Okay, let’s help you out here:
First, let’s get to the delivery aspect: 100 deliveries/day x $15 ticket avg = $1,500/day in deliveries x 7 days/week = $10,500/week in delivery-only sales. This is not including any kind of carryout sales. So I’m assuming you’re a little inflated on the delivery numbers you listed or your ticket average is way down there around $8, which brings me to the next point: Food Cost…
Here’s how you can figure out what your food cost is supposed to be:
It’s a little old school, but if your POS system doesn’t support it, you’ve got to do it this way…
I assume you have portioning standards (i.e. 40 pepperoni’s on a large pizza, 8 oz. of cheese, or whatever). Run an ideal food cost on a weeks sales. This will take several hours but it will let you know exactly where you’re supposed to be. Here’s how you do an ideal food cost:
Take your portioning standards and apply them to the pizzas that were made each day. For example, if a customer has ordered 2 large pepperoni and sausage pizzas with 2 drinks you can figure out how much you would ideally spend on that order by breaking it down:
Large dough patty = $ ?
40 pepperonis = (I think 1.5 ounces) How much are you paying per pound? Divide by 16 (ounces per pound), multiply by 1.5 (ounces) and that will give you the cost of putting pepperonis on a large pizza.
sausage = (How many ounces) x (How much per ounce)
Sauce = (How much are you paying per ounce) x (How many ounces of sauce do you put on a pizza?)
Cheese = same formula
Box= How much per box?
2 drinks = How much per bottle of soda?
Now, once you’ve finished the cost of the order, divide it by net sales of that order as a percent. This will tell you what your food cost percentage is for that order. You should be around the 30% mark or a little under. Now, of course, doing this same thing for an entire week’s worth of orders can be a little monotonous, but if you truly want to know where you’re at on food cost, this is what you’ve got to do.
Suppliers: If you think you’re getting jacked by your supplier, there’s only one way to find out. Go to another and have him compete for your business. Do NOT give him a pricing sheet, but make him come up with pricing on his own. Usually, when they don’t know, they’ll over-compensate in some areas, lowering prices to ensure they can steal your business.
Now, in conclusion, everything I’ve just told you will determine where your problem is, whether it’s your pricing, portioning, supplier, or theft. But, this process will also take you a few weeks minimum.
To avoid all this in future stores, find a POS system that will track everything for you. There are some that are very cheap and some that are very expensive. Most will do about the same thing so shop around. The biggest part about finding a POS system is find one that’s right for you and fits your needs. But remember, the two things that an owner/operator/manager can control in a store that affect the bottom line are Food Cost % and Labor Cost %. The closer you can get the two of these to the 50% mark, the better your store runs and turns a profit. You let any one of these two variable costs slide, and you’ll feel the impact in your bank account. Hope this helps. -J_r0kk
