Would you sell Pizza to someone like this?

There’s a “mobile pizzeria” in town - who focuses mostly on late night slices. They have a full pizzeria “truck” which has conveyor ovens, walk in cooler, etc, as well as a “commercial kitchen” where they currently prep pizzas but they’ve approached us about buying uncooked pizzas + ingredients which would essentially allow them to focus on marketing and service, rather than the pizza itself…

Would you do something like this? What would you mark it up? They would basically come by every morning and pick up dough/sauce/toppings and we would invoice them monthly (with some sort of deposit up front)

They of course wouldn’t say where the pizza is from…and they wouldn’t sell in our delivery zone. It’s a big city - so I’m not too afraid of them competing…

http://www.yelp.com/biz/stonys-pizza-austin

The company is very similar to this one…

Check with your health code, but I dont believe you can sell meat on these pizzas without being USDA certified.

The above scenario is assuming all is health code compliant of course. As I understand, they need to be health certified as a catering company basically and the kitchen the pies are prepped in needs to also be certified.

IT would depend to me what the costs are, in terms of $$$ and hassle, for maintaining a Department of Agriculture license for processing and selling meats. Not been through that yet.

That said, I’d look at maybe a 45% my COGS as a starting point for negotiations?? What are they selling their slices for right now? Reverse engineer their food costs at about 27% just for a starting number to see what they are now paying. Add a few to 10% for convenience??

Good point about the USDA.

Will consider offering only dough / sauce / cheese and letting them handle the toppings, that’ll also separate it a bit from our offerings. As they would assumingly end up with different pepperoni, beef topping/hamburger, pineapple, etc. As well as ration differently.

They already buy from RD.

Nope…once the stuff leaves your store you have no control really. Service, appearance and everthing else is trusted to people whom you have no control over.

If you think it is a good idea wait a few months and offer to buy the trailer. LOL

Kris