You’ll find an extensive collection of articles written by various authors organized in sections to give you a collection of resources you’ll use to start and run a pizza business.
Included are topics such as; how to start a pizza business, industry statistics and trends, startup equipment, insurance, employee requirements, business name ideas, business loans, and more.
What To Consider Before Opening Your Doors
Before you get to the details and the how-to information, there are points you need to consider before you open the doors.
Let’s get started.
Why Are You Interested in Starting A Pizza Business?
It’s vital to identify your reasons for starting a business. Some people start a business to become their own boss and get away from having a job. Others are in it for the financial benefits. Then some have a passion for the industry, the products, and services a business provides.
When you’re passionate about a business, and problems show up, you’ll focus on solutions rather than an exit strategy. Having a passion for your business is one key element for success.
Is This The Type of Business You Want?
Let me ask you this? If you had ten million dollars at your disposal and secured in your bank account, would you open and run a pizza business?
If you answered yes, then you have a passion for owning this type of business. If you answered no, then what would you do? And should you be looking into doing that instead?
What Type of Pizza Business Are You considering?
There are different setups for a pizza business. What are you considering:
- A restaurant?
- A concession stand or food cart type of business?
- Will, you focus on take-out only?
- Will, you be selling pizza by the slice?
- Will, you include other items such as subs
- You need to identify what type of business you want so you can estimate startup costs and make sure your startup idea is feasible.
The Demand For Pizza In your area
It would be best to research the market for the area you’re planning to open your shop.
If there is no demand, there is no use for you to open your pizza business in that area.
With a saturated pizza market, it will be challenging to get into the market. You’ll need to come up with something new, something that’s missing in the marketplace, or offer better products and services.
When it comes to a highly competitive market, one of the first issues that business owners will compete on is the price. When a price war is going on, everyone losses profits; at times, the profits are so low it’s not even worth competing.
Your best bet is to find an area where there is a demand for pizza, and the market isn’t saturated.
Getting Inside Information:
Here’s a technique I’d like to share with you to get you inside information about owning and running a pizza business.
Look for pizza businesses listed for sale. Contact the seller to set up an appointment. Prepare all the questions you have before you meet with the owner.
When you arrive at the business location, you may get a tour; you may be able to meet with staff members and speak with them about the business. You may also get a chance to go over the profitability of the company, expenses, lease agreements, as well as other issues.
Include questions like:
- What are the biggest challenges of running this business?
- If you had to start again, what would you do differently?
- What made you want to start this business?
- These types of questions offer insights based on the owner’s experience in the pizza industry.
You can also ask questions like:
- How long have you had this business?
- Did you start this business from scratch, or did you take it over?
- What advice do you have for someone taking over this business?
- Why do you want to sell this business?
- Are you open to financing the purchase?
- Are there any liens or lawsuits again the business?
- Are you planning on opening another business in the area?
- How much profit does this business make?
- How high are the monthly expenses?
- What is your highest cost?
- If you had the opportunity, would you expand this business? And Why
- Have you ever considered opening multiple locations of this business? And Why?
The above questions offer insights about the current state of the business and why the owner wants to sell it.
With the above approach, you have inside information based on experience, that you don’t have but can use to start your pizza business.
Now meet with the next business owner that wants to sell. The more you do this, the more information and knowledge you’ll have.
Here’s one more consideration with the above approach. You may find that buying one of the businesses you visited is a better route to take.
If the business is set up the way you want it and ready to make money the day you take over, it’s something to consider. But before you make a deal, there’s one more step to take.
Check out the option of getting into a franchise. By researching the franchises related to pizza, you’ll gain a lot of information like you did when meeting with business owners that want to sell.
Now you have details for businesses that are for sale, franchise opportunities, and an idea of what it takes to start from scratch. You can take your time to figure out what’s the best approach.
See the resources section for a listing of businesses that are for sale and the franchise opportunities section for a list available franchise related to the pizza industry.
Next, in this post, you’ll find the resources that I have selected and organized in sections for your convince. It will take time for you to go through the resources, so you may want to bookmark this page return when you need it.
