City/area of 40k very close in proximity, how many pizza outfits do you think can compete and profit with this kind of population?
Meaning big boys and Indies?
the town north of me has a pop of 25k and they have 2ph’s, 1 mazzio’s,1lc,and 3 indies
In the city I’m in there are 49,500 people. In the new phone book there are 34 pizza shops listed.
2 Pizza Huts
2 Papa Johns
1 Dominos
1 Little Ceasars
1 Hungry Howies
27 Indies
How the hell can any of them stay open???Where I’m at there are 20K ppl and
1 ph
3 indys
Population 50k
2 Little Ceasar
2 Pizza Hut
2 Boston Pizza
1 Domino’s
3 small franchises
6 Indy
pop 50k
1 Pizza hut
1 Domino’s
1 Papa Johns
2 Papa Murphy
3 small franchisee
2 indy
The reason they stay open is as such. The retail food industry last year was a $421 Billion Dollar Industry, or about $1400 for every breathing soul in the U.S… Pizza related products account for 17% of that, or about $240 for every man, woman, and child. Thats $20/mo.
So in a town of 49,500 there is $980,000/mo. Potential Pizza Sales.
In a town of 40,000 there is $800,000/mo Potential Pizza Sales.
This is how I survive quite well in Northern Idaho, in towns of 6,000 with only 2 competitors. 6000 x $20 = $120,000/mo /3 stores = $40,000/mo. or about $10,000/week.
I would suspect the stay open by having their listing in a phone book that list several cities at once . . . . or in several phone books at once. Check those listings to see if it gives different cities.
Our phone book lists 15+ pizza places, but only one is in my town, or within 15 miles. The rest are in the other cities covered by the phone book.
This is what comes up when I do a search on yellowpages.com for my city, pa pizza.
Restaurants-Pizza
Sort by: Advertisers | Name | Distance
42 Listings ******, PA
Interesting figures and projections … but, in the town we’re in (1500 population) there’s certainly NOT $30,000/month in available pizza business. We’re in SW Missouri and that figure would do well to hit 50% of the per capita figure you’re using. I think different areas of the country are going to vary greatly, and apparently you are in a much more affluent demographic than we are in.
I would like to think our potential market is $20 per person monthly. Where do you get the figures you mention? Do they give regional figures as well?
My town is 6 miles by 4 miles and has 65,000 people. There are about 50 pizza shops as well as a dozen party stores that sell pizza. Two new stores jsut opened and I know of another that is coming to town early this year. I would bet that another one opens in 2007 as well. I would not be surprised to see 60 stores soon. My sales avg 2500 a week and I am barely breaking even and working for free. I don’t know what all these people are thinking! There is a finite amount of people ordering pizza on any given night. All that is happening is that everyones market share is shrinking along with their profits (if they make any) A Papa Johns jsut closed about a mile from me in another city. Apparently they were doing about 5000 a week. There are simply too many stores. Perhaps if it was regulated like liquor licenses are here there would actually be some reason to own a store and make a living.
Population 41,000
11 Indys.
Just what we need, govenment regulating how many pizza shops exist, or having to purchase the right to sell a pizza for $100,000. Sounds great to me! Maybe for giving up the right to choose my own career, they will honor me with socialized health care!!!
I think you need to check you facts carefully. According to the Pizza Power report on this very website, pizza accounts for only 7.1% of those sales, not 17%.