insurance on a pizzeria

With delivery or not?

Approx annual sales?

If delivery, what portion of sales?

With beer/booze?

I am sure it will vary from market to market and with the type of building you are in and other variables, but I would expect that with hired and non owned coverage, your general liability and delivery coverage would run $6,000ish. With no claims history that might run higher.

Concklin will no doubt be one of the ones recommended for the hired non owned. Do yourself a favor and don’t waste your time with them. I’ve never dealt with such a crappy company.

My feeling is the insurance industry is a magnet for less than respectable people, but I use a local company that provides me with adequate coverage on premise and a relatively small hired non owned policy. Hired non owned for pizza delivery is only offered by a few underwriters. Concklin offers probably the most reasonably priced and easiest to qualify for policy but the underwriter only allows Concklin to write the policy. When you have a claim on a Concklin provided policy you’ll quickly learn that you get what you pay for. Other than whoever Concklin writes for, Firemans Fund writes the bulk of the policies for independent pizza shops. There are a bunch of agents that write for them. Here’s a link to a thread with a post I put up a few years back that might help, but the data is dated. I have a few other posts regarding this that might help if you care to search for them. A trip to Pizza Expo will yield 5 or 6 agencys that can write policies, mostly through firemans Fund. Good luck and let us know if you have a good experience with whoever you choose for the policy. … 749&t=5921

I’d suggest going to a couple local, independent insurance agents and letting them do the leg work to do quotes. I went to my homeowners insurance (major insurance company) when we first got our store and they quoted me $18K a year. Working with an independent got me a quote that made the first one laughable.

I doubt there are five insurance companies writing pizza delivery insurance.

You need to work with a broker who exclusively sells commercial lines. Yes, you will need delivery coverage even if your employees are driving their own cars. YOU are not protected from liability by the employee’s auto coverage. The policy you need is “hired and non-owned” for this coverage and it is not easy to find or cheap.

I would echo the comments about Conklin. The program they sell is pain in a$$. I would not send anyone there… but they do get it written promptly.

Good luck.

Anyone else nearly have a stroke when they put together $4K a week in sales and $2700 a month in rent? There is no math I can cipher that makes that a successful proposition at that sales level. I ran a little higher sales than that, and couldn’t make $1200 rent work for me. This ratio is far more important to consider than the insurance. This is eathier a walking dead business, or it was bleeding money somewhere. Have you had a restaurant accountant review their books before making and signed offers?

It is not a catasrophe givena great sales generation plan . . . marketing . . . community awareness . . . business to business networking . . . service excellence plans . . . that kind of thing. It will take some substantial cash reserves while you get that engine fired up.

I agree the rent quoted is probably unsustainable at 4K per week… but with out the entire picture it is hard to say. For example, water, trash, snow removal, landscaping and all parking lot maintenance is included in our common area expenses. Those items are worth a bit so when comparing rents, you do have to have the complete picture of what is included. I know there is no way I could survive on 4 per week. It is hard enough at twice that.

It does not matter so much what the sales are your first month. What is more important is what they can build to by the end of the first year and second year etc. It may well be that the rent is just fine for where you are and people are doing more sales than you are forecasting. If that is the case, the LL is not wrong about the rent. At 2700 per month, I would expect to do 350-500K per year.

I would be reluctant to get into a lease where my occupancy cost was greater than 10% of what I expected my sales to be at the end of the first year… so at 2700 per month, I want AVERAGE at least 7K per week. To me that means you will need to be able to handle considerably more than that in order to offset the slow times.

If you do not think you can get there, move on.

Pick up a copy of this book: The restaurant book: The definitive guide to starting your own restaurant.

A used one will cost more to ship than buy. It is dated, but will help you to create the financials for your restaurant business plan. It will also help you to make a checklist for the costs you will need to consider. If you can’t make the numbers work on paper, then they surely won’t work in the real world.

I love the break even calculator here: … recasting/

I wish I would have had it when we got our first place. It has a lot more detail than any of the others I’ve seen, but also shows your profitability when you go over sales that will motivate you to grow, or show the futility of minimal profit margins and make it easier to move on. The other thing I like about it is that you can plug in numbers into the marketing budget and get an actual needed ROI to make it worth your efforts. Or, what working to cut operating costs will do to your bottom line.