The most efficient pizza shop - Ugi's in Buenos Aires

This blog post by the Operations Room, one of my favourite operations blogs, reminded me that I should write about the Argentine pizza chain, Ugi's. Its pizza was pretty good, but I was more fascinated by its operation of the stores and the business model, while visiting Buenos Aires (BA).

The business model

The product:
They sold one pizza. Exactly one type: mozzarella on tomato sauce on pizza dough.
No variations.

Size:
The whole pizza. Or by the slice.

Extras:
You can add condiments like chilli peppers and oregano, after you get the pizza, for free.
The cardboard box is extra.

Environment:
Basic and bare. No frills.
There is basically standing room only with very few seats and tables in the shops. Most people do take out.

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The USP (Unique Selling Point):
Cheap.
Fast.

The result: Very popular! Probably the longest queue for food in BA.
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The operation

Each shop had a big oven and 2 guys making the pizzas. That seems to be it.

Tasks of the pizza maker:

1. Work the dough and spin it out to lay onto a wooden pizza pan.

2. Ladle the tomato sauce from a big pot onto the dough, and smooth it over the dough with a circular smudge with the bottom of the ladle.

3. Cut a brick sized block of mozzarella from a giant block. Split it in half, and chuck it in the middle of the sauced dough. (It nicely melts all over somewhat evenly.)

4. Put the pizza into the oven.

5. Check on the other pizzas in the oven. Take them out onto the table when ready.

Tasks of the pizza giver:

6. Slice the pizza.

7. Box it. Or put a slice on a plate.

8. Hand it to the customer.

9. Take money.

I could have stared at the guy making pizzas for hours. It was so well practiced and smooth, since it's the only thing he makes all day long, by the hundreds, every day. It reminded me of some of the best run factories I've visited before. Precise. Lean and Mean. The simple business model makes it possible.

Change / Improve?

Do you find yourself asking, "Given their popularity, why don't they add 1 or 2 more flavours, like pepperoni or something?" or...why should they change anything?

• I think for one, it would trade off speed with variety.
• Secondly, they are already maxing out their capacity, so why add more. There's unlikely more revenue to be had, and I can't comment on profitability.
• Thirdly, given their popularity, why should they change any of it? The customers clearly like it the way it is.

You can read more about Ugi's here.

As much as I love the parrilladas Argentinas, do have a Ugi's pizza next time you're in BA!