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What was the labor cost for Carbones Pizzeria company restaurant sales?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

tockholder's equity | $ 1,454,272 |

Consolidated Statement of Operations For the Year Ended October 31, 2024

Royalties $ 980,131
Company restaurant sales 726,642
Advertising fund revenues 289,604
Rebate revenue 159,266
Total revenues 2,155,643
Cost of company restaurant sales
Food and beverage 226,979
Labor 624,395
Direct expenses 191,618
Total cost of company restaurant sales 1,042,992
Operating expenses
Marketing and advertising 237,855
General and administrative 735,475
Total operating expenses 973,330
Income from operations 139,321
Other income (expense)
Interest income 35,160
Interest expense (4,108)
Other income (39,824)
Loss on disposition of property and equipment (123)
Total other in

Source: Item 22 — CONTRACTS (FDD page 30)

What This Means (2025 FDD)

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the labor costs for the company restaurant sales for the year ended October 31, 2024, was $624,395. This figure is part of the total cost of company restaurant sales, which also includes food and beverage and direct expenses. The total cost of company restaurant sales for that year was $1,042,992.

For a prospective franchisee, understanding these costs is crucial for projecting potential profitability. Labor costs are a significant component of operating expenses in the restaurant business, and this figure provides a benchmark based on Carbones Pizzeria's own company-operated restaurant. It is important to note that labor costs can fluctuate based on factors such as minimum wage laws, local labor market conditions, and the efficiency of restaurant operations.

It is also important to consider that the labor costs reported may not be fully representative of what a franchisee might experience. Factors such as the franchisee's management skills, the location of the restaurant, and the specific staffing model employed can all impact labor expenses. Therefore, while this figure offers a useful reference point, prospective franchisees should conduct their own due diligence and develop realistic labor cost projections based on their specific circumstances.

In addition to labor costs, the FDD also provides information on other expenses related to company restaurant sales, such as food and beverage costs and direct expenses. By carefully analyzing all of these figures, prospective franchisees can gain a more comprehensive understanding of the financial dynamics of operating a Carbones Pizzeria restaurant.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.