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Pizza pan – 15 Necessities Non Stick Round Pizza Tray - 18CM – Bought from CharliesDirect. Each one costs £1.25; therefore 15 will cost £18.75
These pizza pans will be used as a mould in which I can put the pizza base in so I can get a perfect 7 inch pizza. It will also be used to hold the pizza when it is being baked in the oven. I have bought 15 of these as the oven 2 ovens I have bought mean I can make 12 pizzas at a time. I have bought an extra 3 incase 1 gets damaged.
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Pizza cutter – 3 Kitchen Craft Professional Stainless Steel Oval Handled Pizza Cutter – Bought from CharliesDirect. Each one costs £2.99; therefore 3 will cost £8.97
The pizza cutter will be used to cut the 7 inch pizza into 4 equal slices. I bought 3 of these as each of the employees who are making the pizza (me and the other 2 employees) can each use one instead of sharing them.
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Knives - 6 Piece Sevilha Stainless Steel Steak Knife Set – Bought from Argos. I have only chosen to buy 1 set of these. The cost of this product is £7.99
These knives are bought in a set of 6. They will be used to cut the toppings for the high quality pizzas. The knives are made from stainless meaning it cannot stain, rust or corrode as easily as normal steal. I have only bought one set of these as there are 6 knives in the set which is more than enough as there are only people making the pizzas.
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Mixing bowl – 3, £7.99 - Kitchen Craft 32.5cm Traditional Stoneware Mixing Bowl – Bought from CharliesDirect. Each one costs £7.99 therefore; 3 will cost £23.97
The mixing bowl will be used to mix the flour and the water which will make the dough. Similarly to the pizza cutters, I have bought 3 of these for each of the employees making the pizza to use. This saves time as each of us doesn’t have to wait for the one person to finish making their dough.
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Rolling pin - 3 Mega Rolling Pin – Bought from CharliesDirect. Each one costs £2.25; therefore 3 will cost £6.75
The rolling pin is used to flatten out the dough once it has been made. 3 of these have been bought for each of the people making the pizza to use
Similarly to the oven, I will be using the same fridge I use at home therefore there is no cost to it. The fridge will be used to store and keep the ingredients fresh such as cheese, vegetables and the meat products.
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Weighing Scales – 3 Kitchen Craft Deluxe Electronic Kitchen Scale – Bought from CharliesDirect. Each one costs £14.99; therefore 2 will cost me £29.98
The weighing scales are used to measure the ingredients in for example the flour. It is used to get the exact amount needed – not too little or not too much. The scale is electronic meaning it displays the weight of the item instead of someone having to read it. This is useful as it is quicker than having to read it on a non-electronic scale. I have bought 3 of these so everyone can use once and not get in each other’s ways.
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Mortar - Cookworks Signature Granite Pestle and Mortar - Bought from Asda. I have only chosen to buy 1 of these. The cost of this product is £10.99
The mortar is used to grind items into powder. For my pizza, the mortar will only be used to ground the black peppercorn into powder which will be put into the pizza sauce.
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Grater – 2 Joseph Joseph Fold Flat Graters - Bought from CharliesDirect. Each one costs £7.99; therefore 2 will cost £15.98
The cheese grater is used to grate the cheese into small pieces which can be scattered all over the pizza. I have bought 2 of these as its only function is to grate the cheese nothing else therefore buying 3 would be a waste of money.
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Oven mitts – 3 pairs of Black stripe oven gloves – Bought from Debenhams. Each one costs £5.00; therefore 3 will cost £15.00.
The oven mitts are used for safety reason when taking out the pizza tray out the oven as it is extremely hot. 3 pairs of these have been bought so each of the kitchen employees including myself can use them.
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Hair nets – 2 packets of Sienna Hair nets - clear & brown – Bought from ASDA. Each one costs £1.50; therefore 2 will cost £3.00
These hair nets are used for hygienic reason – to stop hair from falling on the food. Each pack contains 4 hair nets are 2 packets have been bought as some will be disposed of when it is used for a while
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Wet floor signs – 3 Caution Wet Floor A Frame Safety Sign – Bought from Screwfix. Each one costs £5.00; therefore 2 will costs £15.00
These floor signs will be placed around the workplace. It is used to inform them employees of any wet floors to stop them from slipping. 3 signs have been bought so the employees are more aware of wet floors.
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Fire exit sign – 1 Fire Exit Down Sign – Bought from ASDA. The costs of this products is £3.97
The fire exit sign it placed on top of a door and is used to inform the employees that it is the way to go in case there is a fire.
