I have a pizza place in my town that just currently went up for sale with a broker. It is the only pizza resturant with seating inside. The only other pizza places are papa Johns and a Pizza Hut close by. We are in a built up area and the population in about 40,0000.This pizza Resturant has been there for about 7 years and according the the info is doing $490,000 a year. Also is netting $125,000. The asking price is $195,000 and the rent is $4,377. a month and has 13 years left on the lease.I currently have no experience in the pizza business, but I been very interested getting involved in it. I have run my own business for the last 15 years and need a change.My intention is to bring in a friend that has run a pizza business in the past and learn from him.I am a quick learner and am not worried about working hard or long hours.This pizza place I think has more potential because the pizza is not that good, and there is no delivery.I ate there once and it was not good. I feel my friend and I can make that place very successful because he can make a good pieand we are good with people. If anyone can tell me if this is a good buy for the resturant and if I am crazy of thinking about doing this Please let me know.Any info would be greatly appreciated.
Thank You…
Just do your research on the #'s he is presenting you. $125,000 profit seems a bit high on $490,000 in sales. Have you seen tax returns to back this up? $4377 rent seems a bit high as well, especially if you are signing for 13 years. keep in mind you are going to have to personally guarentee the almost $700000 remaining in rent. If the place is truely earning 125000 the asking price is a steal. Your best bet would be to to pay a CPA to look over the books and let you know if these figures are realistic.
The rent rate scares the hell out of me as well.
Thanks for the feedback guys. As far as the rent it is expensive for retail space in So. Fla
population of 40,000 in slouth florida and no domino’s or hungry howies? Keep in mind that they will both be open there in the not too distant future. They are both filling every nook and cranny in florida.
How much square footage are you going to get for the rent? The rent doesn’t scare me, but the claim of $125,000 on $490,000 does. I have 5 stores The one that does over a million dollars nets me $190,000 before taxes. I also would have a CPA look over the books and tax returns. Maybe the pizza tastes bad because they make extremely cheap dough and use incredibly cheap toppings.