Moving In Next To Competition

So, it’s looking more and more like we’ll set up our pizza place next to an already established salad joint. Normally this wouldn’t be much of a concern; however, we recently have branched out into offering salads to complement our pizza. Although our store and the salad place will specialize in different foods, do people think it’s a bad move coming in next to an indirect competitor? The location is terrific, but I wonder whether it would completely destroy the secondary salad business that we do. Thoughts?

I don’t know how salad sales are for you or any of the other guys, but in my experience with a couple of the major pizza chains and also as an independent, they should be the least of your concern because it MIGHT account (if you’re lucky) for 1% of your total revenue. You’re in the same position as a great many operators who’ve opened up shop over the past several years whereas you’re focusing on everything that can affect your business. My advice to you is to stop looking so much at the insignificant little things that are out of your control and concentrate on the thing that got you to this point in the first place: a great pizza that is marketable to the public. Now, if you were opening next to another pizza joint I could see why you’d hesitate a little bit. But a salad joint? Are you kidding me? That’s like a tire shop worried about being next door to a McDonalds. You’re good. Stop worrying.

-J_r0kk

One of my stores is right next to a Pizza Hut and a buffet house. The other store has 6 full service restaurants, 2 pizza shops, and at least 6 fast food shops. Being close to competitors is a good thing. It drives TRAFFIC. It’s up to you to make sure they choose your shop over the competitors.

I’d have to agree that having other restaurants in the area is a good thing. Think about automotive dealerships. They all seem to cluster. They do it to be convenient to the customers. If you wanted to look at a Dodge and a Chevy and you had two choices on each, you’d probably go to the dealer right next to the other brand to save time and gas.

Restaurants also seem to cluster, look at the fast food joints. Of course, it’s always best to be the new guy in the cluster since you’re only hoping to distract from the existing businesses (rather than being the existing business being distracted from).

In this day and age, you simply cannot have a monopoly in a reasonably sized area. If you’re going to have to fight the competition, take it right to their doorstep.

If the salad place is succesful, then USE them. Get their customers to become your customers by partnering with them perhaps? Is this a second location or a move of a single location? If it’s a whole new shop, you don’t need to have the same menu - drop salad and add dessert. Then meet the salad place and put together a pizza and salad promotion that you can both benefit from.

This is exactly what I would do. I have a somewhat successful wing shop located next to me with a phenomenal product. I do not offer wings. I have been trying to get that owner to work with me, but thus far he has not. He’s really being stupid. At bare minimum, he’d be adding delivery at no expense to himself. I’d get the add the best wings in town to what I can offer. It’s a win-win. Unfortunately, he’s being stubborn.

But maybe the salad guy won’t be a moron.

Just for kicks, I thought I’d post that my salads comprise 7.3% of my total sales.

We are having a Noodle Box shop opening a few doors down from our shop in the same shopping centre we are in. It should be up and running in a few weeks time.

My wife reckons we will be hit for the first 4 -6 months and says we should budget for lower sales.

The feeling I have is that it will only bring more people to the area and some may not have known we are there and then decide to get a pizza - maybe not that day/night, but next week. The shop they are going in has been empty for over 9 months and empty shops don’t bring people in.

I’m preparing for some loss initially but I think it will be more of a worry for the chinese shop rather than us.

I’m more than optomistic that in the end of the day it will be ggod for us.

As for going in next to the Salad place it can only be good for your business, especially if they do a good product and people are drawn to the area.

I’d keep selling salads in your shop as I doubt that you would get too many customers going there to get a salad on another payment when they can get it all at once at yours. Other customers may even see the salad joint and feel like having one and when they come in to order pizza they see your salad and buy from you instead.

KFC are often right next to MacDonalds etc and they both sell fries. Do you think the second one in says I don’t think I will sell fries because the first on here already does?

Dave

fastbreakrob writes:

Just for kicks, I thought I’d post that my salads comprise 7.3% of my total sales.

Rob,

I know they’ve got a lot of horses in Louisville. Do they really spoil them that much and feed them salad rather than hay? That’s a lot of lettuce going out the door! -J_r0kk

Is it a lot of lunchtime business?

lol… I don’t know why our salad sales are so high. They aren’t anything spectacular. Just your basics… House Salads, BLT Salad, Chef, and Greek. We also don’t upsell our salads, nor offer discounts or coupons on them. Our sub sales can sometimes be off the wall also and yet again they are nothing special… I’m not extremely proud of the quality of our subs but they sell pretty well and people like them.

Sometimes the best items aren’t always the best sellers :slight_smile: