Cost out each item and determine what COGS you want to run. Looking at your competitors’ pricing will also help so you’re not overpriced nor leaving money on the table.Although the range of prices is interesting and helpful I would think it important to know the spec for the quantity of toppings or am I missing something? I have seen on a 16" , for instance, anything from 15 pieces to 105 pieces. And what about the quality as it relates the price of the topping?
This is really where some operators leave money on the table. There are four good quality delivery places in the area I’m looking at doing my next spot and below are the price ranges between the 4 restaurants:12" 1.50 but should be 1.75
14" 1.75 but should be 2.25
16" 2.00 but should be 2.50 or 2.75
Next menu reprints are not until after Super Bowl and with the next 0.90 cents per hour added to minimum wage, this is when I will fix this. My base pizza prices are priced good IMO and I did just add a quarter across the board to get to the 1st prices on this current menu mailings but after dissecting it more I failed to bump them high enough.
This is really where some operators leave money on the table. There are four good quality delivery places in the area I’m looking at doing my next spot and below are the price ranges between the 4 restaurants:
12" $1.25-2.10
14" $1.50-2.40
16" $1.75-2.80
Even a small shop doing only 100 pizzas/night average and that 85-95 cents per topping difference adds up to a big number.
Channeling my inner-Bodega, for example I don’t sell many 1-topping pizzas, mine are typically 2-3 minimum on orders but for simple math let’s say you do 100 1-topping pies per night on average and multiply that by 85 cents and then again by 360 days (closed 5 day s per year) and that’s $30,600 annually left on the table if you’re the cheap guy vs the expensive guy. I’m usually towards the middle and if swaying either way, I’m just slightly towards more expensive than cheap. Even in the middle, that’s an extra $15,300. And the more you know…