Typical piece of Daily Mail sensationalism in this article about 'profiteering' pizza companies.
Pizza delivery firms are cashing in with a price mark-up of up to 900 per cent, industry insiders have revealed.
Sales are rising at a time when more people are trying to save money by eating in rather than dining out.
Yet customers may be unaware that while they are being charged £12.49 for a large cheese and tomato Margherita pizza, it has been made with ingredients costing just £1.25. Read all >>
COMMENTS
The article is so full of flaws, it's difficult to know where to begin. For a start, the 'profit' is not 900% for the large Cheese and Tomato, it's 89.91% (to achieve 100% profit, you'd have to produce the pizza for nothing). And then there's a big difference between 'gross profit', which doesn't take into account overheads and all the other costs involved in making the pizza, and 'net profit', which does. The article conveniently ignores the distinction and seems to be deliberately misleading. Having said that, it makes a very good little case study for business students. Get them to spot the fallacies and discuss the premise that pizza companies are ripping us off. (Read some of the 333 (!) comments below the article for more ideas.)
