Top Tips for Maximizing Your Pizzeria Profit Margin in 2022
These profitability tips can be applied to all aspects of your business, including marketing and costs. However, you should pay particular attention to the top four opportunities.
Keep tabs on Profitability Trends
Developing technology
There is always a search for the next technological breakthrough to make ordering and delivering pizzas faster and more convenient for consumers. Independent pizzerias might not have the capital to invest in pizza-making robots and self-driving delivery cars, but pizzeria owners should be open to new cost-saving technologies.
Simple ordering
Mobile-friendly ordering online increases the average check size by 15%, improves order frequency, speeds up service speed and pleases customers. Mobile app usage grew from 51% in 2021 to 64% in 2021, highlighting the importance of quick and easy access.
Always use reliable ingredients.
Supply-chain vulnerabilities have affected every business. Pizzeria owners who are smart and savvy know which products they can order and receive when they need them. They then put those products to use across all their locations. This will allow you to streamline your ordering and reduce shipping costs.
Limit specialty ingredients to
A four- to the six-ounce chicken breast can be found in the pizza industry. It’s like finding a four-leaf clover. This means that specialty ingredients must only be used in premium menu items. Operators will need to charge accordingly to ensure they make the most of these items.
Not everyone is interested in
Although the “quality food at a reasonable price” idea that launched fast-casual is still important, only 41% of customers report eating indoors since they have been able to. Interestingly, 63% of restaurant customers reported that they had ordered takeout and 48% said they had used curbside pickup.
Evaluate costs
Remove your hard-copy menu
Supply chains in restaurants mean that complex and consistently deep menus are no longer possible. It can be dangerous to expect certain products to be readily available. Pizza chefs need to modify their menus as needed, depending on what they are able or unable to get.
Increase prices when needed
Costs can rise due to shortages of labour and ingredients. Both pepperonis and mozzarella were affected by major supply chain disruptions in the first months of the pandemic. Pizzeria customers should expect higher prices when considering price increases of up to 10% for ingredients such as produce, dairy, and cooking oils.
Seek Out Efficiencies
Believe in ghosts
Due to the pandemic lockdowns, approximately 1,500 ghost restaurants — special facilities that support delivery-only restaurant business models — were created all across the U.S. Given the increase in delivery demand and the high overhead costs of dining in, it’s easy to see why.
Optimize energy efficiency
You can save money on fuel and energy, which can have a big impact on your bottom line. As fuel prices rise, efficiency improvements are even more crucial to the profitability of your pizza restaurant.
- Maintain vents, exhaust fans, gaskets and drainage hoses weekly.
- Training staff on how to turn off ovens and lights during non-peak hours, keeping oven doors shut, and using a programmable thermostat.
- Compact fluorescent light bulbs can replace traditional bulbs.
- Insulate the attic of your restaurant to keep heat from escaping
- Use tax incentives and energy improvement programs that your state might offer to you
Marketing is a priority
Target millennials
Social media and mobile marketing can reach the generation that wants restaurants to “come to” them.
Smart promotions
Promotions are all about timing. You can successfully launch products if you can align promotions with supply chain management, sourcing analytics, and other factors.
Focusing on the moment and the trends that your customers are interested in and optimizing your profit margins at your pizza restaurant with operational efficiencies and cost reductions will allow you to capture a piece of the growth you want for 2022 and beyond.
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