Okay, so I've been a pizza freak since college, and before. If there was ever a business that I should dip my toe in, it's the pizza biz. So, I'm considering doing it; but, I do other things and may not be able to dedicate my entire effort to pizza. Thus, I need to consider the profitability of an average (who knows what this is
) shop, and make some decisions.
Okay, so here is what I'm wondering, based on the following assumptions:
Assumption 1- "large-average" town of 100,000 persons, with above average incomes
Assumption 2- business is totally "average" for a business that will remain viable. In other words, it's not a bust, but also not the #1 pizza place in town (yet
Assumption 3- this is a pickup and delivery only company (that very well may not be the case, but I'll consider it first)
So, based on this, what can I expect in the following areas: ?
1) Average Monthly volume of pies
2) Average total GROSS revenue (daily, weekly or monthly....however you want to express it)
3) Average GROSS profit (average sale price of the pies minus the cost of ingredients)...if you can express as a %, that would be quite helpful....since I can just apply that to the total sales, and see if fixed costs (rent, advertising, etc) covers it plus how much.
4) Average net profit % for a delivery pizza shop in the town explained above (100,000 people)?
5) For a decent (average to above average) pizza delivery shop, how much NET NEt profit $$$ can be expected to be generated (for owner's benefit) per location? In other words, how much would the owner put in his/her pocket from the biz?
6) As a way of comparison, how much does the average Dominos, Papa Johns or Pizza Hut delivery shop do in
a. total annual sales volume ($)
b. gross margin % per outlet
c. net profit margin per outlet