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db3000

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i been open for 3 years now and the best i have done is 18000 for 1 month.done mail shark, door hangers just tired a working for free i know i started a bus. in a bad time but should i pull the plug?the cost of food constanly going up, i sell 10 -12 cases of wings a week at $90 a case. i could relocate and add dine in with beer just dont how to figure how much more i would make.any inpu,t advice, comments would help tx.
 
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Your post lacks information that is required to give any answers or even suggestions on how to improve your position. If you could fill in some of the blanks we may be able to give you some answers.

What is your concept?
What is your target market, quantity pricing or quality pricing?
What are your market demographics?
What is competition for the food $$$ ?
What is your community involvement?

I am sure there are other questions that you will need to answer but these are a good start.
 
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DB,

As Daddio said to make a determination a lot more information is needed. However from my aspect I am trying to following along, I have had a very bad start from a lack of proper marketing and maxing out at $5,000 a month, and I am breaking even. I do not know if my costs are just a lot lower in my area because I’m a small (1,000sqft) unit or what, but at 3 times the amount of income I am making I would think you’d be making at least a small paycheck. Could be perhaps a control issue on costs?
 
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we do quality pricing,in a town of about 5000 the big 3 are 6 miles a way so have to compete against them.we try to do stuff for the schools but it hit and miss.one a the problem is wings r half are sales and that is a expensive food cost and theres 3 other wing places in a 6 mile radius which means more comp.pricing.and at $90 a case with football season around the corner wings can only go up
 
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db3000:
we do quality pricing,in a town of about 5000 the big 3 are 6 miles a way so have to compete against them.we try to do stuff for the schools but it hit and miss.one a the problem is wings r half are sales and that is a expensive food cost and theres 3 other wing places in a 6 mile radius which means more comp.pricing.and at $90 a case with football season around the corner wings can only go up
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What is your food cost run on average for a month? What about labor (not counting yourself)?
 
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well about $200 a week for 60 + hours is pretty much working for free.food cost is at 40% which i know is high but wings is half r sales.labor about 20% rent and untilties 3000 a month, taxes and ins 1500-2000 a month, average sales r 16000 to 17000
 
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Well, without knowing YOUR business it seems if the wings are causing such a food problem (40% is pretty high, want to be around 32% or lower in my opinion) consider upping the price, reducing the count, or changing to a more affordable brand. It doesn’t pay to sell something that you make no money on.

As for your labor, I am assuming with your hours you work most shifts as a manger, leaving 90 hours on the table. Look into how that time is being spent. I understand that even during slow times you need a driver but what do they do when it’s slow? Banner shaking, door hanging (in the immediate area), flyering businesses, customer call backs, hot selling. The list goes on. Always try to find something to do utilizing this time, and try to ask yourself if you can cut staff in certain places (when I was with Papa John’s our labor including my weekly salary was only 2600/week doing 12,000 a week and 1900 if you take out my salary).

As for the rest of your costs they are mostly what they are. Do you charge a delivery charge? If not I would definitely consider it as it helps offset insurance fees.

If you’ve narrowed down all your costs and there is absolutely nothing you can do, here is what I have been doing on a small budget that has brought me up about 30% in the past couple of months:
  1. Bounce Back coupons on every order (i.e, FREE 2 Liter, FREE Small Cheese, etc) with the purchase of a Large pizza at regular menu price on or before (stamp with a 10 day expiration). This is cheap (5 down on a page, is less than 1c each piece) and encourages existing customers to order more frequently.
  2. Left / Right Doorhanging - Every time the driver goes out on a delivery have them hang a door hanger on the house to the immediate left and right
  3. Free Lunch Pizzas - If you are open and have staff, any money counts. Start delivering free lunch pizzas to local business, just a couple a day, with some nice lunch time specials to bring in more volume. Same with bars for late night.
  4. Boxtoppers - I am assuming you are doing this, if not boxtoppers are a must. Cheap advertising.
  5. Social Media - Get involved on facebook and the like, virtually free. Allows friends of customers to find you more easily and gives exposure.
  6. Door Hanging and Direct Mail - Costly, you say you are already doing it. Definitely works but be consistent in it.
Hope some of this helps!
 
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Sound like wings are not only a big segment of your total sales, but it also sounds like your customers like em…alot. So, instead of buying cheaper wings, or reducing the number of wings in an order, how about simply increasing the price for an order of those really good wings. Most customers are willing to pay a little more for their favorite products. I know this one change won’t get you to the promise land, but there are some really smart people on this forum that will offer more input and years of experience to get you headed toward more profitability. And good luck to you too.
 
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Hi db3000 :

Let’s take a look at your utility costs. Gas and electric

What ovens are you using? Do you have a make up air system? How large is your shop? Apparently you do not have dine in. Where are you located? weather influences utility costs. How many tons of A/C do you have? What refrigerated units of what size are you running?

George Mills
 
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