Start-up Funding | |
Start-up Expenses to Fund | $25,850 |
Start-up Assets to Fund | $54,650 |
Total Funding Required | $80,500 |
Assets | |
Non-cash Assets from Start-up | $31,550 |
Cash Requirements from Start-up | $23,100 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $23,100 |
Total Assets | $54,650 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $25,000 |
Accounts Payable (Outstanding Bills) | $9,500 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $34,500 |
Capital | |
Planned Investment | |
Investor 1 | $15,000 |
Owners | $30,000 |
Additional Investment Requirement | $1,000 |
Total Planned Investment | $46,000 |
Loss at Start-up (Start-up Expenses) | ($25,850) |
Total Capital | $20,150 |
Total Capital and Liabilities | $54,650 |
Total Funding | $80,500 |
Pizzeria del Causamali offers high quality pizza to a growing community that currently has limited availability of restaurants and no availability to delivery. At start up we will be open for dinner 4 p.m. to 10 p.m. Sunday – Thursday and 3 p.m. to 11 p.m. Friday and Saturday. We will consider opening earlier and serving lunch if there is a demand, and if forecast and financial analysis can justify the increased costs.
Our menu will include 4 sizes of pizzas with various combinations of toppings. Predefined, high-margin pizzas will be highlighted on the menu. Additionally, breadsticks, beer, and soda will be included in the initial menu offerings.
Our primary target market is people who desire a comfortable, family-oriented environment for dine-in pizza. Our secondary target market also desires a delivery service for pizza, or a take-out approach. There is overlap of these segments.
Deauville and its surrounding communities are a growing middle-class area with nearly 14,000 residents. A majority of these residents are families of four or more. The boom in the area is primarily in response to an exodus of families moving out of the over-populated areas and into a more rural setting.
According to a Growth Plan Deauville conducted in 2001, population within Deauville is expected to increase. However, the number of persons per household is expected to decline, meaning the need for additional housing in Deauville will continue to grow. From the same plan, population is listed as being evenly distributed by age groupings, with approximately 33% of the population being minors. Another 40% are less than 54 years of age, indicating a major concentration of the Deauville population being families. The report forecasts there being nearly 1,900 households in the Deauville by 2005. This is driving the need for more quality, family-oriented restaurants.
Additionally, Deauville residents frequently visit the building in which Pizzeria del Causamali is located. Tanning and video rental businesses are adjacent to the restaurant, so we are providing a new convenience for families to select a movie and pick up a pizza.
With the expected continued growth in the area, estimated at 7% annually, opportunities to serve Deauville and its surrounding communities will increase. The company will sell predominantly to individuals, but it will also accept some catering jobs to individual parties, schools, and company functions in the Deauville area.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Dine-In or Take-Out | 7% | 13,860 | 14,830 | 15,868 | 16,979 | 18,168 | 7.00% |
Delivery | 7% | 5,000 | 5,350 | 5,725 | 6,126 | 6,555 | 7.00% |
Total | 7.00% | 18,860 | 20,180 | 21,593 | 23,105 | 24,723 | 7.00% |
Including Deauville and its surrounding areas, no pizza establishments exist. In Deauville one to two restaurants serve pizza, but not as a primary menu item. These pizza outlets are in taverns which are not conducive to family-type atmosphere. No eating establishments in the Deauville area provide home-delivery service.
Other family-oriented restaurants in the area include: Subway(R), What’s Cookin’ diner, and Colonial House supper club. Subway serves sandwiches, wraps, and salads, none of which are direct competition to the pizza establishment. The diner is open until 2 p.m. each day and focuses on the breakfast crowd, with a limited sandwich availability for lunch. The supper club has a Chicken and Pizza buffet once a week for approximately $6; the pizza served as part of the buffet are frozen pizzas.
Other restaurants in Deauville are taverns and are not conducive to family activities. One of the bars in Deauville serves a homemade pizza.
In conversations with an independent pizza operator in Lakeshore Haven, an hour’s drive away, he indicated pizza sales in his community are thriving despite competition from 4 other pizza establishments, including Pizza Hut(R). While exact figures were not shared, he indicated a high level of penetration into the pizza market in his area with profitable margins. He also provided suggestions and tips to minimize costs, and components of his restaurant he would do differently, including payroll handling, vendors, and layout.
There is minimal competition for pizza in the Deauville area, besides the bar establishments previously mentioned. The closest locales for pizza to the Deauville area are Bolingbrooke, Avro, and de Havilland. None of these competing pizza locations deliver to the Deauville area. Additionally, Pizzeria del Causamali would be the only family-oriented, non-smoking restaurant in Deauville.
Our strategy is based on delivering a strong customer value proposition in a niche market. The world is full of small, family-oriented towns that do not have endless opportunities for dining out. We are looking to offer the Deauville and its surrounding areas a new choice in food options.
Our competitive edge is to be first-to-the-market with pizza in a friendly, non-smoking, family-oriented dine-in experience, and first-to-the-area with food delivery.
Additionally, the location of Pizzeria del Causamali is crucial as a convenience model to customers. Deauville residents frequent the video rental store adjacent to the restaurant. This location is directly in the center of activity in this rural community–it is within walking distance of the middle and high schools, the local church, and within 2 miles of the existing large subdivisions and apartment complexes in the area.
To drive customers to Pizzeria del Causamali, we will employ several techniques outlined below.
Advertising in Bolingbrooke Post , de Havilland Buyer’s Guide , Deauville Register , and Deauville Shopping News will be used to promote the Grand Opening of Pizzeria del Causamali. As part of the advertising, a coupon will be available to customers. Intermittent newspaper advertisements will continue throughout the year to promote upcoming events. Most initiatives will focus on the local Deauville papers as the target of these papers is specifically the Deauville residents. Additional marketing efforts will come in the form of on-box coupons for future purchases.
Additionally, family-oriented events will be hosted by Pizzeria del Causamali to attract customers such as trivia nights, birthday parties, and prize giveaways. Frequent buyer cards will be employed to entice repeat customers. Pizzeria del Causamali will also sponsor a local Little League baseball team, and a bowling team to publicize the restaurant within the community events.
Future plans of working in coordination with the adjacent video store to offer “bundle savings” if both pizza and video rentals are purchased will be pursued within the second year of operation.
The Deauville area has expressed its need for additional restaurants, specifically a desire for pizza. Because of this, there is pent-up demand for pizza in this area. We will expect a high rate of sales growth within the first 3 months as this customer desire is met.
For the next year, we continue to focus on a growing presence in the community and advertising heavily throughout the community. As a major convention center and water park open in nearby Fairchild, we will focus our attention on becoming the recognized provider of pizza to that establishment.
Our sales forecast assumes a modest change in annual costs to accommodate new entry into the market.
We are expecting to increase sales modestly but steadily over the next year, which is a respectable growth rate. The growth forecast is assumed given this is a new product for the area using new channels of availability. We are not projecting significant change in the product line, or in the proportion between different lines.
Based on industry averages and the absence of competition for pizza in the Deauville area, we are predicting an average of 25 pizzas sold each week night (Sunday – Wednesday). On the weekends (Thursday – Saturday), we are estimating 40 pizzas are sold each day. Of those pizzas ordered, we are expecting approximately 1/3 to be dine-in customers. Those customers dining in will most likely order drinks and/or beer (on average 4 for each family). Additionally, we are estimating that approximately one-third of the pizza orders will be accompanied by an order for breadsticks. Our estimated average prices for each item are as follows:
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Pizza | $133,900 | $143,808 | $153,875 |
Breadsticks | $18,667 | $19,973 | $21,371 |
Beer | $37,333 | $39,947 | $42,743 |
Drinks | $50,773 | $54,327 | $58,130 |
Total Sales | $240,673 | $258,055 | $276,120 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Pizza | $42,848 | $44,990 | $47,240 |
Breadsticks | $3,733 | $3,920 | $4,116 |
Beer | $7,467 | $7,840 | $8,232 |
Drinks | $2,539 | $2,666 | $2,799 |
Subtotal Direct Cost of Sales | $56,587 | $59,416 | $62,387 |
The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan | 1/8/2004 | 1/31/2004 | $0 | Marianne Bruxellesprot | Management |
Secure Start-up Funding | 2/1/2004 | 3/1/2004 | $0 | Marianne Bruxellesprot | Management |
Site Selection | 1/8/2004 | 2/1/2004 | $0 | Marion Bruxellesprot | Operations |
Architect Designs/Redesign | 2/15/2004 | 3/1/2004 | $500 | Marion Bruxellesprot | Operations |
Technology Design | 3/15/2004 | 4/1/2004 | $5,000 | Marianne Bruxellesprot | Technical |
Personnel Plan | 3/1/2004 | 3/15/2004 | $0 | Marianne Bruxellesprot | Management |
Accounting Plan | 3/1/2004 | 3/31/2004 | $400 | Marianne Bruxellesprot | Management |
Renovation | 4/1/2004 | 5/15/2004 | $7,800 | Marion Bruxellesprot | Operations |
Equipment Installation | 5/1/2004 | 5/15/2004 | $2,000 | Marion Bruxellesprot | Operations |
Marketing Plans | 3/4/2004 | 4/30/2004 | $2,500 | Marianne Bruxellesprot | Marketing |
Grand Opening | 5/1/2004 | 5/15/2004 | $2,500 | Marianne Bruxellesprot | Marketing |
Totals | $20,700 |
The Pizzeria del Causamali website will be the virtual business card and portfolio for the company, as well as its online “home.” It will showcase the history, product information, and offers for Pizzeria del Causamali. Special online-only offers will be made available on the website, along with customer’s opportunity to sign-up for email news and offers.
The Pizzeria del Causamali website needs to be a simple yet classy and well designed website that, at the same time, is in keeping with the latest trends in user interface design. Customers will be coming to the site for product information, history, and offers.
Future elements of the site can contain online ordering, if customers express an interest in this functionality.
Our Internet marketing activities will be focused on product information and offers. Future opportunities exist in offering online ordering.
The Pizzeria del Causamali website will be initially developed with few technical resources. A simple hosting provider, Yahoo! Web services, will host the site and provide the technical back end. The owner’s expertise in professional Web development will lead this effort.
The user interface designer will work with a graphic artist to come up with the website logo, and the website graphics.
The maintenance of the site will be done by the owners. If the website rolls out future development such as newsletters and online ordering, the internal staff at Pizzeria del Causamali will design, implement, and execute the technology.
We are a small company owned and operated by Marion and Marianne Bruxellesprot, husband and wife, as a partnership. Management style reflects the participation of the owners. The company respects its community of co-workers and treats all workers well.
Marianne Bruxellesprot is a 1998 graduate of University School of Business with High Honors and Distinction in Business. Her experience with general business, technology, and operations is a great asset to this venture.
Additionally, Otho Colderobby is an advisor to the owners. Otho is a 1991 graduate of State College with a degree in Economics. Furthermore, Otho graduated in 1995 with a Masters in Business Administration from University School of Business with emphases in Marketing and Finance. Otho held a senior finance management position with Frito Lay for 5 years. Otho is currently a managing consultant with a marketing strategy firm. He also spent 5 years in a strategic services consulting practice.
The personnel table assumes a level need of employees, and 5% per annum pay raises. Staffing for a 7-day a week restaurant necessitates two shifts. In addition to the hours open for serving we anticipate an additional hour before opening for prep and as much as an hour after closing for cleanup. This is approximately 8 hours of staffing necessary Sunday – Thursday and 10 hours on both Friday and Saturday.
The two kitchen lead positions are part-time, earning $9/hr. The kitchen leads will serve as the shift leaders of the kitchen/wait staff. Kitchen staff will serve as the wait staff. There will be one dedicated dishwashing position per shift. Wages for kitchen/wait staff, dishwashers, and delivery drivers, who are all part-time, are $6/hr, with opportunities for all to share the combined earn tips. It is imperative the people serving as the kitchen lead are over 21 and can legally serve alcohol.
Hourly part-time positions as kitchen/wait, dishwashing, and delivery staff average out to be approximately 30 hours per week each. Delivery staff will work 5 hour shifts each night, with an extra delivery staff member added on Thursdays, Fridays, and Saturdays. During the week if this person is not delivering, they will work in the kitchen as needed, directed by the kitchen lead.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Kitchen Leads | $28,080 | $29,484 | $30,958 |
Kitchen/Wait | $37,440 | $39,312 | $41,278 |
Dishwasher | $15,600 | $16,380 | $17,199 |
Owner | $9,000 | $9,450 | $9,923 |
Delivery | $15,600 | $16,380 | $17,199 |
Total People | 12 | 12 | 12 |
Total Payroll | $105,720 | $111,006 | $116,556 |
The financial picture is quite encouraging. We will be slow to take on debt and heavily investing our own assets, but with our increase in sales we do expect to apply for a credit line with the bank, to a limit of $50,000. The credit line is supported by assets.
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 6.00% | 6.00% | 6.00% |
Long-term Interest Rate | 5.00% | 5.00% | 5.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
Our break-even analysis is based on running costs, the “burn-rate” costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. The essential insight here is that our sales level seems to be running comfortably above break-even.
