Saturday, March 21, 2009

Domino's Bailout

I just saw an ad for the Domino's bailout promotion. With this deal you have the choice of any three medium one-topping pizzas or sandwiches (any combination) for $15.

For some reason I find it both amazing and frightening that the cost of labor and ingredients for Domino's to produce a medium, one-topping pizza is less than $5. I guess flour is cheap.

3 comments:

Sean Rice said...

Believe it! think about this- Most Domino's employees can crank out a pizza in less than 30 seconds (from hand stretching dough to toppings). So, employee overhead for that time is pretty minimal. The cost of the toppings, dough and box can't be more than 3 dollars per pizza (a rough guess). And the cost to deliver it is probably around 4 dollars (gas, driver wage, etc.) so, since you're ordering 3 pizzas, they're turning a profit of 3 or so dollars per order. Though, I expect that they want to make money on upsells like sodas, chicken wings, and breadsticks, which are marked up more than the $5 pizzas. Otherwise, their profit margin has to be pretty darn slim on this deal. I used to work for Domino's, though I can only guess at the cost of the ingredients, since I wasn't involved in purchasing them.

Blogman said...

Thanks for the info. I'm of two minds. On the one hand, it's amazing that so much food can be had for so little. But it makes it sad that we can't feed the entire world considering how cheap it should be! Also, it just seems like there's something shady going into the actual pizza if it's that cheap!

Anonymous said...

Feed the world? How about this for an amazing fact if thats got your brain racked..

Nobody has to work. No, seriously, there is enough money in circulation, coupled with current technology which presents the ability to properly harvest natural resources such as geo-thermal, wind energy etc. whereby nobody has to actually 'do' anything. We could feed the world ten times over. We could distribute money so evenly that people would average and enjoy excellent standards of living.

Instead, what do we have? Starving people. Poor standards of living. Depleting and dysfunctionally managed resources. And last but not least the elite. CEOs, politicians, movie stars, top notch businessmen/'old money' who preserve the so called 'upper strata' of society and maintain the power struggled-shifts and the principles of capitalism.

NOTHING I'm saying is untrue. There are proofs and even some documentaries which account for these facts, such as Zeitgeist Addendum.

Now, imagine that world, instead of dreaming about some 3 dollar Dominos Pizza.