Why Most Pizza Shops FAIL To Make Money: The Shocking Truth from 500+ Pizzeria Owners

[@jonspeak2807]

Coming from a mostly corporate pizza background, I had these things in the forefront of my training. Regardless, you can’t forget about business basics. Or be reminded of the basics too often.Marketing and controlling costs WILL make or break any business. Regardless, many pizza entrepreneurs get over emotional about certain aspects, like the kitchen or decor. It’s very easy to spend more than you will recoup. Quickbooks (or similar) is your best friend!

[@Smartpizzamarketing]

:)

[@HonortronicsInc]

Great job putting this together! Your content is always informative and well presented. These fundamentals are important if you are running a pizza business or a sandwich shop. Good content!!

[@paulcody1426]

Pie trap pizza Labor 18-22% (pay everyone at least $20 Food cost 18-22% Rent 2% We sell a $33 pepperoni pizza. It’s 20”. We are quality first so we are able to charge more. And people understand that. We only sell pizza, 1 ceaser salad, and knots. We’re a 380 square foot kitchen connected to a brewery.

[@Smartpizzamarketing]

Very nice!

[@richh4230]

What percentage are your additional overhead costs such as insurance, utilities etc? Thanks for sharing!

[@workshoptunes]

oh shoot i seen your place around youtube as I hear great things about you guys. also thank you for being transparent, hopefully one day I open my own place and hearing the real numbers from real places help me understand what to expect. If you don't mind me asking, is the labor of 18-22% with you guys still working the day to day operations? Or is it self running at 18-22% labor?

[@Nova-m8d]

Lol nobody is going to pay $33 for your pizza and they sure as heck aren't earning $20 per hour in an average location in the US. You must be in some downtown city location with high rent so profit is the same as everywhere else.

[@workshoptunes]

@@Nova-m8d not everyone is struggling financially.

[@Nova-m8d]

Location is the most important thing for any restaurant and I'll share a secret about optimal location in rural areas. The building has to be less than 20 feet from a state highway and halfway between two towns each with a population above 5,000. Each town should be less than 10 miles from the restaurant, so 20 miles between both towns.

[@CarlosHankron]

Hey why don't you create a Excel dashboard with or some software

[@matt_plapp]

50-55% prime cost is KEY! Owners don’t forget the “spice factor” in your food cost.

[@billfox6316]

Great review of financials ---everyone who is thinking of starting a business should start with this video. Thanks keep up the good work

[@robsal01]

Great video! I really appreciate your channel. I’m starting a pizza pop up and catering business out of a mobile unit. Can you do a similar video on that? I’ve watched several vids with Siler Chapman and they have been very helpful, but I feel a video similar to this one that is dedicated to mobile start up and operating costs that pertain specifically to a mobile business would be invaluable. Thanks for all you do!

[@Smartpizzamarketing]

Sure thing!

[@robsal01]

@@Smartpizzamarketing Also, the best options for purchasing food would be helpful. Is it more challenging and are costs higher for a mobile business rather than a brick and mortar because of possible lower purchasing volume?

[@musicengineer08]

@@Smartpizzamarketinghas this been done?

[@demolishedmembrane]

So I've been doing this awhile and if ur not x 3 your not making money on food. 1 to pay it back, 1 to pay expenses (all must fit in this or make more money lol) and 1 to pay you. So make 30k a month, 10k for food cost, 10k for overhead, empl, marketing etc...., and 10k or a little less for you. Am I crazy here. Sure with higher costs maybe ya get 7 to 8k but if not something wrong balance it. Now unless ya don't operate it and have to pay for that then ya lucky to get back 10 to 15% maybe. Just my opinion and maybe im wrong. Let me know.

[@stoundingresults]

I don't own a pizza shop but I can tell you it better taste good. Once A co-worker ordered from this new restaurant and my goodness even the dogs wouldn't eat the leftover slices

[@jonathannagela2130]

I do uber eats and many of these franchises have only ONE employee??? It makes no sense.

[@mturbevi]

This is good information. One trick might be owning your property and better if it´s a beach location full of tourists in South America. At least no rent but charge your business rent and pay yourself. Best possible product you can , keep different suppliers , pay your help decent so they are motivated. Bonus pay , keep your work envorinment fun. Listen to your employees.

