AR15.Com Archives
 How much does a Pizza cost a Pizza Shop to make? How much profit is there in a pizza?
Dance  [Member]
9/15/2007 9:05:52 AM
How much does a pizza from a Pizza Shop cost to make? How much profit is there in a pizza? How easy/hard is it to make a profit off of pizza, strombolis, and normal hoagies/cheesesteaks like most small pizza shops sell?
Torqued  [Team Member]
9/15/2007 9:07:22 AM
You can make plenty of dough.

TrijiCog  [Team Member]
9/15/2007 9:08:26 AM
Probably not much..

But you have to figure in rent,employees,insurance etc...there isn't a lot of money to be made in the food business.My x was a manager and the highest profit margin they have is on soda,12oz's cost around 9 cents.
MTUSA  [Team Member]
9/15/2007 9:09:47 AM
200% profit and a market full of fat lazy people.
I say go for it.
fish223  [Team Member]
9/15/2007 9:11:30 AM
My buddy used to have a pizza shop tenant, the cost of the pie is genarally paid for with the first sold slice. All the rest is profit, but that is just the actual ingredients.

Every shop has overhead, just like any small business, so you can't really look at it like "how much does a pizza really cost?"

Samll business profit margin can be 60%, or 10%. You have to look at the big picture.
TheTracker  [Team Member]
9/15/2007 9:17:07 AM
20% is the average


If you have own a pizza place and it grosses $10,000 a week in sales , the average owner can take home $2000 after all bills are paid.

CMOS  [Team Member]
9/15/2007 9:20:30 AM
My brother's small business is right next to a Little Ceasars Pizza. The LCP owner told him that a large pizza COSTS HIM about 65 CENTS. The rest is labor, os it is a high profit business.


CMOS
DV8  [Team Member]
9/15/2007 9:21:21 AM
I looked into a Domino's franchise after graduating from college ('93). At that time, a large pepperoni pizza cost about $1.20 to make and was selling for $10. Not bad profit, but then rent, franchise fees, payroll and insurance had to be paid and the profit dropped off considerably.

Dranoel  [Member]
9/15/2007 9:23:35 AM

Originally Posted By TheTracker:
20% is the average


Are you high? Thanks for contributing when you know absolutely nothing about cost/margins in Pizza restaurants.


A couple of bucks is your ingredients cost for a large pizza. Usually these are sold for $12-$15. Your most expensive item is cheese.

Profit margin is high- but you have to balance this with your employee cost.

I know a lot of restaurants that have added wood-burning ovens to cater to the pizza market because of the low cost of food items (compared to steak & seafood- which is $$$).



Hope this helps.



TheTracker  [Team Member]
9/15/2007 9:23:57 AM

Originally Posted By DV8:
I looked into a Domino's franchise after graduating from college ('93). At that time, a large pepperoni pizza cost about $1.20 to make and was selling for $10. Not bad profit, but then rent, franchise fees, payroll and insurance had to be paid and the profit dropped off considerably.



20% is the industry average
TheTracker  [Team Member]
9/15/2007 9:26:19 AM

Originally Posted By Dranoel:

Originally Posted By TheTracker:
20% is the average


Are you high? Thanks for contributing when you know absolutely nothing about cost/margins in Pizza restaurants.


A couple of bucks is your ingredients cost for a large pizza. Usually these are sold for $12-$15. Your most expensive item is cheese.

Profit margin is high- but you have to balance this with your employee cost.

I know a lot of restaurants that have added wood-burning ovens to cater to the pizza market because of the low cost of food items (compared to steak & seafood- which is $$$).



Hope this helps.







You have no clue what you are talking about , my family has been in this business
since 1965
Dranoel  [Member]
9/15/2007 9:27:28 AM

Originally Posted By TheTracker:

Originally Posted By DV8:
I looked into a Domino's franchise after graduating from college ('93). At that time, a large pepperoni pizza cost about $1.20 to make and was selling for $10. Not bad profit, but then rent, franchise fees, payroll and insurance had to be paid and the profit dropped off considerably.



20% is the industry average



My bad. I see where you are getting the math from- and you are correct.

I was thinking you were saying the profit margin was 20% from each pizza.

Tekka  [Member]
9/15/2007 9:28:00 AM
I delivered for and managed a pizza joint for a few years. Our profit margin would fluctuate quite a bit. We'd sometimes make 200-300%. Other times we'd make about 150%. It only got that low because our food distributor was jacking up the prices on just about everything. Imagine paying 90 dollars for a box of cheese. They really screwed up our year because of that crap...
TheTracker  [Team Member]
9/15/2007 9:33:13 AM

Originally Posted By Dranoel:

Originally Posted By TheTracker:

Originally Posted By DV8:
I looked into a Domino's franchise after graduating from college ('93). At that time, a large pepperoni pizza cost about $1.20 to make and was selling for $10. Not bad profit, but then rent, franchise fees, payroll and insurance had to be paid and the profit dropped off considerably.



