How do I check a pizzeria’s delivery-app sales before buying?
Ask for the delivery apps’ own payout statements and match them to the sales in the books and the bank deposits. Then look at commissions, refunds and promotions, find out whether the store account can be handed to you, and judge how much of the trade depends on the shop’s ranking in each app.
For many pizzerias, a large part of the sales now comes through third-party delivery apps rather than the counter or the phone. The seller’s summary may show one sales line that blends everything together. Before you rely on it, split the sales by channel and test each channel against records that the seller did not write. The apps themselves keep the best records.
Match the payout statements to the books
Ask the seller for the payout statements from each app for the whole period the books cover, and for the bank deposits those payouts created. The statement shows gross sales, what the app kept and what it paid out. Ask your accountant to confirm how the bookkeeping records the gross sales and the app’s share. Your accountant can tell you whether the books treat it that way.
Read the commissions, refunds and promotions
Ask how much of each delivery sale the app keeps, since that shapes what the sales actually bring in. Look at the commission the shop pays, the refunds and cancelled orders the app takes back, and any promotions the shop pays for to stay visible. Ask whether the sales you see were helped by discounts the seller may stop funding, and ask how the sales looked without them.
Ask whether the store account transfers
The store listing, its reviews and its ranking sit inside an app account, and the app’s terms decide whether it can move to a new owner. Ask the seller to read those terms with you, and ask the app’s merchant support what it needs to see. Put the handover of the login, the listing and the payout bank details in the purchase agreement your lawyer prepares.
Judge how much trade depends on the apps
A shop that does well mostly because of its position in an app can lose that position quickly, and new customers may not arrive by phone or at the door. Compare app orders with phone, counter and website orders. Ask how many customers reorder directly. Visit at a busy hour and watch the mix of tablets, phones and walk-ins.
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Restaurants CanadaIndustryRestaurants Canada - The Voice of Foodservice
- 02Statistics CanadaResearch dataMonthly survey of food services and drinking places
- 03Business Development Bank of CanadaGovernmentAccrual and cash-based accounting
- 04Business Development Bank of CanadaGovernmentWhat is Cash Flow
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