Opening New Business Location, $1 Per Slice At A Time

On the corner of 41st street and 9th Avenue in New York City, a small pizza place, unofficially titled “99 Cent Fresh Pizza,” is busy selling slices to hungry customers. There is no seating or tables, no place to enter and cars are busily passing by, many on their way to the Lincoln Tunnel. How can this place stay open? It seems that the $1 slices attract many customers, so much so that the small pizza place has managed to open in another location: one block away.

“I have lived in this area for about two years,” said Michael Blenn, 43, as he ordered the always-available special: two slices and a can of soda for $2.75. “Multiple businesses have closed right on this block in just the past year. I can’t understand why they (99 Cent Pizza) would spend money to have a second location just one block over.”

But business seems to be booming in both places, and there is no sign of slowing. Part of the explanation for such success is simply the price. In a city where many pizza places charge around $2.50 for a slice, it is a relief for some New Yorkers to get more than double their money for the price, especially during the current economic troubles, which exploded and drew world-wide attention during the summer of 2008.

Since then, New Yorkers have seen unemployment rise from 7.5 percent in January of 2009 to 10.4 percent in January of 2010. Due to these economic troubles, it is no surprise that people are spending less and as a result, buying cheaper food. According to a recent New York Times article, however, New York City has not been hit quite as hard by this crisis as initially expected. According to the article and sources contained therein, a large factor which saved New York from becoming worse was due to government aid. James Parrot, an economist with the Fiscal Policy Institute, is quoted as saying the bailout “didn’t prevent substantial losses, but they would have been greater without it.”

Local residents seem to agree with the assessment that times could be much harder. “Of course the economy is bad right now,” said Stacey C., 27, a resident near 99 Cent Pizza. “But certainly it could be a lot worse. Either way, it is always helpful to save money. What I still don’t understand is why they decided to expand with a new place down the block.”

Part of the explanation for this could be the particular location. The original location on 41st and 9th is on the corner, which makes it easy for hungry customers who are driving (or stuck in traffic) to pull over and get a quick bite. The new location on 42nd between 8th and 9th, while very close, has easier access to pedestrians and, being directly on 42nd, draws attention.

Only time will tell how these two locations will fair in dealing with the economic crisis. One thing made clear is that they have done well enough to open a second location, and one wonders how that can be accomplished at $1 a slice. One of the men making pizza, who wished to remain anonymous and spoke little English, stated “We buy lots, and sell it cheap, good and fast. People always want that.”