I have gathered benchmarks and coefficients from multiple sources and reports to visualize the details using a Sankey diagram, illustrating the financial flow for a $2 million annual revenue scenario.
🍕 Pizza Sales:
– Pizza revenue accounts for 65% of total sales.
– Gross margin on pizza is around 67%.
– Cost breakdown for a $12 medium pepperoni pizza:
– Cheese is the highest cost.
– Dough and pepperoni also contribute significantly.
Total cost to make and package: $3.96.
🍟 Side Dishes & Desserts:Represent 25% of total sales.
High margins that contribute well to overall profitability.
🥤 Beverages:Account for 10% of total sales.
Also, contribute good margins to the bottom line.
💼 Cost Allocation:~1/3 of revenue goes to the cost of goods sold (COGS).
Another 1/3 covers labor costs.
Franchise fees are around 5-6%.
Net margin typically sits between 6-8%.
Based on industry benchmarks and Domino’s Pizza data for a $2 million annual revenue scenario.
Pizza places should only sell beverages. Follow me for more business ideas.
LittleTassiePrepper on
I used to work in a pizza place. At the end of the shift, the owner allowed us to take a pizza home for free. The owner used to complain that we should bring our own containers to take them home as the pizza box (which cost 50c) cost more than the whole pizza.
DoraaTheDruid on
Which Domino’s sells pizzas for $12? Aren’t they usually like $20 at least? Smells like pizzaganda to me.
upironsXL on
Really nice but please fix the typos for “pepperoni”
6 Comments
I have gathered benchmarks and coefficients from multiple sources and reports to visualize the details using a Sankey diagram, illustrating the financial flow for a $2 million annual revenue scenario.
🍕 Pizza Sales:
– Pizza revenue accounts for 65% of total sales.
– Gross margin on pizza is around 67%.
– Cost breakdown for a $12 medium pepperoni pizza:
– Cheese is the highest cost.
– Dough and pepperoni also contribute significantly.
Total cost to make and package: $3.96.
🍟 Side Dishes & Desserts:Represent 25% of total sales.
High margins that contribute well to overall profitability.
🥤 Beverages:Account for 10% of total sales.
Also, contribute good margins to the bottom line.
💼 Cost Allocation:~1/3 of revenue goes to the cost of goods sold (COGS).
Another 1/3 covers labor costs.
Franchise fees are around 5-6%.
Net margin typically sits between 6-8%.
Based on industry benchmarks and Domino’s Pizza data for a $2 million annual revenue scenario.
Sources: [https://www.qsrmagazine.com/reports/2022-qsr-50-industrys-leading-annual-report/?fbclid=IwZXh0bgNhZW0CMTAAAR3elxHSyT1bQA-2Vv4GrfTRwpMwdWCiUVyCawt5cHtJQP74jFjug6FUwJA_aem_bwArRSpXzmqBZu7txWnJlw](https://www.qsrmagazine.com/reports/2022-qsr-50-industrys-leading-annual-report/?fbclid=IwZXh0bgNhZW0CMTAAAR3elxHSyT1bQA-2Vv4GrfTRwpMwdWCiUVyCawt5cHtJQP74jFjug6FUwJA_aem_bwArRSpXzmqBZu7txWnJlw)
[https://ir.dominos.com/?fbclid=IwZXh0bgNhZW0CMTAAAR2aJwW-rTDQ5wBfmx-sP7jnBL5rXqvhv9jbqMVoQpaphTJdN2fqu1VkCmk_aem_-HnbhsjRG2j2WmzS5t11zw](https://ir.dominos.com/?fbclid=IwZXh0bgNhZW0CMTAAAR2aJwW-rTDQ5wBfmx-sP7jnBL5rXqvhv9jbqMVoQpaphTJdN2fqu1VkCmk_aem_-HnbhsjRG2j2WmzS5t11zw)
[https://www.franchisechatter.com/2024/05/27/dominos-pizza-franchise-pros-and-cons-to-consider-before-investing/?fbclid=IwZXh0bgNhZW0CMTAAAR23jVrBel_SBUe_v5dB1bmF1-sq2A3jFor3lezaR12E0_8dl3XBBw0q5_Q_aem_V5twlVWWKRxW642hmoh9cA](https://www.franchisechatter.com/2024/05/27/dominos-pizza-franchise-pros-and-cons-to-consider-before-investing/?fbclid=IwZXh0bgNhZW0CMTAAAR23jVrBel_SBUe_v5dB1bmF1-sq2A3jFor3lezaR12E0_8dl3XBBw0q5_Q_aem_V5twlVWWKRxW642hmoh9cA)
Tools: Power Bi & Canva
Nicely done. Thanks for making this. 🙏🏽
Pizza places should only sell beverages. Follow me for more business ideas.
I used to work in a pizza place. At the end of the shift, the owner allowed us to take a pizza home for free. The owner used to complain that we should bring our own containers to take them home as the pizza box (which cost 50c) cost more than the whole pizza.
Which Domino’s sells pizzas for $12? Aren’t they usually like $20 at least? Smells like pizzaganda to me.
Really nice but please fix the typos for “pepperoni”