You know what they rarely, if ever, notice? The soda price.

It’s assumed. Guests walk in expecting to order a drink. They’re not studying the menu for it – especially if it’s not on the physical menu. And by the time they see it on the receipt, the transaction already is complete. For the price-conscious customer, any inclination to complain is usually offset by the name “Unlimited Refill Beverage” or something close to that on the receipt. Truly, this is not an item people fixate on. That makes it your cleanest, open opportunity to create a profit margin.

This is not about being greedy. It’s about being responsible in one of the lowest-margin industries there is. If your restaurant isn’t producing the profit it should, you need to identify areas where you can improve without compromising the guest experience. Soda is that area.

For dine-in service, the play is clear. Set your price – $2.50, $2.95, $3.50, $3.95 – whatever fits your concept. Most guests won’t blink. They see the term “unlimited,” and they’re good. Syrup soda is relatively cheap, requires no prep labor, and the marketing is done for you by big soda corporations.

If you’re a takeout operation, the best item to carry is 20-ounce bottles. Why? Because cans usually cost around 50 cents each, and you can sell them for as much as $1.95. Meanwhile, a 20-ounce bottle costs you about 75 cents and can sell them for as much as $3.25. That’s $2.50 in profit. A four-pack combo of 20-ounce bottles at $9.95 will out-earn a $4.95 2-liter without question. This is the margin game, and if you are a restaurant professional, you must game pricing or it will game you.

It’s not about what you make once, it’s how you handle items over time, and soda is incremental revenue that stacks fast. Charge one dollar more to 120 customers a day, and you’ll net $43,200 per year! It’s insane how such a small change can produce such a huge result for no new work. Beverage pricing gives you a cushion to offset other choices – such as the appetizer you price at $13.95 instead of $16 to avoid scaring off guests. Soda absorbs that hit.

So, ask yourself: Are you making enough on the most ignored item in your operation? You don’t need to overthink it. You just need to start monetizing it properly, because it works and most customers don’t notice it or care the way they would about the price of something else on your menu.

Mike Bausch is the owner of Andolini’s Pizzeria in Tulsa, Oklahoma. Instagram: @mikeybausch

Read the August 2025 Issue of Pizza Today Magazine

In this issue, we announce Pizza Today’s 2025 Pizzeria of the Year. Find out how the owners turned a failing pizzeria purchase into a fast-growing pizza business. Learn how to make a sourdough starter. It’s Green Season! Green Chile, that is. Explore menu ideas that add New Mexican flavors to your pizza. Find out which strip mall locations work best for pizzerias – and how to maximize traffic. Discover why pizzerias are going with custom mobile apps to capture sales and return visits. Tap into addictive bar menu options to increase check averages. Go to the August Issue.

The post Soda: The No. 1 Pricing Decision You’ll Make | Mike’s Monthly Tip appeared first on Pizza Today.

Running a pizzeria is so much more than tossing dough and perfecting your marinara sauce recipe. Sure, crafting that perfect pizza feels like a win, but when it comes to running a successful shop, you’ve got to know your numbers! And no, I’m not just talking about how many pies you sold on Friday night. I mean your financial statements. These little beauties tell the full story of your pizzeria’s financial health – from whether your pepperoni costs are eating at your profits to how much cash you’ve got on hand to keep the ovens burning.

If the term “financial statement” sounds intimidating, don’t sweat it. We’re here to walk you through the basics and show you that these documents aren’t just for big corporations – they’re essential for keeping your pizzeria thriving. Let’s break it all down, step by step.

What Is a Financial Statement?

Picture this: A financial statement is like that cheat sheet you keep by your register. It tells you exactly how your pizzeria is performing over a certain period. Typically, there are three main types you need to know about:

1. The Income Statement (or Profit and Loss Statement): This shows your revenues, expenses and whether you made any dough (pun intended) during a specific time frame.
2. The Balance Sheet: This is a snapshot of what your business owns, owes and what’s left after bills.
3. The Cash Flow Statement: Think of this as the roadmap for where your money is coming from and where it’s going.

Each offers a unique perspective on your shop’s money flow. Together, they tell you everything you need to know to keep your business booming.

1. The Income Statement: Is Your Pizzeria Profitable?

The Income Statement is your go-to document for keeping tabs on whether you’re making a profit slinging pizzas. Here’s what it typically includes:

• Revenue: This is your total income from pizza sales, drinks and merch. Tracking revenue shows how well your menu and pricing are working – or not working.

• Cost of Goods Sold (COGS): These are your direct costs like mozzarella, dough and toppings. If your COGS is eating too much of your revenue, it might be time to negotiate better supplier deals or find ways to trim waste.

