How do I check a pizza shop’s busiest delivery radius before buying?
Ask the seller for a list of delivery orders by address or neighbourhood, covering several months and including busy weekends. Map them and see where orders cluster, how far drivers travel and how long deliveries take. Then check how much of that depends on a third-party app, a few large customers or one driver.
A delivery radius tells you where the shop really makes its money, and it often differs from what the seller believes. Request order records with delivery addresses or postal areas, the time of day, and the order size. Plot them on a map and look for clusters and gaps.
Next, ask what produced the orders. If they come through a delivery app, find out what the shop pays and what happens if the shop is removed or the terms change. If they come from the shop’s own phone line and regular customers, the orders may travel with the owner. Ask who the largest repeat customers are, such as offices or student buildings.
Drive the radius yourself at a busy hour. Note traffic, hills, construction and competitors nearer to the edge of the zone. Check whether delivery times hold up on a Friday night. Finally, look at the staffing. If delivery depends on a few drivers, learn whether they would stay. Compare your findings with the sales figures in the financial statements.
Key takeaways
- Map delivery orders by address over several months, including peak weekends.
- Find out how much of the volume depends on a delivery app or a few customers.
- Drive the area at a busy hour and check how competitors cover the edges.
- Ask how delivery times and driver pay would change if the zone grew or shrank.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Restaurants CanadaIndustryRestaurants Canada - The Voice of Foodservice
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