Curious how others have determined their sales projections for a 2nd location that is starting out at zero sales. I purchased a restaurant a few years back and we’re almost at a $1 mil right now in sales coming from 125k that I inherited. This place is about 6 miles away from my current location giving me various ways of cutting costs and working both units together instead of completely independent of one another. That’s a topic for another day though.
I have an opportunity (landlord sought me out) to get in to a vacant pizza place that is pick-up delivery only (accounts for 65 to 70% of my total sales at restaurant one) with the equipment already in place minus some repairs that my contractors found that I need to factor into my budget. The last thing I want to do is go in under capitalized for my early month losses on top of the repairs we need to make just to open the doors on top of the advertising budget that I can’t harm if I expect to increase sales, etc…
I currently do 8k mailers a month and a very strong social media background, but we are not opening up the restaurant under my current brand. We are leaving it as the vacant places name until we get a foundation to run off of, get the processes right, right staff, etc…, then convert with a fresh reputation online void of the initial problems that can turn people off (old yelps gone, etc…). We anticipate around month 3 to 6 that we will fully covert it over to the current brand and advertise a big grand opening.
That said, I am trying to determine my first month sales for projections. The previous owner did $200 to $250 a day without any advertising, just by opening his doors and feeding a neighbor bar that has no food. The previous owner was infrequent with hours, so some days he was open for lunch, some days he wasn’t…some days he was open late, some days he wasn’t.
Without making this too long as I don’t want to divert away from the question I am asking, what experiences have others had with creating an accurate month 1 projection. I anticipate 10,000 menu mailers sent out in month one in increments of 5000 within the first 2 days of opening, then 2500 the 2nd week and 2500 the third week. All within a 3 mile radius showing our online ordering site, our grub hub site and the ability to call or order within. We will have a website before we open the doors too…as social media marketing is one of my backgrounds, but it will be basic as I’m not trying to build the previous owners brand, I’m just trying to prepare it for a switchover by getting a foundation going first and all the kinks worked out.
I anticipate GH alone should get me 2,000 a month (a small number compared to what I get at my main location from GH alone). I anticipate the majority of the $200 a day was from the bar, so that puts us around 250 to 300 gross per day. Outside of that, it’s harder for me to feel I am getting an accurate number. I have a good amount of competition but it’s less strong competition than my main location. My main location has far stronger competition and a slightly more wealthy demo, but not that much of a difference that it concerns me. The fixed costs will be so low at this location that the potential for good profit is better here than the main location.
Just curious on everyones thoughts. If you need more details before answering, just throw them at me, I likely have answers to everything you seek, I am just trying not to make this long beginning message much longer.
I have an opportunity (landlord sought me out) to get in to a vacant pizza place that is pick-up delivery only (accounts for 65 to 70% of my total sales at restaurant one) with the equipment already in place minus some repairs that my contractors found that I need to factor into my budget. The last thing I want to do is go in under capitalized for my early month losses on top of the repairs we need to make just to open the doors on top of the advertising budget that I can’t harm if I expect to increase sales, etc…
I currently do 8k mailers a month and a very strong social media background, but we are not opening up the restaurant under my current brand. We are leaving it as the vacant places name until we get a foundation to run off of, get the processes right, right staff, etc…, then convert with a fresh reputation online void of the initial problems that can turn people off (old yelps gone, etc…). We anticipate around month 3 to 6 that we will fully covert it over to the current brand and advertise a big grand opening.
That said, I am trying to determine my first month sales for projections. The previous owner did $200 to $250 a day without any advertising, just by opening his doors and feeding a neighbor bar that has no food. The previous owner was infrequent with hours, so some days he was open for lunch, some days he wasn’t…some days he was open late, some days he wasn’t.
Without making this too long as I don’t want to divert away from the question I am asking, what experiences have others had with creating an accurate month 1 projection. I anticipate 10,000 menu mailers sent out in month one in increments of 5000 within the first 2 days of opening, then 2500 the 2nd week and 2500 the third week. All within a 3 mile radius showing our online ordering site, our grub hub site and the ability to call or order within. We will have a website before we open the doors too…as social media marketing is one of my backgrounds, but it will be basic as I’m not trying to build the previous owners brand, I’m just trying to prepare it for a switchover by getting a foundation going first and all the kinks worked out.
I anticipate GH alone should get me 2,000 a month (a small number compared to what I get at my main location from GH alone). I anticipate the majority of the $200 a day was from the bar, so that puts us around 250 to 300 gross per day. Outside of that, it’s harder for me to feel I am getting an accurate number. I have a good amount of competition but it’s less strong competition than my main location. My main location has far stronger competition and a slightly more wealthy demo, but not that much of a difference that it concerns me. The fixed costs will be so low at this location that the potential for good profit is better here than the main location.
Just curious on everyones thoughts. If you need more details before answering, just throw them at me, I likely have answers to everything you seek, I am just trying not to make this long beginning message much longer.
Last edited: