Originally Posted by PamWinterReturns

A friend is a few towns over. He owned a pizza parlor, as he calls it, with a friend. Free delivery with $10 order and pizza was $8 then. Gas went up to $4+/gal and he still kept free delivery. He lost quite a bit in a month and went to $5 delivery, minimum order $25. He closed in March.

He said his losses
Pizza $4 to make, $8 price
Toppings .50 to make, $1 price
$4-$8 depending on area within 15 miles

Two pizzas delivered North cost them $16. Customer pays $16. Employee pay is a loss. Toppings earn almost nothing if employees have to chop, cut, slice or shred. Nothing earned on most overhead other than electric.

With. a delivery charge, three one-topping pizzas cost him $13.50, gas is up to $8, employee time is $15. Customer pays $$32 . Store loses $4.50. They upsell tonic err soda at $2.50/two liter so they make $2.25 on total order.

He tried no delivery but the area wasn?t great and people didn?t drive there. The handful of walk-ins made him a little but not enough. He had ?authentic? Italian pizza in an ethnic neighborhood (Portuguese). No linguica or chourizo ? cha-rees ? and boom. The location is still vacant.

Being just an investor is good IF you have a say in how it?s run. Great food, great appetizers, great atmosphere, kid friendly, date friendly, senior discounts and great parking are a must. Check the local competition, too, for coupons, specials, web deals, and visibility.

Good luck!