Buying a existing pizza restaurant

Hello, Looking for your practical advise to see if this make sense to you?
The information i have at hand:

  • Shop makes about 30,000/week (about 20% of this is cash)
  • Owner husband works in the shop as chef/cook and wife is also covering register/waiter/manager etc
    As per them after food, labor and fixed cost I can clear about 19% in profit but i dont see that that
    my working is as below and i’ll have to book all of 30K/ week as revenue (I’ll be just hands off and overseeing the place)
    Food - 30% - His 1st number was 35%
    Labor - 29%
    Fixed cost (including lease) = 10% (utilities, garbage, camera, etc etc)
    sales tax = 6.63%
    credit card fees = 3.5%
    Tips payout to staff = 4.5%
    advertisement - 2%
    repair and maintenance(guessing) = 3%
    This leaves me only = 11% (before personal taxes)
    Do you think these numbers makes sense

Thanks much!

How do you expect to replace a couple with literal skin in the game with a few employees who will leave you hanging whenever it is inconvenient for them? Also what are lease terms? Are sales matching to tax returns? Labor includes owners?

I think your credit card rates are high. You should be able to drop that to 2.5ish with the right processor. (NOT WORLDPAY)

Ive always said that i would only pay on the dollars that go through the bank account

One of the couple agreed to stay on for $1000/week as manager for mid to long term. this also maintain a continuity in the place. Certainly need to train a backup person to step in next 6/8 months

You are 100% right and I’ve asked to Bank details but they are bit resistive to provide Bank details

you can only trust what the tax returns say period, request 3 years if they won’t produce them walk the other way