pizza

Living in Silicon Valley and running an internet start-up, I often think technology is the only place where the action is. Then, I come across some numbers from other industries that change my perspective (briefly!). Listen to this: 

Dominos Pizza, US’s largest pizza delivery company, cites the statistic that by 4.30pm on the average afternoon, almost three-quarters of Americans still have no idea what their families will eat for dinner that evening. So, selling pizza can be very lucrative. The US alone generates $33bn in sales (that is two times total US internet ad spending in 2006).

My estimate is that a new Domino’s store costs about $200,000 to build but probably yields an annual pre-tax cash return of 40 per cent. In addition, most of the company’s operating profit probably comes from franchised stores. These provide a stable royalties stream and a capital-light way to expand.

If The Auteurs does not work out, I’ll be running the best pizza parlour in Silicon Valley.