There are several sectors to our giant pizza market.
The low end, Little Ceasars, Papa Murphys, Frozen Pizza, Costco, Etc.
The Middle, Domino’s, Pizza Hut, Papa Johns, Etc.
The High End, The Gourmet Mom & Pops that focus on the ethnic differences of each community and cater to the differences.
Find your niche and work it hard. I prefer the high end. I am tired of 300 pie hours, at $7.00 a pizza. I would rather have a 20 pie hour at $22 a pizza.
I have several stores which do less than $5000 a week. I used to think sales that sales that low were pathetic, until I changed my focus. I started building stores with used equipment for about $5 to $10,000.
I can build a pizza DEL/CO with maybe 10 seats of dining, in as little as 600 square feet. I usually find rents as low as $100 a month, but the average is $400 a month. My Fixed Operational Cost runs about $1000 a month, Plus $2000 for a salaried manager, who I also pay 40% of profit. My food cost runs about 33%, and my labor runs about 22%, I spend $1000 a month on advertising, and I usually donate another $500 to $1000 to the local PTA’s through “School Night” promotions.
Most of my stores look dead all the time, I am still a little unnerved about it. I have some giant swings in sales one week a store will be $6500, and the next week it is $3500. but I maintain my sanity, cause my overhead is really low. At $5,000 a week average, my stores profit about $1500 a week, or $6000 in a 4-week period. I am happy, my managers make a $2400 bonus check, with little or no stress, and my employee, and customer retention, and frequency is incredible.
I set my prices at the top of the market($22.00 for 16" 5-topping), and then discount down inside the mainstream market. My best offer is, BOGO on Sun & Mon, and Buy One, Get 2nd Half Off, we upsell alot of sides. Which raises my food cost generally, but my average ticket is about $35.00… I only make about 140 orders a week. Shoot I used to make 140 orders an hours back in the day, but I was only making pennies on every transaction.
I have learned to slow down and focus on the CUSTOMERS NEEDS, and send out a perfect orders every time. No more Forgotten toppings! Or Cokes! Or Sides! Or Condiments!
If you provide a quality product, and excellent service, and you maintain a good image, you will never loose a customer on PRICE.