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Offline hotsawce

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Re: Pizza costs
« Reply #40 on: November 01, 2017, 04:19:57 PM »
This is spot on. 12" is even less...

For comparison, I did food cost calculations on 10" pies at a new fast casual in Manhattan that uses quality ingredients. I costed their pies out at roughly 70 cents for a cheese pie. 10x markup on the product. There are a few things that add quite a bit to food costs. For example, a good amount of basil for a margherita pizza is not cheap - per lb, just leaves, is probably around $30....

I can make a 14" cheese pie for between $1.50 and $2 depending on the sauce and cheese I'm using. These are purchasing bulk items through my food distributor.

Offline waltertore

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Re: Pizza costs
« Reply #41 on: November 01, 2017, 05:48:00 PM »
This is spot on. 12" is even less...

For comparison, I did food cost calculations on 10" pies at a new fast casual in Manhattan that uses quality ingredients. I costed their pies out at roughly 70 cents for a cheese pie. 10x markup on the product. There are a few things that add quite a bit to food costs. For example, a good amount of basil for a margherita pizza is not cheap - per lb, just leaves, is probably around $30....


Basil is labor intensive and the shelf life can be real short depending on where it is in the season.  Basil and mushrooms are the most PITA products we use for consistency.  I send more back than I keep most weeks.    I grew up in the NYC area but it was a different place then.  Mom and pop shops ran at a volume and pace like ours does here but to make it today back there is beyond my comprehension.  Rent alone on a tiny good location NYC shop  per month is more than I pay for a year.  Walter 
« Last Edit: November 01, 2017, 06:00:20 PM by waltertore »
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Offline TXCraig1

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Re: Pizza costs
« Reply #42 on: November 01, 2017, 06:01:01 PM »
Basil is labor intensive and the shelf life can be real short depending on where it is in the season.

Some thing you have to have, right? And you factor the waste and labor into the cost. If I went to a pizzeria that didn't carry fresh basil on a regular basis, I doubt I'd go back no matter how good the rest of pizza was. I can only think of one exception, and in that case, it's because the pizza I love there doesn't need basil.
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Offline waltertore

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Re: Pizza costs
« Reply #43 on: November 01, 2017, 06:28:39 PM »
Some thing you have to have, right? And you factor the waste and labor into the cost. If I went to a pizzeria that didn't carry fresh basil on a regular basis, I doubt I'd go back no matter how good the rest of pizza was. I can only think of one exception, and in that case, it's because the pizza I love there doesn't need basil.
Yes fresh basil is a staple for us.  I just wish it was consistent in quality.  We put more concern on our clothes, cars, homes, than we do on our body- crazy culture we have   ???
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Offline pizzaboi

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Re: Pizza costs
« Reply #44 on: November 01, 2017, 06:46:44 PM »
I am intuitive and not a math minded person -sorry about that.  I have been doing it long enough to price our pies and toppings so as to make a good profit.  Our large pie toppings are $2 each, and smalls $1.00.  It all works out at the end of the day as our home made sausage/pepperoni costs some but veggies don't.  People out West put tons of toppings on pizzas. A large pie often costs over $30.  I can't relate to that but people love it that way and it makes us a great profit.   Food waste is another big cost for commercial places.  Ones that offer tons of toppings,  exotic toppings, sandwiches, pastas, lasagna, parms, etc... throw out a lot of stuff each week.  Our food waste is under $30 a week.   

Cool thanks.


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Offline pizzaboi

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Re: Pizza costs
« Reply #45 on: November 01, 2017, 06:48:25 PM »
I only make 14" pizzas and charge about $2 topping. I don't do "create your own pies" so my price structure is a little different. And like Walter said meats are expensive and veggies are cheap so I can make a little less percentage wise on pies with meat, but make it up on pies with more veggies.

Cool thanks for sharing.

If you charge about $2/topping, I am guessing it costs you about 50 cents per topping then?

Offline StateofMind

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Re: Pizza costs
« Reply #46 on: November 01, 2017, 08:34:45 PM »
Cool thanks for sharing.

If you charge about $2/topping, I am guessing it costs you about 50 cents per topping then?
Sort of. I build more profit into my cheese pie and some of the simpler pies. Then I can keep my more expensive pies from being way more expensive while keeping my overall food cost where I want it. Same goes with other items on my menu.

Offline pizzaboi

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Re: Pizza costs
« Reply #47 on: November 02, 2017, 03:07:18 AM »
Sort of. I build more profit into my cheese pie and some of the simpler pies. Then I can keep my more expensive pies from being way more expensive while keeping my overall food cost where I want it. Same goes with other items on my menu.

selling a 50 cent topping for $2 is awesome aint it?

does it get better than that?

For example, if your basic large cheese pizza costs you $2 to make and you put 3 meat toppings for $1.50 (50 cents/topping X 3), your total cost will be 3.50. If you sell that at $14, that would keep you food cost at 25%. isnt that like crazy good?

