Your bestselling pizzas could be destroying your profits right now. Most pizzeria owners get excited about volume while their popular items quietly bleed cash. Identifying your actual money-makers transforms everything about how you price and promote your menu.
What is margin and why does it matter more than revenue?
Margin reveals the real money left after ingredient costs hit. A pizza bringing in €20 but costing €15 to make delivers way less profit than a €16 pizza that only costs €5 in ingredients.
? Example:
Pizza Quattro Stagioni vs. Pizza Margherita:
- Quattro Stagioni: €18 sales, €8.50 ingredients = €9.50 margin
- Margherita: €13 sales, €3.80 ingredients = €9.20 margin
That premium pizza only nets €0.30 more!
Calculate ingredient costs per pizza
Write down every single ingredient that goes into each pizza. Don't skip these small items that destroy margins:
- Pizza dough: flour, yeast, oil, salt
- Tomato sauce: tomatoes, herbs, oil
- Cheese: mozzarella, parmesan, specialty cheeses
- Toppings: meat, vegetables, seafood
- Olive oil: for finishing
- Herbs: basil, oregano, pepper
? Example Salami Pizza:
- Pizza dough (300g): €0.45
- Tomato sauce (80g): €0.35
- Mozzarella (120g): €1.80
- Salami (60g): €2.10
- Olive oil + herbs: €0.15
Total ingredient costs: €4.85
Calculate food cost percentage and margin
You need both numbers for every pizza on your menu:
Food cost percentage = (Ingredient costs ÷ Sales price excl. VAT) × 100
Margin in euros = Sales price excl. VAT - Ingredient costs
⚠️ Note:
Always work with prices excluding VAT. Pizzas carry 9% VAT, so €16.00 menu price equals €14.68 excl. VAT (€16.00 ÷ 1.09).
? Example calculation:
Salami Pizza for €16.00 (incl. VAT):
- Sales price excl. VAT: €16.00 ÷ 1.09 = €14.68
- Ingredient costs: €4.85
- Food cost: (€4.85 ÷ €14.68) × 100 = 33.0%
- Margin: €14.68 - €4.85 = €9.83
Compare all pizzas in a single overview
Build a master spreadsheet showing each pizza's real performance:
- Pizza name
- Sales price excl. VAT
- Ingredient costs
- Food cost percentage
- Margin in euros
- Weekly sales volume
Sort by individual margin first to find your winners. Then sort by total weekly margin (margin × units sold) - this reveals which pizzas actually fuel your bottom line.
What to do with the results
High margin + popular: These are your goldmine pizzas. Push them through menu placement and server training.
High margin + unpopular: Find ways to increase sales through repositioning or targeted promotions.
Low margin + popular: This combination kills profits fast. Raise prices gradually or find cheaper suppliers.
Low margin + unpopular: Remove these menu items immediately.
⚠️ Note:
Food costs above 35% create serious problems for most pizzerias. Target 25-30% to maintain profitability - the kind of thing you only learn after closing your first month at a loss.
Track your margins automatically
Manual calculations eat time and breed errors. Restaurant software computes each pizza's margin instantly after you enter your recipes. You'll catch profit leaks before they damage your cash flow.
Related articles
How do you calculate pizza margins? (step by step)
Gather all ingredient costs
Note exactly which ingredients go on each pizza and what they cost. Also include dough, sauce, oil and herbs - not just the toppings.
Calculate food cost percentage
Divide the total ingredient costs by the sales price excluding VAT and multiply by 100. For pizzas, 25-30% is a good food cost.
Calculate margin per pizza
Subtract the ingredient costs from the sales price excluding VAT. This is your margin per pizza in euros.
Create a comparison overview
Put all pizzas in a list sorted by margin. Also look at total contribution (margin × number sold per week).
✨ Pro tip
Track margins for your 8 highest-volume pizzas over the next 72 hours. These specific items determine if your pizzeria actually generates profit or just covers rent each month.
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
Should I include VAT in my margin calculation?
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My bestselling pizza has terrible margins - now what?
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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
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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