Hi guys, I am a new guy here.
Wow! You are all very naieve. Running a pizza shop is not as profitable as many of you guys think. Yes dough and sauce are relatively cheap. But I run a Hungry Howie's Pizza in Canton, OH and you guys are up in the clouds. Cheese is the most expensive part of the pizza, by far! We use 100% motzarella, so it is more expensive than most, but a large cheese pizza: dough, sauce, and cheese costs us $1.66 to make. $1.33 of that being the cheese!!! Vegetable toppings and pepperoni are realatively cheap toppings, but bacon is a real expensive one, along with some of the other meats. Now, the food cost for most of our pizzas runs around 25%. This is a realatively low number. Other products we sell, wings (50%), subs (35%), salads (40%), pop (50%), do not have such a good food cost. averaging our products out, over a month, our food and paper cost comes out to be 33% of profits. Add another 23% onto that for labor and you are at:
33%+23%= 56% of profits used already.
Now add on to that overhead.
1 months rent $1500 (in a relatively high-traffic area).
+water+electric+gas+franchise fees+Advertising (5%-10%)+insurance for delivery drivers $3000+loan payments+etc. etc. etc.
I think you get my drift. Profit is approximately 10%-15% on a shop, if it is successful and run correctly. I am not trying to discourage you guys, I just would like you to correcly analyze this before dreaming about it too much.