Profitable business manufacturing and pizza delivery.
The business associated with the production and delivery of pizza and other food (salads, soups, drinks, etc.), differs enviable profitability (some experts estimate it at 50-60%). However, this is a very capricious business, to keep it easy.
Consumption of pizza per capita in Russia lags behind Europe. However, the growth rate of consumption in Russia is higher than in neighboring countries. The average annual growth of consumption of pizza in Germany is 7%, France 1.7%, Italy — 3,6%, UK 1%, Poland — 3.8% and in Russia — 8.
More than half of all pizzas produced in Russia (including frozen), today eat. Thus, according to experts, the annual turnover of the Moscow market of food products has reached $70 million In Russia, the most popular sandwich pizza with traditional taste.
Andrew Zhubanov, CEO of consulting company AMIKO: Business of pizza delivery is considered a relatively new not only for Russia but also for Europe where it became widespread only in the mid-90s. Before that, he enjoyed incredible popularity only in America, where there are almost post-war years.
One of the first in the capital came to americansociety Domino’s Pizza — the world’s largest operator of pizza delivery. The most notable of the Russian operators of the market — Domino’s Pizza, Papa John’s, Sbarro, Pizza city , Pizza Corleone , Pizza factory , JAX etc.
According to the consulting group MAGAZIN gotovogo Biznesa in Moscow there are more than 100 stationary pizzerias. Services for the delivery of pizza has about 30 companies.
Constantine Chechenov, Director JAX : Your business we started in 1992 with the sale of sandwiches expats (expatriates working in Moscow). Investments in the opening of the business was minimal, the market was empty, and expats wanted to get the same service they had at home, at home. Foreigners at that time was experiencing a variety of problems with food: for example, they did not always understand Russian cuisine, the same salads with mayonnaise. After some time, we and some other companies have offered them American and European salads along with the pizza.
Now expats is only 15% of our clients, the remaining 85% — the Russian company. Most of our customers are corporate customers who order lunch for their employees.
The same situation is observed in other companies. And if JAX still relies on corporate clients, its competitors have diluted their corporate ordinary people who are either too lazy to cook at home, or they want to enrich homemade diet.
Alex Ylinen, Director of marketing of the company city Pizza : Before our main customers were employees of the offices. We worked only on weekdays from nine in the morning until seven in the evening. Today, more often order food home. Given this, we have extended your working day to ten in the evening and began to work on the weekend.
Changes in the structure of demand and others say market players. On weekdays, the lion’s share of orders — about 60-70% — still have offices, but customers who order a pizza to take home. And the volume of such orders is constantly growing. Many clients begin to understand that it is better to order a pizza made of fresh products than to buy frozen foods and reheat them in the microwave.
Andrew Zhubanov: the last time the market is undergoing a number of changes. Ordering pizza is becoming more popular. There has been a significant growth in annual production volumes of the major players in the market. According to them, the figure is estimated at 20-30% and in some cases 50%. The average annual growth of the market, according to experts, is 25-30.
Market pizza delivery is quite difficult to segment at prices, since the size of the pizza can be anything. Accordingly, the price usually reflects not so much the quality or the pathos of the product, how much its mass. Large and relatively expensive pizza (up to RUB 1 thousand and it sells, for example, JAX ) can feed three office staff, and the pizza is worth 300 rubles. (about the same weighs the average check in this business in Moscow) can meet unless one consumer. Production in the delivery of pizza are divided into those that prepare the dish from beginning to end, and those that are made from semi-finished products or reheat previously cooked pizza. Experts say that it is profitable to earn on the sale of semi-finished products, because it is cheaper, you can fulfill more orders faster and deliver the product to the consumer. But it is obvious that the quality of the product when such production cannot be high.
The range of typical 15-25 types of pizza. One way to expand production is, of course, is the increase in range in addition to pizza today, you can enjoy soups, kebabs, salads, mineral water, coffee or tea, and beer and cigarettes. Usually all this is an addition to a pizza, because to carry the little stuff in Moscow is not profitable. In most companies, delivery is considered to be free and to talk about the cost of the minimum order (usually a company begins to be interested in the order of 300 RUB.
Alexander Grinev, owner of Pizza factory : success requires the full cycle. Without own production, the warehouses that we have focused separately from the production, it is impossible to quickly solve tasks. The required range can be achieved only with own production and logistics. The lack of assortment, service — the death of the business.
However, the range is not always depends on the willingness of companies.
Victoria Solovenchuk, CEO of Papa John’s: We can’t infinitely expand the range, as bound by the franchise agreement. Yes, we close for the winter will trade, for example, soups (have some autonomy in relation to national features of the country, we, of course, have). But to sell sushi or kebabs, we will not, it is not our format.
Selling kebabs, Russian or Ossetian pies, etc. complicated by several problems: lack of consumer awareness, the seasonality of business weather conditions (bad weather — high orders.
Zaur Bekauri, Executive Director of the company Golden Pizza : We tried the grill, but in the summer we have this business go. After all, in the heat of the barbecue to eat outdoors or in cafes, not at home. Maybe by the autumn we will resume the sale of barbecue.
Another method of business expansion is the expansion and development of a network that allows not only to reduce total costs, but also solve the problems of delivery of the product to the consumer. Pizza needs to be delivered still warm, and cools it in special packaging — foil, parchment, cardboard mikrogeterogennye — within the hour.
Constantine Chechenov: the Market, in fact, is not saturated. What is 100 points for Moscow, where potential consumers of pizza about a million? In the capital of the whole areas in which there are cafes and restaurants that sell pizza. And if to consider that in the Moscow region, Lyubertsy, Podolsk, etc. – this market is not mastered, it is possible to predict fairly rapid development of the business.
About 40% of the companies that sell pizza, network, and 55% is a single shop. That is, the prospects are not just networkers.
How to open a business? Given the cost of renting premises initially will have to spend at least $15-20 million – this business does not require very large investments.
On receipt of all the possible permits and approvals (e.g., from the SES in the first place) will take about two to three months.
The product certification will have to spend from $1 thousand to $2 thousand, depending on the number of items in stock. For the production of enough space area of 60 sqm (office phone). Minimum required equipment would cost $7-8 thousand
However it should be remembered that the production area in Moscow in short supply, and cheap. Of course, ideal for pizza production could be any shop in the dining room, bakery, cooking, etc.
The preparation of traditional hot dishes the restaurant is forty minutes (if it’s not fast food). With pizza it’s much easier. The raw materials can be prepared in advance — the dough is kneaded, sausage and vegetables to chop, cheese to grate. After the Manager took the order, the chef can fill in the test form, smear it with tomato paste and add the ingredients. It takes about five minutes. 12-15 minutes for baking and packaging.
Unlike many complex dishes pizza tolerates transportation, but because she has a better chance to preserve their quality before arrival to the customer.
Suitable place for business not covered by the pizza boom in residential areas of the capital or the near suburbs, as the Moscow center have been divided and roads for rent.
The production must be occupied by two or three chefs for day-delivery — four; plus three of the courier and Manager, and accountant (though you can hire it outsourcing). If the entrepreneur has extra money, he can spend money on technology that will monitor the quality of production.
The cost of pizza is low, and the margin can be up to 1000.
Italians believe that the pizzeria is profitable if the ratio of money invested to the value of the original product is not below one in five. In Russia this figure is usually higher. It is therefore understandable desire of the owners of the pizzeria to open the largest possible number of points-workshops in different areas of the city.
Now the profitability of the pizzeria on wheels , according to experts, can reach 50-60%, the minimum profitability is kept at 20%, the average is about 25.