Tag Archives: dollar

Economics of a Dollar Slice

This post could be a trendy infographic, but I’ll spare you the pain of Yet Another Infographic.

via flickr @jasonlam



The # of current locations each for the kings of NYC dollar slices.

In the past year, the 99-cent Fresh Pizza and 2 Bros. have doubled their operations. 99-cent Fresh Pizza has seven stores in Manhattan and is in negotiations to open an eighth, said owner Mohammad Abdul Hai, a Bangladeshi immigrant and former news stand operator.

Eli Halali, who owns 2 Bros. Pizza with his brother, said the operation has seven Manhattan shops, with an eighth expected to open in Brooklyn next month.



The estimated % cost of ingredients per dollar slice.

According to Tom Miner, a consulting principal at Technomic, a Chicago-based food services industry consulting firm, the wholesale food cost of a dollar slice of pizza is roughly 40 to 45 cents. That’s high. The average food cost for the pizza industry is more like 25% to 30% of the selling price, he said. Mr. Miner estimated that the cost of making a slice include about a nickel for the sauce and 10 to 12 cents for the dough. Cheese is the wild card—depending on the type and amount used—and is currently averaging 25 to 30 cents per slice.



The $ cost per slice of plain pizza at Di Fara, one of NY’s most acclaimed NYC pizza destinations. Contrast the $5 per slice to the $2.75 for two slices and a can of soda at dollar pizza stores.

The price of a slice increased to $5 on July 1, up from $4, the cost for the past year and a half. Just about everything else went up as well: Plain round pies are $25 and specialty square pies are $35.



The # of pizzas made in a day at a dollar pizza store.

He said that he made roughly 15 cents to 20 cents profit per slice and that it was not unusual for one 99¢ Fresh location to produce up to 450 pies a day. His pizza is so cheap some customers treat him like a wholesaler, ordering dozens of pies in the morning and selling the slices elsewhere — for $2 each.