Anyone know anything about owning a pizzaria?

[Blackjack200]

Was looking at this ad.

http://philadelphia.craigslist.org/bfs/4693587871.html

Claims the place makes $7-$8k, and $10k when school starts. (IDK what he means by that, it's November, it must be an old ad that he's reposting.)

Anyway, my perception with pizzarias is that they're a lot of work but you can make a lot of money. Grossing $8k a week, even if you allow $4k for expenses, which seems like an awful lot to me, is $200k a year. Of course, you're probably working seven days a week for that money.

There are a lot of downsides, like I imagine you really need to manage it yourself, and you'll need to find delivery drivers, and they're always sketchy as fuck. It's gotta be a ton of work, and you're in Reading PA. But if you just wanted to grind it out and earn a nice chunk of change for couple years, is there anything I'm missing here?

 

[SKORPI0]

Why not pay a visit and see how busy they are? Order a Pizza for delivery and time how long it takes.

 

[JEDIYoda]

After paying your employees.......paying vendors...maintenance of the building....being at your store 24/7 or at least being available......maintenance of the company vehicles...insurance...lolol

There is a Round Table Pizza in Hollister, California that grosses $1,000.000.00 a year.....think about the work involved...hiring, scheduling......etc...

 

[TheVrolok]

It's in Reading .. somewhat worrisome. I suppose it depends on where specifically, but, generally Reading proper is a shit hole. I can't imagine why a guy would sell a successful business on Craigslist, unless there's far more to the story (which I suspect there is). Wonder if "making" is sales or profit?

If you can figure out which Pizzeria it is, I'll try to ask around about it. I work in West Reading/Wyomissing.

 

[ponyo]

$80k asking price. I would stop right there. I have a rule. Never purchase a cheap business unless I know that business inside out. It's cheap for a reason. Any restaurant business priced < $250k is really not worth looking at.

That $7-8k a week is total sales. Basically $1k sales a day. Multiply this by 365 days and you're only looking at $365k yearly sales. At 10% profit, you're looking at $36k profit a year and that's probably if you worked the business yourself. And that's being generous. I bet this business nets less than $2k a month or $24k a year. And that's owner operated. Absentee owner might suffer a loss with this business.

My advice: Spend your money on hookers and blow. That's better use of the $80k.

 

[manimal]

7-8k gross a week sucks

 

[Hayabusa Rider]

Ask doc and do your research on the store and area.

 

[Carson Dyle]

Yes, a business of that size, you would almost have to run it yourself. $10k/wk in sales for nine months of the year ain't bad for a pizza joint.

As for running it... Guaranteed, it's one hell of a lot less headaches than running a real restaurant, if only due to the limited menu. Find out what other foods they do. Do they have indoor seating, or is it all slices, takeout and/or delivery?

But the low selling point and supposed low rent means that it's probably in a really rundown building in a poor part of town. You may be envisioning a brightly lit Dominos or Papa Johns, but the reality is probably a 100 year old building with pest problems and a leaky roof.

 

[Jeff7]

Wiki page.

According to the 2010 census, Reading has the highest share of citizens living in poverty in the nation.[link]

Press reports have indicated that in 2012, about eight percent of Reading's residents had a college degree, compared to a national average of 28%.

:\


Certainly not what I remember when I'd visit my grandfather there, though it's been 15+ years since we'd take a bus to the hobby store, hardware store, or a little educational toystore where they had things like model rockets, chemistry sets, and physics toys.




IF you do this though, dear sweet god make sure you invest in some kind of software to permit online ordering, and have a decent interface for phones, especially if this turns out to be near a college or high school. I don't have a smartphone myself, but even so, my sourcing of pizza can be dependent upon who does and does not have online ordering. I'd imagine that someone who does have a smartphone and is approximately 19 years old would weigh that sort of thing even more heavily.

 

[malbojah]

7-8k gross a week sucks

Agreed. My boss spends that much from one of our suppliers every week during the summer so we have to make a shit load to cover everything else.

 

[Markbnj]

I've watched every episode of Kitchen Nightmares, US _and_ UK, so I am an expert.

Seriously, though, buying a poorly-performing business is not always a bad idea. It's a bad idea if you buy it thinking it is a good performing business. But if you buy it with your eyes open, and have some talent, you can get in for a lot less capital and then turn it around.

With respect to restaurants, I really know nothing about them, except for one very important thing: it's the food, the food, and after that, the food. If you bought that place and turned out the best pizza in Reading people would line up out the door.

