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In the case of the pizzerias the market equilibrium price

26/04/2021 Client: muhammad11 Deadline: 2 Day

You have been hired as a financial manager for N&D’s Pizzeria. In your role, you support the owners with budgeting and financial information and help them understand the impact of market forces on their business. The pizzeria owners, Nicole and Danielle, have asked you to provide some financial insight to inform their pricing strategies and other decisions.

Company Overview
N&D’s Pizzeria operates six pizzerias in the county of Sheffield. They provide the following products and services:

Traditional pizzeria offerings: pizzas with a variety of toppings, breadsticks, and salads
Take-out option plus delivery within 10 miles
Dining-in option (each pizzeria has a small dining room with 10 to 15 tables)
N&D’s currently employs a total of 60 permanent staff as managers, cooks, servers, cashiers, bussers, dishwashers, and cleaners. It hires additional part-time and seasonal staff during peak periods. N&D’s also contracts with a local bookkeeper and another company to maintain its mechanical and IT equipment. It leases its restaurant spaces, ovens and other equipment, furniture and fixtures, and delivery vehicles.

You can assume that the company will have a single menu for all locations, a single set of prices, and probably the same hours of operation, and it will make capital and advertising decisions for operation as a whole. When discussing the impact of market forces and pricing decisions, consider the six locations collectively.

LOCAL MARKET ENVIRONMENT
Other pizza restaurants are opening downtown, potentially impacting Nicole and Danielle’s business. N&D’s Pizzeria also faces competition from other fast-casual restaurants and from local supermarkets that offer frozen pizzas and fresh alternatives.
A significant portion of N&D’s revenue comes from downtown businesses and catering company lunches. There is currently an initiative underway to revitalize the downtown area: It is expected to make gradual progress during the next year, adding around 50 more office spaces to accommodate approximately 1,000 employees. The project could bring more potential customers but also more potential competitors.

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