Pizzeria business plan from A to Z
Every day for many of us, the topic of starting our own business is becoming more and more relevant. The country is constantly shaken by economic crises, and we constantly have to worry about whether tomorrow at work will be announced by the authorities about the upcoming next layoffs. While, having your own, albeit a small business, you don't have to worry about the day ahead. However, many niches are already occupied at the moment, the competition in the market is such that it is not worth getting into this or that business. Nevertheless, there are still such segments in which you can try to win your place under the Russian sun. So, for example, even despite the competition, opening a pizzeria can be a very good solution. A competent business plan, with all the calculations and taking into account the market situation, will help a beginner in this business to stay afloat at first, and then, perhaps, even win this swim. This is what will be discussed in our review.
So how do you open a pizzeria? The business plan presented below as an example will help you write your own document and evaluate your strengths.
Rationale for selection
Some may have a quite natural question: "And why, in fact, it is proposed to consider the business plan of a pizzeria?" We answer. Because there is never too much pizza! And even if a similar establishment functions in a neighboring area, yours will not be left without clients in any case. Everyone loves pizza! In addition, there are several formats of establishments of this kind, so that it is much easier for a novice entrepreneur to choose something suitable for himself. For example, when developing a business plan for a pizzeria for a small town, it would be most reasonable to opt for a specialized mini-establishment. Indeed, such in the province, in contrast to megacities, as a rule, are not in every city. And if, say, you do not have a fairly large sum on hand to open a large cafe, then it makes sense to consider a business plan for a small pizzeria that delivers to your home. Yes, the income in this case will be much lower, but this is just the beginning. If things go well, then, who knows, perhaps the moment will soon come when a business plan for a pizzeria of a larger scale is needed.
A few words about the document itself
Regardless of what kind of business plan is being developed - whether it is planned to open a pizzeria, a restaurant or another catering establishment - this document should consist of several sections that must be considered. It must certainly take into account some basic elements, as well as detail each step and provide calculations.
If you take the pizzeria business plan we are considering, an example of its preparation will look something like this. First of all, you need to study in detail the business idea itself for opening this enterprise, and also analyze the situation on the market. Next comes the issue of registering a business. Here you need to think about what type of activity and tax payment is most reasonable to choose. After that, you need to choose the format of the institution, and then calculate the rental cost. In order for the latter to be minimal, you need to competently approach the choice of premises. After that, it is worth focusing on such an issue as personnel selection. Here, depending on the scale of the plan, you need to think over its number, wages, calculate the cost of the form, etc. Next comes the compilation of a list of equipment and justification of the need to purchase one or another of its types. Then the plan of the advertising campaign is written in detail, and the last item will be the calculation of profit. Your creation should be crowned with conclusions about the profitability of the business started. Or about its complete futility.
Of course, today you can buy or even find a free ready-made pizzeria business plan without any problems. However, not a single template, albeit a well-written document, can compare with one that will be made taking into account the specific place in which it is planned to open a business, as well as small nuances known only to the future entrepreneur himself.
Next, we will look at the types of formats that offer pizza establishments, and also give a short pizzeria business plan (with calculations) for each of them.
Restaurant or cafe
A beginner entrepreneur is hardly worth aiming at a restaurant, but if you have the required amount on your account, you can try to open a cafe. This option when opening your own pizzeria is considered the most expensive, nevertheless, it is also the most profitable. When developing a business plan for the Pizzeria cafe, first of all, it is worth considering that most of all you will have to spend money on renting premises. Costs, depending on the location of the institution and the city in which it is located, can vary from 100 to 300 thousand rubles. The staff will need to spend 20-30 thousand on salaries for each employee. And you should have a lot of them - cooks, waiters, helpers, since the format of the cafe assumes the presence of not only pizza on the menu, but also other assortments, up to alcoholic beverages. At least 200,000 will be spent on the purchase of equipment. Plus a PR campaign, which, in the most modest scenario, will cost twenty thousand. Plus paperwork, renovation of the premises and other expenses. In total, the opening of such a business will require at least $ 100,000. The profitability of the business will be about 350 thousand per month, and it will pay off in about a year.
