• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Report on Comparisons Between Pizza Hut & Domino's Pizza.

Extracts from this document...

Introduction

Report on Comparisons Between Pizza Hut & Domino's Pizza 15/01/02 To Lending Manager of HSBC Bank in Ealing From Tasneem Husain Terms of Reference To investigate the comparisons between two franchises which I have narrowed it down to. Once I have done this, I can then decide to open up the best one out of the two. The main reason of why I want to be a franchisee is because, being a franchisee would be safer than being a sole trader or in a partnership. I'm not saying it'll be the easier option, but as long as it pays as well as I put in, then there won't be any disappointments. There is one disadvantage of becoming a sole trader, which is unlimited liability. This means that I'd have to pay for the losses made by the business, even if it meant selling my personal possessions, e.g. my house or my car. Even though this is the only big disadvantage of being a sole trader, it is too big of a risk that I'm willing to take. I'm also not exactly sure what products or services I'd be able to offer customers. ...read more.

Middle

Domino's Pizza From the research that I have done, I found out that if I decided to open up a Domino's Pizza franchise, it would cost me �160,000 in total. When I say in total I mean that there are many things that make it to this amount. The first thing I would have to pay for is the construction of the actual store which would usually be about 900sq ft. I would not have to plan any designs because the store is project managed by Domino's Property Department. They do this until the store is completed from beginning to end. The construction cost alone is �68,000. The second thing that would cost me is the equipment. The equipment can be leased but that is a whole different situation. By equipment I mean like ovens, refrigerators, stainless steel tables etc. I will also have to pay for things like computer systems, telephones systems, security systems and the air conditioning. All of these things would cost about �54,000 altogether. The third thing that would cost me is the planning and architecture side of things. As I said before I only have to pay for all the work being done, I don't actually design the building. ...read more.

Conclusion

There are many reasons for why I have chosen this franchise. The investment costs are one of the main reasons. Domino's Pizza has an investment cost of �160,000. Pizza Hut has an investment cost between �150,000 and �185,000. Even though, Pizza Hut says that I'd have to negotiate with them for the final amount, I still think that after the final amount is agreed, there will still be costs that I will have to pay for. Also the investment cost for Domino's Pizza is including every thing that I'd have to pay for, Pizza Hut's isn't. Another reason is that Domino's Pizza says that the pay back time is five years. Pizza Hut says that it all depends on the way the manager runs the restaurant, but I think that they're just avoiding the question. One other main reason is because there are fewer hours with Domino's Pizza. I don't want long hours everyday. Therefore, Domino's Pizza seems like the best option. I already have about �10,000 in the bank; therefore if you would let me borrow �150,000 from the bank, I would be very grateful. Also you get it back with interest in less than five years because it isn't �160,000. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Functional Areas Report

    * After-sales service - Tesco have to make sure, how well a customer is treated after they have bought an item is almost as important as how well they are treated before they make a purchase. Expensive or complicated items are more likely to be offered with an after-sales service.

  2. Tesco Research

    Task 4 Describe the use of creative corporate communication techniques in a selected business. CORPORATE COMMUNICATION: This is a management tool that tunes all intentional forms of internal and external communications. This is in away the organisation creates and keeps its corporate image towards its major target groups in form

  1. Business Studies

    provides consumers with choice Standard of living: > To ensure the businesses are providing consumers with goods that appeal to the 'want' element of human behaviour, organisations will develop and market products that are aimed at enhancing our lifestyle > Through a variety of products and services provided by businesses

  2. Business Plan. After putting a lot of thought into what kind of business we ...

    Virgin airline for instants once only sold soft drinks, now they sell airline tickets, train tickets and a financial service. This shows how big a business can expand to. Corporate image All businesses need to sell themselves so most business have a corporate image.

  1. Is it a sound business decision to locate a Coffee Republic franchise in Finchley ...

    The benefits of this kind of data are that it has an opportunity for better detailed answers and it is more practical and creates a higher degree of accuracy. Other data can be classified as being quantitative, which is data showing numeric information including quantities, percentages, and statistics.

  2. Business Report

    Therefore Donald would be better off setting up a shop, which has a large population. * Population Wealth If people were wealthy, Donald would receive more customers spending more money on his products. Crawley is a wealthy location because it has a high employment rate.

  1. personnel selling

    Explain how the employee's can display: Carphone Warehouse- * Positive Attitude- Positive attitude is influenced by the way you think. In Carphone Warehouse employees can't be depressed or they will be negative, they can't be fed up or they will be bored.

  2. What is PR?

    Within a company, PR can also come under the title of public information or customer relations. These departments assist customers if they have any problems with the company. They are usually the most helpful departments, as they exist to show the company at their best.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work