Pizza Cost: Calculate Food Cost and Set a Profitable Price

Accurately knowingthe cost of pizzaper dish is of the utmost importance for any restaurant that truly wants to make a profit from its pizza menu.

Many entrepreneurs set their selling price without calculating thepizza costin detail. The result is that some menu items sell well but do not make any money.

In this article, I will teach you the complete formula for calculating food cost for pizza. So you can confidently set prices and make sustainable profits.

Formula for calculating pizza cost per dish

Basic formula:

Food Cost % = (raw material cost ÷ selling price) × 100

Pizza cost for 1 pizza includes:

  • Pizza dough cost
  • Cost of sauce
  • Cost of cheese
  • Cost of toppings

Real example: 12-inch Margherita pizza

List Cost
Pre-made pizza dough from Tindoro Prime 25 baht
Ketchup 8 baht
Mozzarella cheese 40 baht
Basil leaves + olive oil 5 baht
Total cost of pizza 78 Baht

If the selling price is set at 280 baht:

Food Cost = 78 ÷ 280 × 100 = 27.9%

This is very good because the optimal cost of a pizza should be 28-35% of the selling price.

Appropriate pizza cost according to store type

Standard pizza costs vary by restaurant type.

Shop type Ideal Food Cost
Quick Service 25-30%
Casual Dining 28-35%
Premium / Fine Dining 30-38%

If your pizza cost is more than 35%, consider these 4 options:

  1. Find a supplier with a better price
  2. Adjust topping proportions
  3. Adjust the selling price
  4. Change to usePre-made pizza dough that reduces total costs

Tindoro Prime has competitive wholesale prices. With Italian quality, request a quotation

Margin, gross profit vs net profit

Gross Margin

Gross Margin % = 100 − Food Cost %

From the Margherita pizza example above:

  • Pizza cost = 27.9%
  • Gross Margin = 72.1%

That means for every 280 baht pizza sold, you have a gross profit of 202 baht.

But gross profit ≠ net profit

Other expenses must be deducted:

  • Rent
  • Electricity cost
  • Employee wages
  • Marketing costs
  • Packaging cost
  • Equipment maintenance costs
  • Food delivery platform commission (Grab, LineMan)

See more How to increase restaurant sales with pizza

Well-run pizza shop There should be a net profit. 10-20% of total income. If it is less than 10%, you must find a way to reduce expenses or increase income immediately.
<2>How to reduce the cost of pizza without increasing the price
There are four main ways to reduce pizza costs.

1. Reduce raw material costs

Switch to a supplier that offers a better price. But the quality is as good as ever. Tindoro Prime has competitive wholesale prices with authentic Italian quality.

2. Reduce waste

Prepared pizza dough Reduce waste from 5-10% to almost 0% No wasted dough from incorrect fermentation.

Read Compare frozen dough vs fresh dough

3. Increase Average Ticket Size with Upsell

  • Offer additional toppings (low cost → high price increase)
  • Offer drinks to go with pizza
  • Combo offers
  • Try the menuPinsa Romanathat is priced higher than normal pizza

4. Reduce wages

Use ready-made flour instead of making your own. Save money on employees making dough. 15,000-25,000 Baht/month Reducing the total pizza cost.

Read details:

The cost of each type of pizza is not equal

Each type of pizza has a different pizza cost.

Type Food Cost Gross profit Note
Margherita Minimum Maximum Use few toppings for a Hero menu
Pepperoni Medium Good Best selling menu that makes a profit
Seafood High Medium Expensive seafood — set high prices accordingly
Sourdough Medium-High High Set the price 30-50% higher

Good strategy

There are both menus with low pizza costs (high profits) and menus with high pizza costs. (Attract customers) mixed together to keep the average food cost of the store at an appropriate level.

Choose the right powder for the shop

Style Average selling price Suitable for
Napoli 250-350 baht Classic pizza shop
Roman 220-300 baht Some frames, cut into pieces
Pinsa 350-450 baht Premium Health
Teglia Sold in pieces Buffet, Banquet

Read more

Easy to get started

Request a quote specific to your shop at Tindoro.com along with a free Test Box to test the quality before deciding.

For retail customers

Want to buy a little pizza dough to make at home? Order from Tindoro Prime online store and deliver all over Thailand.

Frequently Asked Questions (FAQ)

How much should a good pizza cost?

A good pizza cost should be 25-35% of the selling price, depending on the type of store and the target market. If it's higher than 35%, find a way to reduce it.

What percentage of the total pizza cost is pizza dough?

Approximately 20-30% of the total pizza cost per dish. The rest is cheese, toppings, and sauce. Cheese is usually the most expensive part

Selling pizza through food delivery apps. How much has the profit decreased?

The platform deducts commission. 25-35% resulting in a significant decrease in profits. Stores that sell through the app should set prices higher than the storefront. 15-20% or design a unique menu with low pizza costs.

How much does wholesale pizza dough cost from Tindoro Prime?

Depends on the type of flour, size and quantity Contact to request a quote specific to your store with a free Test Box.

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