Andrew Simmons, owner of Mamma Ramona’s Pizzeria, is known for being a pizzeria operator on the cutting edge of technology adoption. On LinkedIn, Simmons has documented his efforts to build a low-labor, high-profit business model. It’s a journey that has had many hurdles, and Simmons is perfectly happy to share what those obstacles are and how he’s tried to get past them.
But one of the most interesting things Simmons shared on the latest episode of Peel: A PMQ Pizza Podcast is decidedly low tech. In November 2022, when Simmons was considering Black Friday specials, he ultimately landed on a windfall of an idea: a pizza subscription.
Here’s how his subscription worked. For $189 per year, customers were entitled to 52 pizzas—one per week. The pizzas could be redeemed online. Simmons ran a couple of Facebook posts in local community groups and ended up selling $30,000 worth of subscriptions in 24 hours.
Related: How to Build a Smaller, Higher-Profit Concept
The real brilliance of this, Simmons noted, is that the average redemption rate turned out to be about 44%. People might like the idea of pizza every week, but that doesn’t mean they’re going to remember to order one every week. The pizzeria’s costs run at between $2.50 and $4 per pizza, and he has calculated that he makes between $80 and $120 per year, per subscription.
It can’t be underestimated how much the subscription program helps build up a relationship between Mamma Ramona’s and its customer base. “Those regular visits help us build a rapport with our customers,” Simmons said. “They come in, chat, and often order those additional items. It’s not just about the pizza—it’s about creating a community and providing a consistent experience.”
Simmons noted on the podcast that he tried to expand the subscription program this past year, but would advise against that. He tried to add a tier that included a salad with each pizza, or a soda. He found the juice wasn’t worth the squeeze.
“The uptick wasn’t significant,” Simmons said. “Most people just want the pizza. So, we’re sticking to the basic $189 subscription, which seems to be the most effective.”
To listen to Simmons talk about Mamma Ramona’s, automation, and the subscription model, check out this week’s podcast.
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