Opening store marketing Ideas...

I am purchasing an ongoing pizza shop that was shut down a couple of months ago, getting all the equipment at a good price. It was a second store in a town aprox 15 miles away. The owner, says was having trouble with staff stealing.

It has diamond touch POS and the history shows 3 years with the first two hitting $100,000 annually. 2007 figures were dismal.

The town is aprox 30,000 population with 6 pizza stores including a dominos , a 2 for 1 place, and 2 other price competitors. There is a Round Table and a Papa Murphys.

I see myself competing on the upper end of the spectrum (not cut rate). It’s set up basically for delivery/CO, it has a few tables but I can expand the seating area.

I am purchasing the shop under an LLC that doesn’t have a proper name, so after 1 wk soft open, wk2 & 3 there will be a contest. My marketing plan is to start with a “Name the new pizza place” contest, the winner will get free pizza for a year and I will of course collect:names addresses, phone, and email of all entrants. I will deliver the press release to all media that hits my town… TV stations with voice over video. All radio stations with live drive time dj’s both am and pm, and the local papers… and of course they’ll get a few free pizza’s along with it. Cost 34 large pizza’s 22 for the media 12 for the winner.

Followed up with another round of press releases to announce the new name and winner and maybe an order of hot wings with the press release this time.

Then on to the expensive marketing… Direct mail. I plan on sending a large magnet/coupon or selfstick/coupon to all the address within an 8 mile radius with: Menu, Map, and three coupons $10.00 off any purchase, BOGO, and 10 % off any order…giving them incentive to 1) hang onto the advertising piece 2) order 3 times from the store and get in the habit of using us.

After that I guess it will be door hangars… ugh, hate doing those, but i guess i can look at it as an exercise program.

And to drum up the lunch business dropping off menus from 10-11 at the businesses… free pizza samples to get the smell in the offices??? hmm… it’s a thought

Anyway once escrow closes I can be up in running in a matter of days and I get an experienced teacher for a whole month who can help train and get us through the rushes…

What do Y’all think?

…check out the post above about “what would you do different next time”
…great info and your next time is coming up for you…the rest of us are busy with what we got,
Otis

I DONT KNOW IT WOULD BE TOUGH RIGHT NOW WITH THAT NUMBER. WITH THE FOOD COST THE WAY THEY ARE RIGHT NOW THERE MIGHT NOT BE ENOUGH GREENBACKS FOR ALOT OF MARKETING. LET ME MAKE IT SIMPLE 33% FOOD COST IF YOUR LUCKY = 33,000 LEAVES YOU WITH 67,000 LABOR COST WILL PLAY A BIG ROLL ARE YOU GOING TO BE THERE OPEN TO CLOSE? GOOD % TO GO BY IS 25% THIS = 25,000 NOT TO SCARE YOU BUT THAT LEAVES YOU WITH 42,OOO. IF YOU HAVE RENT OR A MORTAGE 12,000 TO 24,OOO A YEAR NOT TO INCLUDE INSURANCE AND UTILTIES YOU WILL BE BROKE IN THE FIRST YEAR. I WOULD TAKE A BETTER LOOK BEFORE I JUMPED IN. I DONT KNOW WHERE YOU ARE OR YOUR POTENTIAL BUT THE GOOD DAYS ARE BEHIND US. WITH CHEESE ON THE CME @ 2.0775 BY THE BLOCK ITS HARD AND ITS NOT GETTING BETTER ANY TIME SOON. BEEN THERE DONE THAT FOR 20+ YEARS BUT WHAT DO I KNOW. CHEESE MAY GO BACK TO UNDER A $1.00 AND OUR RENT MY GO BACK TO $500.00 . HOPE I DIDNT SCARE YOU BUT I DONT LIKE TO SEE ANYONE FAIL. MY STORE DOES BETWEEN 700,000-800,000 YR. AND THE PROFITS GET SMALLER AND SMALLER

He was pretty lax in the marketing department, big on phone books… The good one just came out, so I’ll have no ad for a year. Will have to do hangars and direct mail and such. I guess what I’m saying is that I don’t think it will be too hard to increase the gross…

I will be there open to close, woo hoo…

I ran that break even calculator from the Manager Tools and it was pretty scary. Looks like I need $200,000, that was an eye opener.

I have 21,000 households within an eight mile radius, and 8 pizza places within this radius. Is it fesable to expect to gross $200,000? I would be the only place on one end of town a small town of 5,000 is included in the count.

He was pretty lax in the marketing department, big on phone books… The good one just came out, so I’ll have no ad for a year. Will have to do hangars and direct mail and such. I guess what I’m saying is that I don’t think it will be too hard to increase the gross.

Hint: Phone books aren’t anywhere close to what they used to be. I can remember back in the day, the first week phone books would come out we’d get absolutely hammered. With internet searches at your fingertips, the drive from phone book advertising unfortunately, is a thing of the past.

I have 21,000 households within an eight mile radius, and 8 pizza places within this radius. Is it fesable to expect to gross $200,000?

Even with the big turd numbers I’m throwing up there now I’m still well above $200k with 13,114 addresses and 8 competitors. Just 6 months ago I was significantly higher than where I am now, so yes… it’s possible.

I ran that break even calculator from the Manager Tools and it was pretty scary. Looks like I need $200,000, that was an eye opener.

Believe it or not… $200k is actually REALLY LOW VOLUME. That’s less than $4k/week: ugggh.

[b]Take the old formula:

$17.45/month per household x 21,000 households = $366,450/month in pizza sales

When you first open, expect no more than 6% marketshare, or $21,987/month[/b]

After your initial opening sales, it’s up to you to have a solid advertising plan to start climbing the proverbial ladder.

Hope this helps,

                -J_r0kk

Makes me giddy to quote an old friend coming home . . . .

I am in position to gross almost $200K in a town of only 1200 households !!! Man, if you can’t do it with almost 20 times the marketplace to draw from, then their may be some issues with the marketing and business plans . . . or lots of competition out there.

I am not trying to goose you up, but the numbers are quite viable in a 2100 home market. If you run the business well and provide a desirable product.

I agree the phone book is sooooo over priced for ROI
let me tell you something I like…http://www.rfgmarketing.com
they made my lunch sales tripple!
he actually gets the permission and does the leg work AND set up my online ordering
heres mine they set up
http://www.i8at.com/stores/i8_11490/
they just fax the order over…working on getting it added to the pos as well