Bite a Slice

Reduction of variable cost

–Variable Costs are costs that vary with the amount of output.

Each pizza requires flour, tomato sauce, cheese, additional labor effort, etc. Since our business is on vehicle {moving
pizza outdoor} we can reduce the piece-rate labor, packaging supplies, and also selling pizza in slices sometimes
buyers don’t want to purchase full pizza they just want to grab a slice so in that case bite a slice comes in motion
including a drink like 7up or coke like a combo pack of slice and coke.
In the same way that you offer discounts to your buyers, ask your providers for discounts by volume of purchase. It is
important to negotiate with your suppliers to reduce your variable expenses.

By using vehicle, we will be reducing Health, disability or life insurance premiums and business insurance
property tax as well
Reduction Of
Fixed Cost
As we are delivering Pizza on a Truck, our basic fixed
costs such as License, Fuel, insurance, permits, parking,
and so on are the common expenses we have to face. So
there are some ways we can reduce our fixed cost to the
maximum. Buying a fuel-efficient truck can bring some
changes in fuel consumption and reduce labor costs by
appointing 2 to 3 people and giving opportunities to
students. Reducing the insurance premium of many
policies, for example, Protesting against theft policy can
be easily avoided by Installing a security camera and the
other best way is to convince the insurance company as
a good customer who has not cost them any money.
Cost shifting is economic situation
where businesses maximize profits by
reducing costs by unfairly shifting parts
of costs on another individual,
suppliers, consumers, government,
public in general.

Cost-
Shifting
 • Rent and startup cost
The initial cost of food truck is less than sit down
restaurant, fewer overhead cost to worry about.

Cost- Don’t need to wait customers can reach out

them. Can park in recreational areas like parks,
tourist attractions, flea markets, late-night

Shifting crowds outside concerts and bars etc.

• Fewer Staff

Strategy A cashier and a handful of chefs are enough to

operate the business (2 to maximum 6 people).
Fewer staff lower labour costs and higher profits.
• Self Service
The expenses of hiring server is
shifted to the customers.
• Reduce Food Waste
Track items to reduce food waste
which items are selling well, and
which are not. Save money by
purchasing some ingredients or
supplies in bulk from other food
truck businesses.
Reduction of cost by economies of
scale
Economics of scale are cost advantage
that can occur when a company
increase their scale of production and
become more efficient, resulting in a
decrease cost per-unit.
Reduction of cost
Strategy.

• Purchase ingredients in large

quantities.
• Investment in Technology.
• Proper division of labour.
• Appointing fast but minimum staff.
• Outsourcing.
Benefit of
Economics of scale.

•By the Economies of scale we will be able

to sale maximum pizzas at lower prices. We
might be able to produce 5,000 pizzas at a
cost of just $5 per pizza because we have
lower per unit costs thanks to large
production runs and they are able to
purchase ingredients in large quantities that
result in lower per-unit costs.
Economies of Scope

An economy of scope is a
proportionate saving gained by
producing two or more distinct
goods when the cost of doing it is
less than the cost of producing
each good separately.
 Reduction of cost by scope

Using advertising to promote multiple dishes or offers

instead of one

Use of same equipment or personnel to make new dishes

which will give customer a variety

Inclusion of small stall on the counter for deserts.

Thank you!