Example you rent a store for $6,000 dollars. You still have to pay electric, heat, water and at least two salary’s for someone to open and close the place besides serving customers weekly. So now you are up to about $12,000 dollars monthly in expenses before you see a profit. If you need one or two more employees you will choke yourself financially for sure.
A Burrito supreme is $3.49, so how many must you sell per day to cover expenses for the month just to break even?
Here is the math with $12,000 dollars per month in expenses.
FOR A TENANT NEW BUSINESS OWNER TO MAKE A GOOD LIVING HE WOULD HAVE TO SELL AT LEAST 3X’S THE ABOVE PER HOUR, PER DAY PER MONTH. SELLING 21,000 BURRITO’S A MONTH I BELIEVE IS FAR FETCHED.
Conclusion-If 10 Burrito’s sell per hour that is 100 burrito’s per day. If the profit is $1.74 per Burrito then the business owner only makes $174 dollars per day. To stay afloat and pay rent and expenses he/she must sell 6,896 Burrito’s per month. Do you really think selling 50 Burrito’s per hour is doable? I don’t.
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. Landlords and Business owners are both getting hurt lately.