how is everybodys food cost? i can not keep mine under 35%because of rising costs sales are about 7500 week.we use diced grande which cost me us 2.77lb
last week. any ideas would help. :?
Whats your size and price for a large cheese or 1 topping pizza?
I found the menu online and “large” cheese is 9.50 . . . . 1 topping is $11.00. Additional toppings and extra cheese are 1.50. Some info on how many ounces for extra cheese could be useful to us here as well.
Did not find a diameter inches measurement on the sizes.
8 oz of cheese on 16 in pie 5 oz ona 12 in pie
wow!! those are low prices!!! time for an increase!!!
what should they be?
This is not a question we can answer. You need to get the trusty ole spreadsheet and calculator (or food cost pro) out and figure out how much it costs you to make each pizza. Break each inventory item you have down to cost per ounce, and figure out how many ounces you put on each pizza. Take an average cost, and divide by what you want your food cost to be. If the average 14" one topping costs $3.00, and you want your food cost to be 25%, then you need to take $3 / .25 and your suggested price will be $12.
You have to watch though, if you discount/use a lot of coupons/have a lot of waste, then your food costs will be considerably higher than what you use in that equation. You may need to account for that as well.
Take the suggested prices, and compare them to your competitors. This will let you know if you can charge exactly what you need to charge, or maybe you can charge a little higher or lower.
Last step, you may want to build in a little cushion for future increases so that you don’t have to raise your prices again next month. If you don’t, your costs will continue to rise and you will be fighting from behind all over again.
thank you
Where is your food cost. 35% of $9.50 is $3.325 . If your cheese cost is 1.385 (8 oz) and dough is maybe 40 cents that leaves $1.50.
Your dinner prices are low!! Ziti & MB with salad & garlic bread 5.99? 6.99 with chicken. I would cost out the dinners 1st. Your pizza price is low for my market,but i don’t think it’s making your food cost 35% alone.The other question is wings, # in a order?I see under priced wings all the time. What
I agree with the other posters. It will easily take one of you a week to cost out every menu item, if thats the only thing you do all week. But it will be well worth it. You will surely find many items you are not making a suitable profit from, and some you make more than you thought. That will lead you to realize what high profit items you wish you sold more of, and what low profit items you either need to eliminate or raise the price on.
For example, I know that you may love your wings, and may be proud of how many you sell. But if your profit is low, and you think your market won’t accept the price increase you need to take without hurting your volume, then you need to look at some of your higher profit alternatives. Remember, you pay for your daughter’s college on your profits, not just your sales.
This gentlemen, is the part where the road turns from the dream of owning your own pizzeria, to the the reality of owning a business. Do not be one of the many failed small businesses each year. Put in the work THIS WEEK and set this ship right.
Finally, when comparing your prices to your competitors, do not assume they have done this exercise also. They may have set their prices by looking at someone else, or they may have cost savings you have not found yet, or even worse, they may be struggling with food cost also, and waiting for you to go up!
Wow, I didn’t think your prices were too out of line until I realized that your “large” is a 16". I’m at $14.99 for a 16" cheese. Now, I’m in a very high rent “wealthy” area, but there’s still a long way between our prices.
Pjcampbell pointed out that there’s $1.50 missing from your cost on your cheese pizza (and that was without a box), but I’m sure you’re not selling 100% cheese pizzas. Setting your prices based on the cost of a cheese pizza could leave you in a lot of trouble. Not sure about you, but I know we have toppings that run an 80% food cost. Those are of course offset by the cheap ones, but the truth is somewhere in the middle.
Your base prices are too low, but I think there are a lot of problems with your specialty pizza prices. You use some rather expensive toppings on those babies! With all of your specialty pizzas priced exactly the same, I don’t think you’ve sat down to really explore what the costs are on those things.
Look at your Cheeseburger pizza. I’m estimating here, let me know if I’m way off:
Dough - .50
Cheese - 1.39
Sauce - .20
Beef - .66 (at $2.00/lb… that’s what I pay for 80/20. When you say “lean”, I’m guessing you pay more than that)
Bacon - .50
Extra Cheese - .42 (at 30% extra)
Box - .55
$4.22 in total cost… that’s 30.16%. That assumes no waste and no discounting. Throw in those plus the rest of your paper costs and there’s your 35%.
Now take a look at your Steak pizza. I bet you’re over 40% for that pizza. Those two should not have the same price.
There’s probably lots of places you can save on some food cost (such as chopping your own veggies, shredding your own cheese, etc) but the first place you need to look is your pricing. If you calculate your price per square inch, you’re not much higher than Little Caesars, and probably cheaper than Domino’s, Godfather’s, et al. Judging from your website you’re offering a more “gourmet” pizza; your pricing should not be in line with the “cheap” chains.
I remember a guy posting on the old TT three or four years ago with profit problems. He was doing $6,000 per week and was bleeding cash. The consensus solution was that he would be better off mailing $1.00 to each of his customers every month to not order. After food and labor he was losing more than $1.00 on every order. He apparently had never sat down to look at his food costs. I’m not saying that you’re anywhere near that, but the problem was the same: he wasn’t charging enough.
I know it’s scary to raise prices, but you have to take the plunge. I can almost guarantee you won’t hear more than 1 or 2 comments about it. Now is a great time, because rising food costs are all over the media and people will understand.