Pizza Shop Tries Socialism Business Model And Fails

The Boston pizza shop opened in 2015 under the guise of “social justice”.

The owner vowed to take the stores profits and compensate the workers. This socialist model was celebrated so much, the New England Patriots owner gave the store owners $100,000 for the upstart.

Two years later, the store is closing because of this business model:

Launched in 2015, the fair-wage pizza shop will close at the end of the year, according to Bing Broderick, executive director for the nonprofit Haley House, which oversees the shop. While popular, the shop is not breaking even financially, which has put stress on the wider nonprofit organization.

Pitched as “pizza with purpose,” the restaurant offered above-average pay as well as culinary and leadership training.

But after an analysis of the business’s operations and trends, the board determined that Haley House could not continue to subsidize the pizza shop without putting in peril its own efforts. Three other restaurants opened in the area around the same time as Dudley Dough and are still operating.

Last year, Robert Kraft, owner of the New England Patriots, donated $100,000 to Haley House, specifically for Dudley Dough. Despite the board’s decision, Broderick said, a “significant effort” is being made to support the staff at the shop as they transition to new jobs.

H/T Boston Globe

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2 Comments

  1. How were they supposed to know that a business specifically designed not to make a profit would fail? It’s not as if they teach things like that in school anymore.

    Liked by 1 person

    Reply

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