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Buying a existing pizza restaurant

R

redfruit

New member
Hello, Looking for your practical advise to see if this make sense to you?
The information i have at hand:
  • Shop makes about 30,000/week (about 20% of this is cash)
  • Owner husband works in the shop as chef/cook and wife is also covering register/waiter/manager etc
    As per them after food, labor and fixed cost I can clear about 19% in profit but i dont see that that
    my working is as below and i’ll have to book all of 30K/ week as revenue (I’ll be just hands off and overseeing the place)
    Food - 30% - His 1st number was 35%
    Labor - 29%
    Fixed cost (including lease) = 10% (utilities, garbage, camera, etc etc)
    sales tax = 6.63%
    credit card fees = 3.5%
    Tips payout to staff = 4.5%
    advertisement - 2%
    repair and maintenance(guessing) = 3%
    This leaves me only = 11% (before personal taxes)
    Do you think these numbers makes sense
Thanks much!
 
How do you expect to replace a couple with literal skin in the game with a few employees who will leave you hanging whenever it is inconvenient for them? Also what are lease terms? Are sales matching to tax returns? Labor includes owners?
 
I think your credit card rates are high. You should be able to drop that to 2.5ish with the right processor. (NOT WORLDPAY)
 
One of the couple agreed to stay on for $1000/week as manager for mid to long term. this also maintain a continuity in the place. Certainly need to train a backup person to step in next 6/8 months
 
you can only trust what the tax returns say period, request 3 years if they won’t produce them walk the other way
 
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