2020 Retailers in trouble thread

[Exige77]

The cost of the actual food is a very small percentage of the total cost of running a restaurant. It amazes me how little some people understand about basics of running a business.

[Robertj21a]

jakesmith said:

Robertj21a said:

Be careful, I'm not sure you're allowed to say that any more. Someone will probably be along shortly to tell you how very wrong you are...........

If you enter a thread as a layman, where people obviously have knowledge and understanding from working in an industry or closely related to it, and you make a comment that shows a lack of understanding of the nature of how these businesses operate, why shouldn't you get pulled up on it. SOrry that upsets you.

As others have now tried to tell you, your lack of ability to differentiate a value proposition doesn't mean there isn't one. I couldn't care one way or the other about Pizza Express, but saying it has a comparable offering as Pizza Hut or compete for the same consumer is wrong. Saying that a pizza costs £1 to make (which you have absolutely no way of knowing), or that the brand sells under license a superficially similar pizza in the supermarket for less as evidence that the restaurant is overpriced, marks you out is utterly clueless.

Sorry if you've got all upset over a £13 pizza ..

Clearly, you have absolutely zero understanding of what many customers actually want [......hint, think of good value.....], preferring to keep highlighting what a wonderful value propsition it is !!
I have no interest in how you can try to justify the price of any pizza, pasta or anything else. My point has always been the same, and that's without adding in all the added profits made through the drinks and extras. Make the total price more appropriate and many more customers will arrive, as if by magic. It isn't rocket science.

[snuffy]

Exige77 said:

The cost of the actual food is a very small percentage of the total cost of running a restaurant. It amazes me how little some people understand about basics of running a business.

Isn't the sale cost generally around 4 times the ingredients cost ? My missus went to catering college years ago (doesn't work in catering now) and that what she says she was taught.

[anonymous-user]

snuffy said:

Isn't the sale cost generally around 4 times the ingredients cost ? My missus went to catering college years ago (doesn't work in catering now) and that what she says she was taught.

Depends on the establishment, in a top restaurant it could be 100 X, you are paying for the skill of the chef team and the whole establishment costs, not the ingredients.

[BrabusMog]

jakesmith said:

BrabusMog said:

jakesmith said:

BrabusMog said:

jakesmith said:

Robertj21a said:

Be careful, I'm not sure you're allowed to say that any more. Someone will probably be along shortly to tell you how very wrong you are...........

If you enter a thread as a layman, where people obviously have knowledge and understanding from working in an industry or closely related to it, and you make a comment that shows a lack of understanding of the nature of how these businesses operate, why shouldn't you get pulled up on it. SOrry that upsets you.

As others have now tried to tell you, your lack of ability to differentiate a value proposition doesn't mean there isn't one. I couldn't care one way or the other about Pizza Express, but saying it has a comparable offering as Pizza Hut or compete for the same consumer is wrong. Saying that a pizza costs £1 to make (which you have absolutely no way of knowing), or that the brand sells under license a superficially similar pizza in the supermarket for less as evidence that the restaurant is overpriced, marks you out is utterly clueless.

I used to work with a very big pizza franchisee, I won't let him know how much a delivered pizza costs from dough to door as it would make his head explode with rage

No rage here, more confusion about why you're making such an irrelevant point comparing the costs of a delivery operation to the value proposition of a dine in restaurant.

I was talking about Robert21, not you

OK well fair play then! Thanks & God bless.

No worries, I probably should have added that the dough to door costs I know include all overheads taken in to account

[Exige77]

jsf said:

snuffy said:

Isn't the sale cost generally around 4 times the ingredients cost ? My missus went to catering college years ago (doesn't work in catering now) and that what she says she was taught.

Depends on the establishment, in a top restaurant it could be 100 X, you are paying for the skill of the chef team and the whole establishment costs, not the ingredients.

^^^^^What he said. There’s no hard and fast rules. The food is not priced according to it’s cost but what the customer is prepared to pay and that value depends on lots of factors.

[thatsprettyshady]

snuffy said:

Exige77 said:

The cost of the actual food is a very small percentage of the total cost of running a restaurant. It amazes me how little some people understand about basics of running a business.