Break-even Analysis | |
Monthly Revenue Break-even | $16,283 |
Assumptions: | |
Average Percent Variable Cost | 24% |
Estimated Monthly Fixed Cost | $12,454 |
We expect to be profitable in the first year, with profits increasing over the next two years, as we establish a loyal customer base.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $240,673 | $258,055 | $276,120 |
Direct Cost of Sales | $56,587 | $59,416 | $62,387 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $56,587 | $59,416 | $62,387 |
Gross Margin | $184,087 | $198,639 | $213,733 |
Gross Margin % | 76.49% | 76.98% | 77.41% |
Expenses | |||
Payroll | $105,720 | $111,006 | $116,556 |
Sales and Marketing and Other Expenses | $7,250 | $7,250 | $7,500 |
Depreciation | $2,040 | $1,836 | $1,652 |
Rent | $14,400 | $14,400 | $14,400 |
Utilities | $7,200 | $7,200 | $7,200 |
Insurance | $4,200 | $4,500 | $4,800 |
Payroll Taxes | $8,042 | $8,444 | $8,866 |
Website Hosting and Maintenance | $600 | $50 | $50 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $149,452 | $154,686 | $161,024 |
Profit Before Interest and Taxes | $34,635 | $43,954 | $52,709 |
EBITDA | $36,675 | $45,790 | $54,361 |
Interest Expense | $1,088 | $700 | $225 |
Taxes Incurred | $10,064 | $12,976 | $15,745 |
Net Profit | $23,483 | $30,278 | $36,739 |
Net Profit/Sales | 9.76% | 11.73% | 13.31% |
The following table and chart is the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $240,673 | $258,055 | $276,120 |
Subtotal Cash from Operations | $240,673 | $258,055 | $276,120 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $240,673 | $258,055 | $276,120 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $105,720 | $111,006 | $116,556 |
Bill Payments | $105,383 | $114,835 | $120,750 |
Subtotal Spent on Operations | $211,103 | $225,841 | $237,306 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $6,000 | $10,000 | $9,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $217,103 | $235,841 | $246,306 |
Net Cash Flow | $23,570 | $22,214 | $29,813 |
Cash Balance | $46,670 | $68,884 | $98,698 |
As shown in the balance sheet in the following table, we expect a healthy growth in net worth. The monthly projections are in the appendices.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $46,670 | $68,884 | $98,698 |
Inventory | $1,720 | $1,806 | $1,896 |
Other Current Assets | $5,250 | $5,250 | $5,250 |
Total Current Assets | $53,640 | $75,940 | $105,844 |
Long-term Assets | |||
Long-term Assets | $20,300 | $20,300 | $20,300 |
Accumulated Depreciation | $2,040 | $3,876 | $5,528 |
Total Long-term Assets | $18,260 | $16,424 | $14,772 |
Total Assets | $71,900 | $92,364 | $120,616 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $9,267 | $9,454 | $9,967 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $9,267 | $9,454 | $9,967 |
Long-term Liabilities | $19,000 | $9,000 | $0 |
Total Liabilities | $28,267 | $18,454 | $9,967 |
Paid-in Capital | $46,000 | $46,000 | $46,000 |
Retained Earnings | ($25,850) | ($2,367) | $27,911 |
Earnings | $23,483 | $30,278 | $36,739 |
Total Capital | $43,633 | $73,911 | $110,649 |
Total Liabilities and Capital | $71,900 | $92,364 | $120,616 |
Net Worth | $43,633 | $73,911 | $110,649 |
Standard business ratios are included in the following table. Industry profile ratios are shown for comparison, and are based on Standard Industrial Classification (SIC) code 5812.0600, Pizza Restaurants. The ratios show a plan for balanced, healthy growth. Our return on sales and return on assets remain strong in percentage terms.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 7.22% | 7.00% | 5.24% |
Percent of Total Assets | ||||
Inventory | 2.39% | 1.96% | 1.57% | 3.54% |
Other Current Assets | 7.30% | 5.68% | 4.35% | 34.82% |
Total Current Assets | 74.60% | 82.22% | 87.75% | 43.85% |
Long-term Assets | 25.40% | 17.78% | 12.25% | 56.15% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 12.89% | 10.24% | 8.26% | 20.80% |
Long-term Liabilities | 26.43% | 9.74% | 0.00% | 28.42% |
Total Liabilities | 39.31% | 19.98% | 8.26% | 49.22% |
Net Worth | 60.69% | 80.02% | 91.74% | 50.78% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 76.49% | 76.98% | 77.41% | 61.18% |
Selling, General & Administrative Expenses | 39.83% | 39.27% | 38.77% | 38.56% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 2.28% |
Profit Before Interest and Taxes | 14.39% | 17.03% | 19.09% | 1.44% |
Main Ratios | ||||
Current | 5.79 | 8.03 | 10.62 | 0.99 |
Quick | 5.60 | 7.84 | 10.43 | 0.67 |
Total Debt to Total Assets | 39.31% | 19.98% | 8.26% | 52.80% |
Pre-tax Return on Net Worth | 76.88% | 58.52% | 47.43% | 2.77% |
Pre-tax Return on Assets | 46.66% | 46.83% | 43.51% | 5.88% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 9.76% | 11.73% | 13.31% | n.a |
Return on Equity | 53.82% | 40.97% | 33.20% | n.a |
Activity Ratios | ||||
Inventory Turnover | 31.29 | 33.70 | 33.70 | n.a |
Accounts Payable Turnover | 11.35 | 12.17 | 12.17 | n.a |
Payment Days | 30 | 30 | 29 | n.a |
Total Asset Turnover | 3.35 | 2.79 | 2.29 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.65 | 0.25 | 0.09 | n.a |
Current Liab. to Liab. | 0.33 | 0.51 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $44,373 | $66,487 | $95,877 | n.a |
Interest Coverage | 31.85 | 62.79 | 234.26 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.30 | 0.36 | 0.44 | n.a |
Current Debt/Total Assets | 13% | 10% | 8% | n.a |
Acid Test | 5.60 | 7.84 | 10.43 | n.a |
Sales/Net Worth | 5.52 | 3.49 | 2.50 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Pizza | 0% | $7,200 | $12,600 | $11,160 | $12,000 | $11,460 | $11,340 | $11,820 | $11,160 | $11,320 | $11,640 | $10,560 | $11,640 |
Breadsticks | 0% | $1,000 | $1,750 | $1,550 | $1,667 | $1,592 | $1,575 | $1,642 | $1,550 | $1,642 | $1,617 | $1,467 | $1,617 |
Beer | 0% | $2,000 | $3,500 | $3,100 | $3,333 | $3,183 | $3,150 | $3,283 | $3,100 | $3,283 | $3,233 | $2,933 | $3,233 |
Drinks | 0% | $2,720 | $4,760 | $4,216 | $4,533 | $4,329 | $4,284 | $4,465 | $4,216 | $4,465 | $4,397 | $3,989 | $4,397 |
Total Sales | $12,920 | $22,610 | $20,026 | $21,533 | $20,564 | $20,349 | $21,210 | $20,026 | $20,710 | $20,887 | $18,949 | $20,887 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Pizza | 32% | $2,304 | $4,032 | $3,571 | $3,840 | $3,667 | $3,629 | $3,782 | $3,571 | $3,622 | $3,725 | $3,379 | $3,725 |
Breadsticks | 20% | $200 | $350 | $310 | $333 | $318 | $315 | $328 | $310 | $328 | $323 | $293 | $323 |
Beer | 20% | $400 | $700 | $620 | $667 | $637 | $630 | $657 | $620 | $657 | $647 | $587 | $647 |
Drinks | 5% | $136 | $238 | $211 | $227 | $216 | $214 | $223 | $211 | $223 | $220 | $199 | $220 |
Subtotal Direct Cost of Sales | $3,040 | $5,320 | $4,712 | $5,067 | $4,839 | $4,788 | $4,991 | $4,712 | $4,831 | $4,915 | $4,459 | $4,915 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Kitchen Leads | 0% | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 | $2,340 |
Kitchen/Wait | 0% | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 | $3,120 |
Dishwasher | 0% | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 |
Owner | 0% | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
Delivery | 0% | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 |
Total People | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | |
Total Payroll | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |
Long-term Interest Rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $12,920 | $22,610 | $20,026 | $21,533 | $20,564 | $20,349 | $21,210 | $20,026 | $20,710 | $20,887 | $18,949 | $20,887 | |
Direct Cost of Sales | $3,040 | $5,320 | $4,712 | $5,067 | $4,839 | $4,788 | $4,991 | $4,712 | $4,831 | $4,915 | $4,459 | $4,915 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $3,040 | $5,320 | $4,712 | $5,067 | $4,839 | $4,788 | $4,991 | $4,712 | $4,831 | $4,915 | $4,459 | $4,915 | |
Gross Margin | $9,880 | $17,290 | $15,314 | $16,467 | $15,726 | $15,561 | $16,220 | $15,314 | $15,880 | $15,973 | $14,491 | $15,973 | |
Gross Margin % | 76.47% | 76.47% | 76.47% | 76.47% | 76.47% | 76.47% | 76.47% | 76.47% | 76.68% | 76.47% | 76.47% | 76.47% | |
Expenses | |||||||||||||
Payroll | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | |
Sales and Marketing and Other Expenses | $500 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $250 | $250 | $500 | $500 | |
Depreciation | $170 | $170 | $170 | $170 | $170 | $170 | $170 | $170 | $170 | $170 | $170 | $170 | |
Rent | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
Utilities | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Insurance | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
Payroll Taxes | 15% | $670 | $670 | $670 | $670 | $670 | $670 | $670 | $670 | $670 | $670 | $670 | $670 |
Website Hosting and Maintenance | 15% | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $12,350 | $12,600 | $12,600 | $12,600 | $12,600 | $12,600 | $12,600 | $12,600 | $12,100 | $12,100 | $12,350 | $12,350 | |
Profit Before Interest and Taxes | ($2,470) | $4,690 | $2,714 | $3,866 | $3,125 | $2,961 | $3,619 | $2,714 | $3,779 | $3,872 | $2,140 | $3,622 | |
EBITDA | ($2,300) | $4,860 | $2,884 | $4,036 | $3,295 | $3,131 | $3,789 | $2,884 | $3,949 | $4,042 | $2,310 | $3,792 | |
Interest Expense | $102 | $100 | $98 | $96 | $94 | $92 | $90 | $88 | $85 | $83 | $81 | $79 | |
Taxes Incurred | ($772) | $1,377 | $785 | $1,131 | $910 | $861 | $1,059 | $788 | $1,108 | $1,137 | $618 | $1,063 | |
Net Profit | ($1,801) | $3,213 | $1,831 | $2,639 | $2,122 | $2,008 | $2,471 | $1,838 | $2,586 | $2,652 | $1,441 | $2,480 | |
Net Profit/Sales | -13.94% | 14.21% | 9.14% | 12.26% | 10.32% | 9.87% | 11.65% | 9.18% | 12.49% | 12.70% | 7.61% | 11.87% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $12,920 | $22,610 | $20,026 | $21,533 | $20,564 | $20,349 | $21,210 | $20,026 | $20,710 | $20,887 | $18,949 | $20,887 | |
Subtotal Cash from Operations | $12,920 | $22,610 | $20,026 | $21,533 | $20,564 | $20,349 | $21,210 | $20,026 | $20,710 | $20,887 | $18,949 | $20,887 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $12,920 | $22,610 | $20,026 | $21,533 | $20,564 | $20,349 | $21,210 | $20,026 | $20,710 | $20,887 | $18,949 | $20,887 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | $8,810 | |
Bill Payments | $9,590 | $2,921 | $9,309 | $9,037 | $10,016 | $9,381 | $9,359 | $9,806 | $9,113 | $9,189 | $9,254 | $8,409 | |
Subtotal Spent on Operations | $18,400 | $11,731 | $18,119 | $17,847 | $18,826 | $18,191 | $18,169 | $18,616 | $17,923 | $17,999 | $18,064 | $17,219 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $18,900 | $12,231 | $18,619 | $18,347 | $19,326 | $18,691 | $18,669 | $19,116 | $18,423 | $18,499 | $18,564 | $17,719 | |
Net Cash Flow | ($5,980) | $10,379 | $1,407 | $3,187 | $1,238 | $1,658 | $2,541 | $910 | $2,288 | $2,388 | $386 | $3,168 | |
Cash Balance | $17,120 | $27,499 | $28,906 | $32,093 | $33,331 | $34,989 | $37,530 | $38,440 | $40,728 | $43,116 | $43,501 | $46,670 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $23,100 | $17,120 | $27,499 | $28,906 | $32,093 | $33,331 | $34,989 | $37,530 | $38,440 | $40,728 | $43,116 | $43,501 | $46,670 |
Inventory | $6,000 | $2,960 | $1,862 | $1,649 | $1,773 | $1,694 | $1,676 | $1,747 | $1,649 | $1,691 | $1,720 | $1,561 | $1,720 |
Other Current Assets | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 | $5,250 |
Total Current Assets | $34,350 | $25,330 | $34,611 | $35,805 | $39,116 | $40,275 | $41,915 | $44,527 | $45,339 | $47,669 | $50,086 | $50,312 | $53,640 |
Long-term Assets | |||||||||||||
Long-term Assets | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 | $20,300 |
Accumulated Depreciation | $0 | $170 | $340 | $510 | $680 | $850 | $1,020 | $1,190 | $1,360 | $1,530 | $1,700 | $1,870 | $2,040 |
Total Long-term Assets | $20,300 | $20,130 | $19,960 | $19,790 | $19,620 | $19,450 | $19,280 | $19,110 | $18,940 | $18,770 | $18,600 | $18,430 | $18,260 |
Total Assets | $54,650 | $45,460 | $54,571 | $55,595 | $58,736 | $59,725 | $61,195 | $63,637 | $64,279 | $66,439 | $68,686 | $68,742 | $71,900 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $9,500 | $2,611 | $9,008 | $8,702 | $9,703 | $9,070 | $9,031 | $9,503 | $8,806 | $8,880 | $8,975 | $8,089 | $9,267 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $9,500 | $2,611 | $9,008 | $8,702 | $9,703 | $9,070 | $9,031 | $9,503 | $8,806 | $8,880 | $8,975 | $8,089 | $9,267 |
Long-term Liabilities | $25,000 | $24,500 | $24,000 | $23,500 | $23,000 | $22,500 | $22,000 | $21,500 | $21,000 | $20,500 | $20,000 | $19,500 | $19,000 |
Total Liabilities | $34,500 | $27,111 | $33,008 | $32,202 | $32,703 | $31,570 | $31,031 | $31,003 | $29,806 | $29,380 | $28,975 | $27,589 | $28,267 |
Paid-in Capital | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 | $46,000 |
Retained Earnings | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) | ($25,850) |
Earnings | $0 | ($1,801) | $1,412 | $3,243 | $5,883 | $8,005 | $10,014 | $12,484 | $14,323 | $16,909 | $19,561 | $21,003 | $23,483 |
Total Capital | $20,150 | $18,349 | $21,562 | $23,393 | $26,033 | $28,155 | $30,164 | $32,634 | $34,473 | $37,059 | $39,711 | $41,153 | $43,633 |
Total Liabilities and Capital | $54,650 | $45,460 | $54,571 | $55,595 | $58,736 | $59,725 | $61,195 | $63,637 | $64,279 | $66,439 | $68,686 | $68,742 | $71,900 |
Net Worth | $20,150 | $18,349 | $21,562 | $23,393 | $26,033 | $28,155 | $30,164 | $32,634 | $34,473 | $37,059 | $39,711 | $41,153 | $43,633 |
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Everyone loves a good slice of pizza, and some people love it enough to make it their entire job and livelihood. If you're thinking about starting a small business, and are specifically wondering how to open a pizza shop, we're here to help.
In the U.S., pizza is wildly popular: 93% of Americans purchase pizza at least once a month. To put that percentage into perspective, that’s about 350 slices Americans are eating per second, or 100 acres of pizza eaten in a day.
Why do Americans love pizza so much? According to Rob Veltri, owner of Pizza in the Square in Yonkers, New York, loving pizza is a simple concept: “It’s one of the healthier bad foods you can have,” he says. Today, approximately 17% of the nation’s restaurants are pizzerias and the highest-grossing, single-unit independent pizzeria in America is Moose's Tooth Pub and Pizzeria in Anchorage, Alaska, which brings in about $6 million in sales annually.
So if you're ready to take the leap to restaurateur, keep reading to find out how to open a pizza shop of your very own.
Usually, the first step for opening a business would be writing a business plan. When you're starting a pizza shop, the biggest part of that plan is coming up with the perfect product to keep your customers coming back for more.
Pizza in the Square has been around for nearly 30 years and Veltri was there from day one. As a result, he remembers a time when people were afraid to try a pizza that veered slightly from the traditional. This isn’t the case anymore.
“Right now, you can put anything on a pizza,” he says. “You really can. I think that’s one of the things that makes us successful. We’re always willing to change and make things different.”
Perhaps the Italian immigrants who introduced pizza to Americans in the late 19th century wouldn’t approve of Veltri’s Nutella pie or spaghetti and meatballs pizza, but modern, more experimental consumers are loving them. Just take a look at the pizzeria’s reviews for proof, says Veltri.