A Collection of Resources Related to Starting Pizza Shop
Section Included In This Post:
- How to Start a Pizza Shop
- Pizza Shop Trends and Statistics
- Profitability and Revenue of a Pizza Shop
- Pizza Shop Startup and Operating Costs
- Pizza Shop Equipment
- Licenses Needed to Open A Restaurant
- Pizza Shop Insurance
- Employee Considerations
- How to Finance Your Pizza Shop
- Pizza Business Name Ideas
- Business Plan
- Business Cards
- Pizza Shop Logo
- Pizza Shop Software
- Pizza Businesses for Sale
- Pizza Franchise Opportunities
- Top Pizza Businesses
- Tips for Marketing a Pizza Shop
- Article Mix
- Resources for Running a Business
- Pizza Publications
- Pizza Terminology
- Books Related To The Pizz Business
- The Latest about Starting A Pizza Business
- Latest Search Results Related to Starting A Pizza Business
- Latest News Related to Starting A Pizza Business
- Tweets Related to Starting A Pizza Business
- Videos Related to Starting A Pizza Business
Considerations Before You Start
How to Start a Pizza Shop
This section offers various tips and insights for an overview of what you need to look into to start your business. The articles in this section provide a glimpse of starting a pizza business.
You’ll need to do your research for detailed information according to your specific plan. For example, you’ll need to research the type of equipment you want, your business license, and permits for your area. The more you research and plan, the better off you’ll be in having a successful startup.
Pizza Shop Trends and Statistics
In the trend section, you’ll get an overview of what to expect from this industry and identify the rise and decline of the pizza market.
Keep in mind that even if you see the industry has billions in revenue, it doesn’t mean you’ll automatically be successful. It just means the industry is strong.
Profitability and Revenue of a Pizza Shop
The profitability section will give you an overview of the average profit margin of a pizza business, but keep in mind that many variables determine your profitability.
The ingredients you use. The amount of staff you have. Your monthly business expenses all contribute to the amount of profit you can expect.
Pizza Shop Startup and Operating Costs
In this section, you’ll get a glimpse of the costs, but you can’t get an accurate figure. If you open in downtown New York, your startup and operating cost will be much higher versus opening in a rural area. Also, your startup cost depends on the size of your establishment.
A concession-stand opposed to a restaurant-style operation will vary in startup cost. Once you have a plan in place, you’ll be able to estimate your startup cost.
Pizza Shop Equipment
In this section, you’ll gain ideas for the equipment you need to start. Your choice of equipment, whether new, used, or top-of-the-line, will affect your business operations.
What you want to avoid is purchasing equipment that is substandard and may break down.
Image purchasing a cheap oven that takes twice as long to bake a pizza, or is continually breaking down. A substandard oven will cost you dearly in downtime, loss of business, and costly repairs.
You want to purchase the right equipment for the job.
Licenses Needed to Open A Restaurant
This section will give you an overview of the type of licenses and permits you’ll need.
You’ll want to check with your state and local governments to find what permits you need in your location. They’ll have updated information and guide you on what you need.
You can even do a Google search for “Pizza Business Licence + your location” will point you in the right direction.
Pizza Shop Insurance
Business insurance is a crucial section to consider. You must have sufficient insurance coverage for your business; insufficient coverage can put you out of business very quickly. You need insurance in case of fire, theft, or an accident.
You may want to look at getting interruption insurance for coverage in case your business closes due to an incident.
For example, you have a fire in the kitchen, and you are closed for a month for repairs, with interruption insurance you’re covered for the loss of revenue.
In this section, you’ll be considering the number of employees to help run your operation or if you will be doing everything yourself.
If you offer delivery, then you’ll need someone to do that. If you are open for extended hours, you’ll need support. If you’re considering a restaurant-style operation, you will need staff to help out.
Also, you want to consider if you’ll be running the business or hiring a manager to run the business and oversee operations. Some experienced entrepreneurs will take this approach when running multiple companies.
How to Finance Your Pizza Shop
Have you considered how you’re going to fund your pizza shop? Do you have savings, are you planning to sell some assets? Will you be applying for a bank loan or a loan from friends and family? Before you look for a loan, you need to determine how much you’ll need.
When you determine the amount, I suggest you increase that amount by 10-15% because you may not have considered all the costs.
You don’t want to get to the stage where you short and you have no other means of raising money, that’s why I would get more money upfront and pay it back right away if it’s not used.