### Author Topic: Cost of a pizza  (Read 80339 times)

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#### TONY

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##### Cost of a pizza
« on: July 09, 2005, 11:35:04 AM »
Can anyone tell me the average wholesale cost (excluding labor) to make a 16" (large) pizza with cheese and two toppings? I can figure it out at the retail level (my cost), but what would it cost a pizza shop/restaurant to make?

Tony

#### Pete-zza

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##### Re: Cost of a pizza
« Reply #1 on: July 09, 2005, 12:48:25 PM »
Tony,

The answer to your question depends on who is making the pizza, what the exact toppings are, and the quality and amount of each topping. Obviously, a chain like Papa John's or Domino's will get better pricing on a per unit basis than will a mom-and-pop operator because of greater volume and bargaining power. But, as a typical example, I have read that a 16-inch pizza with 10-ounces of mozzarella cheese, sauce, and 6 ounces of pepperoni will cost an operator around \$2 (for the ingredients). I would guess that adding an additional topping might increase the cost by another 10-20 cents, depending on the topping. The dough itself will typically cost \$0.011/ounce if made from scratch. For a 16-inch size using about 21 ounces of dough that would come to about \$0.23. Generally speaking, the most expensive pizza item is the cheese.

Another example I saw was \$1.70-\$1.80 for a 16-inch pie with 12 ounces of mozzarella cheese and 8 ounces of sauce.

Peter
« Last Edit: July 09, 2005, 01:19:59 PM by Pete-zza »

#### scampi

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##### Re: Cost of a pizza
« Reply #2 on: July 09, 2005, 12:56:00 PM »
I'll take a guess and will probably be wrong. If you are trying to figure out total cost, you need to add labor and overhead if you are trying to figure out what it costs for a pizzeria to make it vs. you at home. However their costs of product used is lower than what it would cost you since they buy in volume. Anyway, I read that some pizzeria's, not all, try to keep their resale at 3.5 times their cost. So if they are selling for \$10, their cost should be \$2.80 or something like that. That doesn't include their overhead, just the cost of ingrediants used to make the pie.. For me at home, my dough costs under a dollar, the sauce is probably around .50 at most, cheese is around 1.50-2.00, pepperoni's are a penny each so if you put 20 on, that's 20 cents...you can figure out the rest depending on what  you put on it. My cost if different than everyone elses I guess..but that's mine, around 3.50-4.00
« Last Edit: July 09, 2005, 01:16:22 PM by scampi »

#### TONY

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##### Re: Cost of a pizza
« Reply #3 on: July 11, 2005, 09:33:46 AM »
Thanks for the info guys.

Tony

#### RockyMarciano

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##### Re: Cost of a pizza
« Reply #4 on: February 19, 2006, 11:49:32 AM »
Back in 83, it costed about 1.25

#### lilpizzaplace_ohio

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##### Re: Cost of a pizza
« Reply #5 on: March 01, 2006, 09:07:05 PM »
This is a one topping 16 inch...at 12.99...some say it's a low price, others say it isn't...I think it depends on your area..
lilpizzaplace

#### Furo

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##### Re: Cost of a pizza
« Reply #6 on: March 02, 2006, 08:19:48 PM »
If that tastes even half as good as it looks you could sell it for over \$20.00 in Kansas City!!!!!!!
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#### lilpizzaplace_ohio

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##### Re: Cost of a pizza
« Reply #7 on: March 02, 2006, 10:05:56 PM »
haha trust me......its good...I eat pizza from there almost every day myself...That says alot!! the sauce and the cheese are to DIE for!
lilpizzaplace

#### Buffalo

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##### Re: Cost of a pizza
« Reply #8 on: March 03, 2006, 08:45:19 AM »
lilpizzaplace........
I really like the way your pepperoni cups......what brand do you use
Thanks.....
Buffalo

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##### Re: Cost of a pizza
« Reply #9 on: April 12, 2006, 10:30:45 PM »
do you have a dollar figure of what this pizza cost to actually make though ? , the original poster
I think was interested in the actual *cost* of making a pizza, but I'm not sure if you work there
or just order your pizza there.

