It sound like your all paying CRAZY money for rents.
I am in Rural Northern Idaho. Ever see the movie “A River Runs Through It” with Brad Pitt, Tom Skerritt, and Craig Sheffer?
I am right there in some of the most beautiful lands in the U.S. (Westside of the Rockies)
Idaho is the 3rd fastest growing state in the nation, so I imagine I will be seeing some of you soon.
I have several restaurants in small towns, that were very large lumber, and mining towns about 50 to 80 years ago. For most of them these industries have died off, or have shrunk to meet the market. Leaving behind tremendous amounts of commercial inventory for cheap.
I am currently looking at leasing in a town that has turned to Tourism as its base economy, and old mining town, is now a ski resort in the winter, and a mountain biking playground in the summer.
The populations are probably not as dense as they are in the East, but neither is the competition. When I show up in a town, there is generally nothing but gratitude, as I am usually the only one that will deliver food.
I usually deliver up to 8 miles in one direction, out on some of the most dangerous mountain roads, its a regular occurence to spot Deer, Elk, Bear, Cougar, Coyote, Wolf, or Moose. While delivering, last week a parade of 20 deer just sauntered through our town, a logging town of 2500 people.
I provide a top end product, and my average order for 2 ~ 16" Pizzas, Breadsticks, Wings, and 2-Liter, is about $50. and they generally tip well too.
I can get full value for my product, I don’t have too discount, but I do just to create strong loyalty. I had a competitor try to come into one of my towns, I just did 2 for 1 pizza’s until he ran out of money.
Rents are cheap, minimum wage is still $5.15, and the tip wage is still $2.12 The average home cost $70,000 and the average household income is $34,000/yr. I have a 4 bedroom, 2 bathroom, old colonial style home 2400 sq. ft. on 50 acres, I bought 3 years ago for $180,000.
I have learned if you focus on creating situations with low overhead, you can give alot more to the customer, with out diminishing your profit.
Most of my restaurants average $5000 to $10,000 a week. I believe average last period was $8200. My Food Cost ran 32% and my labor ran 16%, I spend about 2% on advetising, 1% on delivery, and 2% on merchant fees, and my Fixed Cost Average about $500 a week per store.
I do pretty well even though some of my restaurants are in bars, and bowling alley. I was thinking of changing my company name to Unconvential Pizza!!!