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Dear Mr. Rasmussen:

Give me the skinny if you would please. Based on your experience, is there room for another pizza shop in Columbus, Ohio, which is where I live, (tough question). Also, what is the profit margin on the average of a pizza shop? Can I clear 100K making pizza out of one shop? is there a rule of thumb?

Marty Polli
 
Sorry I must have gottn the name wrong
Can you answeer the question? Or am I way off base?
 
Rasmussen would be Mike Rasmussen. He’s a CPA who writes articles from time to time for PMQ. Listen to what he says because he knows his stuff. As far as fitting another pizza store in your town, the fastest way to calculate is to take the total population and divide by number of pizza stores. If you’ve got over 6,000 people per store (including yours) then it would be safe to say you’re in good shape. Any number lower than that would be an uphill battle to acquire marketshare. I’d go more into depth if you’d like, but this is your fastest way to answer your question about room for another shop.

As far as profits are concerned, it would depend on the break even of your store. If you want to clear $100k in profits, it would be safe to say your store would need to average well over $10k/week whereas the average independent will average $6k-$8k.

Hope this helps. -J_r0kk
 
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thats good advice from jrook but you are not going to find a town with that low of a per capita in ohio or pa. In my area it is about one per 2000 people. Mine is about average some towns near me have a few less shops some have alot more. There is one guy who posts over at the other place (pizza today) who has about 1000 people per shop in his town and by the way he talks I am sure makes over 100k. I have three shops and they all make over that a year in profit so it can be done but it takes hard work and a good education. Before you open a shop get educated. there are too many people who get into this business because it is there “dream”. Do not get into it for that reason or you are probably going to be walking down elm street. Get into a business for one reason and that is to make money. I really enjoy this business but if something more lucrative came by I would leave it in a minute. Listen to what you read here from jrook, refried, chris (from japan) etc these people are really helpful and know what they are talking about. Good luck and if you decide to get into the business make lots of money.
 
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In major markets today it is rare to find an underserved market; 6000 people just waiting for a pizza store. In a market the size of Columbus I would not worry too much about the people per store count. There are plenty of people. Whether you succeed or fail will depend on your product, service and marketing.

In a race with a bear, I do not have to be faster than the bear: just faster than you. If there are 60,000 people and 5 stores or 10 store or 15 store, the simple fact is that you can make it if you are better than some of the others at what you do. In Pizza that is not a hard thing to do. MOST operators are pretty sloppy business people with average product.

Assuming you do not handicap yourself with a poor location and under-capitalization, yes you can make 100K in one store. You will need to shoot for medium to higher volume to do it. In my market, the number would be about 550K in sales but wages and rents will change that number from place to place. You will need the kitchen capacity to do the sales in the plan and product and marketing equal to the task.

Depending on you location, market and marketing budget it could take from 6 months to 3 years to get there.
 
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yes i want to open a pizzeria and make 10 millions pennies in profit is that possible, give me your recipes i will send you money order in the mail ty
i thought that was funny
well back to business
number of people is important but your product is more important have you worked at a pizza place before? do you know how to make good pizza are you 100% sure without a doubt that your pizza is different and taste better than papahutdom (papa hut domino) then go for it .
 
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