Once you have the perfect recipes and menu down to a science, it's time to create the rest of your business plan for your pizza shop. This includes creating a budget, a marketing and sales plan, a name for your shop and should also include ideas for a restaurant or business space.
Something else you'll need to decide at this stage is the legal structure of your business. Choosing a business entity will be necessary for creating your business plan and the steps that follow, including what taxes you'll pay and what legal responsibilities you'll assume. Whether you opt for a sole proprietorship, LLC, C corporation or another business structure, you'll need to provide this information as you follow the next steps in starting a pizza shop. And keep in mind, you may want to consult a business attorney when making this decision.
with Fundera by NerdWallet
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Once you've crafted the business plan for your pizza shop and chosen a business entity , the next step in starting your pizza shop is registering your business. To do so, you'll need to get an employer identification number , also known as an EIN or business tax ID number. You can apply for an employer identification number with the IRS online and get one almost instantly, and this number will be used for tax, banking and credit purposes.
Registering your business also means claiming the name of your pizza shop, which is a different process in each state. Many states though, like Pennsylvania, have an online database where you can check and see if your desired business name is available.
Once you've established that the name you want for your pizza shop is available, you should register the business under that name by following the rules laid out by the state in which you'll be operating your pizza shop.
Any time you're serving food you're going to need additional permits and licenses to do so legally. After all, there's a certain level of responsibility that comes with serving customers a hot slice (or five).
The rules around these business licenses and permits can vary from state to state but you'll likely need a food service license, food handler's permit, a building health permit and more.
Having fresh ingredients isn't only good from a food safety perspective, customers want it too. “What I’ve seen in the last few years is that people have turned back to quality,” says Veltri. “If it’s a little more expensive, they understand. With the news, social media and everything, [consumers] have learned how things like the costs of goods have increased. They’ll accept the good quality if they have to pay more for it.”
He adds: “We grind our tomatoes by hand every day. That’s how we make our sauces. Everything is done from scratch. Every sauce is made from scratch. Sometimes it takes a little longer, but everything is done fresh. And that’s what we’ve focused on since day one.”
If you also plan to sell alcohol at your pizza shop, you'll need a liquor license — which can be a complicated process in its own right. Make sure you understand all of the licenses and permits you'll need when starting a pizza shop before you open your doors to customers.
Just as important as crafting the perfect recipe, creating a financial plan is essential to starting a pizza shop. After all, starting any new business is usually not cheap. As a consumer, you might think, "How expensive could the ingredients be? I can get a slice for a dollar on the street, how much could it cost the shop to make the pizza in the first place?" The answer is actually, it could cost a lot to open a pizza shop and run it successfully.
According to Veltri, it can cost anywhere between $75,000 to $100,000 for a pizza counter and maybe a few booths. If you want to open a sit-down pizzeria, that can run you at least half a million. Whatever your dream pizzeria looks like, be realistic and overestimate your startup costs — adding on an additional 15% to 25% to your budget — so that you don’t run into financial issues while starting your pizza shop.
Veltri’s reasoning for high costs: “Equipment is not cheap."
“I have two ovens in the front,” he explains. “The basic, old-fashioned oven with the stone and everything, then I also have a conveyor oven underneath that.”
While having fancy equipment, like a wood-burning oven, might have higher costs, as this New York Magazine report finds, the oh-so-satisfying taste it produces might be worth it. For instance, think about Brooklyn’s famous Roberta’s pizza joint, which has gained massive popularity and a loyal following for their wood-fired pies and home-grown ingredients.
Before you get discouraged, there are financing solutions that can provide the money you need to start your pizza shop. From restaurant equipment financing to a business term loan, or even a 0% intro APR credit card, there are several options to help get your pizza shop off the ground.
This is also where your business plan can really come in handy. Anyone considering giving you money will want to see that you have a solid plan for starting the business and eventually turning a profit. So whether you're hoping for a bank loan or to find an investor, having a solid business plan is key to starting a pizza shop.
LLC Formation
As soon as your pizza shop is officially registered and you're about to start spending money on it, you should open a business checking account . You'll want to keep your business finances separate from your personal finances, at the very least for tax purposes. Establishing your bank account early on is also an important element for building your business credit score . You can check your free business credit report in a few places online. Your business credit score is another reason the EIN is important and why you'll want it whether it's required for your business or not.
When starting a pizza shop, you'll want, at the minimum, a business checking account and a business credit card . Once you have your business account and credit card set up, be sure to use them for any expenses related to your pizza shop, including purchases, paying bills, etc.
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Jan Lundvik
August 25, 2023
Opening and running a successful pizza shop requires careful planning and hard work. This step-by-step guide will walk you through the key steps involved in starting your own pizza business within the lucrative $65 billion dollar pizza restaurant industry.
With over 100,000 pizza restaurants operating in the U.S. and employing nearly 900,000 people, competition is fierce ( Source ). This makes proper planning and execution essential to stand out.
I will cover crucial steps like deciding on your pizza shop concept and menu, writing a solid business plan, obtaining funding and licenses, hiring employees, choosing a point-of-sale system, establishing an online presence, and managing ongoing operations.
The first and most important step when starting your pizza shop is deciding on an overall restaurant concept and menu. This will be the foundation that guides your entire business strategy and all subsequent decisions.
Take time to thoughtfully research and analyze different pizza shop concepts before landing on the vision for your own restaurant.
Start by thoroughly exploring the menus and styles of successful local and national pizza chains to get inspiration. Study the ingredients they use, the types of pizzas and other offerings on their menus, as well as their dine-in ambiance and operational format.
Read reviews online and in local publications to get insight into what potential customers rave about. Stay on top of food industry predictions and reports to understand the latest popular styles and ingredients. Pizza trends are always evolving so you want your shop to feel fresh and current.
Next, decide whether you will specialize in a specific regional pizza style like New York, Chicago, or Neapolitan, or create your own unique hybrid style. Factor in your own culinary strengths, passions, and preferences.
New York-style pizza is known for its hand-tossed thin crust with a pliable edge, while Chicago deep dish involves a thick, buttery crust with heaps of cheese. The Neapolitan style uses wood-fired ovens and is characterized by a soft and chewy crust with fresh mozzarella and basil.
Determining a specialty sets you apart while informing your recipes.
Craft a menu with a wide variety of festive pizza options beyond just cheese and pepperoni. Have different sizes, diverse toppings, and creative flavor combinations to appeal to the broadest customer base. Incorporate seasonal ingredients that play to customers’ cravings.
Beyond pizza, add complementary Italian dishes like subs, salads, garlic knots, wings, and desserts. A robust menu gives customers lots of options for a complete meal.
Also, consider featuring gluten-free or vegan pizzas to accommodate growing dietary restrictions. Catering to specialty diets makes your shop more inclusive. Have a plan for clear labeling and precautions to avoid cross-contamination for food allergies.
Finally, decide whether your shop will focus on takeout and delivery, a dine-in experience, or a combination. This factors into your space requirements. If doing significant takeout and delivery business, ensure you have a plan for seamless online ordering and delivery logistics integrated into your operations.
The concept and menu you land on will dictate all subsequent decisions from kitchen layout, equipment needs, hiring staff with relevant culinary backgrounds, purchasing ingredients, and all aspects of operations.
Take time upfront to thoroughly research and refine your vision. Your thoughtful concept and menu will set the direction for your whole pizzeria.
Coming up with a great name for your pizzeria requires thoughtful brainstorming and research. The name you choose needs to create an impression, communicate your brand identity, and resonate with customers.
Start by thinking of names that are unique and memorable, avoiding generic names like “Joe’s Pizza”. You want something catchy that comes to mind easily and stands out from competitors. Just make sure phrases are easy to say and spell to avoid confusion.
Also, ensure the name fits the concept and personality of your pizzeria. Let it reflect character, whether you aim for traditional Italian charm or quirky modern ambiance. Names can also reference your specialty or values, such as using terms like “artisan” or “brick oven”.
Be sure to check domain name availability to secure a matching website URL. And take the time to get objective feedback by having friends or advisers weigh in on potential names you’re debating between.
Ultimately the priority is picking a name that effectively sticks in customers’ minds and communicates what your pizzeria is all about.
You might also like: 325 Catchy & Creative Pizza Restaurant Names
After deciding on your pizza restaurant concept, the next critical step is developing a comprehensive business plan. This is an in-depth strategic document that will analyze every aspect of your business and serve as an actionable guide for launch.
The executive summary briefly outlines your business goals and summarizes the key points from your entire plan. It should provide a high-level overview of your concept, financial projections, and competitive advantages.
Provide background on your vision and objectives for the pizza restaurant. Include details on ownership structure, proposed location, facilities, start-up timeline, and any partnerships or outside support.
Research your local area and analyze pizza industry trends more broadly. Assess direct and indirect competition. Evaluate demand and demographic factors shaping your customer base. This will demonstrate a need for your business.
Outline how you will promote and attract customers. Detail any pre-opening events or promotions. Describe ongoing strategies like social media, loyalty programs, and community outreach. Calculate associated costs.
Explain the day-to-day running of your pizza shop. Include an overview of food preparation, supplies, and equipment, staffing, online ordering capabilities, and projected sales volume.
Introduce key players involved and their qualifications. Outline the legal structure and organizational chart showing staff hierarchy and responsibilities.
Provide projected start-up costs and capital needed. Estimate operating expenses and forecast sales and revenue month-by-month for the first year. Include profit/loss, cash flow, and balance sheet projections.
Having a solid business plan is crucial for securing funding, applying for loans, attracting investors, and opening your doors with a blueprint for ongoing success.
Determining startup costs and capital needed.
The first step in securing funding for your pizza shop is to thoroughly research and estimate your expected startup costs. Typical expenses will include:
Create a detailed spreadsheet with cost estimates for each category above. Budget for 3-6 months of operating expenses in addition to these initial startup costs to have a cushion.
With your expected revenues and costs, build a startup budget and projected profit/loss statement for the first year. This will determine how much capital you need to launch and sustain the business until you turn a profit.
With your capital requirements determined, explore potential funding sources:
A prudent approach is to combine sources, like using your own savings and taking a bank loan for the rest. Compare interest rates and repayment terms for any borrowed amounts.
To qualify for SBA or bank small business loans, you’ll need to submit:
Meet with loan officers from several banks to compare interest rates, fees, and eligibility criteria before selecting a lender.
If loans don’t fully cover your capital needs, you may need to sell equity in your business to private investors. Prepare a pitch deck summarizing your business plan’s key details and growth opportunities.
Use your network and local pitch events to connect with individual, angel, and venture capital investors. Offer equity at a valuation tied to your projected profit margins and growth.
By thoroughly planning your costs, exploring all funding options, and allowing room for surprises, you can secure the capital necessary to successfully launch your pizzeria.
Researching required licenses and permits.
Opening a pizzeria requires obtaining a variety of legal licenses and permits from federal, state, and local government agencies. Thoroughly research all requirements in your city and state early in the planning process. Key licenses and permits may include:
Apply for a business license with your city or county clerk by submitting your business plan, zoning confirmations, and paying a licensing fee. This certifies your business with the municipality.
The health department must inspect your restaurant’s kitchen and facilities to issue a food service permit. Apply after signing your restaurant lease and completing build-out renovations.
If serving beer or wine, apply for a liquor license which can take months for approval. Conditional use permits may also be required if near schools or churches.
Register with your state revenue department for a tax ID number to collect and properly remit sales tax on retail purchases. This ID number is also needed for buying ingredients and supplies wholesale without paying sales tax.
Employees involved in food preparation and service must complete an approved food safety training course and obtain food handlers certificates indicating they are trained on safe food handling practices. Ensure certificates stay current per state requirements.
If planning sidewalk or patio seating, confirm if an outdoor seating permit is required and any associated fees. A layout plan indicating ADA accessibility may need approval.
Many cities require individual delivery driver permits for each driver delivering orders, to ensure they meet insurance and driver safety requirements.
Contract with third-party delivery services like UberEats and DoorDash to assist with order delivery. Negotiate optimal terms for fees charged, delivery radius, and any tablets or devices they may provide.
Compile all documentation required for each license/permit application well in advance of your target opening date. Partner with contractors familiar with local regulations. Passing inspections and securing permits on schedule is crucial for opening on time.
Here are some tips to ensure you have all the necessary documentation compiled for license and permit applications for your pizza restaurant:
Staying organized, thorough, and proactive when compiling application documentation will prevent delays in getting your pizza shop licensed and opened. Allow plenty of time in your timeline.
Here are a couple of template examples you could use as a starting point for cover letters when submitting license applications for opening your pizza restaurant:
Dear [Name of Licensing Department/Agency],
Please find enclosed all documents for my application for a [name of license] to open my pizzeria, [Restaurant Name], located at [address].
Enclosed you will find the following:
Please review my application and let me know if you need any additional information. I look forward to receiving approval to move forward with opening my restaurant. Feel free to contact me with any questions.
Thank you for your time and consideration.
Sincerely, [Your Name] [Contact Info]
To Whom It May Concern:
My name is [Your Name] and I am excited to open my pizzeria, [Restaurant Name], pending approval of my applications for a Food Service Permit and Liquor License.
Attached you will find the complete documentation required, including:
Please let me know if you need any additional documentation or clarification. I am happy to provide more details. Thank you for your time and consideration of my application.
Sincerely, [Your Signature]
Researching ideal locations.
Start your location search by defining the geographic area or neighborhood you want to be in based on your target demographic and competitive analysis. Drive around to get a feel for availability, foot traffic, parking, and visibility.
Make notes on spaces for lease that fit your size and budget. Search commercial real estate listings to map out costs per square foot in desirable areas and buildings.
Look for spaces already zoned for restaurant use that have some existing kitchen facilities in place. This saves significantly on build-out costs compared to a raw, undeveloped space. Carefully evaluate the kitchen layout, proximity to utilities and plumbing, ventilation, and any changes needed to meet your equipment needs.
The ideal location will be easily seen from the street with signage opportunities. Check for heavy foot traffic and parking lots or garages nearby. There should be convenient pickup and delivery access without congested entries or exits.
Ensure the building and parking are ADA compliant with disability access to the entrance, restrooms, and interior layout. High visibility spots in shopping centers or downtown districts often offset higher rents.
Thoroughly review lease terms before signing and negotiate the most favorable rates and conditions. Look for a longer initial term like 5+ years to secure lower rents and recoup renovation costs.
Control operating expenses by capping increases and understanding each fee. Limit personal liability if the business fails. Build in repair obligations and fair renewal increases.
With a lease secured, design an inviting storefront and interior that aligns with your pizza brand. Plan your renovation timeline around equipment installations and permitting inspections to meet your opening date. Select durable, easy-to-clean finishes.
Conducting due diligence and prioritizing the right location for visibility, accessibility, and customer convenience will give your pizzeria the best chance of success.
Here are some common pitfalls to avoid when negotiating a commercial lease for a pizza shop location:
Finding suppliers for quality ingredients.
Research and vet suppliers that can consistently provide the fresh ingredients integral to your menu and recipes. For dough, cheese, sauce, and toppings, prioritize suppliers with high-quality, authentic Italian offerings.
