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Dealing with Negativity

Pizza_De_Puta

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As some of you know, I am developing a menu, putting together a business plan, and want to eventually open a pizza parlor in my town of 20,000 people. In addition to the locals, our main drag sees 25K of tourist cars come down the main drag daily on their way to Yosemite National Park. Three chain restaurants in town, two of which do $1 million plus business.

This will be the sixth business I’ve started during the past twenty years (3 of 5 are still going strong). One is a prominent industry leader in a worldwide marketplace–but I’m burned-out and have turned operations over to one of my sons. The two failures have been retail where the market proved smaller than anticipated and simply weren’t worth the work. This will be my first restaurant, however.

The business concept is simple. Produce perfect NY style pizza. Use the freshest, top-quality ingredients, make the very best pizza within 100 miles, and never compromise on these standards. I’ve been baking for two months, first in my home oven and now in a used Blodgett. My pizza has reached a level where it is easily superior to the chains in town. The taste testers I invite over are asked to be critical but are now 100% positive in their overall evaluations, with some giving minor tips (i.e. “I’d like to taste more garlic”, etc.). Several have stated voluntarily that mine is the best pizza they’ve ever eaten (remember, we’re in California and that bar isn’t terribly high). However, I still have several more months of full-time development work and tasting tests to do before the menu is rock solid. My wife, is a full-fledged chef who was classically trained in Italy, is working on a dessert menu, too.

But putting the positive comments aside, I am having trouble dealing with the overwhelming amount of negativism I receive, particularly from family (my mother is the absolute worst) and neighbors:

“You don’t want to ever open a restaurant.”
“More restaurants fail than any other type of business.”
“You’ll burn-out and end up in the hospital.”
“Don’t do anything until Obama is out of office.”
“Wait until the economy turns around.”
“Don’t go into business you know nothing about.” (Said right after, “This is great pizza.”)
“Two other restaurants went broke in that location.”
“What are you going to do when a bunch of people shows up at once?”
“How are you going to take orders and make the right thing?”
“You can’t touch the money and the food.”
“You know the health department will inspect.”
“How can your kids take the orders?” (They’re 20+ and college grads)
“Remember when you failed at _______, you don’t want that to happen again.”
“You should go back to being a teacher.”

Like the old DOS command states: “Abort, retry, ignore?” I don’t know whether to scream, listen, give-up, or just keep my head down, working toward the goal. I’ve never faced such resistance and negativism when discussing a business concept and the dream. While at the same time, witnessing such joy and enthusiasm from the taste testers and the people who sample what is being produced.

Has anybody else out there had to deal with this?
Are these people looking out for me or trying to beat me down?
 
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Let me share my experience with you, and hopefully from how I dealt with it you may be able to see what would be best for you.

I was working for Papa John’s Pizza an an Area Supervisor, where you constantly get taken advantage of if you do your job, and are rewarded for being complacent. I got tired of working 60 - 70 hours a week for someone else to take credit for my work, and not even give me a thank you. I decided to open up my own pizza shop.

My immediate family was very supportive (this was last year and I was 23). My fiance and my father especially were right there to keep pushing me. But a lot of people said that it wouldn’t work, and my father (who helped finance me some working capital) was always afraid of the “What ifs”. His idea of running a business was spend as little capital as possible, and save it for a rainy day (he used to own a service station). Well in pizza, that doesn’t work, and we were off to a very rocky start.

Constantly, he would make comments to the the effect of, “Wow shouldn’t we be getting more repeat customers? I’m concerned about this, or that.”

I let this affect me, and for the first 9 months of business, I wasn’t even breaking $1,000 a week (and we opened in August so we were here for the busy season).

Recently, I finally analyzed my situation. I have a good pizza, that’s not the problem. But why wasn’t business increasing? Because I wasn’t as confident as I used to be, I didn’t keep consistent marketing ideas flowing and stay on top of the competition. I let his worry take me down (and not that he was trying to do that, it just happened).

Finally I sold my 2nd vehicle for $4,000 (so that I wasn’t relying on his money for marketing) and told my self, do what you know is right. Put all the negativity or worry on the back burner. Either you’ll make it or you won’t, but at least you can say you tried.

Now that was only almost two months ago, so I know it’s not a big time frame, but I’ve only spent about $1,500 in marketing and now am seeing a steady 10% increase in sales during slower times and every week it keeps building. I am working to get back a lot of the lost traction, so it is an uphill battle.

Bottom line, believe in yourself. Take the positive reinforcement, and smile at the negative and say, “That may be true, but I’d rather do it and know for sure than always be left wondering.”
 
