Pizzeria break-even calculator

Updated October 21, 20264 min readRomain Ferrand — pizzaiolo, 12 years in trucks and dining rooms

Break-even is your monthly fixed costs divided by what one order contributes after food cost and app commission. For a pizzeria the commission line decides it: with 40% of orders going through an app at 25%, the example below needs 44 orders a day instead of 38 selling direct.

Monthly fixed costs

$
$

Wages, payroll taxes and what you pay yourself.

$

Gas for the oven, electric, water.

$

Insurance, software, accountant, licenses.

Your trade

$

Before sales tax and tip.

%

Against the menu price.

%
%

Orders per day

44

over 26 open days

Orders per month

1,140

Monthly sales

$34,193.55

Before sales tax, to break even

Monthly fixed costs
$21,200
Food cost per order
$8.40
Average commission per order40% of orders
$3
Contribution per order62.0%
$18.60

The formula

Break-even = fixed costs ÷ contribution per order

Contribution is what is left of an order once the ingredients and the commission are paid. It is what covers rent and payroll. While it is positive, every extra order moves you toward break-even; if it is negative, selling more makes things worse. Not sure of your food cost ratio? Work it out per pie first.

The line generic calculators leave out

An ordinary break-even tool asks for a “margin” and stops. For a pizzeria that isn’t enough: app commission is charged only on the orders that go through the app, and at 25% or 30% it is often bigger than the food cost. Burying it in an average margin hides the single biggest lever you have.

Orders per day to break even: $21,200 fixed costs, $30 order, 28% food cost
Share of orders via an appAt 0% commissionAt 25% commission
0%, all direct3838
25%3842
50%3846
75%3852
100%, all through apps3858

Calculated with this tool using the values it loads with and 26 open days a month. Rounded up to whole orders. Sales tax is excluded because US menu prices are quoted before it.

That last row is the argument in one line. The same kitchen, costs and menu needs more than half as many orders again when every order pays commission: 58 a day instead of 38. Moving even a third of your regulars to your own site changes the math more than any price increase you would dare to make. See what your current app bill is per year.

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