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    Impact of high cogs

    Wanted to get some general restaurant advice What do you guys make of food business with high cogs (45%), but still profitable cause of high sales. Rev:800k Cogs: 45% Labor: 25% Rent: 60k Misc: 5% (utilities, repairs, credit card) Net: 140k Should I avoid a business with such high cogs, or...
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    Buy Papa johns

    There is a Papa Johns for sale here in Canada. Its been open only for a year, but they made 650k in revenues last year. They also gave away another 200k worth of discounts, so their food costs for the whole year are about 40%. They spend a ton on local marketing too - about 20k/year. The last...
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    Super short distance delivery

    As I had mentioned in another thread, I am reviewing a business for purchase in a university area which has about 50k-70k or even 100k people going through the area every day. The business I am reviewing is about 500-700 meters (1500 - 2100 feet) away from the university core and a good 5- 7...
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    Impact of new businesses & competition

    I am reviewing a sandwich shop in a big university that has been operating there for 10+ years. This business, along with other food outlets (Chinese, Japanese, donairs) is located in a block (lets call it “food block”) that is popular lunch destination, but is a 5 min walk from the campus core...
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    Market share

    A pizza delivery business I am reviewing claims to have 3000 households as customers out of a total of 18000 households in their delivery area. This works up to be around 16.6% market share. From what the seller tells me, he doesnt do any couponing or discounts. the only marketing he does...
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    Forecasting labor costs

    I am looking at a sandwich shop to purchase and figured I get a sense of their labor costs by mapping it out via their schedule. I got the following info from the seller: Revenue for busy and slow months Employee schedule for last week percentage of revenues for various time slots (70% lunch...
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    Food wastage at 'Pizza by slice' shop

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

    I had this posted on pizza making and got some great information. Thought I also post it here. I am considering purchasing a shop that it for sale and would love to get some input from experienced folks here. Reported revenues for the biz are $800,000+/yr Cogs are 40% - $300,000...
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