What were the total operating expenses for Carbones Pizzeria?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the total operating expenses are detailed in the consolidated financial statements. For the year ended October 31, 2023, the total operating expenses were $850,109, which included marketing and advertising expenses of $278,545 and general and administrative expenses of $571,564. For the year ended October 31, 2024, the total operating expenses amounted to $973,330, comprising marketing and advertising expenses of $237,855 and general and administrative expenses of $735,475.

These figures provide insight into the costs associated with running the company-owned Carbones Pizzeria restaurant. Operating expenses do not include the cost of company restaurant sales, which covers food and beverage, labor, and direct expenses. Instead, operating expenses focus on marketing, advertising, and general administrative functions.

A prospective franchisee should consider these operating expense figures in relation to the total revenues and other costs to understand the overall profitability of Carbones Pizzeria's company-owned restaurant. It's important to note that these expenses reflect the operation of a corporate location and may not directly translate to a franchised location due to differences in scale, management structure, and local market conditions. Franchisees should inquire about typical operating expenses for franchised locations and how they might vary based on location and other factors.

Understanding the breakdown of operating expenses can help a franchisee better plan their budget and manage their finances. While marketing and advertising expenses are aimed at increasing brand awareness and driving sales, general and administrative expenses cover the costs of running the business, such as salaries, rent, and utilities. A clear understanding of these costs is crucial for assessing the financial viability of a Carbones Pizzeria franchise.