20% is the industry average



My bad. I see where you are getting the math from- and you are correct.

I was thinking you were saying the profit margin was 20% from each pizza.



No problem

rike  [Team Member]
9/15/2007 9:35:39 AM
Which is heavier, a pound of feathers or a pound of bricks?
TheTracker  [Team Member]
9/15/2007 9:39:09 AM

Originally Posted By rike:
Which is heavier, a pound of feathers or a pound of bricks?


Pound of bricks , you say don't believe me.

Have a pound of bricks fall on your head.

Tazaroo  [Member]
9/15/2007 9:51:35 AM
According to my wife who works in a pizza place, around $.60 for a large za.
NoHarmNoFAL  [Team Member]
9/15/2007 10:01:02 AM
The market share available for all restaurants is sooooo small that it is almost predestined that they will all eventually fail at some point.

I took a marketing class a few years ago and we did a case study of pizza shops and chains and the funny thing was that the top 3 chains Pizza Hut (1), Papa Johns (2) and Domino's (3) split 12% of the market share. That means that there is 88% left but the problem is that it split up so much that if a shop can get a 1/2% of the market you are doing well.

The good thing is that my cousin started a shop and made a great pie for a great price and made lots of money until his wife ran off with one of the shop workers and he lost everything.

My best bit of advice for starting a business, NEVER form a partnership. I don't care if you are best friends and have known each other for ever, you won't be friends for much longer especially of there are money issues.
CWS1911  [Team Member]
9/15/2007 10:04:38 AM
Are you talking about a real Pizza Shop or one of crappy Franchises ?

Find someone from NY or NJ,they will be able to tell you about real Pizza Shops.
Tekka  [Member]
9/15/2007 10:09:46 AM

Originally Posted By CWS1911:
Are you talking about a real Pizza Shop or one of crappy Franchises ?

Find someone from NY or NJ,they will be able to tell you about real Pizza Shops.


This man speaks the truth. The only pies that are any good are NY style.
GarandM1  [Member]
9/15/2007 10:33:38 AM
Haven't you guys heard the old saying:

How do you make a million dollars?

Start with 10 million and open a restaurant.
Yellowfin  [Member]
9/15/2007 10:36:07 AM
It's profitable enough that there are loads and loads of people doing it. Not all do it well, but it's there.
Spooky130  [Team Member]
9/15/2007 10:40:02 AM

Originally Posted By Yellowfin:
It's profitable enough that there are loads and loads of people doing it. Not all do it well, but it's there.


The local Papa Johns was running drugs with their pizzas so I imagine that their profit margin was a bit higher!

Spooky
Tekka  [Member]
9/15/2007 10:45:36 AM

Originally Posted By Spooky130:

Originally Posted By Yellowfin:
It's profitable enough that there are loads and loads of people doing it. Not all do it well, but it's there.


The local Papa Johns was running drugs with their pizzas so I imagine that their profit margin was a bit higher!

Spooky


I saw insane shit when I worked at a pizza joint. Almost every owner or employee of a pizza place or restaurant is a druggie. I got to the point where I stopped caring because almost all the customers and employees were fucked up human beings.
Bob1984  [Team Member]
9/15/2007 10:46:58 AM
I'd figure about 50% profit per pizza, if you figure a large pizza costs about $6 to make and most places turn around and sell it for $12.
Tekka  [Member]
9/15/2007 10:48:26 AM

Originally Posted By Bob1984:
I'd figure about 50% profit per pizza, if you figure a large pizza costs about $6 to make and most places turn around and sell it for $12.


You're wayyyyyyyyyyyyyyyyyyyy off target with the cost. It's like 1-2 bucks.
Bob1984  [Team Member]
9/15/2007 10:49:02 AM

Originally Posted By Tekka:

Originally Posted By Spooky130:

Originally Posted By Yellowfin:
It's profitable enough that there are loads and loads of people doing it. Not all do it well, but it's there.


The local Papa Johns was running drugs with their pizzas so I imagine that their profit margin was a bit higher!

Spooky


I saw insane shit when I worked at a pizza joint. Almost every owner or employee of a pizza place or restaurant is a druggie. I got to the point where I stopped caring because almost all the customers and employees were fucked up human beings.


Your experience mirrors my own. No, I'm not kidding. It ain't everyday when you see your assistant manager get fired because he showed up all messed up on heroin. This guy would shoot up right before work.

Ever have weird homeless crack addicts come in and try to demand free food ? That's some scary shit right there.

Bob1984  [Team Member]
9/15/2007 10:49:49 AM

Originally Posted By Tekka:

Originally Posted By Bob1984:
I'd figure about 50% profit per pizza, if you figure a large pizza costs about $6 to make and most places turn around and sell it for $12.


You're wayyyyyyyyyyyyyyyyyyyy off target with the cost. It's like 1-2 bucks.


I'm including the costs of shipping, labor, etc. You'd be dead on in terms of the material costs.