I googled “Pho profit margins” and found this Pho restaurant for sale in San Diego for $600K:
I was not surprised to find out that the gross income is $1.3 million for a profitable Pho restaurant. When I did the calculations of popular Pho restaurants I like to go to, I found that their gross income was over $1 million. I’m sure it mainly has to do with the cost of making Pho which is less than $1 a bowl. Even with the labor costs calculated in, I think profitable Pho restaurants are still making a 50% or more profit which is probably why there are so many Pho restaurants. Everyone wants to get in on the profits but of course, not everyone succeeds. When analyzing whether or not it’s worth it to own a Pho restaurant, I would need to find out how the broth tastes and if people like it. Also, is there a team you can count on to consistently make the same broth everyday and provide good customer service? Another big factor would be whether or not the location is good. If yes to all of the above then go for it!
Whoever thought of the concept of Pho which is a simple Vietnamese beef noodle soup is a genius! The question for the innovators out there would be, what’s next? What can be combined with Pho to make it even greater? Will people ever get sick of Pho? If you have any ideas or comments, please tell me!
I live close to Westminster (Little Saigon) where there’s a pho restaurant on every corner. Wow, I never thought they made so much money!
http://babarseattle.com/blog/2013/12/the-argument-for-a-ten-dollar-bowl-of-pho/
The profit margins of Pho are much higher than I expected! In your opinion, what Bay Area restaurant has the best deal for Pho?
I think most of them are about the same price. I was going to this Pho restaurant that only charged $6.45 a bowl but they just increased it to $7.00 like everyone else.
http://babarseattle.com/blog/2013/12/the-argument-for-a-ten-dollar-bowl-of-pho/
$1.00 a bowl? Where did you do you’re research? That’s a ridiculous statement and completely false. I make pho all the time at home and it’s definitely not that cheap.
economies of scale
mass production lower your cost per unit
pho? suck in alot of restaurant