Biz Plan time, how close to the industry "std" are

I’m working out my official business plan, I’ve done a lot of the online reading and research and I’m using what I found to be the middle of the road reported figure when talking about the “average customer invoice” or ticket, of $18.00.

Would anyone care to comment on that figure and tell me if that’s about right, too low…or way too high. I suppose it is bound to differ from area to area as I know the COL in the midwest will be different than ya’ll on the left or the right, but the overall averages I found were being reported from that $18.00 up to some surveys using $22.00. I’m using conservative figures where I can, so we will all be pleasantly surprised!

We’ll be a std. del/co with room for about 24 seats if all goes well. I have considered adding in a T-n-B case, but that’s down the road. We’re doing pizza, both std. American in style as well as a deep dish, and will have about 8-10 hoagies, 3 salads and maybe someday a soup. My focus is on “fresh”, “house made” where practical and I have what I consider to be an advantage being like Nick a local “leader” whatever that is. I’ve been in business in our small town (3500) for 33 years in another field, served 27 years with the fire department, former Chief, former Chamber president yada yada yada…but I think that all adds up in my favor. Our competition is a very (very) poorly performing Pizza Hut and a regional chain outfit who’s quality and consistancy has slipped in the last couple of years. We also have one gas station making “fresh” pizza…but I haven’t seen much threat coming out of there during my “covert” studies.

so…any input?

Re: Biz Plan time, how close to the industry “std”

I’m pretty new at this, but you’re kind of working backwards with the “average ticket”. I’d first figure out your prices and then assume the “average” ticket for delivery will be a large two-topping. That probably gets you to $18.00 for an american style pizzas in the midwest.

On a side note, one of the things that really jumped out at me in your post was the flailing pizza hut. I presume this is a small town. I would be very cautious about underestimating Pizza Hut. If they are failing, it is probably related to the MARKET they are in. Their product and marketing are time-honored and tested even if us independents don’t want to admit it. Just think real long and hard what you will do different to outperform the #1 pizza franchise in the country…

Not trying to rain on your parade, but just want you to succeed. Good luck!

Re: Biz Plan time, how close to the industry “std”

Don’t worry…I like the rain!

Our local Pizza Hut is just one that is suffering under an under motivated franchisee and poooooor management. I have some experience working with them in the past, though not this current ownership. The pizza market here is still quite healthy and the other regional chain folks are gleefully reaping the benefits of a shortage of options I think.

I’ll do a car count in their lots on a variety of nights, sadly, the Hut on a prime night, Friday 7PM…4 cars in. The other guy 24. I’ve counted deliveries going out in the dinner hours of a Saturday night…the Hut 3 in two hours. Other guy I counted one delivery guy leaving 9 times…I’m sure his bag isn’t carrying only a single pie.

Anyway, we’ve scouted out the competition, feel pretty good about the research…still a bit scared of course as this will be my first time w/o a “safe” job and paycheck, but hey…life is lived in the trying.

Thank you for your input, I value every bit of knowledge I can glean in making this baby fly! The $18.00 was simply taken as a mean figure when looking at 2 seperate “industry reports”. I guess my main interest is just in making sure that’s what most of the shops in my catagory are seeing.

Keep it coming!

Re: Biz Plan time, how close to the industry “std”

I’ve counted deliveries going out in the dinner hours of a Saturday night…the Hut 3 in two hours. Other guy I counted one delivery guy leaving 9 times…I’m sure his bag isn’t carrying only a single pie.

I doubt he’s taking very many doubles and triples if he’s averaging 13 minutes per run!

Re: Biz Plan time, how close to the industry “std”

I think what was meant here is the orders were not single pizza orders rather than multiple orders in a single bag.

Re: Biz Plan time, how close to the industry “std”

Understood, and you know I’ve even thought of “tailing him” some night like Kojak…but realize my whole town is 19 blocks long! He can make multiple deliveries with little trouble if they’re scheduling him correctly.

Re: Biz Plan time, how close to the industry “std”

deacon, You have seen my menu and my seating, my average ticket price for last year was 19.38 cents
There is a MUCH easier way to tell what your competition is doing, go in, buy an order of breadsticks at the begining of the shift, at the end of the night come back and buy a coke, look at the ticket numbers on the reciept to tell how many orders in between…there you go, beats staying in a car all night
:slight_smile:

Re: Biz Plan time, how close to the industry “std”

Thanks Ron…envision me slapping my forhead at this point and shouting in my best “Homer Simpson” “DOH”!

B/C that’s exactly what I’ve done with my current business. I pick up a small item early in the month, again another item late in a month and simply work the invoice numbers. I know what my once competitor in this line would hope to see for an average…(he’s since locked up) and had a pretty good idea what his over all business totals were like.

Thanks for the shove!