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Pizza Delivery For Sale

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Galen_Reid

New member
We are looking to sale our pizza and delivery carry-out location in Katy, Texas (Houston area). We currently gross about 25K per month with a profit of 25 to 30 percent. Our asking price is 100K and we would finance someone with pizza experience with 20K down. I believe this is a good price. Let me know what you think?
 
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please post how your business profits 25 to 30 percent. I’ll buy it tomorrow.
 
Wow 30 % profit ? I think the average for pizza shops is 5-8%. Why would you sell that ?
 
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RobT:
How is your labor running 10%?
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Or roughly $625 a week.
 
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You got it baby!!! I’m working 70 hours plus a week and have some pretty good employees. We are strictly delivery and carry-out nothing fancy no fryers and no pastas. Payroll for the last two weeks was $1330 with sales of 12,400.

The average pizza shop should profit 20% according to everything I have ever read. With the average indenpendent running around 350K, according to PMQ, I can not imagine all those pizza shop owners are making under 20K a year.
 
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too high, look more for half that and then you might find someone that could keep it open.
 
If I was averaging only 8% profit I would have quit months ago. 20% minimum profit…35% food cost…20% payroll…25% THE REST IS MINE!
 
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Dont forget that the “average” pizza shop closes its doors in a year and the huge “average” closes within 5 years. Something along the line of 60% in one year, and 90% in five years. Are you sure the “average” are making more than 20K per year?

Statistics don’t mean shit, do you have tax returns to show your 75K profit? If not, you will be selling for liquidation value of the equipment.
 
Here are my numbers:

Food 29%
labor 29%
Rent 8%
Marketing 6%
Mileage, Auto etc 7%
Insurance 2%
All other 9%
Profit for me 10%

If I fired the manager, worked those hours and kept the benifits and wages that profit would rise to 17-19%. This is on double the sales you quote. Bottom line, I don’t believe the numbers.

I think your shop is worth about 2-3 times what you can prove you make on it, but assuming an ordinary work week. In other words, cut those hours back to about 50 hours and pay someone for the other 20, deduct that expense.

I know that even if my rent stayed at 10% of sales and labor was 20% without a manager, on 300K that I would be hard pressed to show any profit at all. Bottom line is that locations doing 300K per year are not worth much.
 
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bodegahwy:
I think your shop is worth about 2-3 times what you can prove you make on it, but assuming an ordinary work week. In other words, cut those hours back to about 50 hours and pay someone for the other 20, deduct that expense.

I know that even if my rent stayed at 10% of sales and labor was 20% without a manager, on 300K that I would be hard pressed to show any profit at all. Bottom line is that locations doing 300K per year are not worth much.
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Still smarts to see that in print . . . not worth much at $300K . . .

Still, I am on board with lots of others that I can be convinced of the potential profitability, but it will take some doing. I know high volume, lean cost shops can drive good profits, but 70 hours a week in the shop is pretty steep for that kind of profit, given the time required for marketing, networking, business development, etc.

I do believe the two week projection of labor at 10%. What is labor cost % for the past 6 months? 1 year? Spikes and valleys happen . . . long term trends are what prudent buyers want to see. Has labor % gone up or down in relation to sales . . . has owner work and payroll been figured into the payroll figure, and how has that trended with labor %, food costs, sales, etc.

Profit and payroll for working hours, to me, is different creatures. DFW and others may see it diffetenly than I do, though.
 
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