Sunday, November 11, 2007

The worst business idea ever

There haven't been a whole lot of variations on the pizza joint. As best I can tell, they fall into one of the following categories:
  • Eat-in: Pizza Hut, Pizzeria Uno's, etc
  • Delivery: Domino's, Papa John's
  • Take-out: Little Caesar's
What do each of this establishments have in common? They all serve you a cooked pizza. It's possible they have other value propositions, but in general you patrionize one of these establishments because you want to eat a pizza without preparing a pizza. Which is why I'm not sure I understand what Papa Murphy's is all about. They are the 5th largest pizza chain in the US.

And they cook exactly zero pizzas a year.

Yes, they do "take-and-bake"pizza. So in case you really want pizza, but you don't want to let other people cook your pizza, call Papa Murphy's. They'll whip something up in a jiffy, so as soon as you get home and preheat the oven and wait another 15 minutes, you can have a fresh pie.

What am I missing? I know the chain is based in Canada, so maybe this is some weird north-of-the-border thing, but how does a place that performs the least valuable part of the pizza value chain end up with 1000 stores?

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