Dominoes Analysis

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Making Decision Based on Demand and Forecasting

ECO 550 – Mangerial Economics
January 2013

Dominoes’ Pizza is considering entering the marketplace in my community of Middleburg, NC. Middleburg is a small town in Vance County, North Carolina located near the Virginia line. In this paper we are going to create a demand analysis and forecast possible success for Dominoes opening a location in Middleburg, NC. We are also going to go over the demographics and other independent variables such as price of pizza, price of soda and other things offered by the company and how it influences the decision of putting a Dominoes pizza in such a location. Based on the forecasted demands, I will determine whether or not Dominoes should consider opening a restaurant in Middleburg, NC. According to the US census bureau 2010, there are 133 people, 53 households, and 36 family households that live in Middleburg, NC. The median income for households was $25,313 while the per capita income for the town is $11,552. 5 percent of the population is below the poverty line; including 4.2 percent of families live below the poverty line. I am going to conduct a demand analysis and forecast for pizza to determine whether or not Dominoes pizza should establish a presence in Middleburg, NC. The average price for a large pizza from Dominoes is $15.37; the Average Drink cost $1.89; the average baked sandwich cost $5.99; the average cost of chicken wings is $7.29 and the delivery charge is $2.00. If Dominoes decided to place a store location in Middleburg, NC, then they would still have to deal with the competition from all of the other local and big chain pizza restaurants in the surrounding area. Big Cheese pizza, a local restaurant in Vance County sells a large pizza at an average of $5.35 a pizza; $5.35 for chicken wings; but there is no delivery offered at this location. Pizza Hut average large pizza averages around $15.74 and also has an $2.00 delivery charge. Papa John’s pizza...
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