Starting a new pizza biz!

Been checking out the forum for a couple days now, reading all the old threads and the stickies. Lots of great info and some really helpful people. I am impressed…

So here is the plan and some of the important details…

  1. No pizza experience… Plan for dealing with this is to start with a dummied down outfit; find a quality frozen dough or parbaked and use a conveyor oven. I do have some restaraunt experience. I want my pizza’s to be consistantly good so from everything I have read here this seems to be the best plan.

  2. Business size… Small. Location is a small resort town in B.C. Can. About 3 thousand people in off season, 25 thousand in summer. Take out only.

  3. I have a finacial backer who will put up the money, but haven’t worked out how that partnership would work…open to suggestions.Right now my thought is I would take a small salary, then 50/50 on actual revenue. Once Initial capital investment repaid increasing the salary portion to better reflect the cost of a manager.

  4. Competition… Minimal, one new restaraunt offering take out pizza but their location not great and would not cut into main potencial market during peak season very much. There was a pizzaria in the location that I am trying to obtain that just went under. Place was mismanaged (I don’t know all the details of the closing but I know enough not to be concerned by their failure, the previous owner who sold them the business was doing rather well)

  5. pricing… Previous places price for a one topping 14’ pizza was $16. Not sure where mine will price out at but I would like to try set food cost at 25%. Might be hard to do with the way cheese and other products have gone up and higher cost of using a frozen or parbake but with lack of local competition as long as I put a quality product out the price can be high.

  6. Equipment… As I would be a one man show for the majority of the time (plan to higher part time staff for busy part of season) I am using the KISS plan. Keep It Simple Stupid… So to start I want to build the menu around items that can be done with pizza oven. No deep fryer to start
    For a Oven: Right now I am leaning towards an XLT just from what I have read here seems like a company with a good rep and pricing, but certainly looking for recommendations from any guru’s
    Other equipment that I have priced out include prep table, small merchandise fridge (for softdrinks etc.) fridge and freezer for supplies (I know walk in cooler best but for operation this small I think I can get by with just a fridge, freezer, and what space the prep table offers) Slicer, Pizza Pans…

So far it looks like $25000 is a reasonable expectation for starting capital for equipment.

  1. Other important details… Right now I am waiting to here back on the availablity of my desired location, it may be spoken for (which would put a huge dent in the master plan, but deal with that as it comes) but the rent would be $940 a month. I think that a reasonable gross revenue to start would be $100,000 - $150,000 small numbers for sure but I do think it would be profitable and the area is rapidly growing so solid potencial to grow as the community does.

Well thats all I can think of for now, any and all feedback is appreciated. I will lots of questions later as I get closer to knowing if its a full go ahead or not…

Hi there,

Your situation sounds similar to mine, except I’m in Hong Kong where I don’t have access to things like premade doughs and sauces etc… at least not that I have found yet.

Couple of things… your investor - aside from money what is he/she putting in ? You may not be putting in any money but you are investing whats called 'Sweat Equity" that means its you doing all the work setting the business up. Consider that when negotiating the deal. Also if the investor is only putting in the cash then perhaps you should structure a deal where they get their cash back plus an agreed percentage (kind of like if they had loaned you the money) and once they’ve received that agreed repayment then they take a smaller share of the profits.

Basically a 50/50 split of the profits after they have received back their initial investment seems rather high, unless they are bringing more to the deal.

Perhaps get them to commit to putting their money back in for the second shop ?

we started with the kiss plan also i did it for 50,000 that include buying land putting up building equipment etc but lots of sweat equity it can be done just not sure where else this could be duplicated as far as salary goes good luck better have little cash set aside i belive murphy stowed away in my building trust me all looks good on paper but its the little things that bite you on the behind :smiley:

Hi newbe:

If you would like I will do a professional blueprint -layout for your new shop no charge.
George Mills