INTERVIEW WITH RIDGEWOOD REAL ESTATE BROKER Anthony Carbi
Look at Taco Bell they have Beefy Fritos Burrito for $1.00 dollar.
We are talking about maybe half of the $3.49 cents as a profit. Or $1.74 per Burrito. Maybe even less, but I will use half as the example.
That comes to 6,896 BURRITO’S per month OR 229 BURRITO’S PER DAY JUST TO BREAK EVEN. LET’S SAY THEY OPEN 11A.M. TO 9P.M. THAT IS A TOTAL OF 10 HOURS PER DAY, OR THEY MUST SELL A MINIMUM OF 22.9 BURRITO’S PER HOUR. THIS IS WITHOUT MAKING ANY MONEY YET FOR THE BUSINESS OWNER OR TENANT.
EVEN A TWO TIMES THE AMOUNT PER MONTH WOULD EQUAL 13,792 BURRITO’S PER MONTH OR 460 PER DAY, OR 46 BURRITO’S SOLD EVERY HOUR. THIS TO SEEMS VIRTUALLY IMPOSSIBLE. SO YOU BUY A FRANCHISE SPEND A FORTUNE SETTING UP, AND EVERY YEAR THE RENT GOES UP WHICH EATS FURTHER INTO YOUR SALES. AND AS THE OWNER YOU WILL SPEND 70 HOURS PER WEEK TO RUN YOUR BUSINESS.
So how many loose big money buying a Franchise, spending countless hours working there and loosing additional monies to cover expenses. This is why so many stores close down.