This is a one topping 16 inch...at 12.99...some say it's a low price, others say it isn't...I think it depends on your area..
« Last Edit: April 12, 2006, 10:37:24 PM by canadianbacon »
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#### nepa-pizza-snob

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##### Re: Cost of a pizza
« Reply #10 on: December 17, 2006, 08:49:18 PM »
whats up in kansas city? no good shops around or is \$20 market for a 16inch pie

#### abatardi

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##### Re: Cost of a pizza
« Reply #11 on: December 31, 2006, 08:34:21 PM »
lilpizzaplace........
I really like the way your pepperoni cups......what brand do you use
Thanks.....
Buffalo

not sure but I know swiss american pepperoni cups like that.  www.sasausage.com
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#### KingPinAlley

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##### Re: Cost of a pizza
« Reply #12 on: January 25, 2007, 12:42:34 AM »
that pepperoni pizza looks awsome!!

I'm using Roma products.  I only make 18in pizza's and sell whole or by the slice.

My one topping is \$13.99

dough \$.44
cheese \$1.70....8oz of 50% Grande (\$2.50 a lb.) and 50% of a quality blend Roma cheese
sauce \$.28...4oz of crushed tomato blend and 4oz of sauce (secret)
pepp. \$.40...quality Roma pepperoni product

It's about 3\$ a pizza but it's a great quality.  I charge \$2 a slice and do a lot of that business.   At 8 slices a pie i'm getting \$16 for a pep pizza!!

What you have to watch is the 40 cent pizza boxes and the other 30 cents in togo parm cheese packs and crushed red peppers!!

#### Chicago Bob

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##### Re: Cost of a pizza
« Reply #13 on: October 10, 2012, 10:26:16 PM »
that pepperoni pizza looks awsome!!

I'm using Roma products.  I only make 18in pizza's and sell whole or by the slice.

My one topping is \$13.99

dough \$.44
cheese \$1.70....8oz of 50% Grande (\$2.50 a lb.) and 50% of a quality blend Roma cheese
sauce \$.28...4oz of crushed tomato blend and 4oz of sauce (secret)
pepp. \$.40...quality Roma pepperoni product

It's about 3\$ a pizza but it's a great quality.  I charge \$2 a slice and do a lot of that business.   At 8 slices a pie i'm getting \$16 for a pep pizza!!

What you have to watch is the 40 cent pizza boxes and the other 30 cents in togo parm cheese packs and crushed red peppers!!
I think the math is a 'lil "funny" here.......but it's 6 years later now and I'm wondering what a pizza costs to make now a days in your area. Let's hear from everyone....home cooks and the pro's!!
"Care Free Highway...let me slip away on you"

#### La Sera

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##### Re: Cost of a pizza
« Reply #14 on: October 11, 2012, 06:39:43 PM »
The pizza business can be lucrative for a savvy operator in a decent market. Most independent operators strive for about 20% food cost on pizza. If a place is running over 25%, their pricing is too low. Some markets are destroyed by low-ball chains. A chain doesn't need to earn a living from a single store.

Side order costs are are a different animal.

#### Chicago Bob

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##### Re: Cost of a pizza
« Reply #15 on: October 11, 2012, 07:04:27 PM »
Great info La Sera.....thanks!
"Care Free Highway...let me slip away on you"

#### Giggliato

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##### Re: Cost of a pizza
« Reply #16 on: October 11, 2012, 10:34:18 PM »
The pizza business can be lucrative for a savvy operator in a decent market. Most independent operators strive for about 20% food cost on pizza. If a place is running over 25%, their pricing is too low. Some markets are destroyed by low-ball chains. A chain doesn't need to earn a living from a single store.

Side order costs are are a different animal.

So if a pizza costs five dollars I should be charging 25 dollars? for a large pie with eight slices that would be about 3.25 a slice, I suppose that is reasonable and perhaps high quality.

#### TXCraig1

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##### Re: Cost of a pizza
« Reply #17 on: October 11, 2012, 10:47:09 PM »
Keep in mind that you can't deposit a % in the bank - just \$.

