Before I begin the question, for the sake of discussion, please assume in my scenarios that I am a competent business owner and have chosen a great location and that the business will succeed. With that being the story we’re all imagining, I have a question of how the first store should be set up…
My vision is a dine-in pizzeria for the community that is featured with pizza, beer and wine, a large salad bar, and a fun dessert bar for the kids. I don’t want an enormous restaurant, I want it to be a small neighborhood spot and follow the KISS mentality. I only want to offer carryout and not delivery, but that is a very complicated question that requires extensive research.
In that research I found lots of interesting information on del/co ONLY stores. In particular, my attention was caught by the low start up cost. By omitting dessert, salad bar, alcohol, and dine in accommodations, I am able to erase:
-countless pieces of equipment for storage and production of salad and dessert product
-alcohol inventory and necessary licenses
-dine in furniture, dine in dishes, and go down to three compartment sink vs dishwasher
-perhaps 1/2 amount of needed square footage for buildout
-overall decorations dropped to bare minimum
-half the labor
I have $50K in savings. Originally, I was going to kick in $30K of my own money and apply for a business loan for the rest. I have yet to perform my feasibility study so I am not quite sure what that number will be, but I expect for the dine-in concept to perhaps run me somewhere between $75K-$100K.
So my question to you guys is should I consider starting sort of an express version of my concept by opening a del/co only store and roll the profits from that store over into building the bigger dine-in store? That way, I would avoid needing a business loan for my first store, and would be a stronger candidate for a loan on the second bigger store when I have one successful business under my belt? OR do even the successful del/co stores just take too long to generate enough profit for me to attempt this route? Should I just take the big leap and go for the dine in concept now? The sooner I figure this part out, the sooner I can get the business plan started, however, maybe you guys are going to tell me I just need to perform a feasibility study for both store types anyhow to help answer this question?