I am in a town of about 8000 people. It’s just me and other small local chain store right now and Pizza Hut is starting to build-out. I just found out that my competitor is selling his store. I have always thought it would be a smart move to take over his business if he does sell and replace it with a sub/gyro shop and that way eliminate a competitor now that Pizza Hut is coming I really want to do this. I was also think about keep in it a pizza place, but one that is different than my current one, maybe something that focuses on budget pizzas or “hot and ready”. It would have a different name and look. Any thoughts?
I have often had the same thought about opening a second pizza place with a different concept, like the hot and ready. When I get people that are just worried about price I could tell them hey I have a friend(ie me) that sales pizza for $5.99, they are not up to our quality but not bad for the price. This is an ongoing joke at the store but who knows it might actually work. Good luck, with your decision and keep us posted.
One of the problems with buying another store and shutting it down, is that several more “wanna get rich” folks will come out of the woodwork to open up…Now you may be able to outlast them but it might get painful on your bottom line…
And opening a 2nd location can often mean spreading yourself too thin…Again this can be painful on the bottom line…
I think the best approach is to let the other store sell, and hit hard with your marketing as soon as you can to leave them in the dust…If they market “new management” you market “the folks you know”…You market against them with your strength…
And if you are up to it, hit them hard right now before they sell…If their sales dip as a result of your effort it will make them harder to sell and less of a threat if they sell…
I would have to say this is a bad move. You are buying out a closing business in a very small town. Yes others might open up but why invest so much time and money for sales you are likely to get anyway. I would market strong against PH and make the town support you as an indie over a big chain. Start a campaign now before they open about your quality over their low priced and even lower quality offerings. Try to make PH’s life a living hell and make them move back out! :!: