So You Want to Open a Pizza Restaurant? – PMQ Pizza Magazine

“ I ’ ve always dreamed of owning a pizza restaurant. Nothing besides big. We ’ ll keep it accomplishable. It will be fantastic ! possibly a small bar with some cool draft beers. Nothing besides crazy. Some nice cozy booths. Families will love it. We can do a few pasta dishes besides. We ’ ll use my grandma ’ s old marinara recipe. Everyone has always raved about it. All of my friends and family will have a capital place to get together for food and drinks. We ’ ll be able to entertain here all of the time. It will be like a second home for everyone I know. And hey, it ’ second pizza. There ’ mho tons of money in pizza, correct ? fair flour, water, and profits. I know a bang-up guy that works in the pizza business that could run the place in his sleep. He loves me. He ’ ll come oeuvre here in a heartbeat. I have the fiscal structure all figured out. I ’ ve been saving for twenty years sol I can pay for all of this out of pocket without a trust lend. I ’ ll stay to work my day job and get paid that way and then I won ’ t need to draw any pay out for myself. This is fiscal gold. I know precisely the descry besides. This is going to be a home run ! ” Ah, the romance factor of owning a pizza restaurant. Have any of those words ever come out of your mouth or even into your imagination ? Many will honestly answer yes. And you know what ? You ’ re right. Everything you imagined is 100 percentage potential. All of those ideas and dreams can absolutely come true. But then we read studies that show restaurant startups failing at a pace of 60 percentage in the first year and then 80 percentage within the first five years. How can that be ? In theory, it would seem like the pizza commercial enterprise, given its higher profit margin, would not fall into those categories. Yet it does. Let ’ s take a count at the other side of the glistening coin and consider some of the factors that may not always be sol obvious on the surface.
Location, Location, Location

You have the best spot picked out. You ’ ve had your eye on the space for some time, and you can barely envision it bustling with business. Great. now let ’ s look a little deep into that fantastic placement. If the space is in an urban localization, you are probably going to rely on a set of metrical foot traffic. How many people will walk by that space during lunch and dinner hours every day ? What share of those people do you need to come in the doorway during those hours ? Do you have a selling plan in beware that you can comfortably trust on to get those feet in your door ? If you are located in the suburb, what will be your dining demographic focus ? If it is customers dining in the restaurant, you need to be indisputable that you can easily get them in there. They will need to be able to park and get in the door without trouble, or they will go elsewhere. Do you have your own consecrated parking distribute ? Most do not. If you share a consolidate parking set, look cautiously at whom you parcel it with. Is there a supermarket or possibly a gymnasium in the adjacent build over ? Those may cause a draw of congestion at hours when you need those easily accessible parking spaces. If your neighbors are checkup or other master offices, that may suit your needs better. not only do you have a built-in lunch crowd, but you can rest assured that, come 5 o ’ clock, all of those people will go home, leaving that distribute broad clear for your dine guests. possibly your focus is more geared toward takeout occupation. In this case, immediate and easy access is identify. cipher minds walking across a parking lot when they are going in to sit down for dinner. takeout is a wholly different animal. Parking spaces correct in movement of or identical airless to the door will be imperative mood. Guests will not be happy with the idea of carrying two large pizzas, a salad, wings, and a two-liter bottle of sodium carbonate for a thousand feet across a crowded park fortune to the only open distance they could find adjacent to the Corvette parked diagonally across three spaces. location ! There is a good rationality everyone constantly says the word three times—it is critical to your achiever !

