I also forgot to add, when you buy someone out who has a failing business, you need to consider why he has a failing business.
If he has good product, but he is just manages his variables poorly, he might actually have some GOODWILL worth purchasing.
But if the product is terrible, like you say, and the owner is an arrogant bastard like you suggest, then I would run away. You will spend allot of time and money trying to turn the business around, and change people minds about the location, and its product, and/or managers.
When you build a store you need to determine how much of an area you want to service. Whether you want to offer delivery, or not. I focus on delivery, but allow enough room for a couple of families to come in and dine.
In my neck of the woods I can usually locate 600 sq ft. for about $300. mo. Here is a list of items you need.
— Dbl Stack of Lincoln Impingers, either 1000’s or 1100’s ($3k ~ $7K)
1000 have a capacity of 60 pies per hour each yet they have a very small footprint as opposed to the competition(i.e. Middleby), The 1100’s have a capacity of about 20 pies per hour each, and they have about half the footprint of the 1000’s, and they used have the electricity and/or gas or the 1000’s(low overhead)
— Hobart 60-quart Mixer preferably 1 hp or better. ($2500 ~ $4000)
Alway get a strong mixer, and make small batches. I make 50lb batches of dough in my mixer, and the mixer does it almost effortless.
— 10’ Makeline ($1000 ~ $2000)
— 2 ~ 2 door Refrigerator (Delfield or King Air) ($1000~$2000)
you could buy used household refers for much less but they hold much less also, it depends on your local health district.
— 1 ~ 2 door Freezer (Delfield or King Air) ($500 ~ $1000)
you could buy used household Freezers for much less but they hold much less also, it depends on your local health district.
— 6 ~ 72" x 36" Stainless Steel Prep Tables. ($500 ~ $1500)
Take 2 and build a cut table out of them, use a little plywood, and some simple ingenuity.
Take 2 and create you front counter
Take 1 and used it for prep
Take the last one and use it for your slap table.
— 1 ~ 72" x 48" Storage Rack & 2 ~ 48" Overhead Heating Strips ($500)
Use this to hold pizza while waiting for delivery, or pick up.
— 1 ~ 30" x 24" double tier Henny Penny Hot Holding Display Case ($500)
Allows you to sell pizza by the slice, for the impulse buyer, allow people to try your pizza out without divest a large investment the first time out.
— 2 ~ 48" x 30" tables, and 10 matching Chairs. ($500 - $1000)
Buy about $500 in smallwares, i.e. screens, paddle, dough scraper, dough docker, 4 oz. spoodle, Sauce buckets with lids, 6" metal 1/3 pans, 6" metal 1/6 pans, Mandolin, Dough Trays, Etc. Etc.
Determine your menu, hours, delivery area, purveyors, initial advertising campaign, create some signage(A-board, Vinyl Lettering on the Windows)Purchase you opening inventory, hire 2 dedicated managers pay them a livable wage and give them incentive like 20% of Profit each.
Find a good trustworthy bookkeeper/CPA, preferably someone who is much older than you, my bookkeeper in 70, she has an assistant that is 38. But the age is important, the older they are, the more value you will get out of them. Let her do your Payroll, and have her create a monthly P & L, and balance your books for you. Keep you own books if you like for the first six months or so just to double check there work.(and develop trust) Don’t ever let anyone have signing ability on your checking account, not even your spouse or your bookkeeper. List your spouse, or bookkeeper, or nearest relative as your “Payable Upon Death” so that they can access the funds if you leave mother earth a little early.
Open your doors with you and your managers. If the business climbs above $3000. a week. you will see the need to hire additional staff so that you don’t burn out.
Hire 1 PT inside/cook for every $1500 in sales above $3000.
Hire 1 PT delivery driver for every $1500 in delivery sales.
Most of my stores have 1 manager(salaried), 1 Asst. Mgr/FT Driver (hourly), 1 PT Inside, and 2 PT Drivers.
Good Luck.