How profitable is operating 1 or more Smart Pizza machines?

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Pizza
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Because it is a new product, a lot of questions are asked about Smart Pizza. How does it work? What’s the storage capacity? What is the payback period of the pizza machine? We will try to answer some of these questions in this article. If you have any other questions, don’t hesitate to contact our team 

Compared to a restaurant

Investing in Smart Pizza is a lot easier than starting a restaurant.
A few reasons are:


> Low start-up costs: Starting a restaurant often requires a large investment to cover the costs of purchasing cooking equipment, building, furniture, and the list goes on. But a Smart Pizza business can be up and running fairly quickly for less than $100,000. 

> Starting small reduces financial risk: By starting with a single Smart Pizza you can get an idea of how much money you might actually be able to make in the business. You can learn the ins and outs of running a Smart PIzza business, like frequency of stocking, placements and marketing.

> Low rent, lease, and mortgage payment: You can select stores for your machines to be placed and set up agreements with the site owners. Getting a good location might require paying an incentive to the site's owners. At most locations, you'll need to pay for the space you occupy and electricity your machine uses. In some cases, landlords might pay you a fee to place your machine there, because thanks to your Smart Pizza they are now able to offer food to their employees. 

> Low overhead and staffing costs: When you operate a fleet of Smart Pizzas, you are the boss. You can set your own hours and decide on the frequency with which you service and stock your machines. You can involve the family to maintain and refill the Smart PIzzas or use your existing staff to create pizzas to refill your Smart Pizzas during downtimes. If you don’t have access to a kitchen to make your own pizzas, you can partner with a local pizzeria. 

> Insurance: the insurance on a Smart PIzza is a lot more affordable than operating a restaurant. 

> Sell 24/7: There is also great flexibility in terms of time, since your machine is working for you by selling your product without you needing to be physically present. 


Smart Pizza sales projections

Let’s take the hypothesis that the average production cost of a regular 12 inches pizza is $2 and the average sales price is $11.50.Taking into account fixed and variable costs, such as:

> cost of financing
> production costs & packaging (pizza boxes and aluminum trays)
> bankcard fees & commissions
> insurance
> Internet connection & management software
> labor to refill Smart Pizza
> rent*
> waste of unsold pizzas

*If you don’t rent a location, or choose other options, the profit can be bigger. 

Here is a quick look at the potential income when you own a Smart Pizza:

You sell 20 pizzas / day 30 pizzas / day 50 pizzas / day 100 pizzas / day
You earn (monthly profit margin) $2 591 $5 157 $10 289 $22 962


Want to know more? Contact us

Source: https://smallbusiness.chron.com/vending-machine-business-pros-cons-1363.html

Operating pizza machine


 

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