Look for local farms or vendors for fresh, seasonal produce. Don’t forget specialty items like vegan cheese, gluten-free dough, or proprietary spices. Getting samples of ingredients helps evaluate quality.
Partner with one or two restaurant food distributors like US Foods or Sysco to source the bulk of your ingredients, kitchen disposables, cleaning supplies, and other restaurant materials at wholesale prices.
Negotiate your account pricing and minimum order quantities based on projected menu volumes. Compare overall pricing, delivery fees, ordering systems, and customer service across distributors before selecting one as your primary partner.
Clearly communicate your projected order volumes, menu items, and purchasing needs so your distributor can assign wholesale rates and delivery days that meet your budget and kitchen prep schedules.
Agree on regular delivery days/times to maintain consistent inventory. Get clarity on lead times for specialty imports or custom orders. Confirm order minimums and payment terms as well.
Research quality commercial pizza ovens and other essential equipment like refrigerators, freezers, ventilation, pizza peels, and dough rollers. Don’t forget smallwares like baking pans, utensils, and containers.
Compare options across restaurant supply retailers to find the right balance of quality and value. Order early to ensure availability and account for shipping or installation delays.
Allow plenty of time to thoughtfully source all ingredients, materials, and equipment needed to craft high-quality pizzas. Building relationships with the right suppliers is invaluable.
Investing in an intuitive yet powerful pizza POS system will provide convenience, speed, and accuracy in managing all transactions.
Choosing a POS system is one of the most crucial technology decisions for operating a smooth and efficient pizza shop. The POS serves as the central hub for processing and managing all customer orders and financial transactions that are the lifeblood of your business.
Consider the number of POS terminals you need at the counter, bar, kitchen, and takeout areas. Determine must-have POS features aligned with your operations like online ordering integrations, loyalty programs, reservation management, liquor controls etc.
Factor in existing hardware like tablets and computers or if you need an all-in-one standalone POS terminal. Set a realistic budget for both hardware and monthly software costs.
Research specialized restaurant POS systems like Toast, Slice, TouchBistro, and Square tailored for food businesses. For pizza shops specifically, prioritize systems efficient at order entry, menu customizations, splitting checks, and time-based reminders for delivery.
Assess reporting features, e-commerce integrations, payment processing capabilities, data security, and hardware options. Consider scalability to support your growth.
Choose the POS system that most affordably meets your feature needs, integrates with other platforms you use, and offers top-notch support. Simplicity, flexibility, and ease of use are key for staff adoption. Opt for month-to-month contracts when available to pivot if needed.
Read more: 7 Best Pizza POS Systems
Once selected, set up your menu with sections, modifiers, combos, and ingredients mapped to inventory management. Enter customer relationship contacts, create manager permissions, and configure settings to match your workflows for accepting orders, routing to the kitchen, processing payments, tipping, and reporting.
Thoroughly train staff on using the POS system through videos, manuals, and hands-on guidance. Have managers monitor use to ensure employees are comfortable processing orders and payments accurately and efficiently. Continue refining your setup and training until the POS platform is second nature.
A quality pizza POS maximizes order accuracy, speed of service, and provides robust reporting to make data-driven decisions. The investment pays dividends in optimizing operations.
In short, the right POS maximizes efficiency, accuracy, security, and provides the robust functionality needed to run a high-volume pizza operation. That’s why carefully evaluating your needs and selecting a POS that excels in areas like order management, reporting, and integration is a pivotal business decision.
Employing talented, caring staff is one of the most important investments you can make when opening a pizzeria. The quality of your team directly impacts everything from food preparation and service speed to cleanliness, customer satisfaction and company culture.
That’s why it’s crucial to approach hiring deliberately – screen applicants thoroughly for required skills, hospitality mindset, and fit with your brand. Look for pizza makers with an eye for detail and chefs with creativity and efficiency.
Hire servers who can juggle busy rushes with care and friendliness. Your managers should have leadership skills to rally the team. Once hired, comprehensive training across company policies, systems, menus and service philosophy is vital, even for experienced hires.
Determine Hiring Needs and Create Job Postings
Interview Potential Candidates for Front and Back of House
Conduct Background Checks Before Hiring
Set Up Payroll and Employment Paperwork
Train Staff on Menu, Systems, and Customer Service
Investing the time to properly onboard staff and nurture their growth allows you to deliver high standards and amazing experiences that keep customers coming back. Your team represents your brand, so developing a stellar crew through careful hiring and training creates immense value as you work to build a beloved pizzeria.
Here are some mistakes to avoid when hiring staff for a pizzeria:
Opening a new pizzeria is an exciting venture, but promoting your restaurant and attracting customers takes thoughtful planning and execution.
In an increasingly competitive food industry, creating compelling branding and running strategic marketing campaigns are critical for spreading awareness about your new entrant pizzeria and driving customer traffic continually.
Taking the time upfront to establish your pizzeria’s visual identity through logo , graphic design, messaging, and packaging is invaluable. This builds recognition and an emotional connection with patrons. Likewise, designing high-quality menus , website , signage and branded merchandise allows customers to interact with your brand anywhere.
You need to lay the groundwork for attracting an initial customer base through advertising and promotions touting your opening. But just as importantly, you need a strategy for sustaining awareness and engagement after those launch promotions end.
Ongoing social media content , community events, email marketing , and loyalty programs are key to retaining customers and catalyzing vital word-of-mouth referrals.
Design Your Brand Identity and Assets
Craft Your Messaging and Value Proposition
Build Your Digital Presence
Create Launch Marketing Materials and Advertising
Plan Ongoing Promotions to Draw Customers
In essence, thoughtful brand building and strategic marketing create familiarity and preference for your pizzeria, while continually communicating what makes your concept unique. This ultimately drives new visits and repeat business, catalyzing long-term success.
That’s why new pizzerias need to make their visual identity, messaging, and coordinated marketing plan a top priority right from the start.
Leverage social media – Create content highlighting your offerings and engage followers with giveaways, polls and hashtags. Boost key posts for targeted reach.
Partner with local businesses – Cross-promote through co-branded packages or offers. Trade gift cards to expand reach.
Focus on retention – Send birthday/loyalty emails. Offer free add-ons or dessert with purchase. Build advocacy through amazing service.
Foster community connections – Support local schools, charities and teams. Gets your name out there while giving back.
Take advantage of free listings – Get on Google Business, Yelp, TripAdvisor, food delivery apps. Keep info updated.
Offer soft openings – Give sneak previews to influencers, food bloggers and local media for organic publicity.
Leverage guerilla marketing – Use sidewalk signs, car toppers, flyers in creative eye-catching ways on a tight budget.
Partner with vendors – Ask suppliers about co-op advertising support or product trial placements.
Budget-friendly options exist! Get creative with grassroots and community-focused tactics.
In today’s digital-focused world, creating a robust online presence and leveraging technology across operations is absolutely essential for any new pizzeria hoping to effectively reach customers and facilitate orders.
Customers expect to be able to easily access menus, place orders, and engage with restaurants through websites and apps.
This means new pizzerias need to dedicate time upfront to building well-designed websites with integrated ordering capabilities, partnering with popular delivery apps, launching social media profiles, and potentially even developing their own branded apps.
Build a Website for Menus, Online Ordering, Reservations etc.
Partner with Delivery Services like UberEats, DoorDash, GrubHub etc.
Enable Online Ordering through Your Website or Apps
Create Social Media Accounts for Marketing and Promotions
Using technology to create convenience and connect with patrons online enables new restaurants to keep up with competitors, maximize their reach, provide desired digital options, and operate efficiently across both online and in-store channels.
In essence, tech capabilities are no longer nice-to-haves but fundamental necessities for launching a thriving pizzeria in the modern digital era.
The launch period is a crucial window for showcasing your pizzeria to the public and generating buzz, so it’s important to execute a strategic marketing plan. Your grand opening is your chance to make a great first impression and get residents excited about your arrival.
This requires dedicating time and budget to spreading awareness through advertising and PR in the weeks leading up. You also want to incentivize customers to visit early on through tantalizing opening promotions and offers.
Additionally, hosting soft opening events for media and select guests allows you to test systems and get constructive feedback before the official launch.
Host Soft Opening / VIP Preview Event – Invite select guests like media, food influencers , and investors to test operations and collect feedback before the official opening.
Spread Awareness through Print, Digital Ads, and PR – Take out ads in local publications. Pitch stories to reporters. Promote across social media.
Promote the Grand Opening Event through Promotions – Offer discounts, freebies, and contests leading up to launch to create buzz.
Offer Opening Discounts or Deals to Attract Customers – Run promotions like 25% off for the first 2 weeks to incentivize initial visits.
Collect Feedback and Reviews from Early Customers – Survey early patrons and address any areas needed for improvement immediately and encourage sharing reviews on Google, Yelp, and social media. Respond promptly.
Your marketing efforts need to convey your unique concept, high-quality food and service, and celebration of the community you’re joining. Nailing your pizzeria’s launch with compelling messaging and strategic promotions lays the foundation for building ongoing awareness and customer loyalty in your market.
Once the excitement of your opening has passed, careful management and measurement of day-to-day operations becomes vital for your pizzeria’s ongoing success.
It’s crucial to constantly monitor your sales performance, cost efficiency, online order volumes, customer satisfaction, and marketing effectiveness after launch.
Analyzing various performance indicators and metrics will reveal opportunities to fine-tune your menu, adjust staffing schedules, improve online platforms, rationalize costs or boost specific dayparts and channels. Just as importantly, you need to keep delighting customers through great service and food quality.
Track Sales, Costs, Inventory to Monitor Performance – Analyze sales reports, invoices, and POS system data regularly to inform decisions.
Maintain Quality Control and High Customer Service Standards – Conduct staff training refreshers on food prep, taking orders, and satisfaction practices.
Schedule Staff Appropriately During Busy and Slow Periods – Forecast labor needs based on guest volume patterns and local events.
Manage Online Orders, Delivery Logistics, and Customer Service – Monitor order volumes by channel and delivery zone. Address issues promptly.
Run Promotions and Advertise on Website and Social Media – Highlight new menu items, events, and specials. Share positive reviews.
Track Online Sales and Marketing Metrics – Review website traffic, social engagement, and online conversion rates.
Plan New Menu Rollouts, Promotions, and Events – Develop seasonal offerings and special events to continually attract customers.
Set Goals and Budgets for Future Growth – Outline goals for sales, labor costs, expansion plans and set budgets.
With intense competition, you can’t afford complacency after opening. Savvy pizzeria owners continually track operational data, find ways to optimize processes, rollout enticing promotions, and invest in strategic improvements to nurture growth and adapt to evolving customer preferences.
Hands-on, data-driven management using analytics and reports in your POS enables you to build on early momentum for long-term profitability and success.
Launching a successful pizza business takes passion, planning, and hard work. But the rewards of owning a beloved community dining destination are immense. By following the steps outlined in this guide, you can turn your pizza dreams into reality.
Some of the key takeaways include:
These resources can provide valuable information, guidance, and support for small businesses, including those starting a pizza shop business. They cover various aspects of business planning, marketing, financing, and operations.
Small Business Development Centers (SBDCs) – SBDCs provide free consulting services, training programs, and resources to help entrepreneurs start and grow their businesses.
U.S. Small Business Administration (SBA) – The SBA offers a wide range of resources for small businesses, including business planning guides, loan programs, and educational resources.
SCORE – SCORE is a nonprofit organization that provides free mentoring services and resources for small business owners. They offer guidance on various aspects of starting and running a business, including business planning, marketing, and financial management.
GSA – The GSA provides resources to help small businesses learn more about doing business with the government, government contracting opportunities, and marketing their contracts.
Consumer Financial Protection Bureau – The Consumer Financial Protection Bureau provides resources for small business owners, including information on small business lending and access to credit. They aim to increase awareness and support for small businesses in the lending marketplace.
Pizza Industry Council – The Pizza Industry Council is a group modeled after the National Restaurant Association’s Fast Casual Industry Council, aimed at addressing issues specific to pizza operators
American Pizza Community – The American Pizza Community is a coalition of pizza industry leaders that advocates for policies that support the pizza industry and its customers
Jan is a writer and content creator at KitchenBusiness.com with a focus on the restaurant and food service industry. Drawing from his background in tech and UX design, Jan breaks down complex systems into digestible, actionable insights.
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Designing your pizzeria business plan, create a robust pizzeria business model and let orders.co help you succeed.
Pizza Hut recently planned a special release of its version of a burger , but it didn’t look like the usual burgers from McDonald’s or Burger King.
Instead, it mixed the best of pizza and burgers into something unique. This creative idea shows the importance of thinking outside the box and planning well in the food business.
Starting a successful pizzeria as an independent restaurant owner requires the same creativity and careful planning. Whether you’re new to the restaurant industry or have extensive experience, making a good restaurant business plan for your pizzeria is key.
So, let’s explore the steps to creating a winning pizzeria business plan that will help you succeed in a competitive market!
If you’re still on the fence about opening your own pizzeria , then jump right up!
Consider this impressive statistic: consumers in the United States spent around 41.3 billion U.S. dollars on pizza within the quick-service restaurant (QSR) industry in 2023.
In fact, QSR sales in the pizza category are the second largest, only behind hamburgers. This significant spending highlights the strong demand for pizza and the lucrative opportunities it offers.
Here are also several reasons why a pizzeria can be a profitable business:
A well-planned pizzeria can become a thriving business by getting advantages, leading to fruitful success in the competitive food industry.
Creating a detailed business plan is crucial for the success of your pizzeria . It serves as a roadmap, guiding you through the process of establishing and growing your business. Here are the essential steps and considerations to include in your pizzeria business plan:
Decide on the legal structure of your pizzeria. Options include:
Register your business with local, state, and federal authorities, and obtain any necessary licenses and permits.
Conduct a market analysis and identify the specific demographic you aim to serve. Consider factors like:
Thoroughly estimate all expenses involved in starting and running your pizzeria:
Explore different funding options to cover your initial and operational costs:
Consider how you will handle deliveries:
Create detailed financial projections to plan for profitability:
Develop a comprehensive marketing plan to attract and retain customers:
By carefully planning each step and considering all the factors involved, you can create a solid pizza business plan that will guide you toward building a successful and profitable pizzeria.
Developing a pizza shop business plan is a comprehensive process that requires careful planning, strategic decision-making, and a clear understanding of the market.
Every step is crucial for your success, from choosing the right business structure and identifying your target market to calculating costs and creating a robust financial plan.
Marketing, efficient delivery options, and a strong online presence are also key components that will help your pizzeria stand out and thrive.
To make this journey easier, consider using the powerful tools and services offered by Orders.co .
Our platform can significantly simplify your operations and boost your efficiency in several ways:
By utilizing Orders.co , you can confidently navigate pizza restaurant management and focus on what you do best—creating delicious pizzas that keep your customers returning for more.
Schedule a FREE demo with Orders.co today to see how these tools can help your pizza business start swiftly and operate smoothly.
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Dave Lavinsky | September 9, 2022 |
A pizza shop business plan is documentation that lays out your vision and roadmap for growing your pizza business. It serves two main purposes. First, if you’re looking to raise funding to start or grow your pizzeria, your business plan is an essential document that banks and/or investors will review before providing funding. Second, your restaurant business plan template serves as a strategic guide and roadmap to follow in your quest to grow your pizza shop.
