How Much Does A Local Pizza Shop Make? Guide 2024

If there was a competition to find America's favourite food, it would be challenging to doubt pizza's claim to the top spot. With numerous distinct styles and an almost infinite array of toppings, there's an ideal pizza for everyone. Hence, it's not astonishing that Americans invest a significant amount of money in pizza annually.

According to Restaurant Dive, the pizza business in the U.S. makes almost $46 billion. The big national pizza chains have 60% of the market, so there's still a lot for local pizza places.

Average Per Day Pizza Revenue

Every day, looking at a bunch of pizza places, we found out the regular one made about $1,253. That means they had around 50 customers, and each spent about $24.84. But, you know, pizzas come in all types—from quick and cheap to fancy ones. So, these numbers are just what you get on average.

The super busy pizza joints we checked out had nearly 200 customers daily, while some slower spots only had a few customers each day. And, what people spent also changed a lot—some places had customers spending less than $10, while others had folks dishing out more than $70 each time.

Best Days For Maximum Income

Fridays are super busy for the average pizza place, with 68 orders. Saturdays have the biggest bills, averaging $27.51 per order. Looking at weekdays, more people get pizza as the week goes on. Maybe it's because, as the work week drags on, more Americans want a slice of pizza for a pick-me-up.

National Pizza Day Sales

National Pizza Day wasn't massive, ranking as the 71st busiest day in total earnings. But, consider this: February is one of the quieter months for pizza joints. So, any boost in sales on February 9th, compared to the usual Saturday, is quite an achievement.

National Pizza Day might not match up to Halloween or New Year's Eve, but it seems this unofficial holiday genuinely brings more customers to local pizza spots.

How Much Does a Pizza Business Make?

The actual profit you make depends on many things. Different financial models suggest that hitting a 15% store-level profit before interest, taxes, depreciation, and amortization (EBITDA) is doable for a reasonably successful pizza store. This 15% profit margin is what's considered normal in the industry.

So, if you have around $1 million in yearly sales, you could likely make about $150,000 in profit before taxes. Keep in mind, that "store-level" means if you have a few units, you might need a small office to handle them. That office's costs might eat into the profits your stores make.

A bunch of things can influence how much money a pizza business brings in. Most often, it's around 15%, but sometimes it can be lower. On occasion, well-run places can even hit high profits like 20-25%. But that level of success needs a good handle on the food service industry and strong management skills.

How To Make A 20 Percent Profit Margin

Build Your Business Backwards

Like figuring out a maze is easier when you begin at the end, I find it better to start at the end of a business rather than the beginning. I start with how much money I want to make, then work backward to fixed costs, variable costs, and sales numbers.

Knowing the profit I want helps me figure out the sales I need. This way, I can plan my menu based on the food cost percentage I need, not the other way around. I also know my labor budget before I even open for business.

Location, Location, Location

Making a profit is like following an old saying. You need lots of folks who want what you offer, and you need to keep your costs low. It works better in a smaller town with 20,000 people than trying it in a big city like New York or San Francisco, even with more potential customers there.

Systems

Each of my pizza places is designed to work completely without me. If I vanished, my team might not even realize it, except when it's payday. I set up systems where every task has a guide—like a procedure, checklist, or recipe—explaining how, why, and when to do it. When your team knows how and why to do things, you can trust them to get the job done.

Outside the Box

I do things in a pretty unique way. I have no budget for marketing, so anything I spend on it is already over budget. Most, if not all, of my marketing is quite different from the usual. I hardly spend money on radio, newspapers, or direct mail. My goal is to get people talking about me.

Word of mouth is the strongest way to market, and you don't achieve that by putting coupons in the newspaper. My marketing plan can be summed up by rephrasing a popular saying: "I don't mind what people think, as long as they think about me." Of course, I hope they mostly think good things. Moreover, packaging can also perform a marketing task because of customizability. For this, I recommend you to have custom pizza boxes. Through these boxes, you can easily promote your pizza brand.

What Is The Highest-Grossing Pizza Place In The US?

Alaska isn't famous for its restaurants. But, when it comes to pizza, it's home to a big name: Moose's Tooth Pub and Pizzeria, the top-grossing independent pizza spot in the U.S.

In Anchorage, a city with about 300,000 people, Moose's Tooth brings in around $6 million in sales every year. Two buddies, Rod Hancock and Matt Jones, who loved rock climbing, own it. Back in the late 1990s, they opened Moose's Tooth. Hancock liked cooking, and Jones enjoyed home brewing, even though neither had worked in a restaurant before, as Pizza Magazine Quarterly notes.

It turns out that starting a restaurant in Alaska was a smart move. Moose's Tooth was a hit right from the start, Jones shared with Alaska Daily News. Since then, the pizzeria has grown four times. The duo has also added a theatre, grill, and brewery to their brand. So, it seems like in Anchorage, it's not just drunk moose looking for something to eat!