Questioning the the Price of Pizza

In Canada, there is a great number of pizzerias. Even small towns typically have more than one pizza place. Though there are pizza chains, there is also a variety of independent pizzerias across the country. Despite the number and variety, the industry has certain standards for ordering and pricing, anywhere you go, based on size of pizza and number of toppings.

As Emile considered opening a pizzeria in Morocco, he had the opportunity to consider the Canadian model: standard sizes of pizza, each with its own basic price, then standard pricing for toppings, plus free delivery within a certain radius.

Emile analyzed the pizza business and found that toppings do vary in cost to the pizzeria. He also found that, with the overhead to keep a pizza oven at operating temperature, the cost to bake a pizza would vary with size each and number per day. The cost of any one ingredient could also vary over time, as would the price of fuel for a delivery car. These all factored into Emile’s business plan.

Q1 How important is it to you to know how much a pizza will cost when you order it?

Q2 If your pizza order today matches your pizza order from a month ago, do you consider it reasonable for the price to be the same, even if the pizzeria’s costs might have varied?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca