So we’re six months in and revenues have beat projections. BUT, my cost of goods sold (includes paper and chemicals) is 36.5% over the entire 6 months. There is no particular trend. I’ve gone through and re-analyzed our costs on the core products (85% of our revenue comes from Pizza). Here’s a few tidbits.
We offer a buffet at lunch and full service at night.
We make a weekly trip to RD and buy everything there we can except produce. I feel like, for the most part, we’re paying as little for ingredients as possible. We keep a running spreadsheet to compare costs between RD, US Food, and my produce vendor.
So where do I begin to drive the costs down? I’ve started figuring out the weight cost of toppings and then measuring the amount we put on intermittently (spot checks). It’s pretty cumbersome. But, for instance, we are consistently using 2.5 oz of pepperoni on our pizza. It’s pretty expensive at 2.89 and is our #1 topping. That’s about $.45 per pizza and we get $1.50 for that topping. We’re doing much better on sausage - hitting about 25%. I’m just kind of overwhelmed by the dauntingness of the task. Any ideas on how to get a fresh approach? I’m almost to the point of just raising prices on our core items across the board (toppings in particular could easily go to $1.75 and still be competitive in our market - and we’d bring the price of specialty pizzas up with it. )
Any experienced thoughts would be appreciated.