What running costs should I review before buying a pizzeria?
Review a pizzeria’s costs line by line and match each one to supplier invoices and bank statements: ingredients, boxes, oven fuel, hood cleaning, drivers, vehicle upkeep, app commissions, late-shift labour, rent and repairs. A cost the seller’s summary leaves out is the one to chase first.
A pizzeria looks simple from the counter, but its costs come from many small places. Rather than asking whether the seller’s profit summary holds, work through each recurring cost and find the paper behind it. Ask for invoices and statements for the same months you are reviewing, and keep a short list of anything that does not match what the seller told you.
Food and packaging
Cheese, flour, toppings, boxes and bags are the costs that move most. Ask for recent supplier invoices and see whether unit costs have shifted during the period. Check whether the shop buys on account or pays on delivery, and whether any supplier gives terms that may not carry over to you. Our page on checking a pizzeria before buying covers the wider checklist.
Oven, gas and hood upkeep
A busy oven uses a lot of fuel and needs regular servicing. Look for gas or electricity bills across a full year so seasonal swings show up. Ask when the exhaust hood was last cleaned and who does it, and whether the oven has any repair history. Deferred servicing is a cost the seller may have quietly pushed onto the next owner.
Drivers, vehicles and app fees
If the shop delivers, ask who the drivers are, how they are paid, and who owns the vehicles. Fuel, insurance and maintenance can sit with the shop or with the driver. Delivery apps usually take a commission on each order, so see how much of the sales come through them. This page on checking delivery app sales shows how.
Labour, rent and repairs
Late-night and weekend shifts are where payroll grows. Ask for a staffing schedule and compare it with payroll records. Then read the lease for rent, shared costs and who handles repairs. Add a realistic amount for repairs and equipment replacement, because older pizza equipment fails at awkward times.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check before buying an independent pizzeria?
- Expert answerHow do I check a pizzeria’s delivery-app sales before buying?
- Expert answerHow do I check the ovens before buying a pizzeria?
- Expert answerHow do I tell if a pizzeria relies on the owner’s own hours?
- Expert answerShould I buy an existing pizzeria or open a new one?
- Expert answerShould I buy a pizza franchise or an independent pizzeria?
- Expert answerWhat should I check before buying a sandwich shop?
- Expert answerWhat should I check before buying a pet grooming business?
- Expert answerHow do I check hoists and shop equipment before buying an auto repair shop?
- Expert answerCan you buy a Domino’s franchise in Canada?
- Expert answerWhat should I check before buying a kitchen hood cleaning business?
- Expert answerHow do I keep a pizzeria’s food costs in check after buying it?
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?
- 03Business Development Bank of CanadaGovernmentWhat is the cost of goods sold (COGS)
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.