I’ll give you a little background first then proceed w/ my question.I own a small little plaza on an Island in WNY.There is a pizzeria there that I am not renewing his lease.I tried to buy him out,he hymed and hawed for a week and we haven’t spoken since.I did not renew as he is always late on the rent,and in general was always pretty cocky towards me and acted as if he is a god or something in and out of the pizzeria.His income is approx 450,000 a yr and he rarely steps foot in the place.The place is absolutely filthy and last time he had 2 full pages of violations at inspection time,yet still does that kind of business.Town has about 20,000 ppl and 5 pizzerias(1 pizza hut).
My goal was to get in there keep a recipe similar to his and just clean the place up ALOT.Heres where a kind of prob. arises.I think he may be opening another store up on the Island,but as of right now there are no places set up for a restaurant/pizzeria.99% take out/delivery.
I used to have a pizzeria when I was 22,Great product but I was way too immature.Should I bring this recipe back to life?I was planning on doing that on the side w/ the recipe similar to his.If he does open another place up tho,should I just start from scratch w/ my old recipes?What if nobody really cares for it?Should I do both even w/ him open?.I figure alot of the business will be from ppl driving by(main drag) and still just thinking it’s his.I will advertise/get the word out when I do open it.
Any help is greatly appreciated and I will be adding more on here as well.
Thanks again
Derek and have a few questions
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
All I can say is be very wary of a single store owner selling his store under the guise of earning 450K per year. If you can take over his lease, then do it if its a better location than your and you can get out of your lease. A town of 20000 seems small to plan to have 2 places under the same ownership. As far as recipes go, thats a regional/local thing, and most answers you get on this site will be ignorant towards your particular market.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
LOL I think you need to re-read my post.I own the building and am evicting him.MAn,you also asked if I can get out of my lease?did you read another post and mistakenly reply to mine?I appreciate you taking the time to post but if ya can re-read it and let me know.
Derek
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
Hi,
I think you are in a great situation. Free rent! lol! If his sales are as strong as you think they are even though his place is filthy, and he is so cocky, then you should be able to go in and clean things up and treat people right and make a good chunk of change. By doing these two things your sales should be even higher. If I were you though, I would develop my own product. Why copy him and give him a leg to stand on in court, or in another location. It sounds like you felt you had a really good product of your own at one time so go with it. You may need to update it for todays day and age though. I wish you luck if you go for it, but It sounds like you aren’t going to need it.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
Sorry, I did misread it. Still, don’t expect to open here and have “income” of $450,000. This may refer to sales, and if so its not a bad starting point at all.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
If he has not breached his lease in any specific manner which is documentable by you, it sounds like to me that you are basically stealing his business, for no other reason than greed, and listing his character flaws and operational weaknesses as a rationalization to make us think you are the good guy. I’d like to hear his side of this whole issue.
And if he opens near you, you can bet everyone he speaks with (including your exisiting tenents) will hear his side about the “Evil Landlord”. I would bet he has a pretty good database built by now, and will utilize it to his best advantage.
You will also need to re build the pizza shop as I would assume he will be yanking out his equipment.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
First off the 450K is sales otherwise he wouldnt be late with the rent and probably own the plaza.
If he is doing a decent biz in its current state then DO NOT change the recipe…the cleanup and facelift could increase sales to a respectable level, but if he is reopening elsewhere than you might want to think about differentiating yourself b/c his loyal customers will follow him not the “jerk who kicked me into the street and caused me to lose everything”
Yeah, that is what the whole town will hear not your side!
Why not just give him a lease with strict terms and raise his rent…alot less headaches, even with the free rent
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
ROLLER-If you knew how he ran his business you wouldn’t say this.probably every other month the utilities get shut off.He owes sysco like 15 or 20 grand.He owes the town C of C money and they froze his account at a local bank.Greed has nothing to do w/ me taking over.Will I make money?Yes.Is this the main reason I’m not renewing his lease?No. Did it help in my decision making?Yes.How about going top pick up rent and everyday there is a different excuse,and I don’t even collect until the 10th.
HERE IS THE KICKER I FORGOT ABOUT-His HWT went out about 9 mos. ago.Kept the business open for at least 30 days w/ no hot water,more like 45 days.His lease clearly states that he is responsible for this item.I told his employees as a nice gesture if he got a new tank I’d put it in for free.Pretty nice gesture I’d say.All of a sudden the health dept. shows up and you know what they had to say,I’m sure LOL.Suprisingly they gave him 48hrs to fix.Guess who calls me up? Nope,has one of his employees call me and ask if I can put it in?Went there the next night to put it in.Looks like someone threw it off the back of a train.Huge dent in top and to top it all off, it wasn’t even the right size.Had to Fly to Home depot and buy like $40 of copper and Tees to rig it up.took an extra 2 hrs easily.
