Originally Posted by RandyRandy

That formula would never work.

In NYC there are $1 slice places, so a whole pie is $8. But there is no delivery. And they only have stores in high volume areas. At that price point they use a fast food formula: 2.5% of walk-by traffic will make a purchase. It's purely a numbers game.

And you'll get killed if your food costs are 50%. That's more than what your cost of goods sold % should be - 40% is the top. That includes everything (condiments, napkins, paper plates, boxes, etc). Then you have labor and rent.

Last note: if you don't have these costs monitored and under control on a DAILY basis you will close. No room for error at those margins.