are cheap. But then you're spending a lot more than 1 minute of labor per pizza. Maybe you could build a robot that makes it for you, but now you are spending a fortune on capital equipment. Real-world cost optimizers like Costco have some robots (the pizza saucing machine is cool) and they still end up with a cost around $10 per pizza. Making pizza has high margins when you charge $25 or more per pizza. Not $10. Pizza Hut charges less than $25 but that includes delivery. From a random web link (https://www.vettedbiz.com/pizza-hut-franchise/ https://www.vettedbiz.com/pizza-hut-franchise/) franchises average around 15% margins, which is not great.