Was curious if anyone runs a buy one get one free pizza place. I’ve been to a few and they always seem busy. I guess the basic idea is to price the first pizza to make a regular profit and charge your costs on the second. No coupons just always buy one get one.
I was hoping to find out the pitfalls of this strategy, any problems. Is it hard to be profitable? Any ideas appreciated.
Let me begin by saying that I am NOT an advocate of “two fers” (two for the price of one) at any time. It totally undermines the value of your pizzas in the eye of your customers. Last week you were selling those pizzas two for $10.00, now you are selling them for $10.00 each…THAT’S OUTRAGEOUS! This is what some of your customers will be thinking. Instead, try bundling your pizzas with something else, buy any medium or large pizza and receive a free??? (order of bread sticks, soft drink, small side salad, etc.). That “free” pizza could be costing you $3.00 to $5.00 where any of the mentioned bundled items will cost you well under $1.00 but have a potential customer value $2.00 or more. If you want to open a store with the two for the price of one concept (like Little Cesar’s) that’s fine because the cost is built into the pizzas right up front but if you do a special two for the price of one it totally undermines the value of your pizzas.
Just my humble opinion.
Tom Lehmann/The Dough Doctor
It’s just a different path.
I spent 32 years with Domino’s and was sick of attracting only that kind of customer- last 8 years or so, anyway.
It’s just not who/what I want to be anymore.
But… if that’s the choice and plan… it’s not wrong… but you need to embrace that mentality, philosophy and business model.
I agree with Tom completely, by the way.
If it’s your business model it could work. But not if you go mixing and matching it with your regular prices, etc.
I started out with a 40% discount on the second pizza. I learned pretty fast that was a mistake. People will work the system to get the most expensive pizzas cheap. I would have customers wanting 4 pizzas make 2 orders the first wold be 2 higher priced pizzas and the second for 2 lower priced pizzas.
The customer that only wants one pizza gets the short end of the deal with this concept as well.
I changed to straight up pricing and sold fewer pizzas and made more profit. In other words less work more pay.
I spent my first 10 years in this business as a 2 for 1 operation. Our name was Double or Nothin Pizza. You got double or got nothin! This was back in the late 80’s and early 90’s. We sold 2 large 1 topping pizzas for $10.99 with free delivery in 30 minutes or less, or the customer got $2 off the order. We only sold pizza (small and large) and 2 liter sodas. Small delivery areas, and labor was low back then ( $4.25 hour ) No computers, no credit cards. Our map was a gas station map taped on the wall. One of my original employees from 1988 came by to visit me the other day and we reminisced about all these things.
And yes it was hard to be profitable. I was basically just a money handler all those years. I made enough to live but I worked 80 hours a week.
Today its 1 Pizza for $10.99 plus $3.25 for delivery. We do take $1 off each pizza when they order 2 and $3 off when they order 3 or more. No late delivery discounts, although we do if they ask. Larger delivery areas and the $4.25 is closer to $12
I just don’t see this pricing model work anymore with the higher labor costs these days.
Bundling is much more ethical
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Back when I had two locations I might have been willing to offer “Buy-One, Get-One FREE” pizza restaurant. Now that I only have one pizza restaurant to sell I guess I can’t do that unless one of you guys wants to give yours to whoever buys mine…