New business numbers. How sustainable are they?

[Iowamcnabb]

So I just opened a pizzeria two weeks ago and am having to adjust my business plan significantly due to larger sales numbers than expected. I know that new businesses generally see a honeymoon period, where everyone is trying you and there is a bit of a buzz. I know my numbers could drop off but what I have to sort out is, how much?

When I put my business model together I was shooting for 24-26k in sales and 18k in total payout monthly.

We did about 25k in sales the first 2 weeks. My pre-opening payroll was around 2200 weekly including taxes and right now I am staffed at around 3800 weekly. I don’t feel like I can really trim much off payroll because we have so much prep, dishes etc.

If we are doing 13k a week with initial buzz, how much should I expect sales to drop off? I understand there are a lot of variables here…

 

[Joe]

So I just opened a pizzeria two weeks ago and am having to adjust my business plan significantly due to larger sales numbers than expected. I know that new businesses generally see a honeymoon period, where everyone is trying you and there is a bit of a buzz. I know my numbers could drop off but what I have to sort out is, how much?

When I put my business model together I was shooting for 24-26k in sales and 18k in total payout monthly.

We did about 25k in sales the first 2 weeks. My pre-opening payroll was around 2200 weekly including taxes and right now I am staffed at around 3800 weekly. I don’t feel like I can really trim much off payroll because we have so much prep, dishes etc.

If we are doing 13k a week with initial buzz, how much should I expect sales to drop off? I understand there are a lot of variables here…

Mine never drop off, just keep growing. Train your guys well and keep up the quality of food/service and keep pushing for more. For now, worry about handling all the extra business you luckily have and they’ll keep coming. Both feet on the gas pedal and congrats!

 

[durbancic]

Eventually your staff will be more efficient with their time and they will be able to get more done with less hours. You could try scheduling a small percentage of hours lower each week in order to slowly drop your labor cost. However, it is better to be over staffed for a period of time in order to give the best service / product possible.
Our sales did drop after a honeymoon period. If we were to open a 2nd location though, I don’t think the case would be the same. We have worked out a lot of kinks that we ran into once we opened that could / did drive customers away.

 

[Iowamcnabb]

Thanks Joe.

Durbancic, I will have to chip away at the labor hours after the first month. We definitely had a few kinks to work out after the first week that could have driven a few away. We have been adjusting on the fly and last week was a much more solid week.

 

[jokergerm]

I have never had the money moomstage

Both shops opened slow and took me years to grow to were we are today

Wish we started out with that problem

However i know people who habe done 100k there 1st month and slowed to 40k

 

[December]

Those are great numbers to start!

I never dipped in sales. Always went up. Durbanic said exactly my thoughts on sceduling less labor until you have your staff working at capacity

 

[Iowamcnabb]

Those are great numbers to start!

I never dipped in sales. Always went up. Durbanic said exactly my thoughts on sceduling less labor until you have your staff working at capacity

Thanks Jamie! I have already started to trim an hour here or hour there this week and will keep trying to do that as week go along.