Profit Margins + Overhead
How much does a pizza cost?….with thousands of pizza shops from local to chains….there must be good profit in the pizza business.
“The overhead cost for one large cheese pizza at our independent pizzeria is $11.16, which leaves a $5.34 profit. Keep in mind, though, the one variable a restaurant owner can’t control is how many orders they will get in a given day.”
Several factors play into the price of a $16.50 pie….of course if a successful independent pizzeria…it’s better ingredients….better preparation….excellent service.
As indicated….the overhead costs are the same whether the shop sells 10 pies and hour or 1 pie and hour. As in any business there will be good days and not so good days.
In our business….one very wintry January….sales were only 25% of projected budget. The month was a disaster….none-the-less….our doors were open every day….ready for business. The overhead still needed to be covered.