Pizza prices
Author
Discussion

ScotHill

Original Poster:

3,853 posts

130 months

Friday 27th January 2023
quotequote all
Why are takeaway pizzas so expensive? The takeaway Pizza Hut near me is £22 for their largest, most toppingest pizzas, which when you look at the ingredients seems like a hefty markup. Are they that labour intensive to produce?

Also, they have a lunchtime special of any pizza, any size, for £5.99, so basically 70% discount on what it would cost if I bought it in the evening. What is the business purpose for that? Maybe a loss leader to get people hooked, but then once I've tasted a pizza for six quid there's no way I'm spending more than triple on it for dinner, much like I don't remember the last time I paid full price for Pringles or Doritos. And the decent independent pizzerias in town will do a bang up job for under £15, and that's with a nice place to sit thrown in.

Unless they have staff present in the daytime doing prep and it's a way to scrap a little bit of that cash back.

BTW, seven pizzas in two weeks - can recommend the Veggie Sizzler, it doesn't give you that afternoon bloat that a Meat Feast would. smile

ZedLeg

12,278 posts

129 months

Friday 27th January 2023
quotequote all
They mark them up to make their deals look better. It's telling that the big chains can run bogofs 7 days a week.

sherman

14,774 posts

236 months

Friday 27th January 2023
quotequote all
No one buys take away pizza at lunchtime. Look how many posh restaurants will do you 3 courses for £20 monday -thursday lunchtime but a full sla carte menu at the evening/weekend will be £30 a main course.
Staff are there prepping for evening service so a cheap deal for the few orders that do come through is ok. It probably just covers costs.

The evening price is a supply and demand issue. If it was £5.99 a pizza the shop would be inundated with orders. Too many to get delivered in a timely manner.
Higher price = fewer orders but achieveable quality control and delivery times.

UTH

11,313 posts

199 months

Friday 27th January 2023
quotequote all
I agree that the menu price of just a single large pizza at places like Dominos etc are crazy, but I guess nobody ever buys just one full price pizza. I think the last time I looked Dominos was doing 40% off £40 spend, so £26 was getting you a pizza, about 3 or 4 sides, drink.....which isn't unreasonable. But one of their large pizzas on its own could cost over £20.

Freakuk

4,306 posts

172 months

Friday 27th January 2023
quotequote all
After buying an Ooni pizza oven and making my own pizzas from scratch it's amazing how little a fresh pizza actually costs.

To give you an idea: -

Flour (decent Italian flour) around £2Kg (makes 6 pizza's so 33p per pizza)
Salt/Yeast - probably 20-30p for 4-5 pizzas
Tomato sauce - basically a decent tin of san marzano tomato sauce, garlic, basil - £2 will make about 4-5 pizzas
Toppings - couple of quid for again 4-5 pizzas

So probably somewhere between £1.00-£1.50 per pizza.

UTH

11,313 posts

199 months

Friday 27th January 2023
quotequote all
Freakuk said:
After buying an Ooni pizza oven and making my own pizzas from scratch it's amazing how little a fresh pizza actually costs.

To give you an idea: -

Flour (decent Italian flour) around £2Kg (makes 6 pizza's so 33p per pizza)
Salt/Yeast - probably 20-30p for 4-5 pizzas
Tomato sauce - basically a decent tin of san marzano tomato sauce, garlic, basil - £2 will make about 4-5 pizzas
Toppings - couple of quid for again 4-5 pizzas

So probably somewhere between £1.00-£1.50 per pizza.
And that's at make at home prices. God knows how cheap the big chains are getting basic ingredients for on a mass scale.

sherman

14,774 posts

236 months

Friday 27th January 2023
quotequote all
Freakuk said:
After buying an Ooni pizza oven and making my own pizzas from scratch it's amazing how little a fresh pizza actually costs.

To give you an idea: -

Flour (decent Italian flour) around £2Kg (makes 6 pizza's so 33p per pizza)
Salt/Yeast - probably 20-30p for 4-5 pizzas
Tomato sauce - basically a decent tin of san marzano tomato sauce, garlic, basil - £2 will make about 4-5 pizzas
Toppings - couple of quid for again 4-5 pizzas

So probably somewhere between £1.00-£1.50 per pizza.
Yes but in pizza huts case you also have
Shop rent
Staff wages
Staff pensions
Business rates
Business waste disposale
Delivery moped
To name a few additional expenses to get it to you.
Theres a lot more to it than just a making a pizza.

