I’m a big trivia buff (in fact, I send out a daily email with trivia questions to my friends, family and coworkers, for fun). I was wondering if you could give me a ballpark estimate of how much the cost of the ingredients for a large cheese pie are, so I can use it in a trivia question.
(something like: 'You’d pay about $12 for this, but the cost of the materials it’s made from is only about $2.50)
Thanks for your time!
Mark
Trick question…there is more than one factor that goes into the cost of a pizza. But to give you a ballpark idea, let’s use a $10 pizza for an example. Food costs should be between 25 and 35 percent ($2.5 and $3.5), but you also have to factor in labor to create a menu price, which means a pizzeria owner IS NOT making $8 to $10 per pizza…this is a common misconception that makes many people quit their day job to open a pizzeria thinking they will get rich in a year…
Not to mention you have to pay the rent or mortgage, utilities, insurance, advertising, maintenance, and taxes just to name a few. There is also the fact that you have a bunch of money in your equipment and build out.
Average price for a 14" cheese pizza right now is running around $2.10. Average profit for a medium volume pizza store runs around 10%. So yes, the pizzas are relatively cheap, but in the big scheme of things if you’re charging around $10 for that 14" cheese pizza the average pizzeria owner is making about $1. Hope this helps. -J_r0kk
The Question should read…
What costs about 12 dollars and yeilds a profit of about 65 Cents?