• Gross Profit: This is your revenue minus COGS. High gross profit = money to reinvest or pay yourself!

• Operating Expenses: Think rent, salaries and inevitable expenses such as pizza oven maintenance.

• Net Profit: This is your bottom line. After all expenses – including taxes and utilities – are covered, this tells you if your pizzeria is making or losing money.

Why It Matters

Your income statement is like the scoreboard. If profits are low or negative (yikes), it shows where you need to cut costs or boost revenue. Maybe your pepperoni special should run more often – or perhaps it’s time to rethink slow-selling items that are costly to produce.

2. The Balance Sheet: Are You Financially Stable?

The Balance Sheet is a reality check. It breaks down what your pizzeria owns (assets), owes (liabilities) and what’s left (equity).

Assets: This covers your cash, your kitchen equipment, your inventory of freshly rolled dough in the freezer and even that delivery bike out back.

• • Current Assets: Think cash and inventory that easily can be converted into cash within a year.
  • Non-current Assets: Big-ticket items that won’t be converted to cash within the year, such as your pizza oven.

Liabilities: This includes loans, unpaid invoices and payroll you owe.

• • Current Liabilities: Bills due soon (like this week’s cheese delivery).
  • Long-term Liabilities: Loans or leases you’ll pay off over time.

Equity: This is what’s left for you if you sold your assets and paid off all debts. Ideally, this number should be growing!

Why It Matters

A balance sheet shows your financial stability and liquidity. Too many liabilities? Time to buckle down on costs or renegotiate repayment terms. An asset-heavy balance sheet? That’s breathing room to grow your operation.

3. The Cash Flow Statement: Managing Cash Like a Pro

Every pizzeria needs cash to survive. The Cash Flow Statement breaks down where your cash is coming from and where it’s going. Here’s how it’s divided:

• Operating Activities: Money coming in from sales and going out to buy ingredients or pay wages.

• Investing Activities: Cash used to upgrade equipment or possibly expand.

• Financing Activities: Loans, credit lines or money you’ve invested into your shop.

Why It Matters

You could be “profitable” but still run out of cash to pay staff or buy supplies. Tracking your cash flow ensures your shop always has liquidity to cover its obligations.

How to Use Financial Statements to Grow Your Pizzeria Business

Now that you’ve got the basics, here’s how to put these documents to work to improve your operations and profits:

• Keep an Eye on Margins: Slice into your income statement to track gross profit and net profit margins. Are your labor costs eating into profits? Can you buy bulk flour to save on COGS? Focus on margins to increase profits.
• Manage Debt Wisely: Use your balance sheet to review debt levels. If you’ve got a hefty equipment loan, consider paying it down faster during peak sales months, when you bring in more revenue.
• Balance Inventory: Your balance sheet can track whether your freezer’s packed with slow-moving dough or if you’re running out of mozzarella during busy weekends. Try to avoid shortages or overstock!
• Maintain Cash Flow: Check your Cash Flow Statement regularly. If you’re running low on operating cash, consider running a limited-time offer to boost sales. (Weekend deals work wonders!)
• Plan, Plan, Plan: Leverage historical financial data to predict trends, budget for busier months or time your next location’s opening during high demand.

Takeaway for Pizzeria Owners

Financial statements aren’t just for your accountant to review during tax season! They hold the key to running a more profitable, efficient operation. By making sense of your Income Statement, Balance Sheet, and Cash Flow Statement, you can tackle challenges head-on and identify opportunities for growth.

Keeping tabs on your numbers doesn’t have to feel like a chore. Think of it as another tool in your pizza-making arsenal. And just like your carefully curated marinara recipe, mastering your financials will keep your pizzeria thriving for years to come.

Time to grab those numbers and make some dough (figuratively and literally)! ?

The post How to Read a Financial Statement: A Guide for Pizzeria Owners appeared first on Pizza Today.

“Those who think profit is a dirty word should try to make one.”
– James Cook

There is always a debate on what is marketing and what is branding. There is one factor that runs into both, and that is consistency. When crafting your message, it must ring loud enough and often enough to make an impact.  We talked last month about implementing pizza styles that make you stick out from your competitors. When putting together the marketing campaign around the new style, you want to make sure your branding message is entrenched in the overall campaign.

The guilt in our society with making money has been ingrained in much of our culture. However, our capitalistic economy that this country has been founded on speaks to another side. You should never feel bad about making a profit or having a high profit margin. We, the small business people of America, are providing jobs and adding to what makes our country great.  Small businesses give you the opportunity to go after your American Dream.