Human Resources
To help me make the make more pizzas, I will hire four employees that will assist me. Out of the four employees, two of them will make the pizza, another one will do deliveries and the last one is required to serve the customers. I have chosen to employ only four employees as the business I am running is small therefore having extra employees would be unnecessary and would cost the business.
The two people that are helping me make that pizza will help me make the dough, grate the cheese and add the toppings.
The delivery pizza is responsible for getting the pizza to the person who ordered it. However the delivery will only be within a 5 mile radius as it would cost a lot if we delivered to further places.
The person who is serving the customers is in charge of taking the customer’s order through the phone and gives it to the employees who are in charge of making the pizza.
I have only chosen to hire four employees as the process of making a pizza is fairly simple and easy. According to , the minimum wage for a person working in the UK is £5.80 an hour. Therefore I will pay the four employees £5.80 an hour as making a pizza isn’t a skilled job. However the delivery person will be a commission based wage where they get a 5% of the sale as they are only needed when a customer needs the pizza delivered to their house. I will pay myself however much profit the business makes after the costs and wages are deducted.
The four employees will be required to work approximately 8 hours a day. They will work from Monday to Saturday and the working hours will be from 11:00AM – 7:00PM with a 1 hour lunch break in between.
Financial Resources:
I will be using personal saving to finance the cost of the physical resources. I will be using personal saving because I have the money there and then. I don’t need to wait for the money or, if I was taking out a loan, for the loan to be approved. However, using personal saving would mean I have to dip into my own pockets for the money which I could use to by something for myself.
If I were to take out a loan, it would mean I have to pay interest on the amount I have taken out. This could be a problem especially if my business isn’t making as much sales as predicted. If I cannot pay the loan back, my personal possessions are at risk of being taken away to pay off the loan as it is part of the agreement when signing for the loan.
Summary of Costs:
Total Physical costs = £160.35
Human Costs:
For the employees (not including delivery person) – (£5.80 * 3 employees) * 48 hours a week = £835.20
For delivery person per week (see summary of sales also):
Low quality - 5% of (£4.99*50) = £12.48 * 6 = £74.88
High quality - 5% of (11.99*50) = £29.98 * 6 = £179.85
Total Human costs per week (approx 48hrs a week) for low quality: (£835.20 + £74.88) = £910.08
Total Human costs per week (approx 48hrs a week) for high quality:
(£835.20 + £179.85) = £1015.05
1 Unit cost of a pizza (Low quality) = £0.84
Selling price= £4.99
1 Unit cost of a pizza (High quality) = £4.32
Selling price = £11.99
The price of the pizzas ends with ‘99’ because it uses psychological pricing. This is when the cost of the product is reduced a little to make it look cheaper. Using this pricing method will help increase sales.
Summary of Sales
Each pizza takes about 15 minutes to prepare i.e. making the dough and adding the topping and 10 minutes to bake. The oven has a capacity of baking 4 pizzas at a time therefore 24 pizzas can be baked within an hour (60/10) *4.
There are 3 people including myself who make the pizza. Each people can prepare 4 pizzas each in 1 hour therefore 12 pizzas can be prepared in 1 hour.
12 pizzas can be prepared in 1 hour. These 12 pizzas would take an overall of 30 as it would be put in patches of 4 which take 10 minutes each.
This means that in 1 and a half hours, 12 pizzas can be prepared and baked. In a typical day of 7 hours (including lunch break), roughly 52 pizzas can be made. However I have estimated that I will sell only 50 pizzas a day because a few pizzas may get burnt whilst in the oven or may accidently fall on the floor.
Low quality:
Costs for your business to make this version:
Unit Price= £0.84
No. Units sold per day = 50
Total Cost to business per week (6 days) = £252.00
Revenue for your business for this version
Selling Price = £4.99
No. Units sold per day = 50
Total Revenue to business for week (6 days) = £1,497.00
Profit = Revenue – Costs
Profit = £1,497 - £252.00
Profit = £1245.00
Total profit made in a week:
£1245.00 – £910.08 = £334.92
High Quality:
Costs for your business to make this version:
Unit Price= £4.32
No. Units sold per day = 50
Total Cost to business per week (6 days) = £1,296.00
Revenue for your business for this version
Selling Price = £11.99
No. Units sold per day = 50
Total Revenue to business for week (6 days) = £3,597.00
Profit = Revenue – Costs
Profit = £3,597.00 - £1,296.00
Profit = £2,301
Total profit made in a week:
£2,301.00 - £1,015.05 = £1285.95