[@danrock1922]

Hi there, Small restaurant here. When talking about food cost, is it cheaper at the Restaurant Depot type places, or distributors like Sysco? Any distributor that you like in particular? Thanks, Dan

[@Smartpizzamarketing]

Restaurant depot will probably be cheaper but then you have your time and food safety concerns with it. Best bet is to build a relationship with a local vendor and use your buying power to get the best deals. Where are you located?

[@danrock1922]

I'm in los angeles. I follow your channel but our restaurant is Peruvian. Still for me, the info and interviews are spot on, to the ins and outs of the Restaurant business. I learn alot from them. Thanks

[@richh4230]

Restaurant depot with delivery for the most part. There is an order minimum though, depending on your area. Fill it up with things you know you are going to need like sodas, napkins, plates, to go boxes etc. Create a spreadsheet and plan it out. Some things at Sysco are going to be more expensive and certain things at Restaurant depot are going to be more expensive. You need a spreadsheet though.

[@azmike3572]

The burnt spots on the pizzas helps give us our carbon (one of the basic building blocks of life) quota for the day.

[@bobpattison1739]

Thanks man. Great content once again👍👍

[@Smartpizzamarketing]

Appreciate it!

[@bobpattison1739]

Anything on the pros and cons of delivery? How to pay drivers, liabilities to the shop and or ways to deliver an out of the oven fresh product after being on the road for 29/30 min. That’s a lot I know. Stay well.

[@Smartpizzamarketing]

@@bobpattison1739 Will do video on that soon

[@luisvilte8410]

Good morning, were a small pop up, and struggling, but am there in hopes that it takes off, weve been open for 5 months, if you could please following us @pizzeria Emico. Thank you love the channel

[@matthewearlywine5535]

Knowing marginal costs, marginal revenues and profit maximization are key. Trying to expand when there is not a strong enough demand for your product equals failure as well. If your product is likeable in your market people will choose your pizza. You'll have inelastic price setting due to your differentiated product... which is how successful companies expand. Does Coca Cola sell their brand or soda? Its the former. They sell their formula. Their brand. Branding is a legal monopoly. Market your product.

[@Mrfoodcritic]

My food cost is $8 for a 12x16inch pizza with 1 topping. How much should I charge

[@JohnDoe-vm5pc]

× 4.2

[@demolishedmembrane]

Really depends on location but no matter what multiple by 333%(25.99-26.99) however come up with a base cheese(like 22.99 or 24.99) find a middle price for normal toppings and a higher price for premium toppings. Highest cost normal topping x3 and thats the base topping price(ex:3.25 or 1.75)to add to cheese price(22.99-24.99) for a normal topping.(base + topp= 26.25-26.75) Now same with premium. Now its all making money because normal sells over premium toppings. Hope this helps.

[@demolishedmembrane]

@@youdontknowme2915 no offense but what do you think restaurants pay for the cost of a cheese pizza. My cost on a 16inch cheese is a little over $7and I put 22 oz of blended blocks of high-quality cheese i buy in bulk and do in house. Family owned and operated right now should cost 7+ if its heavy and high-quality product at 16 inches even something 16x12 would be around that. If no distributor and one is used then cost will drop by about 25 to 50% otherwise $8 is on par with a distributor more or less. Dough at .50 a ball 20oz, sauce at .40 at 12oz, .62 a box and 5.57 in cheese = 7.09 cost a 16 in. Cheese pizza. 333% Price for cheese 23.50 + 3 dollar topping $26.50

[@mike-uw6wt]

$22.

[@SamiRemingtonStorm-ty6ro]

If only content creators could stop saying "in this video" ... Isn't that what the title is for?

[@Smartpizzamarketing]

@@SamiRemingtonStorm-ty6ro we’ve tested it. Videos do better when you say it in the first few seconds. Go ask KZbin why that is.

[@Fahnder99]

I'd say it's way more complicated. But when you have good customers, you win. So, earn them.

[@Nova-m8d]

What is a good customer?