A business plan for a pizza delivery was posted on the Dodo Pizza blog (the chain from Eastern Europe is opening its first US pizza delivery in Oxford, PMQ home town). What do you think? Is it real?
Total investment: $350,000
To cover the losses for the first 8 months: $125,000
$60,000 in sales in 2 years
Labor cost: 22-25%
Food cost: 24-27%
Total monthly spending: $44,000.
EBITDA: around 26,5%.
Check the spreadsheet on the Dodo Pizza blog http://dodopizzastory.com/2015/09/12/businessplan/
Dodo has an intriguing concept. We have been consulting with them for quite a while.
They have a different approach to the pizza business.
It will be interesting to see how things work out for them.
There is not a lot of detail in there about how they operate… one thing jumped out at me which was that they would be operating out of a very small space (for the volume they expect) They are planning to do 15K per week out of something like 800 square feet? That would be challenging for sure.
It also seems improbable to me that a market which can produce 720K in sales for an unknown name would only be charging what amounts to 2% occupancy costs.