Formulas and rules are almost never a good way to price things.
"We make great pizza, with sourdough when we can, commercial yeast when we must, but always great pizza."
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#### Chicago Bob

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##### Re: Cost of a pizza
« Reply #18 on: October 11, 2012, 10:50:21 PM »
So if a pizza costs five dollars I should be charging 25 dollars? for a large pie with eight slices that would be about 3.25 a slice, I suppose that is reasonable and perhaps high quality.
Not out of the question at all IMO. I see pizzerias all the time that proclaim "gourmet toppings" and this 20-25 dollars is a common price point. And believe me, their gourmet stuff is not the high dollar products that the menu descriptions would leave you to think they are using if you know what I mean.
"Care Free Highway...let me slip away on you"

#### Tscarborough

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##### Re: Cost of a pizza
« Reply #19 on: October 11, 2012, 10:58:13 PM »
The numbers I have run for 14" and 16" pizza dine in with quality ingredients will never make a 20% food cost, much less delivery.  Figure closer to 30%, and 35% for delivery.

#### TXCraig1

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##### Re: Cost of a pizza
« Reply #20 on: October 11, 2012, 11:14:39 PM »
Not out of the question at all IMO. I see pizzerias all the time that proclaim "gourmet toppings" and this 20-25 dollars is a common price point. And believe me, their gourmet stuff is not the high dollar products that the menu descriptions would leave you to think they are using if you know what I mean.

It might be or it might not be, but you don't get there by taking your food cost and multiplying by 5. You study your products, the customer, and the alternatives in the market and price each product such that you make the most money on your basket of products.

"We make great pizza, with sourdough when we can, commercial yeast when we must, but always great pizza."
Craig's Neapolitan Garage

#### Chicago Bob

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##### Re: Cost of a pizza
« Reply #21 on: October 11, 2012, 11:22:44 PM »
It might be or it might not be, but you don't get there by taking your food cost and multiplying by 5. You study your products, the customer, and the alternatives in the market and price each product such that you make the most money on your basket of products.

Yes sir, you are quite right and I was never condoning the % ideal of pricing your goods. Just remarking that folks get away with murder 'round here...and that you can take to the bank.
"Care Free Highway...let me slip away on you"

#### TomN

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##### Re: Cost of a pizza
« Reply #22 on: October 11, 2012, 11:35:41 PM »
This is a one topping 16 inch...at 12.99...some say it's a low price, others say it isn't...I think it depends on your area..

Hello lilpizzaplace_ohio,

I see from your photo that your pepperoni is cupping and burning. People in the Seattle, WA area (most people) seem to shy away from it. Your pizza takes me back to when i grew up in Youngstown, OH. thanks for the photo. and the flash back.

TomN
« Last Edit: October 11, 2012, 11:38:04 PM by TomN »

#### TXCraig1

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##### Re: Cost of a pizza
« Reply #23 on: October 11, 2012, 11:48:11 PM »

Hello lilpizzaplace_ohio,

I see from your photo that your pepperoni is cupping and burning. People in the Seattle, WA area (most people) seem to shy away from it. Your pizza takes me back to when i grew up in Youngstown, OH. thanks for the photo. and the flash back.

TomN

I didn't like cupped and charred pepperoni until I had my first pizza with it that way.
"We make great pizza, with sourdough when we can, commercial yeast when we must, but always great pizza."
Craig's Neapolitan Garage

#### La Sera

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##### Re: Cost of a pizza
« Reply #24 on: October 12, 2012, 11:24:27 AM »
Your goal is to charge the highest price you possibly can.

Yes, you do consider percentages in business. Understanding target ratios in any P&L statement is a pretty fundamental business skill.

You do not blindly charge 5 times cost, you have to first determine what the market will bear, then analyze your product content, work flow, portioning and suppliers to reach for that low food cost. A traditional, dine-in restaurant will have food costs about 1/3 of their menu price. A delivery/carryout (delco) pizza business can indeed run 20% or less food costs.

I make over \$15 on a \$21 pepperoni pizza.

Dough: \$0.70
Sauce: \$0.20
Pepperoni: \$1.25
Cheese (Mozzarella and Gouda mix): \$1.30
Onions, Olives and Mushrooms: \$0.30
Parmesan topping: \$0.10
Spice mix topping: \$0.05

Box: \$0.54
Box insert: \$0.16

So, my food and packaging cost on a carryout or delivery pizza is under 20%.

Of course, there are other variable and fixed costs, but my food costs are definitely under 20%.