September 15, 2020

La Boulangerie’s $2.75 Pizza is Great for Consumers, but Does the Restaurant Get a Piece of the Pie?

by Ottimate Editors

Earlier this week, the popular San Francisco chain La Boulangerie launched an innovative and admirable new pizza concept, charging customers only $2.75 for an entire pizza – talk about a bargain!

While providing delicious, organic food at an affordable price is certainly commendable, we wondered, is La Boulangerie eating its own margin?

To find out, Ottimate analyzed the market cost of making such a pizza to see if the restaurant is making any dough off the concept. We evaluated the average cost of a classic 9-inch margherita pizza with organic dough (made with flour, yeast, salt and sugar), organic tomato sauce, olive oil, mozzarella and basil.  

Given the national cost of these ingredients, and not including the cost of the paper bag used for serving, the cost netted out at $1.67 per pie, leaving $1.08 in profit for La Boulangerie. Given this good margin, it seems like La Boulangerie is truly showing their customers the “amore” while still building a profitable business – and as a San Fransisco-based company we know where we’ll be heading for lunch this week!

Stay up to date on the latest news in AP automation and finance

This field is for validation purposes and should be left unchanged.