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Problem statement - How many pizzas are sold in India each day?
Questions -
- Are we talking about urban India or whole of India? Overall
- Are we talking about deliveries or dine-in or both combined? Both
- Can I assume one pizza will be completely consumed by 1 person? Okay
When we say ‘sold’, are we taking into consideration delivery, dine-in and takeaway options? → Yes
Should we consider just the pizzas sold by pizza chains such as Dominos, Ovenstory, Pizza Hut or should we also consider the pizzas sold by any restaurant as part of their menu or should we also consider the pizzas sold by hawkers and local bakeries? → Pizza chains
I will not consider the pizza doughs or read-to-eat pizzas sold at supermarkets for the estimation.
I will also consider pizzas are consumed mainly for lunch or dinner (not for breakfast).
Due to work lifestyle of folks in India, I believe the households prefer having outside food in the weekends, compared to weekdays. So, since the demand for pizzas will be different on weekdays, compared to weekends, I will estimate the number of pizzas sold Mon-Thurs and the number of pizzas sold Fri-Sun separately.
Total pizzas sold in India daily = Pizzas sold in India Mon-Thurs + Pizzas sold in India Fri-Sun
Pizzas sold = Percentage of the population who can order outside food or dine-in outside * Percentage who tend to consume pizza * Average number of pizzas consumed
Lets consider the pizzas sold in India Friday to Sunday:
Population of India ~ 1.5B
Pizza outlets are now available not just in tier-1 and tier 2 cities of India but as well as in tier 3 cities but the tendency to eat outside food is different across different tiers
10% of the folks live in Tier-1 cities, 15% of the folks live in Tier-2 cities and 15% of folks live in Tier 3 cities.
Assuming a household consists of 3 people (Ignoring the fact that tier-2 and tier 3 cities have larger households and students staying in colleges and hostels order more from outside in tier-1 cities).
I am assuming mainly the middle and upper classes tend to consume outside food who together constitute about 50% (25% each) of the households in every tier type city and try to have atleast 1 non-home-cooked meal.
Taking cues from my social circle, I am assuming every 10th household has 1 pizza meal in a weekend in a tier 1 and tier 2 city and every 20th household has a pizza meal in a tier 3 city
Tier 1 | 10% of 1.5B = 0.15B | 0.15/3 = 0.05B or 50M | 50% of 50M = 25M | 1/10th of 25M ~ 2.5M |
Tier 2 | 15% of 1.5B = 0.225B | 0.225/3 = 0.075B or 75M | 50% of 75M ~ 37.5M | 1/10th of 37.5M ~ 3.75M |
Tier 3 | 15% of 1.5B = 0.225B | 0.225/3 = 0.075B or 75M | 50% of 70M ~ 37.5M | 1/20th of 37.5M ~ 1.875M |
Total households ordering pizza Fri-Sun = 2.5M + 3.75M + 1.875M = 5.625M or 6M
Every household comprising of 3 people would need 2 med-sized pizzas with 6 slices (not distinguishing between small, med and large pizzas) and may be some other accompaniment
Therefore, Pizzas sold in India Fri-Sun = 6M * 2 = 12M med pizzas
Lets consider the pizzas sold in India Mon to Thurs:
For the sake of simplicity, in a weekday of Mon-Thursday, every 30th household has a pizza meal. Total households ordering pizza Mon-Thurs = 1/30th (25M + 37.5M + 37.5M) = 1/30th * 100= 3.33M.
Therefore, Pizzas sold in India Mon-Thurs = 3M * 2 = 6M med pizzas
Total pizzas sold in India daily = 12M + 6M = 18M med pizzas
Sanity Check:
We have of a population of 1.5B or 1500M
On average, 1 pizza for (18M/1500M) 90 or 100 people, which does not seem very high but assuming different pizza consumption for tier-2 and tier 3 cities would reduce the number further.
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