The discussion of what your profit margin should be is always an interesting conversation. I have been in seminars at Pizza Expo where pizzeria operators talk about 20-percent margins. I also find those operators are the same ones who brag that they never advertise. I have left seminars, gone home and tried to figure out what I was doing wrong not hitting a 20-percent margin. If you can, by all means do. I think the most important thing is to find a profit margin you would be comfortable with and then go after that with everything you got. For me, after years of listening to others, I decided to listen to myself. My number is 10 percent. With that being said, everything over the 10 percent I put right back into the business. At that profit margin, for me personally, I can justify all the sacrifices I make and all the headaches and challenges that come with running a business.

The most impactful way we deploy everything over 10 percent? Expansion. There are years we have a higher margin. When we do, that following year is where we upgrade infrastructure, equipment and/or the experience. If we are constantly over the 10 percent, I give back to the staff by increasing bonus opportunities or by increasing salaries and benefits. It is important to invest back into the business. I feel that the most successful businesses are the ones that are ever evolving.

Once you know the number you strive for, then other controllable goals can be established. Have a food cost number that you pick as your goal, not just a number that you heard on a podcast. Have that number mean something to you. The same goes with labor cost. Our company Cost of Goods goal is 29.5 percent, and our company-wide labor goal is 25.5 percent. That makes our prime costs 55 percent, which leaves 35 percent for all other fixed costs (and it leaves our 10 percent profit). In the next installment of Building Blocks we will talk about the fixed costs, including the big four-letter word: RENT.

Nick Bogacz is the founder and president of Caliente Pizza & Draft House in Pittsburgh.  Instagram: @caliente_pizza

The post Building Blocks: What’s Your Profit? appeared first on Pizza Today.

I recently sat eyeball-to-eyeball with a client who tasked me with finding a way to advertise a fi sh pizza that just hadn’t caught on. It was his “pet” pizza. He loved it. I thought it was okay, and customers had already been given free samples. Yet it just wouldn’t budge.

He figured some fancy ad would surely get this pizza moving up the sales channel and turn it into a signature item.

Let’s get straight on something right now: A deep-rooted, fundamental marketing “fact” is that you will make lots of money by selling people what they already want to buy. That said, you can go broke “on the quick” by plowing your ad budget into promoting fringe items with little interest.

Take, for example, grocery stores. They advertise top-selling items only. Stuff with wide appeal. Things with proven ability to drive traffi c. Items that cast the widest net over the marketplace: milk, meats, soft drinks. They don’t promote mousetraps, toilet plungers or liverwurst.

I often see pizzerias advertise a “large cheese pizza” at a low price-point because they’re afraid of scaring prospects away with a higher-priced offer. Now that’s fi ne if cheese pizzas are one of your top sellers. If they’re not, though, you are advertising something with little demand — and the low-price offer is costing you more than it’s bringing in.

Even though my pizzeria was widely known for gourmet, I found it best to advertise the combo, BBQ chicken pizza, and I’d always throw a veggie pizza in the mix. Why? Because those pizzas made the phones ring off the hook. Now, I certainly listed my entire menu on most ads, but I only used photos and offers for my top sellers. You’ll instantly improve your advertising results by following this path of least resistance. And that is by advertising what people already want to buy from you.

Here’s three easy ways you can fi gure out exactly what you should be advertising to drive the most traffic with the least money spent.

• What are your current top three selling pizzas or entrees?
• What has been a crowd favorite for a long time?
• What are the big chains advertising? Okay, the mere fact that your topselling pizzas are your “top-selling” pizzas means people want to buy them. Your marketplace has already told you what to advertise. Listen to your customers!

Kamron Karington owned a highly successful independent pizzeria before becoming a consultant, speaker and author of The Black Book: Your Complete Guide to Creating Staggering Profi ts in Your Pizza Business. He is a monthly contributor to Pizza Today.

The post 2009 November: Marketing Matters appeared first on Pizza Today.

Dan Collier of California-based Rusty’s Pizza Parlors applied the advice his former employer imparted to him. According to Collier, “Rusty’s founder, Rodger Duncan, always stressed to me the importance of weekly numbers –– inventory, cost analysis, weekly profit and loss.” Collier now can measure financial performance weekly and make immediate adjustments. Applying things learned over his 25-year career in the pizza industry has brought Collier success. He now owns four locations and sales have gone from $400,000 to $5 million per year.