Your pizza shop business plan should include nine components as follows:
Industry analysis, customer analysis, competitive analysis.
Management team, financial plan.
While this is the typical order in which a restaurant plan is laid out, there are four key types of sections in this simple business plan template . Below you will learn about each of these sections and how to complete them.
There are three components of your business plan that are research oriented. Here’s a closer look at those components.
The industry analysis part of your restaurant plan discusses the size of the pizza industry and trends facing it. While you may not consider this to be an essential element, banks often do. Completing this component shows banks that you are sophisticated and understand the market in which you are competing.
Also, the research you conduct here could improve your strategy. For example, let’s say you uncovered a major trend towards gluten-free pizza crusts. You might then alter your products to include gluten-free options and enjoy sales growth as a result.
The customer analysis component of your pizza shop business plan details the key customers you serve. Ideally you can document their demographic make-up (e.g. ages, income levels, etc.) and their wants and needs.
Documenting your target customers can improve your marketing food business plan. For example, if you found many of your customers were members of a certain club, sponsoring that club’s events could bring in new customers. Likewise, knowing your target customers’ demographics allows you to better target them using social media and other advertising platforms.
After you create a business plan and complete it, you should research other pizza shops in your area to find their strengths and weaknesses. Go to review sites like Yelp to learn what their customers think about them.
Document what you learn in your business plan, but more importantly, use it to improve your offerings. For example, if customers like a competitor’s pizza varieties, customer service, or quick take-out options, these are items you too should consider developing to be competitive in the market.
There are three components of your business plan that are strategy oriented. Read on for more details about those components.
The marketing plan for a pizza shop includes the “4Ps”, or product, place, price, and promotions:
Your operations plan has two parts.
The first, known as “everyday operations,” discusses the staffing required to run your pizza shop on a day-to-day basis.
The second part includes your milestones. In this section, detail the key milestones you’d like to achieve over the next five years. Here’s how to best complete this. First, start by envisioning where you’d like your pizza business to be in five years. For example, let’s say you’d like to have revenues of $3 million. Then think about how many customers you will need to achieve that goal and how many locations you must have.
So, in a restaurant business plan example, your five-year milestones might include the following: Sales of $3 million; 250,000 customers served, two locations. Then, work backwards to figure out what goals you must achieve in year four, year three, year two and most importantly in the coming year.
For the coming year, break down the milestones even further and get more granular. For example, if you hope to open a shop in year two, in March of year one, a milestone could be to start looking at new locations. June’s milestone might be to begin construction. December’s milestone might be to hire the new store manager. The goal is to really map out your growth and determine short-term milestones. When achieved, these goals will progress you and your company towards meeting your long-term goals in your overall pizza business plan.
A financial plan for a pizza shop details the amount of money you need to raise, if applicable, to grow your business. It also includes financial projections showing your expected growth. Your projections must include an income statement, balance sheet and cash flow statement.
In completing your financial projections, you must make assumptions about many items such as sales growth, employee salaries, costs of goods sold, etc. As much as possible, base these assumptions on past results so you create the most realistic projections possible.
Two components of your business plan discuss your current pizza shop. Let’s explore those components further.
The company overview section of your pizza business plan details your history. Here you will want to discuss your accomplishments and milestones to date. For example, include the date you first opened your shop, the date when you reached $X in sales, etc.
Importantly, think through the strategies you employed in your food business plan to achieve your past results, and whether you should use the same strategies to grow.
In the management section, list the bios of the key members of your team. If investors or lenders read your pizza business plan, they’ll want confidence that your pizza shop is led by the right people. Discuss your team’s achievements to date.
Also, if you plan to expand and hire new employees, discuss the key employees you must hire and the ideal characteristics of each.
Your executive summary sums up your entire business plan. It should provide highlights from each key area of your plan. For example, while in your marketing plan for a pizza shop, you might include three paragraphs describing your top promotional methods, in your executive summary, you’ll include just one line saying “X, Y and Z are the three promotional methods we will employ.”
In addition to summarizing your key sections, your executive summary should answer a critical question of investors and lenders. That question is “why are you uniquely qualified to succeed.”
While your answers will vary, here are many ways in which your pizza shop could be uniquely qualified to succeed:
Importantly, you should always be thinking about how to create more unique qualifications. For example, would hiring a new staff member give you unique capabilities? Ask yourself this question when thinking through your business strategies in your pizza business plan.
As mentioned above, one key way to enjoy and promote (to investors/lenders) your unique qualifications is to gain operational excellence. A simple way to accomplish this is to use Revel’s Pizza POS System . With Revel’s system you enjoy easy to set up online ordering, customizable delivery options, a customer loyalty program and inventory management among other benefits. Start using Revel's platform now and your business plan, strategy and results should quickly improve.
Written by Dave Lavinsky
You’ve come to the right place to create your Pizza business plan.
We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Pizza businesses.
Below is a template to help you create each section of your Pizza business plan.
Business overview.
Papa Jack’s is a new pizza restaurant in the Cincinnati, Ohio area that will serve residents, businesses and local schools. The restaurant will primarily be a dine-in establishment, but will also offer delivery and pick-up. The pizzeria offers an extensive menu that includes pizza, sandwiches, pasta, salads, desserts, and drinks. All of our food is made from unique and authentic Italian recipes created by the founder himself.
Papa Jack’s is founded and run by Jack Russo. Jack has spent the past 15 years in the restaurant industry, working as a waiter, chef, and restaurant manager. His experience in the industry has given him the knowledge and skills needed to run all aspects of a pizza restaurant.
Papa Jack’s will offer a full menu of pizzas, salads, sandwiches, and desserts. Pizza selections include thin crust, pan and stuffed, while pasta options include all traditional Italian specialties like spaghetti and meatballs, fettuccine alfredo and lasagna. Sandwiches include Italian Beef, Sausage and Chicken Parmesan.
The restaurant is also available for private events and catering.
Papa Jack’s will serve the residents and workers of Cincinnati, Ohio and the immediately surrounding areas. The area is home to thousands of families and students who are always looking for high-quality pizza restaurants. Cincinnati is also full of hard-working laborers who need high-quality dine-in and takeout options after a hard day of work.
Papa Jack’s is founded and run by Jack Russo. Jack has worked in the restaurant industry for 15 years and is knowledgeable of the operations and standard procedures of running a restaurant. Jack is also a well-respected chef who has made thousands of pizzas and other Italian dishes throughout his career. After spending years working at other restaurants, Jack has decided to run his own pizza restaurant where he can sell pizzas made from his own unique and authentic recipes. Though Jack has experience managing a restaurant, he will hire other management staff to help him run Papa Jack’s.
Papa Jack’s will be able to achieve success by offering the following competitive advantages:
Papa Jack’s is seeking a total funding of $400,000 to launch its pizza restaurant. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
The following graph below outlines the pro forma financial projections for Papa Jack’s.
Who is papa jack’s, papa jack’s history.
Papa Jack’s was founded by Jack Russo. Jack has worked in the restaurant industry for 15 years and is ready to apply his experience and skills in his own pizza restaurant. His experience as a chef has helped him create an extensive menu made from his own unique and authentic recipes.
Jack incorporated Papa Jack’s on February 1st, 2023 and was able to achieve the following milestones since then:
Industry analysis.
The pizza industry has grown over the past five years due to rising consumer spending and changing preferences. Consumer spending is expected to increase an annualized 3.0%, as unemployment declines and economic conditions improve. As a result, the pizza industry has benefitted.
Changing consumer preferences have altered the industry over the past five years. Americans have become more concerned about their health and the food they eat, moving away from food high in fat, salt and sugar. Organic, locally grown and gourmet food has become more popular, and pizzerias are offering a greater array of flatbreads and whole-wheat and gluten-free crusts as a result. Consumers have also been indicating a preference for quick-service pizza shops, where pizza can be ordered online, rather than traditional, sit-down pizza restaurants.
The way operators use technology will also become increasingly important to the industry’s performance as consumers increasingly use their smartphones or tablets to order, expecting seamless internet interfaces that make it easy to customize pizza preferences.
Demographic profile of target market.
The following are the precise demographics of the Cincinnati area:
Papa Jack’s will primarily target the following customer profiles:
Direct and indirect competitors.
Papa Jack’s will face competition from other companies with similar business profiles. A description of each competitor company is below.
Pizza Garden was founded in 1988 and opened its first franchise a year later. Pizza Garden has nearly 14,000 restaurants, about 60% of which are in the United States. Similar to its competitors, the company focuses on a franchise model, with over 90.0% of Pizza Garden restaurants operating under franchise or license agreements.
Pizza Garden’s menu features a range of pizzas, offering a variety of toppings suited to local preferences and tastes. Many Pizza Garden locations also offer pasta and chicken wings. Pizza Garden offers casual dine-in, delivery and carryout.
Founded in 1985, City Pizzeria is one of the largest pizza restaurant chains in the United States. The company operates and franchises pizza delivery and carryout. The company operates in all 50 states and in 34 countries.
City Pizzeria’s menu includes pizza, and other side items such as breadsticks, cheese sticks, chicken wings and desserts, all made of quality ingredients on a consistent basis. The company’s quality control center system takes advantage of volume purchasing of food and supplies and provides consistency in fresh dough production. The company’s marketing strategy has increasingly been focused towards online and digital marketing in response to increasing consumer use of online and mobile technology.
Checkers Pizza has grown to over 14,800 company-owned and franchised locations worldwide since its founding in 1960. Checkers Pizza operates in all 50 states and has locations in more than 70 countries. Furthermore, it is the second-largest pizza company in the world. Checkers Pizza sales are primarily generated through its pizza delivery business. As a result, the company focuses on securing its position within the industry by providing convenient store locations and an efficient supply chain.
Checkers Pizza’s menu varies regionally, but is primarily focused on Italian-American entrees and side dishes. They recently added artisan-style pizzas and added handmade pan pizza to their menu. They also have pasta, chicken, bread bowls, desserts and oven-baked sandwiches.
Papa Jack’s will be able to offer the following advantages over their competition:
Brand & value proposition.
Papa Jack’s will offer the unique value proposition to its clientele:
The promotions strategy for Papa Jack’s is as follows:
Papa Jack’s will initially give free pizza samples to passersby to enable them to taste the quality of our products and learn about us.
Website/SEO
Papa Jack’s will develop a professional website that showcases pictures of our pizzas, drinks, and other food offerings. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
Jack Russo will create the company’s social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures of the restaurant and popular items on the menu. The company will use targeted marketing to appeal to our target demographics.
Word of Mouth & Referrals
Papa Jack’s is confident that its existing loyal clients will spread the word and refer the pizzeria to residents who may not be familiar with it. The pizzas speak for themselves and word will quickly spread around town of the delicious pizza and food that Papa Jack’s has to offer.
The pricing of Papa Jack’s will be moderate and on par with competitors so customers feel they receive value when purchasing our pizzas and other food items.
The operations plan for Papa Jack’s is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:
Operation Functions:
Papa Jack’s aims to open in the next six months. The following are the milestones needed in order to obtain this goal.
Key revenue & costs.
Papa Jack’s revenues will come primarily from selling pizza, sandwiches, pasta, drinks, and other food items.
The major costs for the company will be food costs and salaries. In the initial years, the company’s marketing cost is expected to be high, as it establishes itself in the market.
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
What is a pizza business plan.
A pizza business plan is a plan to start and/or grow your pizza business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Pizza business plan using our Pizza Business Plan Template here .
There are a number of different kinds of pizza businesses , some examples include: Franchise Pizza Shop, Full Service Pizza Shop, and Quick Service Pizza Shop.
Pizza businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting a pizza business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Pizza Business Plan - The first step in starting a business is to create a detailed pizza business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your pizza business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your pizza business is in compliance with local laws.
3. Register Your Pizza Business - Once you have chosen a legal structure, the next step is to register your pizza business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your pizza business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Pizza Equipment & Supplies - In order to start your pizza business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your pizza business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Franchise Business Plan Template Restaurant Business Plan Template Fast Food Business Plan Template
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Back to All Business Ideas
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on March 25, 2022
Investment range
$14,550 - $29,100
Revenue potential
$275,000 - $820,000 p.a.
Time to build
1 – 3 months
Profit potential
$41,000 - $125,000 p.a.
Industry trend
Here are the most important factors to think about when you are opening a pizza shop:
Discover the Story Behind Cleveland’s Famous Pizza Bagels
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You May Also Wonder:
Is a pizza shop a profitable business?
Yes, pizza shops have a higher profit margin on average than other types of restaurants. If you have great pizza and unique flavors, you can stand out from the competition and be successful.
Where was the first pizzeria in the United States?
The first pizzeria in the United States is generally believed to be Lombardi’s, which was opened in New York City in 1905. Lombardi’s was founded by Italian immigrant Gennaro Lombardi, who had previously worked as a baker in Naples, Italy.
What are the most popular pizza toppings in the United States?
Popular pizza toppings in the United States include spicy beef and pork pepperoni, fresh or canned mushrooms, ground meat sausage, diced or sliced white or red onions, fresh sliced or diced green peppers, black or green olives, small pieces of bacon, divisive pineapple, extra mozzarella or other cheeses, and fresh or canned sliced or diced tomatoes.
How do I attract customers to my pizza shop?
To attract customers to your pizza shop, focus on using high-quality ingredients, creating delicious pizzas with unique flavor combinations, and offering a variety of toppings. Provide prompt and efficient service, establish a strong online presence, and offer convenient online ordering and delivery options.
How can I differentiate my pizza shop from competitors in the market?
To differentiate your pizza shop from competitors, develop signature pizzas with distinct flavors and innovative crust options. Provide exceptional customer service, create a compelling brand story, and utilize creative marketing techniques. Consider offering specialized menu items like gourmet appetizers, fresh salads, or unique desserts. Emphasize the use of local and sustainable ingredients to attract customers who value supporting local businesses and sustainable food practices.
Which pizza is the most popular in the USA?
Common favorites include cheese pizza, pepperoni pizza, margherita pizza, BBQ chicken pizza, and supreme pizza with various toppings.
Pros and cons.
Starting a pizzeria has pros and cons to consider before deciding if it’s right for you.
Industry size and growth.
Startup costs for a pizza shop range from $15,000 to $30,000 or more. Costs include a space rental deposit, space preparation, and kitchen equipment.
You’ll need a handful of items to successfully launch your pizza shop business, including:
Start-up Costs | Ballpark Range | Average |
---|---|---|
Setting up a business name and corporation | $150–$200 | $175 |
Business licenses and permits | $100–$300 | $200 |
Insurance | $100–$300 | $200 |
Business cards and brochures | $200–$300 | $250 |
Website setup | $1,000–$3,000 | $2,000 |
Pizza shop space rental | $3,000–$5,000 | $4,000 |
Space preparation with a counter, tables and chairs | $5,000–$10,000 | $7,500 |
Kitchen equipment | $5,000–$10,000 | $7,500 |
Total | $14,550–$29,100 | $21,825 |
Pizza prices range from $7 for a small cheese pizza to $20 or more for a specialty pizza with toppings. You can also sell beverages, so these calculations will assume that your average sale price will be $15. The average profit margin for pizza shops is 15%.