The general public do seem to forget these facts when it comes to the hospitality industry.

I have costed menus previously where for instance a bowl of lentil soup actually cost us 7p per bowl for thd ingredients. We sold it at £3.99
You still need to pay a chef to cook it
Gas to cook it
Crockery
Cutlery
Table, chairs
Waiter to deliver it
Till to charge for it.

I could go on but you get the point of overheads.

ScotHill

Original Poster:

3,853 posts

130 months

Friday 27th January 2023
quotequote all
I’ve never worked in the restaurant industry, but I’ve always heard a guideline of a dish should be priced at three times the ingredients cost? That was probably a long time ago too!

I’d imagine that the lentil soup was doing more than its fair share of contributing towards the overheads, and that a steak dinner would not have a markup of x50! Don’t soft drinks, serve a similar purpose in bars? Is the ‘overhead’ premium per plate/glass, rather than anything to do with the cost of its contents?

Dingu

4,893 posts

51 months

Friday 27th January 2023
quotequote all
sherman said:
Freakuk said:
After buying an Ooni pizza oven and making my own pizzas from scratch it's amazing how little a fresh pizza actually costs.

To give you an idea: -

Flour (decent Italian flour) around £2Kg (makes 6 pizza's so 33p per pizza)
Salt/Yeast - probably 20-30p for 4-5 pizzas
Tomato sauce - basically a decent tin of san marzano tomato sauce, garlic, basil - £2 will make about 4-5 pizzas
Toppings - couple of quid for again 4-5 pizzas

So probably somewhere between £1.00-£1.50 per pizza.
Yes but in pizza huts case you also have
Shop rent
Staff wages
Staff pensions
Business rates
Business waste disposale
Delivery moped
To name a few additional expenses to get it to you.
Theres a lot more to it than just a making a pizza.

The general public do seem to forget these facts when it comes to the hospitality industry.

I have costed menus previously where for instance a bowl of lentil soup actually cost us 7p per bowl for thd ingredients. We sold it at £3.99
You still need to pay a chef to cook it
Gas to cook it
Crockery
Cutlery
Table, chairs
Waiter to deliver it
Till to charge for it.

I could go on but you get the point of overheads.
I bet the large pizza being discussed is several times bigger than that made with the costings of the home one too.


Mr Penguin

3,855 posts

60 months

Friday 27th January 2023
quotequote all
sherman said:
No one buys take away pizza at lunchtime. Look how many posh restaurants will do you 3 courses for £20 monday -thursday lunchtime but a full sla carte menu at the evening/weekend will be £30 a main course.
Staff are there prepping for evening service so a cheap deal for the few orders that do come through is ok. It probably just covers costs.

The evening price is a supply and demand issue. If it was £5.99 a pizza the shop would be inundated with orders. Too many to get delivered in a timely manner.
Higher price = fewer orders but achieveable quality control and delivery times.
Except for businesses buying things on expenses, where its usually a manager passing the bill onto the company and not really caring what they actually spend.

ScotHill

Original Poster:

3,853 posts

130 months

Friday 27th January 2023
quotequote all
sherman said:
No one buys take away pizza at lunchtime.
bowtie

sherman

14,774 posts

236 months

Friday 27th January 2023
quotequote all
ScotHill said:
I’ve never worked in the restaurant industry, but I’ve always heard a guideline of a dish should be priced at three times the ingredients cost? That was probably a long time ago too!

I’d imagine that the lentil soup was doing more than its fair share of contributing towards the overheads, and that a steak dinner would not have a markup of x50! Don’t soft drinks, serve a similar purpose in bars? Is the ‘overhead’ premium per plate/glass, rather than anything to do with the cost of its contents?
You work on about 60% profit on average per dish.
You will also have to check prices against other local restaurants so as to not over/under priced for the market.
What you lose somewhere you will make up on a cheaper to make but more popular dish.

Draught coke has a crazy mark up.
Its £3 a pint but litteral pennies to produce.


Mobile Chicane

21,733 posts

233 months

Friday 27th January 2023
quotequote all
ScotHill said:
sherman said:
No one buys take away pizza at lunchtime.
bowtie
Domino's next to my office does a 'personal pizza' for £5.99 I think. It's a popular lunchtime choice.

But, locally there is a strange demographic: office workers, and then stoners from the nearby social housing.

DaveE87

1,149 posts

156 months

Friday 27th January 2023
quotequote all
I rarely get takeout food, but your local Domino's likely does a two topping medium for £6 or 7, or a large for £8 or 9. You need to pick it up though.

