The margin of your pizzas determines which dishes bring in the most money. Many pizzeria owners only look at popularity, but a pizza that sells well can still make a loss. In this article you'll learn step-by-step how to calculate which pizzas give you the highest margin.
What is margin and why is it more important than revenue?
Margin is the money left over after you've paid for all the ingredients. A pizza that brings in €20 but costs €15 in ingredients gives less margin than a pizza for €16 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
The more expensive pizza only brings in €0.30 more!
Calculate ingredient costs per pizza
For each pizza, add up all the ingredients that go on it. Don't forget the small things that many pizzerias overlook:
- Pizza dough: flour, yeast, oil, salt
- Tomato sauce: tomatoes, herbs, oil
- Cheese: mozzarella, parmesan, other cheeses
- Toppings: meat, vegetables, fish
- 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
Now calculate two important figures per pizza:
Food cost percentage = (Ingredient costs ÷ Sales price excl. VAT) × 100
Margin in euros = Sales price excl. VAT - Ingredient costs
⚠️ Note:
Always calculate with the price excluding VAT. Pizzas have 9% VAT, so €16.00 on your menu is €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 an overview
Create a list of all your pizzas with this data:
- Pizza name
- Sales price excl. VAT
- Ingredient costs
- Food cost percentage
- Margin in euros
- Number sold per week
Sort by margin per pizza (highest first). These are your winners. Also sort by total margin per week (margin × number sold). This shows which pizzas contribute most to your total profit.
What to do with the results
High margin + popular: These are your stars. Promote them extra on your menu.
High margin + not popular: Try to sell them more by better positioning on the menu or staff recommendations.
Low margin + popular: You're losing money here. Raise the price or lower ingredient costs by finding different suppliers.
Low margin + not popular: Consider removing these pizzas from your menu.
⚠️ Note:
A food cost above 35% is often too high for pizzas. Between 25-30% is standard for pizzerias.
Track your margins automatically
Manual calculations take a lot of time and you'll easily forget. An app like KitchenNmbrs automatically calculates the margin of each pizza as soon as you enter the ingredients. You immediately see which pizzas bring in the most.
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
Focus first on your 5 best-selling pizzas. If those have a good margin, you've solved 80% of your profit problem.
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?
No, always calculate with prices excluding VAT. Pizzas have 9% VAT, so €16 on your menu is €14.68 excluding VAT for your calculation.
What is a good food cost for pizzas?
For pizzerias, 25-30% food cost is standard. Above 35% it becomes difficult to make a profit, especially with fixed costs like rent and staff.
Should I also include the cost of the oven?
No, in food cost you only count ingredients. Oven, gas, electricity and staff are separate cost items that you deduct from your margin.
How often should I check my pizza margins?
Check at least monthly whether your ingredient prices are still correct. Suppliers regularly raise prices without you noticing.
What if my most popular pizza has the lowest margin?
Then you're losing money on volume. Carefully raise the price (€0.50-€1.00) or lower ingredient costs by finding different suppliers or cheaper toppings.
📚 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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