Was very busy last monday now we are dead as door knob im thinking ist the price of gas going up to 3.91 a gallon.
The price of gas is definatly affecting my business as I am paying my drivers an extra 50 cents a delivery and will soon have to increase that. It indirectly is influencing the cost of my ingredients as well. As far as sales go, I’m inclined to believe it is helping. People don’t want to get out and drive to a restaurant or grocery store, so why not order pizza to be delivered? Can’t afford to go out for dinner and a movie? Order a movie from your TV provider and get a pizza delivered. Sales are up at my store 15% from last year(my record year) so I certainly can’t say gas prices are hurting sales. Profits on the other hand, are most definatly negatively affected.
Hasn’t seemed to affected my store in the college market… yet. At my small town USA store, the drop in sales since gas hit around $3.89 is obvious/painful.
We do about 80% of our deliveries in company cars. The amount of gas we use in a year in company cars is about 2000 gallons. Therefor, if the price goes up by a dollar it costs us about $2000. Increasing the delivery charge by 10 cents covers it. I guess we will see $5 gas within a year or so. We raised our delivery charge by 50 cents last december so we are covered on that.
So no, the cost is not a big deal. The increase in the price of flour is 4X as big as a $1 increase in gas on an annual basis and the increase in cheese is 10X.
Where to find the 30K in increased food costs, the 2K price of gas and the 40K more I am paying employees than I was couple of years ago?
Sales are up, so that is good. I track food, supplies and paper together. We have put a price increrase in place a few months ago. We focused on portion control in staff training and I have tied cost control to the manager and assistant manager bonuses. The food/supply cost is up by 2% of sales. Labor is down as a % of sales.
One pieceof good news, consumers notice the price of gas and can make the connection to costs at a delivery business which helps with the price increase acceptance.
The price of gas went up ?? I hadn’t heard anything about that. :roll:
Nick, you must have read my mind! I was thinking about posting same issue…
I’ve been looking at my numbers and while I am getting more people in my store, they are spending less.
My average transactions has increased, but my average ticket has decreased…
Well, at least they are still coming in - Since we do ot deliver, I’ll take it!!!
expand your services operations to increase sales. do more point of sale signs and grab-to-go items like salads, cookies and etc. maybe they won’t spend much but if they are hungry and waiting for the food to get ready they would want something more. just saying find a way to replace the increasing costs.
I’m with Paul: Profits are getting a little hurt, but sales are definitely not. I’m running 20% over last year, mainly as a result of better advertising.
I don’t think the average American is nearly as sensitive to gas prices as media and politicians would like us to believe. You were busy last Monday when gas was $3.70. I don’t think people saw a 21 cent increase and gas and said “That’s it, stop buying anything!”
Gas is up currently up about 50 cents on average over last year. So if a family uses 30 gallons per week, do you think that the extra $15.00 is really breaking them? It of course depends on the area, but I would say that for all of the most depressed areas $15.00 extra per week for gas is not exactly driving anybody to the poor house. Gas is a small part of a household’s monthly expenses.
Sweetp1265, what are you doing to get that average ticket back up? Are your employees upselling?
Yes, we really stress upselling. They do. I’m also changing up my specials to having most of them an add on instead of $ off… We are relatively new, just had our 2 year anniversary , and did alot of specials to get people in.
Now that we hooked em, we are going to back off alot of the specials where we were deep discounting.
With the high price of gas, so goes ethanol.
Ethanol production and subsidies/import taxes on Brasilian ethanol is hurting food costs through cheese, flour, most everything.
The government is going about this totally wrong and food inflation is paying for it.
For every customer we loose that is saving money by not ordering pizza delivery, we pick up another that is ordering pizza to save money over going out to dinner.