The price of a patty: How scale determines price, maybe
Patties are not the same price everywhere. What consumers know is that eating one of their favorite delicacies is significantly cheaper in the United States than in Jamaica. Currently, beef patties retail for US$1.25 each in the US which equates to less than J$200 or just about.
In Jamaica the current unit price for a beef patty is $360 each. Gone are the days when a patty could be purchased for five dollars each in the island.
Maybe the reason for a less costly product in the US is that of economies of scale or cheaper inputs for at least one company in the United States. Either factor or both.
Four major patty brands in Jamaica are Juici Beef, Tastee, Mothers and Devon House. Jamaican patties are loved for spicy meat filling in flaky pastry.
A well-known brand in the US is Golden Krust which has its own restaurants and has also expanded distribution through its arrangement with the stores such as supermarkets and the Dollar Tree network, where patties can be purchased.
On its website Golden Krust Caribbean Restaurant describes itself as the largest franchisor of authentic Caribbean cuisine with over 125 franchise restaurants throughout North America.
The company states that it produces over 40 million Jamaican patties per year, with systemwide sales of over US$100 million annually, employing over 1,800.
In 1989, as described by their website, the Hawthorne siblings, along with their spouses, put their savings together and opened the first Golden Krust Caribbean Bakery at 1381 E. Gunhill Road, New York. In 1993, Golden Krust moved its manufacturing plant to the South Bronx and eventually purchased nearly the entire block from 172nd Street to Claremont Parkway on Park Avenue
History
Smallbizclub.com outlines how Lowell Hawthorne moved from St. Andrew, Jamaica, to New York in 1981, attended Bronx Community College and got work as an accountant with the New York City Police Department while his brothers started working for a West Indian bakery.
Hawthorne began the family restaurant along with his siblings by targeting neighborhoods with large Jamaican populations, in places they either lived or worked.
With funding hard to get Hawthorne and his siblings mortgaged their homes and withdrew savings. Their efforts were rewarded. In one year, the bakery made US $100,000 in sales and opened another bakery.
Large city contracts also helped. First came an agreement to supply food to the prison, then a catering deal for the New York City school system.
By 1996, Golden Krust was operating 30 locationns and opened a new production plant in Fort Lauderdale.
To facilitate franchising, the company centralized its manufacturing facilities and by 1996, Golden Krust opened a 60,000-square-foot plant in the Bronx
The group has introduced some fare for the mainstream U.S. market.
Then in 1996 Golden Krust opened its first franchise location in Brooklyn. In 2005 the group opened their 100th restaurant.
The total investment necessary to begin operating a Golden Krust Caribbean Restaurant or a GK Jerk ’N Patties, it is indicated on their website, ranges from US$225,900 to US$620,000 covering equipment training and the many other elements needed for start-up.
On its website Golden Krust Caribbean Restaurant describes itself as the largest franchisor of authentic Caribbean cuisine with over 125 franchise restaurants throughout North America.
The company states that it produces over 40 million Jamaican patties per year, with systemwide sales of over US$100 million annually, employing over 1,800.
In 1989, as described by their website, the Hawthorne siblings, along with their spouses, put their savings together and opened the first Golden Krust Caribbean Bakery at 1381 E. Gunhill Road, New York. In 1993, Golden Krust moved its manufacturing plant to the South Bronx and eventually purchased nearly the entire block from 172nd Street to Claremont Parkway on Park Avenue
History
Smallbizclub.com outlines how Lowell Hawthorne moved from St. Andrew, Jamaica, to New York in 1981, attended Bronx Community College and got work as an accountant with the New York City Police Department while his brothers started working for a West Indian bakery.
Hawthorne began the family restaurant along with his siblings by targeting neighborhoods with large Jamaican populations, in places they either lived or worked.
With funding hard to get Hawthorne and his siblings mortgaged their homes and withdrew savings. Their efforts were rewarded. In one year, the bakery made US $100,000 in sales and opened another bakery.
Large city contracts also helped. First came an agreement to supply food to the prison, then a catering deal for the New York City school system.
By 1996, Golden Krust was operating 30 locationns and opened a new production plant in Fort Lauderdale.
To facilitate franchising, the company centralized its manufacturing facilities and by 1996, Golden Krust opened a 60,000-square-foot plant in the Bronx
The group has introduced some fare for the mainstream U.S. market.
Then in 1996 Golden Krust opened its first franchise location in Brooklyn. In 2005 the group opened their 100th restaurant.
The total investment necessary to begin operating a Golden Krust Caribbean Restaurant or a GK Jerk ’N Patties, it is indicated on their website, ranges from US$225,900 to US$620,000 covering equipment training and the many other elements needed for start-up.
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