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How many Pizzas are sold in London every day?

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How many Pizzas are sold in London every day?

Here's the solution:

The ideal way to approach this question is through the supply side. That is, if we can estimate the number of pizza restaurants and the number of pizzas each sell a day, we should be able to figure out the number of pizzas sold. Yes, there are also pizzas sold at supermarkets which we will keep aside for this one.

Compartmentalizing London

First, in trying to estimate the number of pizzas restaurants in London let us first break London into different zones and locations. If you have stayed in London, then you will know that Londoners are proud of their extensive public transport network. Probably the best in the world.

The city has 11 tube lines in addition to a well spread overground rail network. Estimating that each tube line has say around 25 stations we get approximately 275 stations. The actual number is 270 - so we are not far. If in an interview you are 20 to 30% away from the actual number, you may be veered back by the interviewer or may be allowed to carry on.

Additionally, let’s say London has approximately half as many overground stations as that of the underground. That is approximately 130 overground stations (112 in actuality). All in we get approximately 400 stations in London. You can use the station sizing exercise for several other analytical questions such as number of houses sold in London every day and so on.

Pizza places per station

Assuming each station has approximately 5 pizza places we get 2,000 pizza places in London.

Pizzas sold per place a day

From there on assuming each restaurant takes about 5 minutes per pizza we get 12 pizzas an hour. On a 12-hour work day we get c. 144 pizzas sold a day per restaurant.

and finally, ...

Multiplying 144 pizzas by c. 2,000 pizza restaurants in London we get 288,000 pizzas sold in the city every day. Of the approximately 8.5m people living in London every day that works out to c. 3.5% of the population chomping away at a pizza - Believable? Yes sir! Waiter - A grand margarita for me as well please!! :)

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