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Consultant fees - What do you think of thes?

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Pazzo_di_Pizza

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What do you all think of this proposal to help me start my pizzeria? Comes from former owner of highly successful pizzeria in my home town. It was the place to go for pizza and when I visit my parents we eat at least 2-3 pizza over a weekend.

A. $30,000 for my recipes. $10,000 payable up front and the balance plus interest paid in 24 monthly $500 installments.
B. $150.00 per day (8 hours) during design, set-up, and training for as long as I am needed.
C. One half of one percent of gross revenue for 5 years, payable annually.
D. Notarized document signed by all owners of the restaurant stating that you, owners, and heirs have no legal right to resell or reuse my recipes for anything or anywhere other than this original restaurant. If you want to use them in any other locations or for any other purpose, you must renegotiate the royalty program.

The training will include presentation, preparation, dough techniques, menu development, interviewing, and purchasing. You’ll get the full meal deal!!
 
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Way too much if you ask me.

You could hire people like Big Dave for less and think of what you can do with that kind of money.
 
Are his recipes really that good? I wouldn’t touch that type of agreement. The way I see it he gets the mine and you get the shaft.
 
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I could tell you what I think, but it’ll cost you $30K. Just kidding. Jrokk pretty much summed it up. That kind of money would go a long way toward equipping your shop. There is so much advise from CURRENT successful operators right here, no charge. Have you looked at the recipe bank on this site? Heck, I have the recipe that came with my shop. We had our own recipe, so I don’t use it, your welcomed to it!
Not fro nothing, but why doesn’t this person have a pizza shop to sell you, instead of just the experience? Did they go out of business? OR, if they sold the business, he may have already sold his recipe to the current owner of that shop. The folks that I bought my shop had to sign a “no competition” clause(“x” years, “x” mile radius), and that includes helping someone else run a pizzeria, especially with the recipe that I bought with the place.
Tom R
 
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Don’t waste your money…use the advice here 4 free…

If you’ve never worked in a pizza joynt or other food service, I might question why you are taking this plunge…

If you have some experience but lack pizza know-how, you may only need to relay on this forum…all that money for a dough recipe is STUPID…
 
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I agree - do not pay that money. Personally if I was out of the business and somebody wanted my help setting up their restaurant. I’d go help them for FREE.
 
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Pazzo di Pizza:
A. $30,000 for my recipes. $10,000 payable up front and the balance plus interest paid in 24 monthly $500 installments.
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Well, hopefully this guys pizza knowledge is better than his math.

24 x $500 = $12,000

$10,000 + $12,000 = $22,000 not $30,000 plus interest.

:shock:
 
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j_r0kk:
I only charge 2 cents for my advice.

-J_r0kk
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Thanks for the reminder, speaking of which where do I send you the .02? LOL
 
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Registered Guest:
Pazzo di Pizza:
A. $30,000 for my recipes. $10,000 payable up front and the balance plus interest paid in 24 monthly $500 installments.
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Well, hopefully this guys pizza knowledge is better than his math.

24 x $500 = $12,000

$10,000 + $12,000 = $22,000 not $30,000 plus interest.

:shock:
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Good catch I was thinking of that on the way to work this morning doing the math in my head (kind of like walking and chewing gum!). I figured these rates were out of line and all I could think about was “just think of all the marketing I could do that amount of money” or “I could get those gold plated ovens for that amount”

As for his business, IIRC when he divorced his wife got the business as it was named after her side of the family. It still stands today but it has a different owner. Rumor also has it the original recipe for dough sauce etc has changed a little, but it would appears the recipes went with the sale of the restaurant. Not sure if he can legally sell something that was included with another business deal.

I greatly appreciate all the input, and figured everyones comments would be exactly what has been posted. You can be sure I will be hitting everyone up for advice along the way. Thanks again.
 
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One other thought… if they’re not your recipes anyway, wouldn’t you be better off just using that money toward a franchise fee and becoming part of an established system?

The franchisor will give you all the support, advice, marketing help, etc, that you want.
 
Pazzo, where are you located and what kind of pizza are you looking to produce. If you like, feel free to come to Florida, and check out my store for a few days. I’m sure you’ll feel comfortable with dough management and have a good start to your recipes after a few days.
 
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Located in Poulsbo, Washington (across the Puget Sound from Seattle)

http://www.gonorthwest.com/Washington/p … oulsbo.htm

My wife and I did consider the franchise route but it seemed we wanted to do things a little different from every concept we looked at. We are pulling ideas, product lines, etc. from several other concept stores.

Our company name - Pazzo di Pizza means “Crazy about pizza”. We have come up with a slogan “Crazy about pizza and a whole lot more!” We looking at large amount of community involvement (fundraiser for schools, youth sponroship, environment issues, etc.)

I was able to duplicate (at least close enough) the dough recipe from Gallucci’s Pizzeria in Lincoln City Oregon (home town). It is a thin crust style with topping edge to edge with a great crunch when you take a bite.

Locally in Poulsbo we only have limited choices, all of which are middle of the road at best. Limp crust, skimmpy toppings, large edge crust etc. Besides the fact no one offers dine-in seating beyond about 10-15 seats.
 
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There’s an up and coming operation happening right now out there in Washington. Have you looked into Garlic Jim’s and what they’re doing? Apparently they’re doing something right with all the new store contracts and AWUS of around $14k/week. Maybe it would be worth the royalties if you get on with a proven brand that will show you how to do the product and can produce sales in the $14k range.

-J_r0kk
 
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Anonymous:
One other thought… if they’re not your recipes anyway, wouldn’t you be better off just using that money toward a franchise fee and becoming part of an established system?

The franchisor will give you all the support, advice, marketing help, etc, that you want.
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I’m not sure what Franchise system you are a part of, but ours gives us their glorious name and a quote You have 2 rights: breathe and make pizza!!! Marketing, support ha… you are on your own.
 
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I havew heard of this company and like what they are doing but it appears they are take-out and delivery only (at least the one closest to us). Could be wrong.

What we need is a place with some (not huge) dine in space. Even our largest indy only has room for about 15 tops.

How does GJ’s cook their pizza so fast?
 
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Pazzo di Pizza:
What do you all think of this proposal to help me start my pizzeria? Comes from former owner of highly successful pizzeria in my home town. It was the place to go for pizza and when I visit my parents we eat at least 2-3 pizza over a weekend.

A. $30,000 for my recipes. $10,000 payable up front and the balance plus interest paid in 24 monthly $500 installments.
B. $150.00 per day (8 hours) during design, set-up, and training for as long as I am needed.
C. One half of one percent of gross revenue for 5 years, payable annually.
D. Notarized document signed by all owners of the restaurant stating that you, owners, and heirs have no legal right to resell or reuse my recipes for anything or anywhere other than this original restaurant. If you want to use them in any other locations or for any other purpose, you must renegotiate the royalty program.

The training will include presentation, preparation, dough techniques, menu development, interviewing, and purchasing. You’ll get the full meal deal!!
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Not in a million years. Go to sites like pizzamaking to get good recipes. You can do that for free.
 
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