Explore here how many pizzas an average shop sells a day. Further, what is the profit margin on pizza selling? You will also know about markup in the pizza business.
Imagine if there was a competition to find the most loved food in the US – it would be tough to not think pizza would win. Moreover, when you go outside in the market then you can find a lot of varieties of pizza toppings. That’s why everyone wants to eat pizza with their favorite toppings.
So, you cannot be surprised by knowing the fact that a large amount of money is spent on pizzas by Americans. As said by Restaurant Dive, the pizza business in the US makes about $46 billion. The big national pizza chains have most of the market, about 60%, which leaves space for local and small pizza places.
This got us thinking: how much do these local pizza spots make on a regular day? And when do Americans really like going to their local pizza place? And what about National Pizza Day? Do you think these ideas can generate a difference? To get the exact answer of it, here we have gathered the data or card payments at local pizza selling points, all over the country.
How Much Do Pizza Restaurants Make On An Average Day Throughout The Year?
We began by looking at how things went on a regular day at local pizza places across the country in 2023. During the period, we gathered the information that how many times in a day customers paid on average. Further, the average amount has been paid. In addition, how much money did these pizza selling points make on average? Our findings are given below.
During any day of the year we looked at, the average pizza place we studied made around $1,253 in money. They did about 50 payments at $24.84 each time. Remember, pizza places can be all sorts, from quick and budget-friendly ones to fancy specialty spots. So, these numbers are just an average.
The busiest pizza spots in our study handled almost 200 payments in a day on average. Meanwhile, some slower places just had a few payments each day. The average payment also changed a lot. Few of the pizza-selling restaurants had the average amount of payment less than $10. But others were doing great and had earned more than $70 per payment.
What Are The Biggest Days Of The Week For Pizza Restaurants?
The numbers above show the average for a regular day, but not all days of the week are the same for pizza places. As you might guess, weekends are big for pizza places everywhere. More than half (54%) of all money at local pizza spots comes on Fridays, Saturdays, and Sundays.
On Fridays, the average pizza place handled 68 payments, making it the busiest day for orders. In addition, Saturdays have an average amount of payment per week. And it costs around $27.51 per payment. Moreover, on other days, the amount per transaction varies and goes up by the end of the week. This might mean that Americans want pizza more as the workweek goes on.
Moreover, these days, pizza business owners need packaging in bulk quantities too. Because their sales are on the top. Therefore, they purchase custom pizza boxes at wholesale prices to meet their packaging needs.
What Time of Year Do Pizza Restaurants Make the Most Money?
It's clear that weekends are important for pizza places, but what about specific weeks and months? Are there times when people want pizza more, or do they like it the same all year?
We got the answer by checking how much money was spent on average at pizza places each week of the year. At the start of the year, pizza places are a bit slow, maybe because many people promise to eat better and not have pizza "forever."
But if you look, you'll see that sales go up in February and through spring. They stay high in spring and summer. In fall, sales go down a bit, but there are peaks during Halloween and at the end of the year.
What Is The Average Markup On Pizza?
Many restaurant owners prefer selling pizza by the slice as it seems more profitable than a regular pizzeria. An 18-inch pizza costs about $17 on average. Yet, selling each slice for around $3.14 means the 10 slices from the pizza can make you over $30 – nearly double the revenue for the same pizza amount.
However, deciding the right price for a slice in your shop can be tricky. If it's too high, you might not stand out from the many cheap slice pizzerias nearby.
But if it is very low then you cannot earn so much profit per slice pricing. For this, you can use a simple strategy that is a bit like a math calculation. So next when you make a pizza, calculate the price of ingredients and overall cost of pizza and then divide it into the number of slices. Next, multiply it by a higher price.
Normally, the price of a whole pizza is marked up by around 600%. Yet, for single slices, it's common to see a markup of 800-1000% due to the higher markup. Regardless of whether you want to be known for being affordable or a fancier choice with pricier slices, you should start by calculating your pizza-making costs.
What Pizza Sells The Most?
Can you make a guess about the kinds of pizza that people enjoy the most? A simple cheese pizza with marinara sauce is a favorite all around the world. The mix of melted cheese, garlic, and Italian-style herbs baked on a crispy crust seems to satisfy every pizza lover's taste and texture desires.
Yet, based on a survey from YouGov America, pepperoni pizza is the most ordered type in the United States. Why? Pepperoni brings a savory and salty taste with just the right spice. It's softer than salami and goes really well with different sauces, cheeses, and crusts. Other common pizza varieties include grilled chicken with Alfredo sauce, roasted veggies with pesto, and a meat-lovers pizza with a tangy buffalo sauce – perfect for a tailgate party.
How Much Profit On A Pizza?
The real profit you get will depend on many things. However, financial experts suggest that aiming for a 15% earnings margin (before interest, taxes, depreciation, and amortization) at the store level is doable for a pizza shop that's doing fairly well.
This kind of profit you can say that any pizza-selling brand can make. In addition, understand this calculation by an example. For instance, if you are earning $1 million in sales then your profit is around $150,000 before taxes. However, if you are running pizza restaurants in various places then you might need a small office to manage them. The costs for that might take a piece of the money your shops make.
Lots of stuff can affect how much money your pizza business makes. Usually, 15% is the common number, and sometimes it's even lower. But there are cases where high profits can go as far as 20-25%. To hit those high numbers, you need to really know the food service industry well and be good at managing things.
No comments yet