Pizza place sales price

Here are the numbers:
rent 2800
Food cost 32%
Labor18% the owner is the manager and he does include his pay in the mix
Opened 5 years
Orignal owner had sales to 400K
Second owners went down to 275
Third and current owner now down to 180-200K
Very busy shooping center with large anchor food store
The owner said could break even with 16K a month
customers report that quality is way down
delivery with a few tables in side and some outside but it is listed as non-dine according to code
asking price 85K

Side note: the owner wants out and is willing to do lease purchase, what can the details of that be?

So the place currently makes no money at all.

The value is equipment in place. Unless there is something unusual about the equipment or the terms of the lease, the value is maybe half what they are asking.

BE SURE TO REVIEW THE LEASE BOTH FOR CURRENT TERMS, RENT, PERIOD, OPTIONS ETC AND FOR THE LEASE ASSIGNMENT CLAUSE BEFORE YOU COMMIT TO ANYTHING!!! See about getting a new lease from the LL rather than an assignment if the current lease does not have at least 5 years left to run.

If you do move on a deal like this, change the name, change the receipe.

DO NOT BUY THE BUSINESS. Purchasing the business just increases your exposure to liabilities. Buy the assets (equipment and small wares) go ahead and try to get the phone number. Use an attorney to do the deal.