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Pizzanomics: The Price of Pizza

Pizzanomics: The Price of Pizza

Pizza has been a favorite with Americans since it started appearing in Italian neighborhoods in Chicago and New York in the early 1900s, according to Franchise Help. Today we consume 100 acres of pizza daily, or about 350 slices per second. The website reports that pizza is a $40 billion dollar a year industry, and that pizzerias make up 17 percent of all restaurants in the country.

There are an incredible number of pizza options available from the basis pep-mush (pepperoni and mushrooms), to gluten-free versions for the more health conscious among us. Regardless of the pizza you choose, the ingredients will determine the quality and the cost. Pizzeria owners are faced with tough decisions when trying to calculate factors like the cost of ingredients, as well as other costs like staffing and stock levels. Revel’s Pizza POS can help keeps costs down and profit margins up.

Costs of doing business in pizza
A recent posting on pizza.com lists two of the most important costs of doing business in the pizza industry:  the cost of cheese and the cost of diesel fuel. Fuel costs come into play as the ingredients need to be shipped from processing centers to wholesalers and individual locations. Cheese is the primary and most costly ingredient in pizza. A February 2014 article on Business Week puts the price of mozzarella at over three dollars a pound, a 16 percent increase over December 2013. Poor weather in Europe causing a decrease in global milk production is blamed for the price increase.

Keeping an eye on costs
Since the cost of ingredients can fluctuate greatly, they must be closely monitored. Revel’s Pizza POS is an essential tool that keeps track of inventory to avoid waste, and streamlines the ordering process to keep costs in check. Another factor in running a successful pizzeria is keeping up with labor costs. A key feature of Revel’s iPad POS is the ability to project labor costs and sales projections to keep the proper sales to labor balance. The versatility of your iPad POS system allows you to make adjustments immediately in reaction to market needs. These could include staffing for busy or slow times, sales promotions, or employee scheduling conflicts.

Delivery costs
Delivery costs are also a big consideration in the pizza business, but Revel’s Pizza POS has you covered with Delivery Management that tracks driver location and performance in real time. Online Ordering and Inventory Management are also critical functions your Revel Pizza POS handles flawlessly, keeping your customers happy and your inventory costs manageable. In a business where profitability can be affected by many outside influences, Revel can help you bake in peace of mind with every pie you make!