In your first year or two, you might sell 50 pizzas a day, bringing in nearly $275,000 in annual revenue. This would mean $41,000 in profit, assuming that 15% margin. As your brand gains recognition and you get repeat customers, sales could climb to 150 a day. With an annual revenue of $820,000, you’d make a tidy profit of almost $125,000.
There are a few barriers to entry for a pizza shop. Your biggest challenges will be:
Step 2: hone your idea.
Now that you know what’s involved in starting a pizza shop, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research pizza shops in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a gluten-free or vegan pizza shop.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as Indian-inspired pizzas or Middle Eastern-inspired pizzas.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You’ll need to come up with a pizza menu, but you can also offer additional food and beverage items like garlic bread, chicken wings, and alcoholic beverages.
You’ll need to check local pizza prices to make sure you’re competitive in your market. Prices will also depend on what it costs to make your pizzas. You should aim for a profit margin after all costs of about 15%.
Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will be broad, since almost everyone likes pizza. You should spread out your marketing to include TikTok, Instagram, Facebook, and even LinkedIn.
The location of your pizza shop is a crucial factor that can determine the success or failure of your business. To ensure success, aim to find a spot that can be considered a pizza lover’s paradise. Look for an area with a high volume of foot traffic, where potential customers are constantly passing by.
It’s also beneficial to choose a location near residential areas, as this will make your shop easily accessible and convenient for customers looking for a quick and delicious meal.
You’ll need to rent out a space for your shop. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Discover over 300 unique pizza shop name ideas here . If you want your business name to include specific keywords, you can also use our pizza shop business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Find a Domain
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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to pizza shops.
If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your pizza shop will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.
Choose Your State
We recommend ZenBusiness as the Best LLC Service for 2024
The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, by mail, or by fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist , and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a pizza shop business. You might also try crowdfunding if you have an innovative concept.
Starting a pizza shop business requires obtaining a number of licenses and permits from local, state, and federal governments.
A pizza shop may need the following, depending on the requirements in your area:
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your pizza shop business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as Restaurant 365 , lightspeed , or toast , to manage your inventory, orders, staff, and payments.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.
However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today’s customers are inundated with buying options, so you’ll have a real advantage if they can quickly grasp how your pizza shop meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your pizza shop business could be:
You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a pizza shop business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in pizza for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in pizza shops. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a pizza shop business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Are you ready to share pizza joy with your community? If you can make great pizza, you’ll be pleasing many palates and joining a growing $50 billion market while making good money and having fun whipping up tasty creations. You can become the go-to pizza shop in your area, and eventually expand into a chain of pizza shops.
You’ve learned what you need to know about pizza entrepreneurship, so now it’s time to get tossing and launch your successful pizza shop!
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Pizza, pizza, pizza! Who doesn’t love a delicious slice of cheesy, saucy heaven? If you’re considering starting a pizza shop business, you’re in the right place! This blog will dive into creating a solid business plan to ensure your pizzeria’s success. From market research and financial projections to menu development and marketing strategies, we’ve got you covered. So grab a slice, and let’s get started!
A pizza shop business plan is a document that guides how to start and manage a pizza shop business. The plan includes details on how you will make money, how you will keep track of expenses, and your business goals. A good pizza shop business plan should consist of all these elements. Pizza shops are only sometimes easy to start, but if you have an excellent idea for a pizzeria and have the right resources, it can be done! A good pizza shop business plan will help you decide where to find investment capital, how much money you need to start up your pizzeria, what kind of pizza you want to sell, and what your marketing plans should be.
A good pizza shop business plan should include the following:
If you are starting a pizza shop business, the first step is identifying your target market. You can observe people visiting your local businesses and asking them what food they like. This will enable you to establish an idea of what kind of customers you are aiming for.
The target market for your pizza shop business will be based on how many people live in your area, what type of people they are, and how much money they make. For example, if you live in an area with many young couples with children (and therefore many customers), you’d want to open a pizza shop that caters to those people. If you live in an area with many elderly people who don’t have much money, it would be smarter to open a grocery store instead of a pizza shop.
To open a pizza shop business, you must decide where it should be. It can be anywhere in the world, but certain factors must be considered before making this decision. These include environmental factors like climate and weather conditions, traffic patterns, distance from other restaurants and shops, etc. You need to know if there are any restrictions on where you can open up shop and what legal requirements might be for owning a restaurant in certain areas.
You need to know what products you will sell in your pizza shop business plan and how much they will cost. Consider making pizzas for a particular event, like a wedding or birthday party. You might also have some ideas about which foods customers would buy at the shop. If you’re planning on selling frozen pizzas, consider whether you want to run a frozen food delivery service or sell them in-store.
You should decide how much money you need to start up and run the business and what percentage of profits will go towards paying taxes and other expenses. This should include all expenses involved in running your pizza shop business, including rent, utilities, payroll, supplies, and additional operating costs. These expenses should be broken down into several categories to identify and monitor over time easily. These categories include legal fees, rent, utilities, and payroll. You should also include the profit margin for each category and any other expenses incurred during the business operations, such as advertising or marketing costs.
It is essential to have enough capital to start a business. You cannot start off with an empty bank account because you need to invest in items such as your restaurant, furniture, and equipment. Capital can come from bank loans or angel investors. You can use your savings or borrow money from banks and other lenders as required. Getting a loan from a bank or any other financial institution is a good idea to start with good credit ratings and continue operating your business without worrying about finances.
Define your target market.
Pizza is popular worldwide and can be found in many different forms, from fast-food outlets to high-end restaurants. A successful pizza business plan should define the type of customers you want to attract. You should also decide whether you want to focus on specific areas, such as pizza delivery or if you want to open up a restaurant that serves both takeaway and dine-in options.
You will need to develop a unique selling proposition for your business plan to attract customers. This might include offering special deals, discounts, and offers on certain products or services. You should also take into account other competitors who are already operating in the marketplace and make sure that there is enough difference between your business plan and theirs so that it stands out from the crowd.
Pricing is one of the most important aspects of any Pizza business plan. You need to determine what kind of price points you want to offer, what level of service you will provide, and how much your customers will pay for it all. You can rely on the local market or set yourself apart from other restaurants in town by offering unique or exotic pizzas or toppings that aren’t typically available elsewhere. In addition, consider whether you want to provide take-out or dine-in options so that customers can choose whether they want their food delivered or served in-house at a table.
The first step in starting any new business is to develop a marketing plan. The Pizza business plan should include a detailed description of how the company will be marketed and promoted and how it will conduct its overall sales and marketing strategy. For example, it’s important to include information about how you will advertise your pizza delivery service and what types of promotions you will offer customers. Also, ensure you include any special promotional events you plan on doing throughout the year to attract more customers to your business.
You need to outline the key aspects of your business, including where you intend to source your ingredients from, how many deliveries you expect to make per week, and how many customers you will be able to attract. You should also consider the costs involved, such as staff wages, rent and delivery fees. This information will help you determine what type of equipment, licenses, licenses, and permits are needed to run your business effectively and efficiently.
This will help you determine how much money you need to start up your business and keep it running each year. It is important that you include all potential costs so that you can see where any profits can be made or lost. You should also have an idea of how much money will be coming in each month and what percentage of this is going towards paying back loans or borrowing more funds from investors.
The pizza business plan should include a detailed description of your pizzeria’s management and organizational structure, including how many employees you will hire, where they will work, how much money you will spend on employee training, and how much time you expect each employee to work. This is especially essential if you plan to expand your business by opening additional locations or acquiring another restaurant franchise.
Your business plan should include information about who will be involved in your pizza business’s daily operations and their specific responsibilities. For example, who has responsibility for ordering ingredients? Who has responsibility for scheduling delivery drivers? Who has responsibility for training new employees? It is essential to consider factors such as customer traffic, kitchen and equipment needs, and peak business hours when determining the appropriate number of staff. Additionally, it is important to consider the qualifications and experience of the team members, as well as their ability to work well together. This will ensure that the business runs smoothly and can meet customers’ needs.
The exit strategy is the most important factor that can help you determine if your business has a chance at success. An exit strategy is a plan that outlines how you will work to achieve your goals, including how much money or equity you want to get out of the business, what assets you would like to sell, and when you think this will happen. You should always have an exit strategy in place before starting any business because it helps prevent problems later on down the line.
One of the most vital aspects of any successful business plan is constantly updating it to reflect current market conditions, technological changes, and customer preferences. This means being aware of new industry trends and ensuring that your plans reflect these changes when possible. It also means keeping an eye out for opportunities that might arise from these changes so that you can take advantage of them before anyone else does. This could be anything from launching new products or services to changing pricing structures or distribution channels.
To have an understanding of the competition and market.
Pizza is one of the most popular fast-food meals in the world. It’s easy to make, delicious and quick, which makes it very appealing to consumers. With so many pizza shops opening up worldwide, there is bound to be fierce competition between them. However, having a concrete business plan in place will give you a better idea of how much profit you can expect from your business and how much time it will take you to reach your goals.
When setting up a business plan for your pizza shop business, it is important that you consider all aspects of running an establishment like this, including the costs involved in getting started as well as what sort of profits you can expect from your venture. By doing this, you will be able to establish a more accurate timeline for your project and know when you should be able to start making money from it.
You may have a great idea to start a pizza shop business, but there are many things that can go wrong. For example, you may have to hire employees, but not in the numbers of desire or find customers who are willing to pay for your product. In this case, having a business plan will help you identify potential risks and mitigate them with detailed plans for each step. This is important since it helps you stay focused on the goal of starting your own business.
By planning ahead for each step of your process, you will be able to ensure that everything runs smoothly when it comes to opening your new business up for business or servicing customers on a day-to-day basis. This means that when you open your doors, customers will be greeted by helpful staff who know precisely what they need and how to get it done quickly without wasting their time waiting around while others work on getting orders ready or calling in more staff if they’re busy.
A business plan outlines the direction of the business and helps the owner identify opportunities and challenges, as well as make informed decisions to achieve the business’s goals. This is especially important when making decisions about marketing and expansion.
In conclusion, a pizza shop business plan is the recipe for success in the pizza industry. With the right ingredients, a well-researched market analysis, a unique concept, and a solid financial plan, you’ll be on your way to baking up profits in no time! So, roll out your dough, add your toppings, and fire up the oven – it’s time to open your own pizza shop and serve up some delicious slices!
Opening a pizzeria can be a profitable investment, especially when you’ve prepared correctly. However, while the pizza industry is growing, it remains an extremely competitive and saturated market. We've developed a step-by-step guide to help you start a successful pizza business.
There is a growing demand for pizza in the U.S. and internationally. According to an industry report , the pizza industry showed an all-time high of $46.9 billion in U.S. sales in 2022. There were more than 78,000 pizza businesses in the U.S. in 2023, and the industry is expected to see annual growth of 10.89% from 2023 to 2031 .
Technology is playing a much bigger role in the industry. Research shows that social media, online ordering, and delivery technology are giving brands a competitive edge.
Download our free business plan template in MS Word format to help you plan your pizza shop.
This step-by-step guide will take you through all the basics, from deciding which kind of pizza restaurant you want to open, to forming your business legally, figuring out equipment expenses, naming your business, and opening.
Choose between franchising and independent ownership..
There are pros and cons to each of these options, and the decision will ultimately come down to your taste for risk and responsibility, your strengths, and budgetary constraints.
Generally, franchises perform better than independents. However, a 2023 report shows that independents are making a comeback, even though they are hindered slightly by inflation in food cost, leading to a necessary hike in pizza prices, which in turn leads to a decrease in sales. Sales for independents jumped by 10.24% in 2022, while franchises saw a slight drop of 1.5% in sales between October 2020 and September 2021.
Independent ownership means that all the responsibilities fall on you, from creating the menu to building a brand and a positive reputation. You will have more control over the budget and will keep all the profits, but you will carry more of the initial costs of starting up. You will also have more control over branding, menu changes, employment structure, and ambiance but, without a track record of success, it is difficult to attract investors or source start-up funding.
With a franchise, a proven concept, established brand and reputation, clear marketing strategy, and business concept are all handed to you. There is often a franchising fee of up to several hundred thousand dollars, royalties and national advertising campaign fees, and proof of startup funding, but the business and menu guidelines have already been developed. However, you will have very little control over menu items and decor. Franchises do generally source financial support more easily because of their proven track records.
There are four main types of pizza shops: delivery, take-out, take 'n' bake, and dine-in. Each type of pizzeria offers a different range of services and attracts different customers. Each one has different startup and management needs.
Delivery pizza shops deliver pizzas to customers after orders are made online or on the telephone. Costs of insurance and delivery driver safety are major concerns, but customers will ultimately pay the increased cost of delivery.
Take-out pizza shops offer take-out pizza over the counter. These establishments are often small, require fewer staff, no waiters, very little tableware and furniture, and less equipment.
A take 'n' bake offers the same services as a take-out but has even less equipment needs, as customers buy the pre-made pizza to bake at home. It does need more refrigeration and display cases.
Dine-in pizza shops are your typical pizza restaurants. It is the most expensive of the lot, requiring extensive kitchen equipment, furniture, tableware, music, lighting, waiters, etc.
Do the necessary research..
In order to write out your business plan, you will need to research your top competitors as well as the pizza market in your area. You will also want to research your customer base to find out what kind of pizza shop they would be more inclined to visit and the types of pizza they would enjoy the most.
A business plan should describe your pizza business and brand, show how your pizzeria will grow, define what it will need to succeed, and outline possible challenges it is likely to face. This business plan is a sort of road map for you in the early stages and it can be used to get financing and attract partners.
Essentials for a pizza shop business plan include an executive summary, industry overview, market analysis, sales and marketing plan, ownership and management plan, operating plan, and financial plan.
Try using a business name generator..
We recommend NameSnack , a free online-based name generator that uses AI to come up with thousands of potential names. With NameSnack, users can also do an instant domain name availability search.
A trademark search with the U.S. Patent and Trademark Office should be done to ensure that the business name has not already been trademarked. Once you've confirmed that your business name is available, check with the Secretary of State in your state to confirm that your business name is not the same or similar to another registered business.
Once you've verified that your name is available for use, register it with the Secretary of State and trademark your business name. Read through this article on how to trademark a name .
Choose a business structure to register..
There are five types of business structures from which to choose when registering your pizza business: sole proprietorship, partnership, cooperative, limited liability corporation, and corporation.
A sole proprietorship is popular among small restaurants and family-owned businesses in the food-service industry. With this structure, the business is managed and owned by one individual who is solely responsible.
A partnership is suitable for businesses with two or more owners who will each contribute towards funding, property, and management. All partners will then receive a share in the profits and losses of the business. Similar to a sole proprietorship, the partnership has unlimited liability, which means all parties can be held liable if something goes wrong.
A Limited Liability Company (LLC) is the most popular type of legal structure because of minimal paperwork, flexibility, tax benefits, and a simple implementation process. This structure is known as a hybrid structure because it offers the legal protections of a corporation with the tax benefits of a partnership.
Collect recipes and form the menu..
Your menu informs the way you build and market your brand. The ingredients you use, the flavors you experiment with, the traditions you follow, and those you ignore or tweak, will determine the equipment you need, the crowd you attract, pricing, location, employees, and start-up funding your shop will need. Therefore, complete this step before you start looking for funding, employees, and a storefront.
