Higher margins through pizza slices
Posted: Tue Jan 07, 2025 5:12 am
The formula for your pizza calculation is: Selling price = variable costs + fixed costs / (1 – contribution margin ratio) .
Let's assume the following items: Cost of goods sold = €5, personnel costs = €3, rent = €2, contribution margin ratio = 40%. Selling price = (€5 + €3 + €2) / (1 – 0.4) = €11.67 for a pizza .
target cost calculation
With this method, you italy phone data calculate the pricing of your pizzas based on a given target profit. The advantage is that you have the option of defining the target profit in advance.
Your calculation formula is: selling price = target profit + variable costs / sales volume .
An example for you: target profit = 2000 €, variable costs = 8 €/pizza, sales volume = 500 pizzas, selling price = (2000 € + (8 €/pizza * 500 pizzas)) / 500 pizzas = 12 € for one pizza .
When it comes to calculating costs for pizzerias, we don't want to leave out the sale of individual pizza slices. This offers you several advantages:
Higher margins: You can charge a higher price for a slice of pizza than for a whole pizza because you spread the cost of ingredients and preparation across multiple slices. Depending on the size, toppings or method of preparation, you can set different prices for different slices of pizza.
Less waste: Pizzas left over in the evening can be sold as pizza slices the next day.
More flexibility: By selling pizza slices, you expand the range of products available to your customers. They don't have to buy a whole pizza, they can try several different types and get a cheaper alternative. Offering pizza slices to take away also makes your pizzeria attractive to walk-in customers.
Further support from DISH
As you can see, the pizzeria calculation is doable. If you need further support for your pizzeria in addition to our tips, you are well served with the catering solutions from DISH. Also remember that the calculation in the catering industry is not a one-off process, but should be monitored regularly and adjusted if necessary. This is the only way to keep track of your costs and adjust your pizza prices accordingly.
Let's assume the following items: Cost of goods sold = €5, personnel costs = €3, rent = €2, contribution margin ratio = 40%. Selling price = (€5 + €3 + €2) / (1 – 0.4) = €11.67 for a pizza .
target cost calculation
With this method, you italy phone data calculate the pricing of your pizzas based on a given target profit. The advantage is that you have the option of defining the target profit in advance.
Your calculation formula is: selling price = target profit + variable costs / sales volume .
An example for you: target profit = 2000 €, variable costs = 8 €/pizza, sales volume = 500 pizzas, selling price = (2000 € + (8 €/pizza * 500 pizzas)) / 500 pizzas = 12 € for one pizza .
When it comes to calculating costs for pizzerias, we don't want to leave out the sale of individual pizza slices. This offers you several advantages:
Higher margins: You can charge a higher price for a slice of pizza than for a whole pizza because you spread the cost of ingredients and preparation across multiple slices. Depending on the size, toppings or method of preparation, you can set different prices for different slices of pizza.
Less waste: Pizzas left over in the evening can be sold as pizza slices the next day.
More flexibility: By selling pizza slices, you expand the range of products available to your customers. They don't have to buy a whole pizza, they can try several different types and get a cheaper alternative. Offering pizza slices to take away also makes your pizzeria attractive to walk-in customers.
Further support from DISH
As you can see, the pizzeria calculation is doable. If you need further support for your pizzeria in addition to our tips, you are well served with the catering solutions from DISH. Also remember that the calculation in the catering industry is not a one-off process, but should be monitored regularly and adjusted if necessary. This is the only way to keep track of your costs and adjust your pizza prices accordingly.