Isn't the sale cost generally around 4 times the ingredients cost ? My missus went to catering college years ago (doesn't work in catering now) and that what she says she was taught.

Used to manage a similar chain and 25% food cost was about right, all in EBITDA was around 8%. selling a single pizza large at £15.99 netted us about 50p profit so the upsell was important.

[thatsprettyshady]

Exige77 said:

The cost of the actual food is a very small percentage of the total cost of running a restaurant. It amazes me how little some people understand about basics of running a business.

Agreed, you don't buy a blu-ray and complain that the disc didn't cost much to make.

[jakesmith]

thatsprettyshady said:

Exige77 said:

The cost of the actual food is a very small percentage of the total cost of running a restaurant. It amazes me how little some people understand about basics of running a business.

Agreed, you don't buy a blu-ray and complain that the disc didn't cost much to make.

Great example

[Cold]

Boring. Thread drifts are one thing, but reams of waffle about frikkin' pizza? Come on people.

There's a whole PH section dedicated to Food, Drink and Restaurants should you really feel the need to dissect every nuance of making pizza.

[jakesmith]

Cold said:

Waffle.

I can assure you it will get back on track as soon as another retailer goes tits up in 3... 2... 1...

[bitchstewie]

I read this thread yesterday and I come back today and you're still arguing over fking pizza

[jakesmith]

bhstewie said:

I read this thread yesterday and I come back today and you're still arguing over fking pizza

Nice to see you smiling though pal

[Flumpo]

I’m more amazed no one has mentioned Prince Andrew yet.

[snuffy]

Flumpo said:

I’m more amazed no one has mentioned Prince Andrew yet.

Why, what sort of Pizza does he like ?

[anonymous-user]

snuffy said:

Why, what sort of Pizza does he like ?

One covered in under aged feta.

[jakesmith]

snuffy said:

Flumpo said:

I’m more amazed no one has mentioned Prince Andrew yet.

Why, what sort of Pizza does he like ?

His Pizza Express antics have made him most unpopular with the Woke(ing) crowd

[Corvid-2020]

Earthdweller said:

jsf said:

Gives me a smile when i see Ancoats mentioned like that. When i was growing up in Manchester, Ancoats was a proper sthole.

I think they market Ancoats as “New Islington” the destination address now

It’s far from Lowry’s vision .. although there’s still some social housing in the middle of all the poncey flats

It is all an illusion. Try going through on ac anal boat. Still pretty much the worst part of Manchester that isn't in Salfordtown. Even that ISI troll Shania Bigum would feel unnerved on the canal after the Canal and River Trust Lockies knock off at 5pm.

But it does have some cracking eateries. But don't tell anyone. And some factories still that make the best fireworks you can buy year round in the NW.

Ancoats main social purpose now, a bit like Salford Quays is to appear ste (*&^) stop footfall migration of football fans into the town centre after matches.

(*&^) a bit like Sheffield is designed to look like an utter dump to stop Southerners moving into the North - even more important nowadays if working in London isn't so essential.

[Corvid-2020]

jsf said:

snuffy said:

Isn't the sale cost generally around 4 times the ingredients cost ? My missus went to catering college years ago (doesn't work in catering now) and that what she says she was taught.

Depends on the establishment, in a top restaurant it could be 100 X, you are paying for the skill of the chef team and the whole establishment costs, not the ingredients.

Used to work in a food factory. The materials costs of producing and transporting the food for M&S sandwiches to our factory and us making the sandwiches and all the capital and interest costs of our factory and the money to our shareholders and the transport of the sandwiches to M&S stores all over the country, (over a thousand people were in the factory, it wasn't small) was around 8-10% of the retail price of the sandwich. (If we hadn't skimped on the amount of filling that week).

[MaxFromage]

gizlaroc said:

Blimey this thread.

Pizza Express Pepperoni 475g is £5 in supermarket and £10.90 in their restaurants.

If you don't think paying £5.90 to sit in a restaurant, have someone serve you, have someone cook it for you and have them clean up for you, is good value then I don't really know what to say.

No wonder they're going under if they're buying their own pizzas from the supermarket.