So i am thinking about opening a 3rd store about an hour away from where i live. I found a great spot that was a pizza place and fully setup and ready to go with nice equipment. They did about 30k a month when they closed. Seemed to have good pizza and great reviews but could not play with the Big 3 on pricing and discounts. They want 50k but would prolly take 40k or so and the rent is 2900 for 1500 feet and is a delco with seating for 15 but just for slices or something.
We are setup to do volume like and sell pizzas a national chain level price and make money doing it. We have a great product at a great price
Right now my first store does about 45k a month and my second store this winter is doing about 55k, next summer we should be in the 60s and 70s respectivley. So needless to say things are going well
The town we are looking at has great traffic and average income about 60k and about 50k people in it. We have all the big 3 chains that all do over a million a year in sales. and then papa murhpys and another indy that doesnt do much sales
I hate to try and project sales cause its always a gamble, the 1st time i projected my sales i failed and closed the store after 18 months. The 2nd store i geussed it spot on, and my 3rd store i underestimated sales by about 70% lol
so i was looking for you guys to help me out and figure out what we are looking at here. sorry if i feel like im rambling im getting that bug in my stomach when that you get when your trying to put a new deal together
My only comment/question is how well do you think you will run the store being an hour away? Not trying to sound like an ass about it but I have had friends try that and it was never what it could have been.
As for making estimates I would truly base it on your current shops and if the location was doing 30k that is your starting point. Many people wont even truly know they are in a NEW place until after they order.
Since the landlord has just experienced a place going under, I would take a run at a new lease with lower rent as well. With two other stores, you are an attractive tenant (assuming you sign the lease under your existing entity and do not create a new one for each location). At the very least, you should shoot for a reduced rent for a year while you build sales volume.
If I were in your shoes, I would propose no rent for two months while you turn over the business, $1500 per month for 6 months, $1800 for 6 months and then $2100 as the new rent and see what they come back with. Negotiation psychology will make most parties offer something.
What you offer is: 1. proven ability to stay in business and pay rent. 2. Additional businesses to guarantee the ability to pay rent. 3. No extended vacancy without rent for the landlord as well as the possibility of having to pay for remodeling and leasing commissions.
Well i got the place for 25k and 2 months free rent. we will be open on Feb 1. no first last depoist. Just 2000 deposit and pay rent in two month.
I got the rent down to 2600 a month, and he is going to pay for about 20,000 door hangers.
So getting all the equipment for 25k down from 50k and the lower rent and some free rent, i am stoked. All the equipment was bought new in 2008 for 150k.
I’m toooooooooo envious to be green with envy.
Only wish we could pick up bargins like that here. I would refurbish my store in an instant.
Good luck with the new store.
Dave
With these numbers with and other stores in your chain close by this should be quite doable…It will not be without challenges and hard work though…Good luck…