NicksPizza
New member
Original poster:
Same with the higher cost operation. Buildout will probably be higher, more equipment, mode codes to comply with. Find out costs and break even with that type of operation. Higher rent, more equipment, more space required, possibly more labor (servers, insurance, etc). But, the price point and margin per unit can be a bit higher. Break even will be different.
All philosophies and personal preferences aside, the break even point for each sort of operation will be very different. As will the initial investment. You’ll need to assess your market, demographics and competiton to find out which one is more practical given the realities of financing, projected sales, real estate available, market/customer desires and needs and break even.
We won’t lose the topic, but it is a good example. Critical costs (overhead) is a huge part of the game. The cost to run the place will really have a big amount to do with the profitability of each model. Rent, insurance, utilities and labor will be very different for each sort of shop. Since a $5 pizza mill has lean margins and lives/dies on volume put through the oven . . . . you gotta mock up the projected costs and see how many pies it will take to break even.
Same with the higher cost operation. Buildout will probably be higher, more equipment, mode codes to comply with. Find out costs and break even with that type of operation. Higher rent, more equipment, more space required, possibly more labor (servers, insurance, etc). But, the price point and margin per unit can be a bit higher. Break even will be different.
All philosophies and personal preferences aside, the break even point for each sort of operation will be very different. As will the initial investment. You’ll need to assess your market, demographics and competiton to find out which one is more practical given the realities of financing, projected sales, real estate available, market/customer desires and needs and break even.
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