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I treat comments like that as “encouragement”…I will be successful just to “piss” them off…Good luck…
 
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I sold my last company to open up my Pub. Was it a smart move or the dumbest thing I’d ever done? Time will tell that story, but I wouldn’t trade the last three years for pretty much anything.

If you wait for the “right” time, “right” federal administration, the “right” anything…you’ll never make a move. We opened up in a State that is easily in the top three for making small business sweat, under a Presidential office that seems (to a Conservative anyway) to be hell-bent on ruining small businesses, and in the midst of a crushing recession/depression. We’re still here. Our sales are up 12.8% again this year so far, and our bills are paid. We’re not “making money” yet no, but we’re paying off our debt and we’ll be clear in 4 years (finding wood).

The thing is, we’ve brought a concept our small town was eager for and supportive of, and if we face another 4 years what’s going on now, fine we won’t be the only business with a “closed” sign hanging on it. If we hold on till the economy moves back into the upswing, well then we’re in a spectacular position to have us some fun!
 
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Here is an interesting article from RestaurantOwner.com. It is not the route I took but I see some validity to it.

I opened my store with absolutely no experience in a commercial kitchen of any kind. I had been around the industry in other capacities but not in a kitchen. I took the things I had observed and combined them with the things I learned in other areas of my business life and went for it.

I paid what some here on Think Tank have coined Fool’s Tax more than I care to admit but with the support of my family we are in our eighth year of business.

Take the negative comments as cautionary points to research. If you are able to come up with viable solutions to them you will win the game.

I have watched quite a number other pizzerias in my city try and fail over the years that I have been open. My take on their failures is they were using the shotgun approach to business. If you know anything about shotguns they will hit anything that is close but trying to hit a small target at a distance and they are useless.

I read that you want to be a quality place so concentrate on quality and service and charge a price that would be representative of what you are selling.
 
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Don’t fret the uber-naysayers but do heed the advice of the moderately cynical - they’re trying to help!! It is a very tough business with an emphasis on BUSINESS.

I haven’t read your post, so let me throw my 2 cents in (if it’s repetitive, I apologize). A recipe is not a business plan. You need to know your market and have researched thoroughly what you can expect in revenue. For me, this meant dumpster diving, talking to vendors of other restaurants, going to other restaurants and counting guests, etc. It’s a lot of work. Then you need to make do the same research on your expenses. Make appropriate assumptions about your expenses and add 20% - do you break even? If so, it may work.

My dad always told me that all jobs/businesses are sales. I’ll go one further and say that all businesses are marketing businesses. It’s a one-in-a-million restaurant that make it based on their superior quality food. Most of us on the forum have learned to become experts of some sort in marketing. At your level/budget, that’s going to involve a lot of guerrilla and non-traditional marketing. Creativity is king. While I’m ranting, creativity is king in everything - use your imagination in decor, menu design, purchasing equipment, architecture, etc. Spending time v. money in these areas can give you a significant edge. I know this is all very broad so I hope this helps you in some way. I am not an expert and probably do lots of things incorrectly. Still though, if I can be of any help in any way, please PM me and I’ll be happy to offer whatever experience I have by PM, phone, or e-mail. I imagine almost everyone on this board would as well.

Good luck and don’t worry about optimism v. pessimism, worry about business! You have lots of experience in running businesses so treat pizza the same way…

Patrick Cuezze
Next Door Pizza
 
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The only one on your list that gives me pause is that: “Two other restaurants went broke in that location.”

I would want to understand why. Location can be a make or break factor. If the location is WHY they went broke, not much will overcome that.
 
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Pizza De Puta:
e–but I’m burned-out and have turned operations over to one of my sons. The two failures have been retail where the market proved smaller than anticipated and simply weren’t worth the work. This will be my first restaurant, however.
bodegahwy makes a good point, but I also wanted to point this out. If you got burned out in another industry, the pizza biz is probably going to be harder, especially in your market.

My best advice is has always been: Never open a pizza place in a town with no pizza places. Always open in a town with 10 pizza places.

That kind of links back with the previous post as well. There is a reason a town has no pizza places. Keep that in mind.

Also, if you are getting 100% positive reviews, either someone is telling you lies, or you aren’t polling enough people. Hold on to those nay-sayers. You will need them. Ignore the empty criticism, but seek out constructive criticism. Learn to differentiate the two. A lot of what you might see as negativity probably has a kernel of truth that should be looked into, and then implemented (or ignored).
 
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