A recent study shows the quality of ingredients and the pizza crust are the deciding factors for consumers. Furthermore, in 2021, plant-based proteins exploded into the pizza scene, with units of plant-based proteins that are shipped to pizzerias jumping by a whopping 56% in the second quarter of the year, compared to earlier in the year.
Source local ingredients by visiting local farmers, farmer's markets, local breweries, expos, and exhibitions to form relationships with local producers of the ingredients you need.
Source ingredients from wholesale food distributors who service a wide variety of accounts with a wide variety of products nationwide. Some are regional. Sysco, US Foods, and PFG/Roma are examples of such distributors.
Depending on your needs, you might want to get most of your ingredients from providers who grow them locally. For other ingredients, it makes more sense to go with a wholesale distributor.
Determine how much money you will need..
Before you start sourcing for funding, it's wise to first assess how much money you already have and how much more you will need to open your pizza shop.
Business costs include registration, rent, hiring of employees, and the costs to keep it running on a daily basis for the next year. Once you have an overall number, you can start approaching potential investors.
It costs between $20,000 and $275,000 to start a pizza business. Common costs include a conveyor pizza oven for between $5,000 and $30,000, as well as a counter and a few booths costing up to $100,000.
Use your cost summaries and business plan to apply for funding.
Ask friends and family first as it will not require applications or credit checks. Create a small presentation, include your business plan, and if possible, provide a promissory note in exchange for funding.
If you have a good credit record and a business that's less than two years old, you can get a business credit card. Business credit cards are generally used to cover small expenses like equipment or travel costs. It's important to note that credit cards have high interest rates.
Use peer-to-peer lending, which matches borrowers with lenders or investors by using online services. This bypasses traditional banks and credit unions, which could leave business owners at risk.
Apply for a small business loan from the Small Business Administration (SBA), a federal agency that offers small business loan guarantees, counseling, and training.
Open a business bank account separate from your personal accounts to protect yourself from liability and gain access to business banking services.
Obtain a business license..
A business license legitimizes your business as a legal entity. However, not all states require a statewide business license. To find out if your state requires a statewide business license, and to apply for one, visit your state's small business website or the Small Business Administration website.
An EIN, or Federal Tax Identification Number, is assigned to businesses by the IRS. In the United States, you are prohibited from hiring employees if you do not have a registered EIN. Most businesses can apply for an EIN online .
A food handler's permit is an official document to show to health inspectors that you have completed a state-approved food safety course.
This license is generally issued by the city or county health department. The process involves an in-person health inspection if you want to operate a kitchen in a separate office or location space.
By getting business insurance, you can protect your business from losses caused by lawsuits, fire, flood, theft, etc. Consider obtaining small business insurance, a specific type of insurance that is intended specifically for small businesses with 50 employees or less.
Look into leasing a commercial property..
When starting a pizza restaurant, the most important decision you'll make is choosing the right location. You may want to set up on a busy street in the city center, at a shopping center, or in a new mall.
Once you have your location, it's time to make the pizza spot of your dreams. If your budget allows it, you could do some renovations and use the opportunity to set your pizza place apart from the competition.
What do you want to say about your place? Choosing a brand for your pizza business could depend on your service style. All the elements, from lighting and seating to flooring, need to align under one theme.
Good quality, reliable equipment is essential for running a successful pizza shop. It is important to buy the best equipment your budget will allow as cutting corners on equipment will cost you later.
Keep in mind that your brand and concept will determine a lot of the equipment you invest in. For example, if you're a traditionalist pizzeria, you'll need a wood-fired brick pizza oven. If you want an eclectic feel for the restaurant, you'll need interesting artwork and furniture.
A pizza oven can cost from $300 to $20,000 and over, dough sheeters cost from $1,500 to $10,000, refrigerators and freezers can cost from $3,000 to over $10,000, and preparation supplies (pizza cutters, cutting boards, serving utensils, pizza boxes, etc.) can cost anywhere from $200 to over $2,000.
The kitchen is the heart of your restaurant, so the layout is essential. It needs to adhere to safety regulations and it must be easy to work in. Ask your kitchen management staff to help you make design decisions.
List how many employees you will need in your pizza shop..
Regardless of the size of your pizzeria, there are a number of roles that need filling if your business is to be successful. In the beginning, there will be an overlap of duties while your business grows, but in time you will need to employ people to fill specific roles.
There are hiring tools, such as Betterteam, to help you with attracting, onboarding, and keeping track of applicants.
A manager will be required to handle purchasing, track inventory, train and manage both front-of-house and kitchen staff, and do marketing. Managers at restaurants are paid an average of $42,387 a year.
A pizza chef will be needed if you want to be experimental with your pizza offerings and make signature pies that will set your pizza shop apart from others. Expect to pay your chef roughly $48,000 a year.
Cooks assist the chef, doing simple preparation while the restaurant is quiet or before the restaurant opens. Cooks are paid an average of $575 to $650 a week.
If you open a dine-in pizza shop, you should consider a bartender to serve your customers drinks. They also prepare the bar, order supplies, check the liquor requisition sheet and inventory, and then clean up the bar area just before closing. A bartender is paid an average of $16 an hour, tips included.
Good servers make a good impression and keep customers coming back. They must be able to handle pressure, multi-task, serve several tables at a time, be friendly, and maintain a positive attitude. Generally, servers are paid minimum wage plus tips.
Dishwashers ensure there are always clean dishes and cutlery available. They are usually paid minimum wage.
You'll need someone to clean the tables, floors, kitchen, and toilets before and after service. In many cases, cleaning staff work for minimum wage.
As your pizza restaurant grows, you might want to employ someone part-time to greet guests, seat them, take reservations, and work the cash register. Hosts are paid minimum wage, mostly.
Your pizzeria will need a set of basic employment contracts. You can have a lawyer put one together.
Create a website..
Your website should be user-friendly, informative, and perfectly aligned with your brand. There are many website builders to choose from and most of them have free versions with lots of templates to help you get started. Make sure you include online ordering and booking for customers.
Pay-per-click advertising and optimizing your website for search can also have huge payoffs. Do extensive research on these topics or hire a local agency to help you.
Facebook and Instagram lend themselves nicely to pizza shops. Just remember that the point of social media is to actively participate in it. Be accessible to your customers and share relevant pictures, videos, and memes regularly and freely.
Consider using digital signage. You might want to have one or two screens put up in your pizzeria, and instead of having them on a TV channel, use them to advertise, or display menus and items on the menu, promotional deals, or other information. You can design your own digital signage with free digital signage software.
If you want to appear when someone asks "where is the nearest pizza shop?" be sure to register for Google My Business. Also, consider setting up a Yelp page and asking happy customers to rate your business.
Pizza Logos
Comfortably, a pizza shop can expect to make 1-15% in profit.
While pizza is one of the most popular foods in the world, meaning there's always a demand, your investment will depend on a number of factors, including location, business plan, marketing, and enthusiastic staff.
Pros: Owning a pizza shop is a strong investment, you have flexibility in designing your menu, a hands-on experience with a strong community connection, gain food service experience, and cultivate a strong brand identity.
Cons: The initial operating costs can be steep, there is intense competition in the market, you will have long working hours and suffer from fluctuations in the market, customers will have high-quality expectations, and you will need to excel with all food safety and health regulations.
Read our guide to opening a pizza shop which includes a free downloadable business plan template.
Consider options like ghost restaurants if you plan on running a wholly online pizza shop. With this business structure, you can rent out space in a commercial kitchen where your online orders can be filled and sent from. You can follow our guide to opening a pizza shop and adapt it to your online focus.
The equipment needed for your pizza shop will depend on the type of pizza business you plan on opening, whether take-out only, sit-down, or take 'n' bake. You will need to do some research to determine what your specific pizza restaurant needs.
The average yearly income for a pizza shop owner is $60,000.
How to start a restaurant, how to make a logo, how to open a bar, 10 business ideas you've probably never heard of, how to write a slogan.
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Starting a Pizza Shop isn’t a small feat, and it’s crucial to be prepared both financially and mentally before you venture into the pizza industry. Here are some important factors you should consider:
One of the most important factors when starting a new business is choosing the right location.
It’s essential to choose a pizzeria location that has high foot traffic for maximum visibility and potential customers.
It would also be ideal to choose a location near schools and office buildings since people in these areas are often the ones who order pizza for lunch or as an after-school snack.
The cost of renting or buying a space will greatly affect your overall budget for starting a pizza shop. Do some research on commercial spaces in your chosen location and compare prices before making a decision.
Another important factor to consider is the cost of purchasing equipment and supplies for a pizza place.
Pizza shops require specific equipment like ovens, refrigerators, freezers, prep tables, and dough mixers. You will also need supplies like pizza boxes, pizza pans, napkins, and utensils.
Another key factor to consider before starting your pizza shop is your menu.
Your menu should offer a good variety of pizzas, as well as other food items like pasta, salads, and desserts that complement your pizza offerings.
Last but not least, you will need to hire staff to help you with running the day-to-day operations of your pizza shop.
From cooks and cashiers to delivery drivers and customer service representatives, make sure to hire reliable and experienced staff who can help you deliver quality products and services to your customers.
The answer is YES! Pizza businesses are generally profitable businesses. In fact, pizzerias have some of the highest profit margins in the food and beverage industry.
Starting a Pizza Shop typically generate a profit margin of about 10%-15%. This means that for every $100 in sales, a pizza shop owner can expect to make a profit of $10-15.
Of course, the actual profit margin will vary depending on a number of factors, such as the location, menu, and operating costs of your pizza business.
There is no cookie-cutter approach in Starting a Pizza Shop place, but there are a few strategies you can apply to increase your chances of success.
Create a comprehensive business plan that covers everything from your pizza shop’s concept and menu to your target market and marketing strategy.
This will be your roadmap to success and will help you stay on track as you start and grow your pizza business.
Your business structure is crucial as well. Will you be a sole proprietor, partnership, or corporation?
Each business structure and business plan has its own set of benefits and drawbacks, so it’s important to choose the one that best suits your needs.
In a world where there are thousands of pizza shops to choose from, it’s important to find a way to stand out from the competition.
One way to do this is to offer unique and innovative menu items that your customers can’t find anywhere else. You can also focus on delivering exceptional customer service or providing a convenient online ordering system.
As we mentioned earlier, choosing the right location is one of the most important factors in starting a successful pizzeria.
Your chosen location should have high foot traffic and be easily accessible to your target customers. It should also be large enough to accommodate your equipment and supplies, as well as have ample parking spaces.
Another important factor to consider is your operating costs.
Pizzerias have high fixed costs, which means that a large portion of your expenses will be the same every month, regardless of how much revenue you generate.
To keep your pizza shop profitable, it’s important to keep your fixed costs low. One way to do this is to choose a location that doesn’t require a lot of renovations or repairs.
You can also save money by purchasing used equipment and supplies, and negotiating better rates with your suppliers.
It’s important to have a separate bank account for Starting a Pizza Shop to keep your personal and business finances separate.
This will make it easier for you to track your income and expenses, and it will also give you a better understanding of your pizzeria’s financial health.
Starting a Pizza Shop are considered high-risk businesses, so it’s important to have adequate insurance coverage to protect your business in case of an accident or natural disaster.
Be sure to purchase general liability insurance, as well as property insurance to cover your equipment and supplies. You may also want to consider getting food contamination insurance to protect your business from lawsuits.
It’s also crucial to accommodate the needs of your online ordering customers.
Your pizzeria’s website should be user-friendly and allow customers to easily place orders for delivery or pickup.
You should also make sure to optimize your site for search engines so that potential customers can find your pizza shop when they’re searching online for a place to order pizza.
Make sure to promote your business through various marketing channels like social media, local print and online directories, and word-of-mouth.
You can also participate in local events and sponsor community sports teams to get your name out there. Creating buzz through a well-strategized promotional before your opening day can also build anticipation and pique the interest of your target audience.
One of the keys to success is having a great team of employees who are properly trained and motivated to do their best.
Be sure to spend time training your staff on how to make your signature dishes, as well as teaching them about customer service and safety protocols.
Last but not least, it’s important to manage your finances effectively to keep your pizza place afloat.
Be sure to track your income and expenses, and create a budget to help you make informed decisions about where to allocate your resources. You should also consider hiring an accountant or bookkeeper to help you with financial planning and analysis.
Loyal customers are the lifeblood of any pizza place. Not only do they provide a steady stream of revenue, but they also help to spread the word about your business to their friends and family members.
If you’re looking for ways to attract more customers to your pizza place, here are a few tips:
One of the best ways to attract new customers is to offer discounts and coupons. You can promote your specials through local print and online directories, as well as on your social media channels.
Another great way to attract more customers is to host special events at your pizza place. For example, you could host a comedy night, karaoke night, or live music night.
Who doesn’t love free pizza? If you’re looking to attract new customers, consider giving away free samples of your pizzas. You can do this at local events or by handing out flyers with coupons for free slices.
Loyalty programs are a great way to encourage customers to keep coming back to your pizza place. Offer rewards like free pizzas or discounts for customers who purchase a certain number of pizzas.
It also comes in handy to have a digital rewards program to boost customer loyalty.
Last but not least, it’s important to provide excellent customer service if you want to attract more customers and drive repeat business.
Make sure your employees are properly trained in customer service and always go above and beyond to exceed customers’ expectations.
It has been proven that customer service is one of the key factors in boosting pizza sales and in creating a loyal customer base.
At FoodTronix , we understand that pizza shops have a unique set of needs compared to other types of restaurants. That’s why we offer a variety of products and services specifically designed for pizza places .
From point-of-sale systems to inventory management software, we have the tools you need to help you run your business more efficiently and increase your profits
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A pizza shop is a restaurant where pizzas are made and retailed. The pizza restaurant is an important segment in the restaurant industry in the United States. With consumers dining in, getting takeouts, and ordering delivery, pizza restaurant sales reached over 46 billion U.S. dollars in 2020.
The U.S. pizza industry is worth nearly $46 billion in revenue as of September with the top pizza chains dominating the industry with nearly a 60% slice of the market, or $26 billion. Independent and small chains are worth nearly $19 million in revenue.
Conduct market research.
If you are considering starting a pizza shop, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your pizza shop should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will give you reliable data of what your potential market will be looking out for from a pizza shop, and also help you operate your pizza shop with less stress.
If you are thinking of opening a pizza shop, then you should make your target demographics all-encompassing. It should include students, migrants, entrepreneurs, business people, sportsmen and women, tourists, and every adult in the neighborhood where your pizza shop is located.
Yes, a pizza shop is always a profitable business. The average sales generated per unit in U.S.-based chain pizza restaurants amounted to close to $783,000 in 2023, up from approximately $762,000 in the previous year. Statistics also show that 93% of Americans purchase pizza at least once a month in the U.S.
No, there are no existing niches when it comes to pizza shops because pizza shop is a niche idea in the fast-food restaurant industry.
Yes, there are county and state regulations and zoning laws for pizza shops in the United States. Note that the Food and Drug Administration (FDA) sets the federal Food Code, but the FDA doesn’t oversee individual pizza shops. Instead, the various states use the Food Code as the basis for their food codes. They may adopt its rules, interpret them differently or set their own rules.
