Forum Archive Index - December 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi alec,
 
>
> Here in Palmerston North the competition for RBD is about to get
> upfront and in your face. The local Pizza Hut has been in the same
> place for years. Now Dominos are converting part of the Albert Hotel
> into there outlet. Staff are being recruited and builders and
> contractors are all over the premises. For those of you unfamiliar
> with PN the Dominos will be diagonally opposite Pizza Hut on the
> corner of Albert and Main St which is in the Terrace End or Eastern
> side of town. Opening day is pre Xmas (apparently) so we shall see
> what the competition does. 
>

Great work Alec.  This is the advantage of 'sharechat'.  We have eyes 
and ears all over the country to give us a real 'front line view' of how 
our investments are doing.

Here is Christchurch, Pizza Hutt are not under so much pressure.   
Spaglimi's ( 6 store locations) are there but have pitched themselves a 
bit upmarket of Pizza Hutt, as befitting what is primarily a 'dine in' 
restaurant chain.  The biggest competition is probably from the 'Mad 
Dog' Pizza chain (and before someone asks, no I am not related to 
them) with four stores.   'Pizza haven' have five stores, but my 
impression is they have lost a little momentum.

The latest sales gimmick from 'Mad Dog' is a street by street flyer 
campaign.   Two large Pizzas delivered for $17 *plus* they throw in a 
free extra (garlic bread, chips or coke) if you order on Monday 
Tuesday or Wednesday.    I know this because it was my street that 
got 'hit' this week.   Quite a smart campaign I would think as they would 
tend to minimise their delivery costs by doing it that way.

>
>Some time ago I gave a comparison of
> Service station power costs. Since then I have done some checking.
> Pizza Hut locally does have air con. so the costs should be similar.
> However they also have a gas meter on the outside so we can assume
> that the ovens are gas fired. This also means their daily costs of
> line charges/meter rentals are doubled and rising fast and eating into
> the already thin bottom line.
> 

Probably a good move using gas.    The ovens will heat up faster, so 
no need to get the staff in early to 'warm up' the cooking apparatus as 
you might need to do with electric ovens.    For me though, the key 
point is not whether gas costs are going up (we all know they are), but 
whether 'gas costs per Pizza' are going up.   Putting more pizzas 
through the same oven space is one good way to mitigate the gas 
price rises!

SNOOPY


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