Energy costs are a hidden cost item that many pizzeria owners forget to include in their cost price. Your oven runs all day, but how much does that actually cost per pizza? In this article you'll learn step by step how to correctly factor oven and energy costs into your total pizza cost price.
Why include energy costs?
Many pizzerias only calculate with ingredients: dough, tomato sauce, cheese, toppings. But your oven consumes gas or electricity, and that costs money. At a busy pizzeria this can add up to €2,000-€4,000 per month in energy costs.
If you don't factor this in, your food cost looks lower than it really is. The result: you earn less than you think.
⚠️ Note:
Energy costs are variable and change regularly. Update your calculation at least once per quarter.
Calculate your total energy costs
First you need to know how much you spend on energy in total. Check your latest energy bill and break it down into:
- Ovens and kitchen equipment: About 60-70% of your total energy consumption
- Cooling and freezers: About 15-20%
- Lighting and other: About 15-20%
For the cost price you only calculate with kitchen equipment, not lighting or cooling (those are fixed costs).
💡 Example:
Pizzeria with monthly energy bill of €2,400:
- Kitchen equipment (65%): €1,560
- Cooling (20%): €480
- Lighting/other (15%): €360
To include in cost price: €1,560 per month
Distribute energy costs across your pizzas
Now you need to calculate how much energy each pizza costs. You do this by dividing your monthly energy costs by the number of pizzas you sell.
Formula: Energy cost per pizza = Monthly kitchen energy costs ÷ Number of pizzas per month
💡 Example calculation:
Pizzeria sells 3,000 pizzas per month, kitchen energy costs €1,560:
- €1,560 ÷ 3,000 pizzas = €0.52 per pizza
- This is on top of your ingredient costs
Each pizza costs €0.52 in energy
Different pizzas, different oven costs
Not all pizzas cost the same amount of energy. A Margherita bakes for 8 minutes, a thick pizza with lots of toppings sometimes 12 minutes. For a more accurate calculation you can make distinctions:
- Thin pizzas (8-9 min): Average energy cost
- Thick pizzas (11-12 min): 30-40% more energy cost
- Calzone (15+ min): 60-80% more energy cost
💡 Refined calculation:
Base energy cost €0.52 per standard pizza (9 minutes):
- Margherita (8 min): €0.46
- Quattro Stagioni (12 min): €0.69
- Calzone (15 min): €0.87
Add everything up for your total cost price
Now you can calculate your actual cost price per pizza:
Total cost price = Ingredients + Packaging + Energy costs
💡 Complete cost price Pizza Margherita:
- Ingredients: €2.80
- Packaging (box): €0.35
- Energy costs: €0.46
Total cost price: €3.61
At selling price €12.00 (excl. 9% VAT = €11.01): food cost 32.8%
Account for seasonal variations
Energy prices fluctuate significantly. They're often higher in winter, lower in summer. So check your energy bill every 3 months and adjust your calculation.
Your sales also vary by season. In summer you might sell more, which means energy costs per pizza go down.
⚠️ Note:
Calculate energy costs based on your average month, not your peak month. Otherwise you'll underestimate costs during quiet periods.
Keep track digitally to save time
All this calculating takes time. Many pizzerias use an app like KitchenNmbrs to automatically factor energy costs into their recipes. You enter your energy costs once, and the app calculates it through to each pizza.
This way you immediately see your actual food cost and can adjust your prices accordingly.
How do you calculate energy costs per pizza? (step by step)
Check your energy bill
Get your latest monthly bill and calculate 65% of it (this is roughly what kitchen equipment costs). For example: €2,400 x 0.65 = €1,560 per month in kitchen energy.
Count your monthly pizza sales
Look at how many pizzas you sell on average per month. Take an average of 3 months for a realistic picture, not just your peak month.
Divide energy costs by number of pizzas
€1,560 ÷ 3,000 pizzas = €0.52 per pizza. Add this amount to your ingredient costs for your actual cost price per pizza.
✨ Pro tip
Also check your oven setting: many pizzerias heat too hot, which means they use more energy than necessary. A pizza bakes fine at 280°C instead of 320°C, and that saves 15-20% in energy costs.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Do I need to include cooling in my pizza cost price?
No, cooling is a fixed cost item that runs regardless of how many pizzas you sell. Only include ovens and direct kitchen equipment in your cost price.
How often should I recalculate my energy costs?
At least every 3 months. Energy prices change regularly and your sales numbers can also be seasonal. A quarterly update keeps your cost price realistic.
What if my energy bill varies greatly from month to month?
Then take the average of 6 months. This prevents one extremely expensive or cheap month from skewing your entire calculation. Stability is more important than perfect precision.
Can I calculate different energy costs per pizza type?
Yes, that's even more accurate. A thin pizza bakes for 8 minutes, a calzone 15 minutes. You can increase the energy cost by the percentage of extra baking time: 15 min vs 8 min = 87% more energy cost.
What percentage of my total cost price are energy costs normally?
For pizzas usually 10-20% of your total cost price. If it's higher, check if your oven is working efficiently or consider energy-saving measures like better insulation.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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