April Murray and her husband, Mark, own and operate Just Pizza in Mebane, North Carolina. The pizzeria was started more than 20 years ago by April’s parents. “The one thing I have learned over the years that has made a significant difference in my business is that building those strong customer relationships really matters,” Murray says. “I learned this from my parents, who always made each customer feel special and let them know with a
huge ‘thanks’ to come back to see us each time they picked up. It leaves a broad range of possibilities to apply to your business, everything from a handwritten thank you on a breadstick box with a Sharpie to thank you notes for party orders, to cards each season. It’s the personal touches that matter most and let your customers know that they are important.” Just Pizza has since franchised and expanded to three locations.

Learning is directly tied to meekness. Meekness is an elusive virtue that few can accurately define. Most definitions are vague on its meaning, and many people equate it to weakness. Dictionaries generally define “meek” as gentle, moderate, submissive, quiet and even timid; however, the original Greek word means much more. “There is gentleness” in that word, observes William Barclay’s New Testament Wordbook, “but behind the gentleness there is the strength of steel.” The original definition of meekness shows a mental disposition that enables one to endure injury with patience and without haughtiness or vanity. One does not insist on going by his own views or by popular opinion. One is teachable, willing to be taught.

Tony Disilvestro, co-owner of Ynot Pizza, a twounit operation in Virginia Beach, Virginia, states: “One thing that has impacted my business would be attending the International Pizza Expo for the last 16 years. We as a company have returned every year with an idea or a product that has improved our business. The Expo has made it easy to fi nd a product or service and compare it to the competition all in one place.” Ynot’s openness to learn at Expo has led to a new avenue of revenue for them — take and bake. It has also given them the tools they need to take them to the next level — franchising.

Glenn Cybulski came to Pizza Expo in 2007 hoping to close a deal on a POS system he had already decided on. Cybulski attended an early morning marketing seminar and questioned the panelists on their POS capabilities. What he learned sent him to the show fl oor to compare the systems. Cybulski put away his preconceived notions and objectively looked at the systems, bearing in mind the advice of the panelists. Two years later, Cybulski says: “The smartest business decision I have made was to purchase (the panelist recommended) POS system. From the ability to track my inventory, sales and manage my customer base, the POS system has improved my profi tability in many ways. I use this POS in all of my stores.” Cybulski is now the franchisor of California-based Fregene’s Pizza.

Reading is not only fundamental, but it is instrumental in building your business. Addam Oliver, independent operator of Bernie O’s Pizza in North Muskegon, Michigan, testifies to that. “I have a copy of an article that Big Dave wrote for Pizza Today titled “EO to CEO” taped to my desk that I read once a week,” he says. Oliver attributes his doubledigit growth since he opened three years ago to applying the mindset of this article. Oliver learned that to be truly successful he needed to focus on the three main areas of business: marketing, training and finance.

Shawn Randazzo of Detroit’s Cloverleaf Pizza agrees: “In my 14 years in this business, the single most significant thing I learned to do with my business was working more on my business rather than in it. The transition from a stressful, sweaty 70-hour work week took some time, and is continuous.” A combination of trade shows, industry magazines, consultants, books, and several successful individuals within our industry taught Randazzo and Oliver this important principle. Randozzo adds: “I will be honest, though. Once you start the transition, you will learn a ton from and about yourself — don’t be afraid to change the way you think.”

The forward-thinking entrepreneurs behind Columbus-based Mama Mimi’s Take ’N Bake Pizza have found pearls of wisdom in networking with their peers through trade shows, restaurant associations and Internet forums. When Jeff and Jodi Aufdencamp began nine years ago, the take-and-bake concept was virtually unheard of. The key to their success was listening to others. “It was more ‘big picture’ thinking, as with everything in our business,” says Jodi. “A friend of ours knew the president of an e-mail marketing company. We definitely trusted them from the beginning, because they were recommended by a friend. Networking is such an important part of operating a growing business. “We now get three times the return on the e-mail offers compared to direct mail or other print. It goes directly to an eager and waiting audience that already believes in the product. We have grown with the e-mail company and built a great relationship that allows us to send out creative and innovative e-mails with ease.” Mama Mimi’s now has four corporate stores and is opening three franchise stores this fall.

Marcel Bouley of Engine No. 6 Pizza Company in Norwich, Connecticut, watches the competition and asks, “What makes them so successful?” Consistency and good service are the typical answers. Bouley notes that even restaurants with a mediocre product can be successful by offering good service along with a consistent product. Engine No. 6 Pizza Company caters to gluten-free diets and other health concerns, so inconsistency is not an option. “I train my staff to focus on being service-oriented and producing a consistent product,” adds Bouley. “The effects have been that I have been in business for over 23 years and I no longer have to work nights and weekends.”

