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Pizza is a huge business that appears to be recession proof. But are we getting value for our bucks? A reporter with The Guardian in Britain did a survey of pizzas there including Dominoes.
http://www.guardian.co.uk/lifeandsty...food-and-drink
I remember my introduction to Dominoes pizza ; it tasted like cardboard. I had recently moved from the East coast where Italian food meant lots of flavors. Now that my taste buds or sense of smell is dying, I don't mind Dominoes.
BTW, Pizza Hut and Dominos are the top pizza chains in the US. What does that say about the taste of the average American? Can meat slurry pizza sausage be far behind?
and budweiser and miller are top selling beers..... its ALL crap.....Quote:
Originally Posted by maxx
Recession proof . . . . . . hardly.
I worked extensive years for a corporate pizza chain located here in SE MI. The territory I most often spent my time was MI / OH / IN. I also visited up to 15 other states to open new restaurants.
Having said that........ you would have to pay me quite well [[free of investment) to jump back into that industry here in Detroit and beyond. It is a very cut throat industry with razor thin margins. The minimum wage increases that went into effect throughout MI [[and soon cascaded to many other states) severely pushed those margins to the brink. It forced prices up, and pushed mgmt. wages down leading to manager-employee strife. Gas price volatility took a heavy toll on delivery drivers, as well as food supplier prices. Costs were cut everywhere including supplier quality, marketing, hours and labor [[mainly labor).
Pizzerias here in Detroit live and die by the almighty coupon. I have to give Mike Illitch props for seeing the impending recession coming and converting his entire company into a "fast food" pizzeria. And humorously self-proclaiming his company "best value in America". TFF. But that is what consumers shift to in times of distress. If they can save $0.45 by going across the street, then they will. Similarly, and this one I still have trouble understanding; many consumers will spend 15 minutes and additional gas money driving from one store to the next in search of a pre-made pizza.
Another thing on Detroit and pizza. We are close to being the Chain Pizzeria Mecca of the USA. Several of the big hitters [[along with many smaller) chains were established here. Consequently, there are no shortages of pizza parlors in the city. Maybe why we're such a fat state? And they all fight with one another over a shrinking portion of the pie. Frozen pies from the grocers freezer, take-and-bake concept pizzas and gas station availability is getting their greasy little mittens mixed into this game of "hungry hungry hippos". And you can't invent your way out of this. You just need to be better than your competition in all facets of the business [[prices being a number 1).
I don't even want to start on the costs of opening a pizza joint. All the regulatory costs and inspections are enough to break your bankroll before you even sell a slice. It's gotten bad with conflicts of interest and red tape.
It's tough to provide friendly service, good product [[free of any/all mistakes), great prices, a clean environment, top notch image and a convenient location while still making a buck. Customer loyalty is still there, but many customers will leave you after one itsy bitsy mistake. I personally think this is why you see a growing trend in the Quick Service Restaurant [[QSR) "make it in front of you" concepts. Customers are getting exactly what they want, and can't demand free food because you made it wrong. And they will, especially in Detroit.
Finally, this is not a national epidemic. There are still great cities to sell pizza in, but they most often ride in tandem with economically strong cities. For instance, a friend set up shop in NC. People down there often do not use the pre-inflated coupons that are circulated. They come in, and order straight off the menu. It's an owners dream come true. And running a successful college campus location can be very rewarding. Busy and hectic, but worth it.
Will pizza always be around? Certainly! It's America's brand pretty much.
Is it recession proof? I would say no. I watched a lot of people lose many things including money, homes, cars and best friends in this industry.
Sorry for the novel-like post. I've just had an extended career in the business, and it is certainly not recession proof. But I think we know what you meant.
Although there's probably no way to do it, I wonder if you could add up all the pizzas sold by independent pizza parlors and they might out number the total number of pizzas sold by national chains.
Just about everyone I know orders pizza from non chain pizza parlors.
I ordered one of those Dominos $5 pizzas when they were doing their new pizza deal and it tasted just like one of the 3 for $10 frozen pizzas I can buy at the store. Nasty.
I second that, except it's for another national chain based here in Motown. The two worse pizzas I've ever had - Ed's pizza in Long Beach, Cal. had the only security clearance to deliver aboard ships on base. Because of that, they inflated prices and scrimped on ingredients. Servicemen held pizza hostage! The local based chain is the second worse I've ever had. Great price - crappy pizza. I had one a few weeks ago, and will probably never get another one. I just hope that will not affect my local teams. :confused:Quote:
I ordered one of those Dominos $5 pizzas when they were doing their new pizza deal and it tasted just like one of the 3 for $10 frozen pizzas I can buy at the store. Nasty.
That said, I'm waiting for the new independent pizza place to open by me. I will pay a few extra dollars to support a good deep dish/pie maker. :p Chicago style would be a bonus.