Pizzeria as a business
Pizza is very popular all over the world. This dish is prepared both in fast food and in prestigious restaurants. Therefore, opening a pizzeria is a very logical decision for a novice businessman.
However, it should be understood that in addition to high demand, there is considerable competition in this business. Long gone are the years when it was enough just to open a small pizzeria without thinking about the nuances of the menu, interior design and other details. Today it has become much more difficult to gain a foothold in the market, as both classic and themed establishments, cheap eateries and luxurious family restaurants are represented here in sufficient numbers.
Therefore, you should make sure that your establishment is not only recognized, but also loved. To do this, you will have to develop a detailed pizzeria business plan with calculations. It should include an analysis of the activities of competitors, take into account the estimated costs and profits, as well as possible risks.
Advantages and disadvantages of opening a pizzeria
Before starting a pizzeria from scratch, you should consider the pros and cons of such a business. Let's start with the benefits:
- High profitability indicators. It is more than 50%, and at the moment this direction is at the peak of its development.
- Low cost. Pizza is a simple and fairly cheap dish to make. This allows you to maintain a high level of margins.
- Fast payback. With the right approach, you can return the money invested in the business within the first year.
The disadvantages of this activity include the following:
- High level of competition in large cities. By opening a franchise pizzeria, you automatically become a serious representative of this business, since you are acting on behalf of a large company.
- Expensive rental of premises.
- For success in this business, you should have experience in catering establishments.
Step-by-step plan for opening a pizzeria
If you are aiming for a serious business, then first of all you should define the key features of your establishment. At the moment there are three types of pizzerias:
- Stationary. Most often they come here in pairs and families. You should bet on a cozy atmosphere, a varied and original menu. A stationary pizzeria can be an Italian restaurant or a small cafe. The first option is the most difficult and costly to implement. It is suitable only for experienced businessmen.
- Delivery. Pizza at home - This service has become very popular in recent years. To run a successful business in this industry, you need to carry out the fastest delivery of orders in your city, as well as carefully work out the bonus system.
- Take out. We are talking about a small establishment with 2-3 tables or about a kiosk that has no seats. Here, pizza to go is most often ordered.
During the crisis, the number of visitors to fast food outlets increased, while the number of visitors to classic restaurants decreased. In the first quarter of 2021, the fast food segment accounted for 43% of the total volume of catering services. Fast food chains are conquering the market, and pizzerias are just one of them. Therefore, it is not surprising that entrepreneurs are eyeing the pizza business, as everyone wants to have their own business that brings a steady income.
For a business to flourish, it is necessary to choose the right premises, personnel and take into account the nuances of the work process. It is no secret that in every area of business there is huge competition, which must be fought in all known ways. To take into account all the points, it is necessary to correctly draw up a pizzeria business plan with calculations. But before all this, you should decide for yourself the main question - which format of the pizzeria should be chosen.
How to choose the format of the establishment?
The format of the establishment depends on the scale of your business, i.e. from your desire to invest a particular amount of funds. Let's try to understand this difficult issue. Below are the most popular pizzeria formats:
- pizza delivery is a popular and profitable option, it requires a minimum amount of investments, since you can cook at home, and deliver the finished product on your own transport; an instruction for the entire field of activity is ideal for a business plan for a take-out pizzeria;
- fast food is an option for placing a business in a shopping center, next to similar establishments, business does not require large investments, due to which the level of competition is one of the highest on the market;
- a cafe or restaurant is the most expensive and profitable option with the least competition.
In any business, you need to strive for the following: with the least investment, you should get the most profit. At the initial stage, this is also relevant, so choose a format for which there are enough funds, both physical (personnel) and material (equipment). At the same time, strive to ensure that you have a large number of regular visitors and take-away customers.
For business newbies, you can start with the first two options or purchase a franchise. The purchase of a franchise is, of course, more expensive, but it will help to reduce commercial risks.
