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Author Topic: Cost of a 16" Pizza  (Read 2278 times)

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Offline foreplease

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Re: Cost of a 16" Pizza
« Reply #40 on: December 18, 2021, 09:08:34 AM »
We're going into our 39th year of business, and up until the last 2 years, it seems that we would raise prices "just enough" to cover the upcoming growing expenses.  And then Covid hit and all hell broke loose.  We are lucky we are in a business sector that our customers deem important, as we are busier than we have ever been.  But.....something changed with our customers!  Prices didn't seem to matter anymore.  In fact, people overordered all the time...and in fact, they did not want to listen to us suggest that we could save them some money.  Our delivery drivers are making fantastic money with tips they make.  When you add that we operate in a state where minimum wage will be $14.49 per hour in 2022, and the cost of pizza supplies is going up amazingly fast.......well, just let me say, we don't think about raising prices "just enough" as we have in the past.  We just aren't as afraid as we used to be.  Unfortunately, I think we all know, this house of cards will come tumbling down...it has to!

John
Congratulations on 39 years in business, John. You do not achieve that primarily by being lucky or a good guesser. This pandemic has brought demands and wild popularity to businesses that were formerly steady, sleepy companies. People who have adapted for the greater good and/or essential services; employees have found a safe way to function and continue doing their jobs are deserving of a huge ‘thank you’ (and arguably some additional compensation) from customers who still had their needs met under difficult conditions. I would happily pay another couple dollars a pizza for that.
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Offline jkb

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Re: Cost of a 16" Pizza
« Reply #41 on: December 18, 2021, 09:23:14 PM »
So have I, Peter. In my previous businesses experiences, keeping up with monthly P&Ls and balance sheets was not optional if you ever hoped to learn anything in time to take corrective action. My main interests were cash flow and the amount of the marginal contribution to overhead each project could deliver.


For construction and, later, athletic field maintenance and repair business, we employed job cost accounting. In the retail music business, managing inventory, tracking its turnover in both units per month for each of several thousand titles as well as last-date-sold (thank God for computers and POS software - even in the late ‘80s - integrated with the cash register) helped us order inventory several times a week in an informed way. We still made hundreds of judgment or intuition calls a week wrt inventory re-stocking but they were based on data we could either employ or ignore under certain circumstances; we had a factual starting point. Maintaining gross margin percentages, across all monthly gross sales, could be tricky with new releases every week, promotional offers and sale pricing.


As you can imagine, it’s much more difficult to manage a business if one’s understanding of accounting is limited to total monthly sales. I tell people that Accounting 101 & 102 were difficult to understand in textbooks with abstract business examples but became much easier to understand once it’s your name on the bank account, lease or mortgage, and payroll. Young people I have occasionally helped out (advisory role only) have been shocked to learn, with concrete examples, that cutting a dollar of cost (not price) can be as helpful to your bottom line as increasing sales by $3.00 - $3.25. I always ask them ‘which one do you think is easier to accomplish?’


tl;dr.  That stuff bores me to death.  :-X
John

Offline texmex

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Re: Cost of a 16" Pizza
« Reply #42 on: December 20, 2021, 06:44:28 AM »
I keep misreading this title as
Cost of a $16 pizza. 
Useless info, I know.
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Offline Little bean

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Re: Cost of a 16" Pizza
« Reply #43 on: December 20, 2021, 07:47:53 AM »
I think the confusion is that this was posted in the shop talk section. If you want  to know how much an operator is charging for their pizza you would need to ask them what the price is not what the cost is. If you look at the article Pete references from the think tank the Op references the costs of materials in determine the price of the pizza, and I believe it being in the shop talk section that is an important discussion for operators to have while determine the price. As a consumer I believe it would be very reckless for operators to just throw a Price on their menu without involving Cost.

Offline texmex

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Re: Cost of a 16" Pizza
« Reply #44 on: December 20, 2021, 09:05:49 AM »
It's not exactly confusion as I am familiar with this very interesting area of the forum, but my eye sees a dollar sign where there is none, so it creates more of an idea in my mind that the cost of a $16 pizza would indicate  profit margin to be had or not. It is a very apt subject for the pros, nonetheless.
It surprises me that I still see the dollar sign there no matter how many times I have to prove it isn't there. 
I also tend to get lost on specific roads where I initially made a wrong turn, I will make the same wrong turn into eternity! It's crazy muscle memory I guess.
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Offline waltertore

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Re: Cost of a 16" Pizza
« Reply #45 on: December 20, 2021, 01:55:11 PM »
The original PMQ Think Tank post is about how much you charge for a pizza.  I would not post how much it costs to create a pizza as it has too many variables for any real help.  Things like what products do you use, prices on these products vary depending on where you live and the quantity you buy, weekly food waste costs, how many employees do you have, do you pay benefits, your rent, hours of operation, and all the other things that are part of the price the customer pays.   For me one has to look at their own operation and go from there.  We are a small volume, high quality ingredient shop.   My prices have to be higher to make a living.   People will pay for what they value let it be dominos or us. 