Experience vs. Inexperience Let ’ s say you ’ re a dentist who has constantly loved the idea of one day owning a pizza restaurant. excellent food, hip interior decoration, bang-up staff, cozy bar, and sports on the TVs. It sounds fantastic. You have the money in the bank to finance the plan. No worries there. Jim from XYZ Pizza across town will come run the place for you. Hire a handful of other people, and you will be murder and running. The expansive opening is a huge success. You ’ re a hit. You ’ re the talk of the town. Everybody loves your place. It is going so well that you are even planning on investing in one of those dollar-bill counting machines to help you with all of this money. then Friday good morning rolls around, and your coach, Jim, gets into a car accident on the way to work. Broken hip. Out six to eight weeks. What do you do ? He was the boss. The other guys can not do his job. Plus, it ’ s Friday, and you are now a man unretentive. Are you able to go in and cover for him for six to eight weeks until he returns ? possibly you can clear your agenda for the day and deal in your tooth exercise for an apron. so now you are in your kitchen. It is going to be very hot and humid for the following few days, so the guys want to know how a lot to adjust the water temperature for the boodle. Huh ? Hey, Pete has never made the Bechamel before. Can you please show him how ? The new wait equitable had person order a bottle of wine, and she is skittish about opening it. Can you go to the table with her and assist ? There is a beer salesman up front, a guy on the earphone with a charge, and the toilet in the women ’ sulfur room won ’ t hot flash. Where is that tooth drill when you very need it ?

Read more: Who Invented Pizza?

experience is key. Oftentimes folks will look at a pizza restaurant as an easy investing that they can enjoy all the fruits of. It can be. But on days when the walls are collapsing, you will need be able to step in and save the day. Anything less is setting yourself up for failure. You wouldn ’ thyroxine let your coach, Jim, handle Mrs. Smith ’ s root-canal appointee at 3 o ’ clock, would you ? precisely. This is your business. Others can run it for you, but you can not let it hold you hostage if your people are not there. Be experienced.
Financial Management fiscal projections must be comprehensive of all liabilities. That must mean rent, utilities, payroll, taxes, food costs, and early assorted gorge on the hypothetical page 2. All excessively frequently operator pay careful care to those big liabilities on page 2, while those assorted expenses on page 2 are frequently overlooked because they are barely a “ handful of short things ” as compared to the big stuff. This is an area where all excessively many manque restaurateurs end up kicking themselves. They did not have any idea merely how big that “ assorted ” batch would be. Let ’ s take a agile peek at a few of those little items that are often not given any consideration or by rights accounted for at first .

  • Payroll taxes (FICA and withholding match can reach up to 20%-25% in additional payroll cost)
  • General liability insurance
  • Worker’s compensation insurance
  • Federal and State unemployment taxes
  • Business Entity Tax in some states
  • Accounting and payroll fees
  • And the Grandaddy of them all: credit card processing fees

These few items alone can account for thousands of dollars every single month. These are some of the sneaky items that are not always taken into consideration at beginning and can cause fiscal queer for a startup pizza restaurant. Oh, and the knife-sharpening guy is here ; so is the windowpane washer and the guy who cleans the beer tap lines. They all want to get paid.
Family Responsibilities Are you single ? That may help if you don ’ deoxythymidine monophosphate mind your dating app lying dormant for a while. If you are married or have a class, it may be fresh to discuss the electric potential clock time constraints with them. many times we see an owner sitting at a table enjoying a beer and conversation with some friends. You may think, “ Wow. That looks in truth nice. ” It is. But what you did not see was how that owner got to the sharpen where he could enjoy himself like that.

If he was a startup, then he obviously had to build that clientele from the ground up and did not constantly have the cash menstruation coming in that he has nowadays. Back in the begin, when he could entirely afford himself, he had to work a hundred days straight without a day off, through sickness and tire. Are you uncoerced to make that type of personal sacrifice if necessary in ordain to succeed ? Do you have a documentation system at home that would even allow you to do such a matter and placid maintain a healthy class relationship ? These are questions that need to be asked now and not subsequently when it ’ sulfur besides late. The goal here is not to scare you. quite, it is to show you the other slope of that glistening coin that is often hide. Far better to have the information and experience from your peers now rather than learn the hard means on your own. You worked room excessively hard to earn that investment capital. With proper information and preparation, you can succeed and not be part of that failing statistic. plan with your head and not your heart. And, by the way, that toilet in the women ’ mho room is still not flushing right ! Michael Androw, a 30-plus-year restaurant seasoned, began making pizza in 1986 and presently owns the award-winning E&D Pizza Company in Avon, Connecticut .