Hello guys itÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s been a while. IÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ve been busy with the business, marriage, new homeÃƒÂ¢Ã¢â€šÂ¬Ã‚Â¦.
I am buying a property and have a closing on 28th of September. The place is 3000sq and it is zoned industrial no dine-in. I am planning to divide this place in two. Approximately 2000sq for my pizzeria and other side for NY Deli &Grocery with hood.
This place is located around corporate offices and industrial businesses. The residential area is 1miles away. The nearest grocery is 1 mile away as well.
I know I can do well in pizza side but what is your idea on having Ny Deli with Grocery (serving breakfast and lunch 7am to 5pm) . Will I do well with Deli and the Grocery?
In the worst case I am planning to lease the Deli section to someone else.
Is this a good idea?
Tony, I would reccomend leasing out the 1000 feet from the start. Trying to open the deli and get it profitable may take too much time away from the pizza business and hurt it’s profit margin. I too am working on a second business(not pizza). I am finding that I can make more profit by putting all my effort into one than splitting time between the two.
why not make it a pizza & grill concept (and keep it as one…your average ticket increase with the hood for appetizers should make up for the lost rent…a tenant next door might have you fighting it out for lunch and competing for parking spaces, etc…it all depends wehat you intend to do wth the pizza side…dine-in, take-out, and delivery with a full menu can be done but it is not easy
Have you checked with Planning and Zoning department to verify you can locate a restaurant in an “industrial” zoning? If not, then re-zoning will be required to drop to commercial, and a whole new set of headaches, time plus expenses (and general $$ devaluation of property). This is a real issue that you should verify before closing. Allowable land use is often very different for different zoning classifications.
As for dividing, the pizzeria and the deli are two different concepts that could involve different government agencies. Yo may actually get involved with the Department of Agriculture if you are selling packaged grocery or prepared food items. Not my specialty, but we have a customer who works for state department of agriculture who chats with us occasionally. Grocery stores are USDA involved enterprises, as well as state dept of ag. It may be as was mentioned before that it divides your attentions and efforts to succeed at either.
I am going to hope that your due diligence has cleared up any zoning issues.
Tony I would say you can do it but it all depends on your overall experience as a business man. I believe continued success comes with experience so if you know the biz quite well then do it otherwise just focus on the pizza side because that would be more profitable.
And if you don’t have any pizza experience, then you are in big trouble!
Zoning issues got cleared already. This condo unit is attached with other businesses (catering, halal international market(No they dont sell any regualar grocery things…ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â¦).
Yeah I think best thing for me is to set the deli side up with equipment and than sell it & lease it since I am getting the money from the bank for construction and the equipments.
As far as food business knowledge I think I am improving everyday. This will be my 4th store under the same name.
I found great deals on ebay if it is in your area.
http://cgi.ebay.com/Complete-Pizza-Busi … dZViewItem
http://cgi.ebay.com/Pizza-Restaurant_W0 … dZViewItem
http://cgi.ebay.com/Pizza-Business-for- … dZViewItem
I donÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t own any of these nor have any kind of profit in me. And I wouldnÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t pay for it unless I see it with my eyes. Also donÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t ever pay for it with your checking account through paypal.
here is my thoughts do deli and pizza on 2000sf and rent the other 1000 to a completely different food or retail concept make use of your space for deli and pizza if you have businesses around you and you want the launch sales keep the deli it also helps the pizza business why rent it out while you can put a manger to run the deli for you inside your 2000 sf pizza deli store good luck