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food cost vs specials what percent do you run on your deals?

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steve12

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We try to shoot for 30% food cost but finding it increasingly difficult as most people tend to call and order specials that is hard to achieve that. It seems most of my specials run a 40% food cost and wanted to see where I fall in line with your costs.

1 special for instance is 2 16" pizzas 2 toppings each, breadsticks and a 2 liter for 22.99.

Our 16’s with just cheese and the cost of the box is 2.94 and then the topping cost varied depending on what they order on it.

The above special has easily been my most succesful special.

How does this fall in line with your costs?
 
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Re: food cost vs specials what percent do you run on your de

The thing about specials is they bring customers in that may not have come in. As it has been said here in the Think Tank before you cant spend percentages.

If you are in line with your regular prices then you should be ok with 40% on your specials. I had a college prof that taught if you can make $1 profit on a project that does not have an adverse reaction on your normal business then you should do it.
 
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Re: food cost vs specials what percent do you run on your de
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Daddio:
The thing about specials is they bring customers in that may not have come in. As it has been said here in the Think Tank before you cant spend percentages.

If you are in line with your regular prices then you should be ok with 40% on your specials. I had a college prof that taught if you can make $1 profit on a project that does not have an adverse reaction on your normal business then you should do it.
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The problem is that I only seem to sell the specials now. About 80% of my business is people ordering these deals.
 
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Re: food cost vs specials what percent do you run on your de

“The problem is that I only seem to sell the specials now. About 80% of my business is people ordering these deals.”

just a thought… bring your menu pricing more in line with your “specials”
break down the items in the specials, price each item for 10% more than than the price in the “special”,
then the “special” could be a group pricing…

or, a pizza at regular price, get a FREE something with it that may bring your cost of goods more toward 30%
hope that helps,
Otis
 
Re: food cost vs specials what percent do you run on your de

My most popular special is 2 lg 2 top and 2 ltr (used to be brdstks) $19.99
I used to do brdstks, but it is easier on the ovens on busy nights.
It seems that $19.99 is my magic no.
I also will have a $13.99 offer and another one around $15.99.
So, consider removing the 2 ltr or brd. The 2 ltr has a higher costs anyway. and see f it that would bring your fc down to an even more acceptable (more profitable) level.
Remember, your call in specials should not be as heavily discounted as a mailed piece. The customer has already decided (90%) to already spend money with you. The other factor to remember is that fc is important to know but also know what your profit is, off of each special.
Having a great offer with low discount and high profit does no good if it is not what customers want.
bubba
 
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Re: food cost vs specials what percent do you run on your de
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Bubba:
It seems that $19.99 is my magic no.
bubba
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So, what I see here is people have a $20 to spend. This is what you want to do. Make a couple of high return specials that are at your price point. Maybe a large and a medium and a soda. Make any combo that give the customer the $19.99 in you market will probably be a winner.
 
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Re: food cost vs specials what percent do you run on your de
Otis Gunn:
“The problem is that I only seem to sell the specials now. About 80% of my business is people ordering these deals.”

just a thought… bring your menu pricing more in line with your “specials”
break down the items in the specials, price each item for 10% more than than the price in the “special”,
then the “special” could be a group pricing…

or, a pizza at regular price, get a FREE something with it that may bring your cost of goods more toward 30%
hope that helps,
Otis
Click to expand...
YES! My thoughts exactly! Do a “Family Special: Coupon - FREE 12” 1 top for the kids with purchase of any 16" specialty, Stix or salad, and 2 Liter of soda. You get FULL PRICE for everything else, and only have to take a $1.50 or so hit on the free 12" pie. I do something similar about 3 or 4 times a year & it’s one of my most popular specials.
 
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Re: food cost vs specials what percent do you run on your de

THis has been a big problem for me. Instead of discount is it better to do value added? Free 2 litre or bread sticks with… kind of offer?
 
Re: food cost vs specials what percent do you run on your de

Do both!
You have different types of customers, you need to have different specials.
I have a coupon that gives you a free med 1 top with any lg or xl purchase. My cost is under $2. but the value to the customer is $9.99.
I also have a special with wings and pizza, 2 med pizzas and an xl pizza.
So…have different types of “deals” depending on your different types of customers. No one should know what sells best in your store than you!
I do know that it is always best to try to sell a 2nd pizza as often as possible. The discount rate is higher, but the profit is better…since there is no added labor to the second one. I started having “any 2nd pizza is 1/2 off.” The discount rate is 25% but I receive full price on the first one.

Since I sell take n bakes also, it is a great upsell for the unbaked. I say something like would you like to have a 2nd pizza at 1/2 off…we offer baked and unbaked, you can have one for tomorrow and your dinner is already planned.

To answer your question…It is always better to give something away than discount it…depending on your pricing. You just have to get creative. I always look at other competitors’ ads and see what they are doing. We all have the basic same cost.

Just my thoughts.
Bubba
 
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Re: food cost vs specials what percent do you run on your de

here’s another way to do it, and it has worked for me, eventhough I am in Quartzsite, AZ and I am sure your market is somewhat different…

I price my menu between 25 to 30% food cost and my menu price is usually less than the higher prices of other pizza places…but then they coupon and discount to bring their price in line. I do not.
I realize that the couponing and discounting does attract some business initially, especially if the pizzeria is stuck with high food cost.

when I see discounting and free goods, my first thought is that what they are selling is overpriced to begin with, and I think most customers perceive that, therefore they just buy the special discounted or free items.

Little Ceasars, Noble Romans, and I am sure you may know some others in your area that do not depend on coupons and discounts
If they are still in business, their menu is priced fairly and their customers see it as a fair value

I know in most cities, everyone else is doing it, so it is compelling to do the same.

It is better to be aware of all the different ways of doing it and then choosing the best method for yourself.
hope this helps,
Otis
 
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