Extreme Pita, #1 Sub shop analysis

Submitted by Fayaz on Tue, 06/02/2009 - 10:43am.

Recently I came across this blog entry on a website and I thought you would find it interesting. Has some good details, some of which need updating for 2009

 

From 2007 by someone named WEBSTER

 
I met with the sales rep of extreme pita, it was great.

Bascially, the average ticket cost is around $7.50 , and if you can get about 180 - 200 people per ticket during lunch and dinner a day , you are making some money.

I assume that the break even is about $700 - 900 a day for break even, including labor, franchise fee, food cost, electric and much more.

The concept is very similiar to subway concept.

In the morning you need about 5 people and at night maybe 2, based on sales.

Currently, only stores operating in the market are single unit owners. I;ve spoke to several owners and every one mentions its a great concept (well, yea, everyone will say that ).

Everyone says its a great concept.

I figure if the labor is around 20% excluding workers comp and other stuff. , so total labor including all is about 25% + 30% food cost + 35% other cost = 80%...20 % profit of $230,000 investment is not bad at all.

so if you can do about 8000 a week, a 20% profit of 32,000 a month is about $6,500 a month equal to 78,000 a year.. Not bad at all.

What you think ?

 

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