How can I tell if a pizzeria for sale is profitable?

A pizzeria can look busy and still leave little behind. Ovens run all evening, but the profit depends on what each pie costs to make and deliver, and on who is doing the work. The seller’s summary is a starting point. Ask for the records underneath it, and test each cost against the sales it should match, ideally with an accountant beside you.

Match ingredient costs to sales

Cheese, flour and toppings are the biggest purchases in most pizzerias. Ask for supplier invoices and compare what was bought with what was sold. If sales rose but purchases did not, ask why. Also ask about waste, staff meals and discounts, since none of them show up as sales. The gap between the two sets of records is where problems tend to hide.

Follow delivery and the owner’s pay

Delivery-app orders arrive with commissions taken off, and in-house delivery brings driver wages, fuel and insurance. Ask for sales split by channel, and check what each one really leaves. Then ask what the owner is paid. If the owner works the oven and takes little or nothing, a new owner who hires someone for that job will see a different result. See how to tell if a pizzeria relies on the owner’s own hours.

Look at the slow months and the lease

Ask for monthly figures, not a yearly total, so you can see the quiet weeks and any one-off boosts such as a big catering order. Then read the lease, because rent and the remaining term shape what is left each month. A short lease with no renewal right can change the picture, so ask your lawyer to review it.

• Monthly sales by channel: counter, phone, delivery apps and own delivery.
• Supplier invoices for cheese, flour and toppings.
• Payroll records, including what the owner is paid.
• The lease and any renewal terms.