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Case Intro

An aspiring chef just moved to NY, and is trying to decide if it makes more sense to get in on the new fad of high end pizza places with imported cheese and wood burning ovens, or open a more traditional pizza place.

  • Startup costs are the same to buy ovens and other materials
  • Both types of restaurants need the same amount of space to operate
  • The traditional place uses locally sourced materials (cheese, sauce, etc.) while the high end places imports mozzarella from Italy. The high end place also offers a different set of topping options.
  • Both markets are equally developed at this point

Which type of pizza restaurant will be more profitable?

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