Mr D. Tail is looking forward to having a pizza. He decided to make his own pizza as the high street Pizzerias nowadays are rather quite expensive. £10 is the average price of an 12" Pizza Margarita against Mr D. Tail’s £1.48 for his 12" pizza’s ingredients.
At first glance 85% gross margin seems excessive and unfair to anyone, however all that glitters is not gold. At the end of the day what really matter is the profit margin which is much lower if not a loss.
To recap, running a pizzeria can give financial gratification but if you are not selling a lot of pizzas it will turn out to be a risky business.