They ‘are said’ to make 5%. Any documentation?
Yes I once reviewed a franchise package (they never promise any specific figures but sometimes will at least indicate some “possible” or “typical” numbers). Also, to be more current, you can google “pizza hut profit margin” and you can find that figure. (It might be a high estimate, many restaurants don’t clear that much. But its probably pretty good as a “talking point estimate” for an average-ish outlet? Some, of course, go broke. ). Hope that helps.
Larger food_selling stores can survive on lower profit margins than small pizza shops. For instance, walmart makes 3.6 percent and Safeway supermarket makes around 1.3 percent. (Compare those figures and you can see why many of us questioned walmart’s wisdom of pushing into groceries _- the thought was it should have expanded into higher-profit-margin merchandise instead, but wm seems to have pulled it off successfully).