Pizza-Kette: Zweiter Standort oder bestehenden ausreizen?

0:00Unternehmer/Gast Sell pizza and ice cream to hungry humans. 22 years old. We're currently at 2.4 million in revenue, 30% profit margin. Great. Would love to be at 10 million revenue in uh >> stores? What you say? >> How many stores? >> Just one. Nice. Um would love to be at 10 million revenue in 8 years. Um >> Okay. So, what's stopping me right now is kind of balancing uh opening a second location versus maxing out our current location and pushing. Yeah.

0:26>> Um So, in my opinion, like we're pretty close to being maxed out our current location. >> Uh-huh. Um we'll do like 5 6 700 pizzas in a day. Amazing. Um So, there's another caveat with this. So, current ownership of this location is 33%. Okay. Cuz I bought I bought in with my dad. Okay. Uh so, you have 67? Yeah. Okay. So, then every other location I open up, so the second location is 50/50, and then the third location is 100% me. Okay. Everything Is that the deal you made with him? Yeah. Okay.

0:55>> So, everything on top of that is 100. So, like I'm incentivized to open up other locations. >> Sure. Um So, I've just been kind of getting conflicting um if we should open up this like second location. Um currently hired a GM to pretty much just like stand beside me for 6 months, like for the next 6 months. He starts in 2 weeks to just be like, "This is everything I do at the current location." Um reciprocate that while I open up the second location. Backfill. Um

1:21>> Yeah. So, So, a couple things. So, um first off, kudos. Thanks, man. Um second, with >> [sighs] >> So, whenever So, this goes for everybody, but like if you have a single brick-and-mortar store, like we say nail it then scale it. You've probably heard that multiple times today. Yeah. Um and so, if you think that you're like cuz you said, "Do I open this other thing or do I max this one out?" What What What levers are you not maxing out with this existing location? Um probably

1:48Alex >> Without offering new [ __ ] Yeah, without offering new stuff, probably pricing. Okay. But like from a from a from a demand perspective, like we are slammed. Okay. >> 24/7. Got it. >> So, Okay. So, um you bring in the GM, cool. I would encourage you to give them some sort of small profit share that they can earn into. >> already are. Okay, great. Um what what period of time are you doing it over? What do you What

2:13>> That you're giving them the profit share that they can invest into. Um so, I started them off at like a salary a base salary, and then at the So, the goal is for me to go open up the second location, and then have him run that second location. Um You mean the first location? N- No. So, Okay. Um essentially, I will go open up the second location for a period of like 3 to 6 months, and then have him kind of fill that role in the me.

2:38>> Okay. And then who's going to fill it back at the first location? Probab- So, the goal is that he hires somebody to do that for him. Okay. Okay. Or I could go back into the other one or do the thing. >> Yeah, yeah. Um And But to answer your question, so um he starts out at 5% if he hits like KPIs. Um and then he gets 1% uh like profit share on top of that with each year that he's with the business, then it caps at 10.

3:06>> Okay. Yeah, it's okay. I mean, it probably wouldn't have been the way I did it, but it's it's fine. Um Okay, so you have >> super new to this, so like I don't know what I'm >> You're good. I mean, you're obviously doing great. You have 30% margins in, you know, fast casual with pizza and ice cream. Like you're doing great. You're doing 2.4 million. Is it your first business? Uh Pretty much. Yeah. >> First real business, yeah. >> Yeah, dude, you're doing great.

3:29Um Okay, so By the way, we can all hear you. Just FYI. Um So, my ADD kicks in and I'm like >> [laughter] >> Um Okay, so the question is fundamental Let's Let's iron this down to one question. So, what is it? Is it that Do you go and start up the next location or do you what? Or do you want permission to start the next location? >> No, so like I I'm in on the second location. Like not only from an equity perspective cuz I'm like, "Well, I get I get more money." And um Yeah. Add it Edge to saying like nail it then scale it. And so, like we have an insane data constraint. Like I don't know why these customers are coming.

4:05Yes, we have an insane product, but like >> Okay. So, this is what we're talking about when I said like, "What levers would we pull?" So, if you don't have good tracking and things like that, it's worth doing it up front. >> Okay. Cuz it will only get harder and messier to do. And you'll it'll be And each decision you make without data will have greater and greater stakes. Cool. So, you want to have that set up first, and you can do that now. And since you're you're going to have extra overhead technically, well, not extra. I'm depending on how much you're taking for yourself, right? But like you and this other guy is going to be there, so you should have been with you even during the training to get some of this other stuff dialed in. Is the goal long-term to franchise it or just privately own a bunch of them?

4:37Alex >> I would just love to privately own a bunch of them. Cool. Then, yeah, the the privately owned brick-and-mortar um almost always has a manager that has a profit share that's in place. Typically, um OTEs or on-target earnings should be somewhere in the neighborhood all in of like a hundred-ish. Um if they crush it, you know, 120 130. If they suck, 75. That's usually kind of the range for that type of manager. Um and I have yet to see it where that works without that. Okay.

5:05Alex >> That's privately held. Okay. >> franchised out. So, now I think I think you're on the right path. Um I think opening the next location makes sense. But my preference, like if you'd told me what the like I would have expected the plan to be I'm going to train this guy up. >> Mhm. I'm going to give him 3 months afterwards that I'm going to be scouting and just doing all back office crap. Um and if the location that our number one location in any way dips while he's doing this 3 months, I now know that I shouldn't start the next location.

5:36Okay. So, I like to give 3 to 6 months of I'm on vacation because you're going to be because you're going to be doing this other thing. Yeah. And so, what happens most times is that a business owner will basically get out of the quote day-to-day and be like, "Okay, look, I'm out of the day-to-day. This thing runs itself." But then they're still working at 16 hours a day. So, it's like just because I don't train the sessions doesn't mean I don't own the business or I don't run the business. It's the same thing as the CEO versus the people who are actually like delivering services in a business. Like there's still a job, it's just not customer-facing. And so, you have to get it so that the general manager can actually do the job in its entirety without you, and the business sustains or grows. If those things occur, then you've got the right guy, and you can open up the next one. Okay. That's the litmus test that I've given to every every brick-and-mortar four walls. And unfortunately, we always are in a rush cuz we want to expand, we want to make more money. But the thing is is that it is way You can ask anybody here who has over expanded when you have two and now you have something wrong at both, it is way harder to undo. Yeah.

6:35So, I'd rather you just nail it and then scale it. And if you know that takes 6 more months, who cares? If it takes a year, on the long term, if it takes you an extra year now, it'll shave four off the back. Okay. So, the only kind of follow-up would be So, we haven't signed a lease agreement quite yet, but we've like gone under con- not under contract, but we've like signed a builder, started the process with that. So, you're saying to delay that process like 3 to 6 months out in order to give time?

7:03Alex >> saying it cuz I know you're in in in the in the middle of it. I'm try- Like the thing is is that just talking to you, you're the type person who's going to win either way. Yeah. So, I'm just being real with you. You'll probably win either way. If I was to give you what I would consider to be sound advice, the sound advice would be make sure the guy that you have can actually operate it at sustainable or higher without you doing anything. Yeah. That is the correct advice. If you win, you win no matter what because you're a winner. Thanks, man. Appreciate you. If you were a business owner and you were not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the 100 million dollar scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through, and more importantly, where they got stuck and how they got past it. And so, we broke it in these 10 stages, and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at, and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstraint the business and you're trying to scale, we'd love to help you out. On the thank you page, you can book a call with my team, and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas, and we'll do this in person live.