Original post- How much does your 16” pizza cost


Steve
12d
With costs of supplies and labor going up and up, I thought it would be good to get a gauge on what everyone is at on their pizza prices and where they anticipate their pricing going in the next month to 3 months. In my area, there’s a wide range on prices (higher outside of direct competition and kept a bit lower for direct) and it seems no one wants to be the first one to make that push. I know you shouldn’t really care about what the guy down the street charges, but I just don’t think they stay on top of costs like some us do. We are currently 12.99 for a 16" but throwing around the notion of going to 14.99. it seems like a steep jump, but by the time we get it implemented and agreed upon, who knows what else would be going up
« Last Edit: December 20, 2021, 03:22:09 PM by waltertore »
SMILING WITH HOPE PIZZA MISSION STATEMENT
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Offline jkb

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Re: Cost of a 16" Pizza
« Reply #46 on: December 20, 2021, 03:51:50 PM »
I haven't made pizza in awhile.  20" NY All-Trumps Alta Cucina 1lb Saputo - $3.  I went out to dinner last Monday.  It was $200.  A far better value than an $11 pizza.  It's freaking pizza.  Don't overvalue it.
John

Offline waltertore

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Re: Cost of a 16" Pizza
« Reply #47 on: December 20, 2021, 04:10:02 PM »
I haven't made pizza in awhile.  20" NY All-Trumps Alta Cucina 1lb Saputo - $3.  I went out to dinner last Monday.  It was $200.  A far better value than an $11 pizza.  It's freaking pizza.  Don't overvalue it.

Do you own a pizzeria?  If not you can't compare it to a home baker.  My goods costs have gone up 30% since the pandemic.  Rent has gone up, wages have gone up, maintenance costs have gone up 20-30%, etc.......... 
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Offline Little bean

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Re: Cost of a 16" Pizza
« Reply #48 on: December 20, 2021, 04:58:16 PM »
I agree with Walter on this one. John, grande is over 3$ a pound right now, so a pound of cheese costs more than it costs you to make a whole pizza. The box and the liner are a dollar together. That’s a whole 5 percent of a 20$ pizza just in the to go material. I don’t care what anyone says, I am more interested in feeding my family than I am showing up for 12 hours a day to give someone a bargain on an 11$ pizza. You can’t put a value on the kind of time it takes to get the masses pizza compared to making one at home every six months. I promise you I could make your 200$ meal for less than 200$, but ingredients alone are not what you are paying for. I kiss my kids goodbye every morning after my cup of coffee and get home in time to take a glance at them sleeping before I drag my ass into shower and bed. I won’t do that for free.

Offline Pizza_Not_War

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Re: Cost of a 16" Pizza
« Reply #49 on: December 20, 2021, 05:02:44 PM »
I'd rather eat a quality pizza than the overpriced $200 meal. If the attitude is freakin pizza why post here?

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Offline jkb

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Re: Cost of a 16" Pizza
« Reply #50 on: December 23, 2021, 02:56:10 PM »
I'd rather eat a quality pizza than the overpriced $200 meal. If the attitude is freakin pizza why post here?

It's a pizza.  You need a pizza oven.  There's like zero prep work.  We had beet and arugula salad with chevre and balsamic vinaigrette (it was way more complicated than that), grilled octopus with olive potato salad and a sauce that took a lot of prep and ingredients, cod with lobster risotto, chicken with house made rigatoni and a vodka cream sauce.  The atmosphere and service blows away a pizzeria and the food cost is the equivalent of an $11 18" pie. Reality check.
John

Offline 9slicePie

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Re: Cost of a 16" Pizza
« Reply #51 on: December 23, 2021, 03:08:55 PM »
It's a pizza.  You need a pizza oven.  There's like zero prep work.  We had beet and arugula salad with chevre and balsamic vinaigrette (it was way more complicated than that), grilled octopus with olive potato salad and a sauce that took a lot of prep and ingredients, cod with lobster risotto, chicken with house made rigatoni and a vodka cream sauce.  The atmosphere and service blows away a pizzeria and the food cost is the equivalent of an $11 18" pie. Reality check.

