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Good stuff. Thanks!

I hear you. What are the top 3 to 5 things you learnt that you wished someone told you sooner in each of those tasks (making pizzas, deliverying, helping customers, systems etc)

Thats amazing and inspiring! Have you considered writing a book or a guide on how you did it (scaled from 1 to 4 stores), the challenges you overcame etc. and how you think newbies can replicate your success.

Across 4 stores sounds acceptable. How hard is it to run 4 stores & how many hours a week do you spend doing it? Have you been able to optimise your processes to create a system are do they all run ad hoc individually? I see a lot of folks have issues with hiring the right talent and the...

Yes there is Pizza shop right next door, literally. But they get 1/3rd the traffic and business. I observed this when I sat outside the shop for 1 week (Morning, noon, night, late nights) to monitor traffic for the store that is on sale. The competitor pizza shop owners arent very savvy with...

$1000/month?? That sounds like a LOT of money. Whats it as a percentage for your gross sales?

Curious though, why void the payment? Its the customer’s fault for not accepting delivery even though you kept your end of the bargain of making the pizza and deliverying it.

You are right. There are lots of moving parts and variables that I am trying to get a hang of in this case. But I also see it as a good exercise to learn the nuances of the industry, if I dont end up buying the business. So I am really learning a lot here. As to your point about flour...

This owner has owned this business for only 3 year and this (2017) is the 4th year now. He purchased it from the original guy who owned it for probably 6 years. Reported sales for 2014 were around 500K and in 2015 they are 830k, 2016 they are 885k. I also see “loan from owners” entry in the...

IF I go, I will most likely pay only for the reported numbers. I might consider a reasonable cogs number (30%), instead of his 44% cogs and factor in the difference into the valuation. But before I do that, I need to confirm cogs for “pizza by slice” operation. I understand that there will be...

If you think you can do better than them, you may also want to consider buying the shop. If it currntly performing poorly, you may be able to get it cheap. But it may have risk that isnt readily visible, so be sure to do your due diligence.

Thanks Rob. They are willing to give me access to everything during my due diligence phase once I put in an offer. The offer contract will have contigencies that need to be removed before it becomes final and binding. Proving their claims to my satisfaction, will be one of the contingencies. I...

Yea these guys appear to be in their 50s and most likely not the tech savvy kind. I think they are there all the time cause it a lot of their transations are cash based and they dont have any systems, processes or tech in place to monitor that. Curious, would you happen to know cogs for “pizza...

How much food (as % of revenue) gets wasted at ‘pizza by slice’ shop?

Hi Paul, Thanks for your input. Sorry I missed this post earlier too. Looking at flour purchases over long period is a great idea. thanks. I just received the financials for the full year and it looks like the cash component of the reported income is accounted for, because at the end of it...

Can you please clarify what do you mean by “cash wages are being paid”. Is it that a) wages are paid in cash and off the record, so there is under reporting of wages in the accountant’s financials, or b) that cash wages being paid, that are recorded in the financials, but saves the owner from...

Great points PieDad. I most probably wont pay for anything that is not on the record, or will pay 10 cents on the dollar for it. But I like to have a good idea of what is going on in the business and how to investigate their claims. Also I find this to be a good exercise, cause this sort of...

Thanks capecodder. 2016 numbers show 885k of recorded revenue and 45% cogs. If we assume 34% cogs, then 11% of remaining cogs (45 - 34) should translate to approx 240k of additional rev, bringing total rev to $1.12M and net of 45k (reported) + 240k (deduced) = 280k. Does that number look...

Thank you for helping me dig into this further, Rob. Here are the answers. 850K of its revenues are accounted for via transactions from cash and credit card etc. The rest of the 450K is cash sales that are not recorded. Bringing the total to 1.35K. 1). Is there delivery – They dont do...

D Do you think it could be because of the (low) wages they are paid that doesnt motivate them enough?