How to Price Pizza Shop Services: A Guide for New and Growing Pizzerias

Nate Jones, CPCU, ARM, CLCS, AU
Oct 13
3 min read

Starting a pizza shop is exciting—but pricing your menu and services correctly is essential to staying profitable and competitive. Whether you're launching a dine-in pizzeria, a takeout-only shop, or a delivery-focused pizza restaurant, understanding how to price your pizza shop services can make or break your business.

At Wexford Insurance, we specialize in helping pizza shop owners protect their businesses with tailored pizza restaurant insurance. But we also want to help you succeed from the start—including pricing your services the right way.

Why Pricing Matters in the Pizza Business

Pricing isn’t just about covering costs—it’s about:

Maximizing profit margins
Staying competitive in your local market
Delivering value to your customers
Covering operational risks and insurance costs

Step-by-Step Guide to Pricing Pizza Shop Services

1. Calculate Your Food Costs

Start by calculating the cost per pizza:

Ingredients (dough, sauce, cheese, toppings)
Packaging (boxes, napkins, etc.)
Portion sizes

Aim for a food cost percentage between 25–35% of your menu price. For example, if a pizza costs $3.50 to make, you should price it between $10–$14.

2. Factor in Labor Costs

Include wages for:

Cooks
Delivery drivers
Cashiers
Managers

Labor should typically be 20–30% of your revenue. Consider offering combo deals or upsells to increase average ticket size without increasing labor.

3. Include Overhead Expenses

Don’t forget:

Rent or mortgage
Utilities
Equipment maintenance
Marketing
Insurance (see below)

These fixed costs should be spread across your menu items. A break-even analysis can help determine how many pizzas you need to sell daily to cover these costs.

4. Consider Delivery and Takeout Pricing

Delivery services add costs:

Driver wages or third-party fees
Fuel
Vehicle maintenance

You may need to:

Add a delivery fee
Increase menu prices slightly for delivery orders
Offer bundle deals to encourage larger orders

5. Analyze Your Local Market

Research competitors:

What are other pizza shops charging?
What specials or promotions do they offer?
What’s the average price for a large pizza in your area?

Use this data to stay competitive while maintaining profitability.

🔗 Explore Yelp or Google Maps for local pizza shop comparisons.

6. Build in Profit Margin

After covering all costs, add a 10–20% profit margin. This ensures you’re not just breaking even but growing your business.

7. Adjust for Seasonal and Specialty Items

Specialty pizzas, gluten-free crusts, or seasonal ingredients may cost more. Price these accordingly and communicate the value to customers.

Insurance Costs to Consider When Pricing

Your pricing should also account for the cost of protecting your business. Wexford Insurance offers specialized coverage for pizza shops, including:

General Liability Insurance – Protects against customer injuries or property damage.
Commercial Property Insurance – Covers your building, ovens, refrigerators, and other equipment.
Workers’ Compensation Insurance – Required in most states for employee injuries.
Commercial Auto Insurance – Essential if you offer delivery.
Equipment Breakdown Insurance – Covers repair or replacement of essential pizza-making equipment.

Final Tips for Pizza Shop Pricing

Review your pricing quarterly
Track customer feedback and sales trends
Offer loyalty programs or bundle deals
Don’t underprice—value your product and service

Ready to Start Your Pizza Shop?

If you're launching a pizza shop or expanding your restaurant, pricing your services correctly is just one part of the puzzle. Protect your investment with pizza shop insurance from Wexford Insurance. We specialize in helping food service businesses like yours stay covered and confident.

👉 Contact us today.