*SHOTS FIRED!*  lol j/k  :P ;D

Offline Little bean

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Re: Cost of a 16" Pizza
« Reply #52 on: December 23, 2021, 03:52:45 PM »
It's a pizza.  You need a pizza oven.  There's like zero prep work.  We had beet and arugula salad with chevre and balsamic vinaigrette (it was way more complicated than that), grilled octopus with olive potato salad and a sauce that took a lot of prep and ingredients, cod with lobster risotto, chicken with house made rigatoni and a vodka cream sauce.  The atmosphere and service blows away a pizzeria and the food cost is the equivalent of an $11 18" pie. Reality check.

Sounds like you got ripped off.

Offline waltertore

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Re: Cost of a 16" Pizza
« Reply #53 on: December 23, 2021, 04:56:04 PM »
It's a pizza.  You need a pizza oven.  There's like zero prep work.  We had beet and arugula salad with chevre and balsamic vinaigrette (it was way more complicated than that), grilled octopus with olive potato salad and a sauce that took a lot of prep and ingredients, cod with lobster risotto, chicken with house made rigatoni and a vodka cream sauce.  The atmosphere and service blows away a pizzeria and the food cost is the equivalent of an $11 18" pie. Reality check.

Sorry you had such a bad experience and feel pizza should be priced lower for high quality pies.  Maybe you need to open a pizzeria to get the value you desire since it is such a simple thing to do :-D
« Last Edit: December 23, 2021, 04:58:48 PM by waltertore »
SMILING WITH HOPE PIZZA MISSION STATEMENT
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Offline jkb

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Re: Cost of a 16" Pizza
« Reply #54 on: December 24, 2021, 04:55:56 AM »
Sorry you had such a bad experience and feel pizza should be priced lower for high quality pies.  Maybe you need to open a pizzeria to get the value you desire since it is such a simple thing to do :-D


Don't be so full of yourself.  Most pizza operators are just looking for a business.  They could just as well operate a car wash or a laundromat. Good for you for making a quality product.

We had a great experience. My wife and I each had a margarita and a glass of wine.

What's your food cost?  I guarantee food cost, rent and labor is half what I paid.  And I don't live in a low rent town.

The chef/owner was living it up at the beach on vacation.  He's not hurting.
« Last Edit: December 24, 2021, 05:23:45 AM by jkb »
John

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Offline caymus

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Re: Cost of a 16" Pizza
« Reply #55 on: December 24, 2021, 07:30:01 AM »
I notice that the Christmas Spirit is not alive with everyone.

Offline woodfiredandrew

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Re: Cost of a 16" Pizza
« Reply #56 on: December 24, 2021, 11:21:02 AM »
I think the whole conversation has gone off track.
People are unreasonable, illogical and self-centered, love them anyway. If you do good, people will accuse you of selfish ulterior motives, do good anyway. Honesty and frankness make you vulnerable, Be honest and frank anyway. If you are successful , you will win false friends and true enemies, succeed anyway.

Offline waltertore

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Re: Cost of a 16" Pizza
« Reply #57 on: December 24, 2021, 11:56:15 AM »

Don't be so full of yourself.  Most pizza operators are just looking for a business.  They could just as well operate a car wash or a laundromat. Good for you for making a quality product.

I can't argue with that.  The truth is I am proud to make a decent pizza but sadly most pizzerias would never get my business.  It is true in most businesses in our country.   Quality work with consistent solid customer service is no longer a must for success and it is increasingly harder to find any service that is solid on these 2 things.............  The good news is if you do open any sort of business with these 2 things there will be little to no competition for your product, and you can charge a price to support yourself in a comfortable lifestyle.
« Last Edit: December 24, 2021, 11:59:32 AM by waltertore »
SMILING WITH HOPE PIZZA MISSION STATEMENT
TO CREATE HOPE AND MEANING IN THE LIVES OF PEOPLE WITH DISABILITIES
http://www.smilingwithhopepizza.com/

Offline PizzaSD

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Re: Cost of a 16" Pizza
« Reply #58 on: January 25, 2022, 01:53:56 PM »
Anyone worried about price can go to Little Caesar's, you can get a large for under $7...
No.  We use that in our favor.  Since we are a high-priced (perhaps the highest in town) Sicilian shop that focuses on quality and freshness (among other values), we call into question what must be that pizza that is so cheaply priced.

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