Choosing a room for a pizzeria
It is imperative to find a difficult room in a beautiful place. You are creating a place for people, so look for crowded places. The city center is not always the best option for a building. Sometimes it can turn against you: there are a lot of establishments, people will pass your pizzeria without even noticing. That is, a high level of competition is playing against you here.
The ideal option for placing a pizzeria is next to the business center. First, office workers will come to your house at lunchtime. This is a huge flow of people that will bring a lot of revenue. Secondly, on the way to work, many people like to buy a coffee or a snack. Coffee is not expensive, but you can make money from the number of customers.
Another option is an establishment in a residential area, but it will only be profitable if you hold meetings there. It's a great idea to organize a small meeting room in a pizzeria. By the way, this option is also suitable for pizzerias near the business center.
Pizza is a very popular dish and the demand for it is constantly growing. There are several formats for a pizza delivery business. Despite the high competition, this is a great opportunity for a beginner.
Before we start
The first step is to choose a concept. You can offer customers pizza made from semi-finished products and frozen semi-finished products. This is a common option. Target audience - people who do not have the time or opportunity to cook on their own and do not put forward particularly high requirements for the recipe. But you can also choose a different concept. Its essence is the independent preparation of dough, fillers and sauces. This is a more time consuming option that requires significant investment and the skill of the chefs.
Most beginners start with the concept of making pizza from blanks. Having tested the idea, gained experience and achieved certain financial results, you can think about increasing the rating and creating a pizzeria with original recipes. The advantage is a lower amount of initial investment. If you decide to work on the second concept, but do not have the necessary knowledge and experience, it is worth considering a franchise. There are enough attractive offers from pizza chains on the market.
In a big city, selling pizza with home delivery is in great demand, but the competition will be very serious. In a small settlement, costs are lower, there are fewer competitors, but demand is much lower. The most common mistake newbies make is incorrectly assessing the needs of the target audience. Try to realistically estimate what types of pizza will be in high demand and choose your niche.
In the summer, the interest in pizza decreases slightly. Experienced entrepreneurs advise to start trading in the fall. Before the onset of the hot season, you will gain experience, you will be able to diversify your assortment with salads and soft drinks.
No matter how difficult it is to break into the market, in no case should the quality of pizza be compromised. Most of the failures are due to the fact that, after a good start, beginners weaken control over the observance of the technological map, try to increase profitability by purchasing cheaper ingredients. The result is a loss of reputation and business decline.
Providing pizza delivery services, you get the opportunity to save on renting premises. It is important to find a point equidistant from the areas where the majority of your potential clients live or work. In a big city, it makes sense to focus on a few blocks. If you plan to provide pizza delivery throughout the city, it makes sense to be closer to the center. Calculate fuel costs carefully during delivery. It may be more profitable to open another point.
Catering is a great investment. It is especially profitable to invest in pizzerias. Constant haste does not allow people to eat healthy and tasty. And then an institution comes to the rescue with delicious, hearty and inexpensive pizza.
Demand for the service
According to statistics, about 300 pieces of pizza are sold every minute across the country. The variety of tastes, preparation methods, delivery methods and low price attracts a huge number of buyers.
The pizzeria is also popular among businessmen. In this business, it is easy to come up with a unique "chip", it is easy to attract customers, and different ways of doing business allow you to vary the initial investment and service format.
The pros and cons of a pizzeria
Pizzeria as a business has pluses and minuses. Benefits include:
- high demand;
- high income;
- up to 60% profitability;
- small start-up capital; <
- minimal staff;
- simple cooking technology;
- quick payback;
- less food is written off than in restaurants and other similar places.
Pizzerias have some disadvantages:
- a large number of permits;
- high competition;
- expensive rent.
Despite the disadvantages, pizzeria is a profitable and very promising direction.
Where to start
Although catering establishments are very popular, not everyone knows how to start a pizzeria from scratch. There are 3 important steps to go through first.
- Study the market and competitors' offers.
- Decide on the format and atmosphere of the place.
- Draw up a business plan for a pizzeria.