Food Cost Calculations

Alena Tikhova from Dodo Pizza has just shared her food cost spreadsheet and some tricks they came up with to lower it from 29% down to 23,5% while aiming for the best ingredients on the market.

Since Dodo goal is to improve the quality of the product while keeping prices moderate that is a key issue for their concept.

Are there any other food cost calculations available online that can be used for comparison?

I made up my own on Excel. Food items down left side and each pizza across page.
Weighed each topping for each signature pizza and listed in Excel by gram. Cost each ingredient by gram. Did the Auto Sum calculation to bring cost for each pizza. Aimed for 28% food cost and made adjustments accordingly.
Great way to do costings if you do “signature” pizzas.
Dave

Lol. 2 posts, both announcing something that Dodo posted online.

Advertise much?

The name Dodo wouldn’t fly here. That is something that one would need to be careful not to step in. Part of a good business plan is to know how the name translates to the new location. An example is the Chevy Nova didn’t work for the Spanish market because it means not going.

Well, they are already opening at store in Oxford Mississippi.

The home of PMQ.

Might have to drop by when I go to Olive Branch in the spring…

Nova is a good example, but it is different coz NOVA=not going. Dodo is a bird first of all, clumsy but super kind. Does anyone else see Dodo as a bad choice for the US market?

A “dodo” is also a slang term for a stupid person.

http://www.merriam-webster.com/dictionary/dodo

Well, I’ve seen this but we can’t do anything about our brand name anyway. Let’s just say we mean it to be a bird not a stupid person:)

Here’s a question guys, I’ve been reading the Dodo story and the numbers don’t add up to me.

48 shops with 11mil in revenue. Those numbers don’t work for anyone in the pizza business. What am I missing

And they talk about dropping food cost from 29% to 23% from changing sauce and a couple other things. 6% would require a whole lot more then one of the cheapest ingredients to be swapped out to save a few bucks a case. I mean 6% FC savings is really cutting your total food budget by 20% that’s a massive under taking that even domino’s can’t do

I know these guys are smart, I just looking for someone to fill in the blanks here I feel I’m missing something

Even if I got cheese for free my food cost would only drop 5%

11 Million / 48 = ~229K per store. Rather low sales inmo. I am a slow store and i do over 500k per year. Now this is just the average for their stores, so you can assume some are higher and some lower.

As far as the FC at 29%, currently this month i am sitting at 26% in Revention (will probably be around 29-30% once the CPA gets done). Granted i have been working 60+ hour weeks again, when i am only working 50 hour weeks we average about 3% higher FC. By correctly setting your pricing and portion control i can see them dropping it by 6%.

If your comfortable with lower sales, you can raise your prices and lower your FC. This would get you to aprox what they are claiming. They are imo choosing to be a niche product and not a volume store.

229k average simply doesn’t make sense, I don’t understand the point in having a franchise if the average franchisee loses his money

Imagine if you had $600 a day average sales even with only two employees on the clock for 10 hours a day you’re already at a 33% labor cost and it takes more than two people to run a delivery shop

What would their “niche” be, not making money?

The numbers include all the stores even those opened recently. And the biggest market for Dodo Pizza is Russia where pizza is not that popular comparing to the US. Some stores are super small and only serve 20k people or less but the rent is low too so the store could make profit. As for FC, we’ve done a lot to get these 5,5%, not only switching to a different cheese brand and dropping a few things: recipes, logistics, simply price negotiations. 29% was a starting point. Our niche would be artisan pizza delivery and we’ll see how it works in the US:)

By the way, I wasn’t trying to be a jerk. I have been following you guys and have been rather impressed by alot that I have read

I’m just a numbers guy and it wasn’t making sense to me. I do wish you luck it will be interesting to see how it all goes

Thank you! By the way, your question is quite reasonable and I don’t expect other people not to question anything we are doing. To be honest, I don’t have all the answers right now coz we are opening a new store with a new concept in a new country. So, we’ll see how it goes. I appreciate your interest it gives me extra motivation to keep going.

Looks like Dodo is listing 1 size pizza? I can easily see a 23% food cost when selling 10"or 12" pizzas only.

I did not see that. Good point

That would help a lot