Food Cost literally means the cost of the food. For the restaurateur, it means all the production, management, storage and service costs necessary for the food to reach the consumer. The calculation of Food Cost, in our case, Pizza Cost, can be critical for the success of an establishment. A precise calculation of the cost of the ingredients used for pizza would allow us to determine more accurately the selling price of our product to consumers, by knowing from the outset the contribution margin (the difference between the unit selling price and the variable unit cost).
Calculating the Pizza Cost, can decide the success of an establishment.
But how do you calculate it? First of all, the individual ingredients used must be taken into account, both in initial weight and final yield (e.g. 100 grams of porcino mushrooms will become 70 grams after cooking; while the use of a good flour, ensuring greater hydration, will also deliver a better final performance). Then, evaluate the cost per kg of the products used and relate it to the quantity of product used for the individual pizza.
Having calculated the cost of the ingredients used (flour, tomato, mozzarella, oil and salt for a margherita pizza for example), we obtain our Pizza Cost.
The total cost of the ingredients that make up a pizza, known technically as the "Planned Food Cost", must always remain within a 20% to 25% range of the final price at which we sell our product. Assuming a total expenditure of €1.40 for the purchase of our ingredients, the selling price of the Margherita should be between €7 (20%) and €5.60 (25%).
Calculating the Pizza Cost, can decide the success of an establishment.
But how do you calculate it? First of all, the individual ingredients used must be taken into account, both in initial weight and final yield (e.g. 100 grams of porcino mushrooms will become 70 grams after cooking; while the use of a good flour, ensuring greater hydration, will also deliver a better final performance). Then, evaluate the cost per kg of the products used and relate it to the quantity of product used for the individual pizza.
Having calculated the cost of the ingredients used (flour, tomato, mozzarella, oil and salt for a margherita pizza for example), we obtain our Pizza Cost.
The total cost of the ingredients that make up a pizza, known technically as the "Planned Food Cost", must always remain within a 20% to 25% range of the final price at which we sell our product. Assuming a total expenditure of €1.40 for the purchase of our ingredients, the selling price of the Margherita should be between €7 (20%) and €5.60 (25%).