This industry offers many opportunities to take in accurate knowledge that can make your business successful. The operators mentioned in this article saw success because they possessed the quality of meekness. They were not afraid of being wrong or corrected. They yearned to learn and grow as people and as operators, even if that meant change. The school of life is always in session. Cultivating the quality of meekness is an ongoing process, challenging our human nature. Fate does not separate the winners from the losers — willingness to be taught does. You turn your passion to profi ts when you realize that learning truly is earning. 09.09.09

The post 2009 September: Learning is Earning appeared first on Pizza Today.

That means that every month, within your takeout or delivery area (if you’re within three to fi ve miles of a hospital or medical center), pharmaceutical reps are spending more money and ordering more food than you could even handle and make. How much of this are you getting?

I got plenty at my pizza shop, but it didn’t fall in my lap. We went to hospitals and doctors’ offi ces, taking in nice coffee mugs piled high with Hershey’s Kisses. Oh yeah, while nurses were grabbing at the candy, we were passing out stacks of menus (they frown on that if you’re not handing out candy). Once they started ordering from us, the pharmaceutical reps followed.

We also paid visits to pharmacists and traded pizza in exchange for having them copy the business cards of all their pharmaceutical reps. We contacted the reps and fl at-out offered to provide a free meal up to 12 people as a way for them to try us out.

It didn’t take long before we had a pretty solid lock on this lucrative niche. One of our pharmaceutical reps even gave us a credit card –– on fi le –– so his doctors could call any time and order lunch from us. All they had to do was say “It’s on the Prozac account.” That rep and several others also got gift baskets delivered to their home during the holiday season (along with our other high-spending customers).

Having a well-planned marketing strategy to target pharmaceutical reps can bring big sales during lunch and dinner. That money has to be spent somewhere. It might as well be your restaurant.

To help you get your piece of the pie, here are some things to consider when catering to pharmaceutical reps. I’ve categorized these considerations between lunch and dinner. What you’re about to read is feedback received from actual pharmaceutical reps. This is what they look for in a restaurant and what drives their buying decisions.

LUNCH — Offer all major credit cards, including American Express. Different pharmaceutical companies provide their reps with different credit card brands. The most common is Visa, but some do use American Express.

Offer delivery and set up. The key to marketing to pharmaceutical reps is to make their lives easier.
Provide quality packaging to offer great presentation. When a rep provides a lunch, it is a refl ection of them and their company. Presentation appeals to both the offi ce staff and physician.
Offer drinks and dessert for off-site catering.
Be on time! Blow this even once, and they’ll never call you again.
Always provide an itemized receipt or invoice of what was ordered. Pharmaceutical reps use this for their expense reports, and having this available with every order will make their life easier and motivate them to use your restaurant more frequently.
Provide flatware, plates and serving utensils free of charge. It is a major irritant when restaurants choose to charge for this service.
Have one person in your restaurant dedicated to handling pharmaceutical rep lunches. They prefer one point of contact and the ability to establish a relationship.
Offer them a Rewards Program. Pharmaceutical reps are spending their company’s money, and a rewards program provides them a way to personally benefi t from the money they spend on lunches and dinners.

DINNER — Provide a private room. Dinners usually involve a speaker who requires the proper environment.

Have a screen and projection equipment.
If you are going to require a minimum, make it a reasonable, acceptable amount.
A pre-set menu is acceptable as long as you offer two to three choices for the main entreé.
Again, it’s best to have one person in your restaurant dedicated to handling pharmaceutical rep dinners to establish a good working relationship.

So how do you get started? After you have considered the above needs, you will need to start targeting reps (harder to do) and the doctor’s offi ces they visit (very easy to do). The rep will order from the restaurants their doctors’ offi ces request. So the fastest way to get into this market is to target the doctors’ offi ces. You can purchase a mailing list for all the doctors’ offi ces in your area. This will get the word out.

You should also follow up the mailings with a personal visit to the offi ces. Once you receive an order from a pharmaceutical rep, pull out all the stops and overservice them. Again, it is all about making their life easy and giving them a personal reason to come back and tell their offi ces about your restaurant.

Once they come in, don’t let them leave without capturing their contact information. Ideally, you will get them enrolled in your customer rewards program right away and give them an incentive to spread the word among their associates. At the very least, get their business card. Marketing to pharmaceutical reps is a grassroots effort and grows through positive word-of-mouth and attention to detail. Listen to them, reward them and don’t let a bad experience go un-repaired. The reputation of your restaurant among the pharmaceutical rep community can spread awfully fast, both positively and negatively. And one of the additional benefi ts of tapping into this hard-to-crack market is that the reps are still spending lots of money –– even now. It might as well be going into your pocket. 09.09.09

The post 2009 September: Prescription for Profits appeared first on Pizza Today.