Please note that in the United States, you are required to follow your own state’s food service code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling restaurants and bars and view the laws that apply in your state.
Yes, there are franchise opportunities for pizza businesses. Here are some of them;
A. what type of business structure is best for pizza shop.
The truth is that there are several options when it comes to the business structure of a pizza shop, but most players in this line of business consider an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
You don’t need any certifications to open a pizza shop business.
If you are considering opening a pizza shop, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
A. how much does it cost to start a pizza shop business.
There is no clear-cut startup cost for a pizza shop, but available data shows that the cost of starting a pizza shop ranges between $75,000 to $150,000. Typically, about half a million is required to set up a sit-down pizzeria.
It is not compulsory to build a new facility for your pizza shop, but, if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
A. executive summary.
Hunger Box© Pizza Shop, Inc. is a registered pizza shop that will be located in one of the busiest business and residential districts in Baton Rouge – Louisiana. We have been able to lease a shop facility along a major road that is big enough for the kind of pizza shop we intend to launch.
Our mission is to build a world-class pizza shop that will meet the needs of all our customers in the regions/cities where we have our outlets and to sell franchises all across the United States of America and Canada.
To be amongst the top 10 leading pizza shops in the United States of America before our 10th anniversary.
The goals and objectives of a pizza shop business are to provide a retail outlet where patrons can go to buy pizzas or order pizzas if the shop has delivery options.
A. swot analysis.
Pizza shops make money by selling the following products;
A. how much should you charge for your product/service.
The price of pizza depends on the size and type of pizza but the median price of pizza range from $7.25 to as much as $15.
The profit a pizza shop owner is expected to make in a year depends on some factors, but the available report shows that most pizza restaurants bring in profits of between 7% and 13%. Therefore, a restaurant with annual revenue of $800,000 will have net profits somewhere between $56,000 and $104,000.
The profit margin of a pizza shop is not fixed. On average, pizza shops tend to have a profit margin of between 7% and 13% annually.
Below is the sales forecast of a pizza shop. It is based on the location of the business and other factors as it relates to such startups in the United States;
A. how do you choose a perfect location for pizza shop.
When it comes to hiring employees for a standard pizza shop, you should make plans to hire a competent shop manager (you can occupy this position), account clerk, pizza makers, delivery guys, cleaners, and security guard.
In recent times, no pizza shop opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the pizza shop, you will officially inform people in your city that your pizza shop is open for business.
In Smyrna, one national chain is out, but two more are ready to come in.
Papa John's pizza at 1093 S. Dupont Boulevard has gone out of business south of Smyrna-Leipsic Road on Route 13 North.
A sign posted on the door reads: “We apologize for the inconvenience. This store is closed. Please visit the Dover location, Dover – 1243 N. Dupont Hwy., (302) 734-2990 or go to papajohns.com. Thank you, Management.”
Calls to the Dover Papa John's about the Smyrna restaurant were referred to the manager who wasn’t available. A second call was referred to “Papa John's HR” but a message left at that number wasn’t returned as of Sept. 11.
The Smyrna takeout restaurant was opened in a stand-alone building in 2015 by Daniel Ramirez , who, at the time, owned three other Papa John’s locations in Camden, Rehoboth Beach and Cambridge, Maryland.
The person answering the phone at the Dover Papa John's would not say why the Smyrna location closed or confirm if Ramirez still owned the site.
More restaurant closings: These 2 Middletown restaurants closed within a week of each other. Will they be replaced?
Construction is nearing completion at Popeyes Louisiana Kitchen between Firestone and Waffle House on Route 13 North with access from Cory Lane.
On Sept. 10 the “Popeyes” lettering had been installed on the side of the building, and crews were working on the parking lot and drive-thru.
DSM Commercial received approval to build a 1,992-square-foot restaurant with drive-thru, said Jeremy Rothwell, Smyrna director of planning.
In a call to DSM, the representative said she could not provide information about an opening date, but she would give a message to the property owner. The owner hadn’t returned the call as of Sept. 11.
Requests for more details on the restaurant were not immediately returned by Restaurant Brands International which owns Popeyes, Burger King, Tim Horton’s and Firehouse Subs.
Popeyes was founded in 1972 and now has over 2,700 restaurants in North America and a total of about 3,600 around the world, including 13 in Delaware. The menu features food inspired by Cajun and creole flavor including New Orleans-style spicy fried chicken, chicken tenders, chicken sandwiches, fried shrimp, fries, side dishes and biscuits.
Another new restaurant planned: Beachy fave Surf Bagel will open its first New Castle County location. We have the info
The large building under construction behind Firestone on 36 N. Cory Lane Cory Lane east of Route 13 may look like a shopping center, but it’s just one business.
Planet Fitness will be opening a 16,915-square-foot facility on the 2.05-acre site, said Lou Ramunno, president of land owner Lenape Properties.
The fitness center will be owned and operated by National Fitness Partners.
The opening date is tentatively set for Nov. 17, said Kelly Walker, director of public relations and communications for National Fitness Partners.
Plans are to hire about 10 to 12 employees including a new trainer who will work at Planet Fitness Smyrna and Planet Fitness Middletown.
The Smyrna site will be the company's 12th location in Delaware.
Planet Fitness had approximately 19.7 million members and 2,617 stores in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia as of June 30.
“We provide a unique environment in which anyone can be comfortable,” Walker said. “We provide a non-intimidating, affordable, high-quality fitness experience.”
Along with state-of-the-art cardio and strength equipment, the business offers a 30-minute express circuit, numerous flat-screen televisions to watch during workouts and fully-equipped locker rooms. PF Black Card members also have access to massage chairs, hydro massage beds, a relax space wellness pod and a recovery lounge.
Reporter Ben Mace covers real estate, business and development news. Reach him at [email protected].
Vous avez le projet d’ ouvrir une pizzeria ? Le succès d’un commerce repose sur une préparation rigoureuse qui tient compte de nombreux paramètres : investissements de départ, prix des matières premières, taux de marge, optimisation de la production – et bien d’autres. Avant de vous lancer, il est donc crucial d’analyser avec soin l’ensemble des composantes financières de votre projet, d’établir un prévisionnel de chiffre d’affaires couvrant les gains et les charges, et d’anticiper vos éventuels besoins en matière de financement extérieur . Autrement dit : vous devez faire un business plan de pizzeria . Comment ? Voici tout ce qu’il faut savoir.
En résumé :
Ouvrir un restaurant-pizzeria ou se lancer sur le marché avec un camion pizza, c’est quasiment un succès assuré : il s’agit d’un plat aisé à préparer, peu coûteux, consommable toute l’année, et que tout le monde aime manger. En effet, les Français sont les seconds plus gros consommateurs de pizzas au monde , derrière les États-Unis, avec 10 kg par personne et par an ( francepizza.fr ). Néanmoins, la concurrence est rude , et il est crucial de bien préparer un tel projet .
C’est tout l’objet du business plan : un document qui décrit, par le menu, la stratégie financière et commerciale de la future entreprise , et qui bâtit les fondations de la réussite de l’entrepreneur. Un business plan de restaurant consiste à poser le projet sur le papier en tenant compte de tous les « ingrédients » qui le constituent : étude de marché (clients ciblés, concurrents sur le secteur et choix des fournisseurs), estimation de sa viabilité financière, calcul de rentabilité potentielle en intégrant les coûts et les charges, appréciation de l’investissement de départ et de la trésorerie nécessaires (ainsi que des équipements à acheter). Mais aussi : réglementation à respecter et formations à suivre , notamment en matière d’hygiène pour lancer un établissement de restauration (y compris pour ouvrir une friterie, par exemple). Le but ? Se lancer avec des garanties, mais aussi se servir d’une bonne présentation du business plan pour convaincre les investisseurs et les banques de vous aider à financer votre projet. Dans le cadre d’un business plan d’investissement locatif, par exemple, il sera indispensable d’intégrer aussi le montant potentiel du loyer.
Il ne faut pas confondre business plan et business model, le second étant une composante du premier. Le business model répond à la question : comment l’entrepreneur compte-t-il gagner de l’argent ? Le business plan vient après : il permet de concrétiser l’idée de départ avec des éléments opérationnels et des chiffres (coûts, trésorerie, concurrents, fournisseurs, rentabilité), et de poser les bases de sa réussite.
En ce qui concerne la structure du business plan, il n’y a pas de règles imposées : il faut simplement respecter une certaine logique dans la disposition des éléments . Voici les points à y faire figurer absolument pour votre projet :
Voici un modèle de business plan pour votre restaurant : prenez soin de le personnaliser en fonction des éléments constitutifs de votre projet.
Porteur de projet | Équipe | Expérience professionnelle |
Business model et produits proposés | Étude de marché | Stratégie marketing |
Prévisionnel financier | Plan de financement | Compte de résultat prévisionnel |
Présentation de la forme juridique | Détails des statuts de la société | Formalités administratives |
Plan de financement | Bilan de démarrage | Tableau amortissement emprunt |
Un bon business plan doit intégrer plusieurs éléments essentiels :
Le chiffre d’affaires réalisé par une pizzeria dépend de nombreux paramètres : son emplacement géographique, la qualité de ses préparations, la pertinence de sa stratégie marketing qui permet d’attirer des clients, mais aussi son mode opérationnel (service en salle ou à emporter, local physique ou itinérant). En moyenne, ce type de restaurant peut générer 17 000 € HT par mois .
Le budget moyen pour ouvrir une pizzeria oscille entre 55 000 et 135 000 € . Les facteurs à prendre en compte comprennent la forme juridique de l’entreprise, le choix de l’indépendance ou de la franchise, l’emplacement de l’établissement, les frais d’achat de matériel, le montant des charges fixes, ainsi que les frais additionnels.
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Step 4. Develop a Pizza Shop Business Plan. A comprehensive business plan is crucial for your pizzeria's success, serving as both a roadmap and a tool for securing funding. Here's what your pizza shop business plan should include: Executive Summary: A brief overview of your business concept, financial highlights, and unique selling points.
Use this pizzeria business plan as your template to create the best pizza shop in town that's also a thriving, profitable business! This pizza business plan includes market analysis, strategy, more. Download this Pizza Business Plan free for easy editing in Microsoft Word, Google Docs or Apple Pages:. Also Read: Starting a Small Business - A Complete Guide with Templates and Tools
Our pizzeria business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the pizzeria's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of the pizzeria's business concept, market analysis ...
Pizza Shop Business Plan. If you want to start a pizza shop business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their pizza shops.
All the hard work you've done to detail your pizzeria's menu, equipment, and staff are combined in this section as you plan a budget of your operating expenses. These include all the costs of running your pizzeria, including training, equipment, maintenance, labor, supplies, rent, loan payments, etc. Business plans commonly include a break ...
Writing a pizza shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Explore a real-world pizzeria business plan example and download a free template with this information to start writing your own business plan. ... Coffee Shop Agricultural Farm Hair & Beauty Salon Bakery ... (SIC) code 5812.0600, Pizza Restaurants. The ratios show a plan for balanced, healthy growth. Our return on sales and return on assets ...
2. Register your pizza shop. Once you've crafted the business plan for your pizza shop and chosen a business entity, the next step in starting your pizza shop is registering your business. To do ...
2: Develop a Business Plan. After deciding on your pizza restaurant concept, the next critical step is developing a comprehensive business plan. This is an in-depth strategic document that will analyze every aspect of your business and serve as an actionable guide for launch.
Developing a pizza shop business plan is a comprehensive process that requires careful planning, strategic decision-making, and a clear understanding of the market. Every step is crucial for your success, from choosing the right business structure and identifying your target market to calculating costs and creating a robust financial plan.
Buy Pizza Shop Equipment. Hire a Staff. Advertise Your Business. Host a Soft Opening. 1. Write a Pizza Shop Business Plan. A business plan acts as the roadmap for how to get your pizza shop off the ground. It outlines many details, including short- and long-term goals, financial projections, and market analysis.
A pizza shop business plan is documentation that lays out your vision and roadmap for growing your pizza business. It serves two main purposes. First, if you're looking to raise funding to start or grow your pizzeria, your business plan is an essential document that banks and/or investors will review before providing funding. Second, your ...
Specifically, these funds will be used as follows: Restaurant design/build: $200,000. Equipment, supplies, and inventory: $50,000. Three months of overhead expenses (payroll, rent, utilities): $100,000. Marketing costs: $30,000. Working capital: $20,000. Easily complete your Pizza business plan! Download the Pizza business plan template ...
Step 3: Brainstorm a Pizza Shop Name. Here are some ideas for brainstorming your business name: Short, unique, and catchy names tend to stand out. Names that are easy to say and spell tend to do better. Name should be relevant to your product or service offerings.
A pizza shop business plan is a document that guides how to start and manage a pizza shop business. The plan includes details on how you will make money, how you will keep track of expenses, and your business goals. A good pizza shop business plan should consist of all these elements. Pizza shops are only sometimes easy to start, but if you ...
11. Craft your pizzeria design and atmosphere. With a thorough restaurant business plan and vision, you'll now need to design a restaurant floor plan and layout that will align with your pizzeria business goals. As an owner, your passion for the craft and your story will influence the design and atmosphere of your pizzeria.
Once you have an overall number, you can start approaching potential investors. It costs between $20,000 and $275,000 to start a pizza business. Common costs include a conveyor pizza oven for between $5,000 and $30,000, as well as a counter and a few booths costing up to $100,000. 6.3.
a building health permit. a business license. As different regulations depend on a state or even a city, make sure to comply with your local law regulations to start a pizza shop. Step 6. Secure funding for your pizza shop business. To start running your pizza shop, you will need to secure funding for it.
In short, a well-thought-out pizza shop business plan is key for validating your restaurant concept, minimizing risks, setting clear goals, and tackling the challenges of running a successful pizzeria. It's a must-have for anyone serious about running a restaurant. Writing a pizza business plan is crucial for a few key reasons.
Steps to Starting a Pizza Shop. 1. Research The Industry. It's important to research the pizza industry before you start. There are ways to see what you're in for before you start, and going through the process is to your advantage. See An Inside Look Into the Business You Want To Start to get the details. 2.
1. Establish a solid business plan. Create a comprehensive business plan that covers everything from your pizza shop's concept and menu to your target market and marketing strategy. This will be your roadmap to success and will help you stay on track as you start and grow your pizza business. Your business structure is crucial as well.
The profit a pizza shop owner is expected to make in a year depends on some factors, but the available report shows that most pizza restaurants bring in profits of between 7% and 13%. Therefore, a restaurant with annual revenue of $800,000 will have net profits somewhere between $56,000 and $104,000. c.
In Smyrna, one national chain is out, but two more are ready to come in. Papa John's pizza at 1093 S. Dupont Boulevard has gone out of business south of Smyrna-Leipsic Road on Route 13 North.. A ...
Le business plan est un indispensable pour tout projet de restauration : il permet de donner une vision globale de l'activité, ... Ouvrir un restaurant-pizzeria ou se lancer sur le marché avec un camion pizza, c'est quasiment un succès assuré : il s'agit d'un plat aisé à préparer, peu coûteux, consommable toute l'année, et ...