 

[MagnusTheBrewer]

First and, this is of supreme importance, never get into the food business as primarily an investment opportunity. There are far more less risky investments. Second, never ballpark costs without seeing the books. Third, never get into the food business without knowledge of the food business. It is different than any other type of business.

I'd be happy to answer specific questions if you go ahead with the project.

 

[Mai72]

A new reality show: Pizza Rescue? John Tapper will be there to scream in your ear that you suck as an owner.

 

[Mai72]

First and, this is of supreme importance, never get into the food business as primarily an investment opportunity. There are far more less risky investments. Second, never ballpark costs without seeing the books. Third, never get into the food business without knowledge of the food business. It is different than any other type of business.

I'd be happy to answer specific questions if you go ahead with the project.

Food business is risky. Most go out of business within 4 years. That's if you're lucky. My parents owned 2 cafes, and 3 cafes before they were successful. I remember when they were only selling 4 sandwiches a day.

You can expect long 12 hour days. Being your own boss is great, but it does have its drawbacks. No days off for holidays, no suck days, and you have to be very proactive when it comes to your retirement. I still think the pros out way the cons though.

We had a summer business. We weren't open 12 months, so this put a lot of pressure to make money during the summer.

 

[JMapleton]

No restaurant is going to have a 100 percent profit margin. on $8k a week i revenue, maybe you'll have $1k in profit for you, if it's run efficiently.

 

[Carson Dyle]

A new reality show: Pizza Rescue? John Tapper will be there to scream in your ear that you suck as an owner.

Tapper would go in, look around town for an hour, decide that Redding has a shortage of Mexican restaurants and rebrand "Luigi's Pizza" as "Pedro's Taqueria".

 

[JMapleton]

There is a Round Table Pizza in Hollister, California that grosses $1,000.000.00 a year.....think about the work involved...hiring, scheduling......etc...

Even a carryout pizza location can gross $1m a year in revenue. That's not a lot.

 

[JMapleton]

And OP, anyone who would list their business for sale on craigslists and not through a legit business broker, is not someone I would do business with.

If this business was making so much, it would be easy for them to sell it. And if he was making $200k a year (profit after expenses), the business would probably be asking close to a million as an asking price.

 

[lxskllr]

Being your own boss is great, but it does have its drawbacks. No days off for holidays, no suck days, and you have to be very proactive when it comes to your retirement. I still think the pros out way the cons though.

People say this a lot, but I don't buy it. Full responsibility 100% of the time, and you're lucky if you make as much as your highest paid employee.

I've thought I wouldn't mind owning a grocery with pre-made food available, but that's 100% ownership, including the property(paid off), and me living on the property. With that setup, I wouldn't have to be "successful". Work would be home, and I'd only have to make enough to pay taxes, and a bit more to live on. I think I could manage that with little stress, and I could see a store that sold things *I* was interested in.

 

[FelixDeCat]

Don't forget your local crime syndicate tax. Fat Tony wont be happy if you're late with his money.

 

[FelixDeCat]

And OP, anyone who would list their business for sale on craigslists and not through a legit business broker, is not someone I would do business with.

Business brokers are filthy middlemen, thats why they should not be used.

 

[Carson Dyle]

And OP, anyone who would list their business for sale on craigslists and not through a legit business broker, is not someone I would do business with.

If this business was making so much, it would be easy for them to sell it. And if he was making $200k a year (profit after expenses), the business would probably be asking close to a million as an asking price.

It's obviously not making much if it's going for $80k. That goes without saying. Would you really list an $80,000 business with a broker? There are plenty of businesses listed on Craigslist. Locally, I see a $500k plumbing business, a $350k carwash and a $400k liquor store listed.

 

[JMapleton]

People say this a lot, but I don't buy it. Full responsibility 100% of the time, and you're lucky if you make as much as your highest paid employee.

Yeah owning a business sucks, ask Anand. <end sarcasm>

 

[lxskllr]

Yeah owning a business sucks, ask Anand. <end sarcasm>

Yea, and for every Anand there's 10,000 others that would be doing better if they managed a Mcdonalds.

 

[JMapleton]

It's obviously not making much if it's going for $80k. That goes without saying. Would you really list an $80,000 business with a broker? There are plenty of businesses listed on Craigslist. Locally, I see a $500k plumbing business, a $350k carwash and a $400k liquor store listed.

Look at those types of businesses. Plumbing? Liquor? Carwash? These types of business aren't know for attracting genius business owners.

I know a few business brokers and yes I would list an $80k business with one.

Why? Most people shopping through a business broker are going to be legit and not a waste of my time. And most people selling through a business broker are going to have some business sense, thus the business is not going to be a giant mess.