AND GUESS WHAT NOT EVEN A THANK YOU OR NOTHING.That was the final straw.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
I opened 7 months ago, and havent paid a bill on time yet!! But I run a clean operation, and am here 120 hours a week, with sales growing and accounts payable shrinking.
I lost a nice shop due to a greedy landlord so, I’m very biast, but it sounds like you have at least a legitimate gripe.
That is why I bought my building this time, I dont have a landlord breathing down my neck anymore.
It took everything I owned to mortgage the property, but I will make it.
good luck to you.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
thanks.
He’s actually been in the pizza business over 20yrs and everyone that deals w/ him won’t do anything unless he(employees) have cash up front.he actually has some killer employees who are going to stay w/ me.He does pay them well,but if they have a slow day he will accuse them of stealing,turning away customers,etc…
I’m still not sure on the recipe tho if he does open another store nearby,should I just everything new?When I sold my last pizzeria th eguy came in and changed everything and only made it 6 mos.Not saying I had the best stuff,but ppl liked what I had and when he changed it they left.That is what I’m afraid of if I change it dramatically.
Thanks again tho.
Derek
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
Sounds like you have a great oppertunity to get rid of a deadbeat tennant. Sure the guy will try to blame it on you but I bet most people already know what he is like and why you would get rid of him. Go for it if you have the time to put into running the business and you can give a good product and a fair price I think you will keep alot of the customers even if he opens another place. I wonder how he would even be able to get a lease if he is always behind one look at his credit rateing would show problems especially if he is in arrears with sysco I have heard they tend to report your credit rating. What is your other option? Find a good tennant and rent out the space but you never know what the new guy will be like so thats a chance ya have to take. Good luck
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
Nah,I’m going to open it up myself.I already have a full-time job for now and quitting won’t be an option for at least 6 mos or so.I have had about half his employees offer to work for me,including ones at his other store that heard I was taking over.I will def. hire a few of them as I know they are good people.The ones been doing all my menu planning and the other one is going to have them printed at his friends place.No charge.As far as the people in the area,he doesn’t even live here and they are a really tight knit group towards “Islanders”,which will give me a tad more help.
-The only “option” is really w/ my menu and how I should proceed with it.
Not to sound like a dick,but I know this will I actually wanted to call him and ask him to not open another store and just take the $$$ and leave.Also That I know his recipes and will offer his nearly exact(no lawsuit) pizza for $5 a large until it isn’t worth it for him to stay open.
I know this sounds very rude and the wife always comments about this,but he was this way first.And first off I have to do what’s best for my pizzeria.If he was even halfway decent and polite I wouldn’t be on here right now.
Derek
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
Couple questions…
Who’s equipment?
What state does he need to leave the space in?
I had a landlord get ticked, and he promised to open his own place when we moved. Man was he mad when we were out. The guy thought we would just leave behind our ovens and equipment. We pulled EVERYTHING wether we needed it or not, and we tore out anything of value to a pizza shop.
He tried suing. Fool. he eventually did open a shop there, and was out of business a year later.
It sounds like yours is a simpler case, but be careful.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
It could get really ugly…if you think the place looks bad now, wait till you see how it looks after you kick him out. Given his financial history, doesn’t look like you would recoup regardless of the lease in place. When you play hardball be prepared to have this guy invite all his friends over with a keg of beer and a bunch of sledgehammers the night before they hand over the keys.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
LOL,That would be some funny stuff right there. I live right around the corner from there and willl stick around if need be.I would’nt expect anything like that but ya never know.Besides the walls are all concrete and he’d be busting into other stores w/ alarms.The equipment is his and I would like to buy new/newer things anyways.I’ll post more in a bit.
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
You have little grounds to get his recipes. The equipment, though, can be foreclosed upon. You, as landlord with money due, can take legal action (I think–I’m no lawyer) to get equipment etc as payment, and cancel the lease as well.
But, this will take lawyers, time, and $$$.
Use your own recipes, look for new things to do, and best of luck!!
Re: TAKING OVER AN EXISTING PIZZERIA and have a few question
I already have his recipes.All I would have to do is add a touch here and there to make it differentf if that’s what I choose to do.As far as the equipment it is very old and mostly in fair condition.The $30K I was going to give him that is still put aside would buy ALOT of new equipment.
$5K new walk-in cooler,$4K 2 new 5ftX30" SS coolers,$2K 5ftX30" SS freezer,SS pizza and sub prep tables $3,500, 3 New fryers w/ SS prep table at side $3K,Nice Blodgett Conveyor oven reconditioned w/warranty,$8K(if I go that route).That right there is only $25K.Not sure about the dough yet as my old salesman swears I should use the new frozen dough.If not I know I can pick up a decent mixer for a few grand,which would leave me a grand or two for misc items.
Also this is paying cash for everything,I know w/ half down I could finance it if need be.
Thanks for the reply
Derek