net margins

[system]

Hello To All,

I own and operate a Pizzeria for a little over 2 years now. I have a question to all I guess. My question is what is considered a good range with regards to the average net proffit for a independent Pizzeria. I know there are alot of factors to consider. We are a full service independent and include delivery as well. Our first two year revenues were great considering what I have researched, but I would like to know if margins of about 16% to 18% sound right . Any help would be great.

Charlie

 

[NicksPizza]

It trylu depends on volume of sales and gross sales totals. A shop puching $1 million annual sales could hit the 20% range. Shops closer to $500K would hit nearer to 10% or less, I believe. This is very genral wide estimations from what I have heard from owners here, and my experience in the very “Less than $1 million” range.

 

[tommieknowspizza]

There are several factors that determine profitability.

I have seen restaurants that do $28,000 a week average and still loose money, and I have seen restaurant do $5,000 a week and make $70,000 a year.

According to the National Restaurant Association statistics Nationwide the average restaurant profited 8.3% in 2006. But there could be regional variations to that based on Minimum Wages, and Cost of Goods. For instance the average restaurant in Washington State in 2006 only profited 1.6%.

If your at 16% your above average, and should be happy with your results!