One of the great economic mysteries of our timehttps://mobile.nytimes.com/2010/03/16/nyregion/16pizza.html …
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Well, they know the future, so we’re sure that helps.
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They’re fronts dude. Money Laundering As A Service.
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They have nothing on Mattress Firms in the ML business. I swear I see more Mattress Firms than I do Starbucks in a city.
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Holy crap! My assumption is confirmed. Article even references my comparison with Starbucks!
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They'll also sell you a pie for $0 now, but .025% of your income for the next two years
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The ingredient costs are very low. It used to be <$2 per pie ($8 in revenue)http://mobile.nytimes.com/2010/03/16/nyregion/16pizza.html …
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My guess is like other fast food places, they make it up on the sodas they sell.
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If only cash: Money Laundering.
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hard same — I wonder if a lot of them own their buildings? have ridiculous margins on soda or whatever so pizza is a loss-leader?
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It's crazy how NYC rent is more expensive than virtually everywhere in the US, but restaurants are some of the cheapest. It's completely driven by volume. Marginal cost of making 8 slices ~ $2.5. If you sell enough, you can cover labor + rent and turn a profit.
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Anytime I ask myself this question about any physical mom and pop store I assume they launder money
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All other varieties beside plain are 2.99 or 3.99 a slice - plain is loss leader
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they don't... 8th & Ave A had 3 pizza shops open and close within a year while i was living there.
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They make money with sodas/drinks/other types of pizza. The .99 is just to get you in the door.
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Check out this video on the economics of a $1 slice vs a $1,000 piehttps://youtu.be/IjLsY7yuqfI
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