Re:California Pizza Huts lay off all delivery drivers ahead ...
by stickfigure on Friday December 29, 2023 @02:09PM
(#38808960)
Sure, 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/) franchises average around 15% margins, which is not great.
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