So far per store sales at its 12 international stores in the Pacific Rim are running at about $1 million annually, about three times higher than at U.S. stores.
(In the U.S., stores have two to three workers on a weeknight shifts and five to seven on weekend nights).
Pulling in $300,000-$400,000 in gross sales per store is below what most franchisees would consider a fair return on investment.
| LABOR COSTS | |
| WEEKDAYS:12 hours day x 360 days per year x 3 workers x $10/hour average | $130,000 |
| WEEKEND EXTRA:5 hours day x 150 days per year x 3 workers x $10/hour average | $22,500 |
| TOTAL: | $152,500 |
If labor costs are 30% of your overall costs, this infers that your costs are about 3.33 x $152,500 = $507,825
That seems extraordinarily high but its hard to be more accurate without more data.
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
$10 seems high but that is probably a fair average considering a shift manager/store manager hourly wage.