21TonyK

12,778 posts

230 months

Saturday 28th January 2023
quotequote all
ScotHill said:
I’ve never worked in the restaurant industry, but I’ve always heard a guideline of a dish should be priced at three times the ingredients cost? That was probably a long time ago too!

I’d imagine that the lentil soup was doing more than its fair share of contributing towards the overheads, and that a steak dinner would not have a markup of x50! Don’t soft drinks, serve a similar purpose in bars? Is the ‘overhead’ premium per plate/glass, rather than anything to do with the cost of its contents?
x5 on ingredients as a staring point (minimum), remember 20% of the menu price is VAT to start with. By the time you take out rent, rates, staff, heat, light, power there is virtually nothing left.

post-mix drinks and coffee make the money.

Recent (R4?) interview with the owner of a chain quoted 3% profit across the board on their sites.

Making money out of a B2C food based business right now is not an easy task.

normalbloke

8,384 posts

240 months

Saturday 28th January 2023
quotequote all
Freakuk said:
After buying an Ooni pizza oven and making my own pizzas from scratch it's amazing how little a fresh pizza actually costs.

To give you an idea: -

Flour (decent Italian flour) around £2Kg (makes 6 pizza's so 33p per pizza)
Salt/Yeast - probably 20-30p for 4-5 pizzas
Tomato sauce - basically a decent tin of san marzano tomato sauce, garlic, basil - £2 will make about 4-5 pizzas
Toppings - couple of quid for again 4-5 pizzas

So probably somewhere between £1.00-£1.50 per pizza.
You didn’t include your labour, fuel and mortgage payment costs to compare apples with apples.

James P

3,027 posts

258 months

Saturday 28th January 2023
quotequote all
The pizza place can only really quote one menu price for a pizza apart from special/ lunchtime deals. If someone orders through Deliveroo or similar they’re handing over a large % of the order value so have to inflate the base price to cover that cost. I’m an insolvency practitioner and have seen many kinds of takeaways hand over large % of sales to delivery apps. Seems madness to me.

For comparison my local doesn’t do Deliveroo, one son runs dine in and the second does deliveries. Mums on the till and dad makes the pizzas. 14€ for two delivered. As it’s PH, the delivery is by a classic PandaVan smile

theplayingmantis

5,433 posts

103 months

Monday 30th January 2023
quotequote all
supply and demand.

shocking value, yet despite being in an apparent 'cost of living crisis'...as the cost of the ever popular takeaway increases, (mcd's is no longer cheap relatively to others) the demand remains high judging on my purely subjective experiences of drive thru queues causing hold ups as i pass or join them in my once a month ventures etc. Yet a pizza from a supermarket which actually tastes better than any of the big 3 pizza chains is probably a 5th of the price or a 3rd for a 'finest' or waitrose/m&s one.

don't make sense to me.

ScotHill

Original Poster:

3,853 posts

130 months

Monday 30th January 2023
quotequote all
Supermarket pizzas don’t generally taste better - the toppings can sometimes taste fresher or less subsumed by the cheese and sauce, but the cheese, sauce and especially the base usually aren’t as good, the bases can suffer from being biscuity rather than bready.

A good local independent pizza place is probably a better bet in most ways than the main pizza chains. And while I can understand someone spending £15 on a pizza over a £5 supermarket pizza, a Chinese or Indian takeaway for £15 is much better value than the pizza equivalent!

JC06

151 posts

228 months

Monday 30th January 2023
quotequote all
UTH said:
Freakuk said:
After buying an Ooni pizza oven and making my own pizzas from scratch it's amazing how little a fresh pizza actually costs.

To give you an idea: -

Flour (decent Italian flour) around £2Kg (makes 6 pizza's so 33p per pizza)
Salt/Yeast - probably 20-30p for 4-5 pizzas
Tomato sauce - basically a decent tin of san marzano tomato sauce, garlic, basil - £2 will make about 4-5 pizzas
Toppings - couple of quid for again 4-5 pizzas

So probably somewhere between £1.00-£1.50 per pizza.
And that's at make at home prices. God knows how cheap the big chains are getting basic ingredients for on a mass scale.
I have a friend who ran a couple of Dominos franchises, he had to buy all ingredients from Domino’s direct and you’d be surprised how high the cost prices where. He felt he could buy then from a wholesaler or even, in some cases a supermarket, for less.