« Last Edit: November 02, 2017, 03:45:17 AM by pizzaboi »

Offline Essen1

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Re: Pizza costs
« Reply #48 on: November 02, 2017, 03:45:55 AM »
selling a 50 cent topping for $2 is awesome aint it?

Can it get even better than that?

For example, if your basic large cheese pizza costs you $2 to make and you put 3 meat toppings for $1.50 (50 cents/topping X 3), your total cost will be 3.50. If you sell that at $14, that would keep you food cost at 25%. isnt that like crazy good?

if you sell that for

Yeah, it's crazy good until you figure in insurance, rent, labor, utilities and food waste.

You asked the same question over at the PMQ Think Tank and got basically the same replies.

Do you actually have a business plan?
« Last Edit: November 02, 2017, 03:47:31 AM by Essen1 »
Mike

ďAll styles of pizza are valid. I make the best Iím capable of; you should make the best youíre capable of. I donít want to make somebody elseís pizza.Ē ~ Chris Bianco

Offline pizzaboi

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Re: Pizza costs
« Reply #49 on: November 02, 2017, 04:37:48 AM »
Yeah, it's crazy good until you figure in insurance, rent, labor, utilities and food waste.

You asked the same question over at the PMQ Think Tank and got basically the same replies.

Do you actually have a business plan?

I dont have any post on think tank about pizza costs. I did have one about purchasing existing shop.

I am reviewing a few businesses to purchase and some businesses I have seen have 33% food cost. So 25% seems very good comparitively.

Some franchise pizza shops i saw had 30% cogs.

I see labor at 30% of revenues, 5% for rent, 3% food wastage, and another 15% for bank, credit card processing, utilities, insurance, paper, packaging etc leaving 20% profit. That seems pretty good, as long as your revenues are in 800K range.

Am I missing something?

« Last Edit: November 02, 2017, 04:46:33 AM by pizzaboi »

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Offline positanopepe

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Re: Pizza costs
« Reply #50 on: November 02, 2017, 03:14:00 PM »
I thought I would help you out a bit.  Perhaps you could add a column for commercial costs.  These prices are from Restaurant Depot today.  For sauce the #10 can is 109 oz.  The 7/11 you would use direct with spices.  There are other products that you can dilute to lower your costs...

Code: [Select]
Flour               GM Full Strength            15.88/50 lbs
Yeast              SAF IDY                          48.02/20 lbs
Sugar                                                   22.61/50 lbs
Honey                                                  71.82/30 lbs
Olive Oil          DeCecco                        89.23/12 liters
Mozz Cheese  Sorrento Shredded       71.97/30 lbs
Pizza Sauce     7/11 tomato puree       26.35 for 6 #10 cans
Sausage          Italian                           56.17/20 lbs
Mushrooms                                           22.35/10 lbs


Hope you work these up into your spreadsheet!


Ok, I spent a few minutes and did the conversions and calculation for a 14" cheese pizza based on the above costs.  I did not include water or electricity costs (unknown). The formula is for a 62% hydration with .5% yeast and 2% oil, sugar and salt.  I got the salt costs from my local RD.
The formatting won't come out well, but you can make it out.

                                             $ per gram                   14" pizza           $ per 14" pie

Flour           15.88/50 lbs (22650 g)    0.000701104                   272                   0.190700221
Yeast   48.02/20 lbs (9060 g)    0.00530022                    1.36                   0.0072083
Sugar   22.61/50 lbs (22650 g)    0.00099823                    5.45                   0.005440375
Olive Oil   89.23/12 L (10800 g)            0.00826204                    5.45                   0.045028102
Salt           1.74/26 oz (737g)            0.002360923                   5.45                   0.012867028
Cheese   71.97/30 lbs (13590 g)    0.005295806                   160                   0.847328918
Sauce   26.35/18750 g                    0.001405333                   120                   0.16864
                                                                             
        Total cost $1.28
« Last Edit: November 02, 2017, 03:15:32 PM by positanopepe »

Offline pizzaboi

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Re: Pizza costs
« Reply #51 on: November 02, 2017, 03:52:21 PM »

Thanks for sharing, positanopepe.
« Last Edit: November 02, 2017, 03:54:05 PM by pizzaboi »

Offline positanopepe

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Re: Pizza costs
« Reply #52 on: November 02, 2017, 04:39:55 PM »
Thanks for sharing, positanopepe.

What this also shows is the focus in the industry on cheese prices.  In this example, the cheese cost is 66% of the entire cost of the pizza!

Flour is 15% cost

Sauce is 13% cost

Thus, the price of cheese is so crucial to pizza businesses. 

Offline pizzaboi

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Re: Pizza costs
« Reply #53 on: November 03, 2017, 01:52:14 AM »
What this also shows is the focus in the industry on cheese prices.  In this example, the cheese cost is 66% of the entire cost of the pizza!

Flour is 15% cost

Sauce is 13% cost

Thus, the price of cheese is so crucial to pizza businesses.

I knew cheese was the most expensive ingredient but didnt know it accounts for 66%. Thats insane.

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