Do you have these questions in your mind?
- How to start a pizza business?
- How much does it cost to start a pizza shop?
- How to find the best location to open a pizza store?
- What are top-selling pizza items?
In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.
Table of Contents
Why start a Pizza business?
With a worldwide sale of Pizza of around $140 billion, Pizza is one of the most favorite & popular foods in the world.
Billions of people consume various types of pizzas, satisfying the taste buds of both vegetarians & non-vegetarians.
Pizza is multi-verse, Omni presence…Yeah! It is home-ordered, take-away, dine-in at the home, office, and parties, and on top also serves as Superhero – a weekend dish for families. It’s a social thing to bring people together.
It is a significant part of modern culture & is profitable; congratulations on your decision to start a Pizza business.
Market Insight: The worldwide sale of Pizza is expected to be $140 billion approximately in 2022-23
Types of Pizza Business models
The best way to choose the business plan is by checking the demand for your product in the area & how much you can invest.
Let’s go through bakery business models so that you may decide accordingly:
With Sitting Area
It is an expensive model due to the high rent, interior, and ambiance, but it is also highly profitable. You get a more comprehensive range of customers, as customers like to sit, eat & chit chat with their families & friends.
Delivery
A delivery guy delivers baked pizzas to the customer’s address. It is a little expensive as you need to pay wages to the delivery guy & pay for fuel.
However, this is highly convenient for customers; and it records high sales orders.
Take-Out
You come & buy pizzas from take-out outlets, it is a less expensive model to pick, with comparatively less equipment, & space required.
In addition, you do not offer a sit-down facility; hence you don’t need ample space, which saves your high rent expenses.
Mobile
You need to buy a mobile vehicle for this service. For example, customers come & buy pizzas from a mobile truck or van.
Take ‘n’ Bake
Take & Bake is a pizzeria that offers uncooked pizzas, allowing customers to bake them according to their convenience.
Here are a few good Pizza brands to inspire you:
- Pizza Hut
- Dominos
- Little Caesars
- Papa John’s
- Marco’s
- Lebron James
- Gene Simmons
- Peyton Manning
- Shaquille O’Neal
- Lady Gaga
You should use good quality ingredients with correct baking techniques; this will help you create lip-smacking pizzas.
Is Pizza business, a right choice for me?
Pros
- It is an evergreen market
- You can experiment with different tastes
- Pizzeria can be open with moderate costs
- Be your boss
- Easy business model
- You earn loyal customers
Cons
- Long working hours
- Competition is high
- Ingredients are expensive
- Profit margins are not high
- Difficult to please all the customers
A typical day in a Pizza business –
- Starting early in the morning
- Sanitizing the kitchen area
- Weighing and measuring ingredients
- Turn on ovens
- Preparing dough, Making pizza base and sauce, toppings, baking, and more
- Inventory control and check
- Freezing the selected items
- Maintaining quality standards and hygiene
- Taking orders
- Taking orders
- Inspecting the premises to see if everything is in order
- Checking and removing expired items
Qualification, Skills Requirements, Training & Certifications
In most countries, bakers don’t require long time-consuming training; you can take part in short-term accredited / diploma courses.
However, enrolling in a professional course like AVPN (Associazione Vera Pizza Napoletana) will present you as a professional & earn customers’ trust.
However, In the USA and UK, there is no such restriction for minimum educational requirements. Therefore, to be appropriately trained, you can do an accredited/diploma course (always check updated requirements before proceeding).
These courses will train you mainly in the following:
- Cooking and preparing basic pizzas
- Knowledge of ingredients
- Baking
Investment required to start a Pizza Business
Starting a Pizza business have moderate expenses. In the US, it will cost you nearly $40K – $100K. In the UK, it will be around £25K – £80K.
This cost may vary if a franchise of a renowned brand is taken. These costs may also differ as per the business model you choose.
Major Expense Breakup:
- Raw materials, ingredients
- Gas, refrigerator, ovens
- Utilities
- Wages & salaries
- Equipment
- Rent
- Insurance
- Electricity
- Telephone
- Office Supplies
- Repairs
- Licenses
- Property Taxes
- Loans
- Advertisement Costs
- Office & Administration
- Water bill
- Storage
- Taxes
- Other supplies
How Profitable is a Pizza Shop?
- Plain cheese pizza from a chain restaurant: $8-22.5
- Plain cheese pizza from a local pizzeria: $10-30
- Specialty pizza from a chain restaurant: $12-37.5
- Specialty pizza from a local pizzeria: $15-45
- Pizza by the slice: $2-7.5
- Neapolitan-style pizza: $15-37.5
- Chicago-style deep-dish pizza: $15-45
- New York-style pizza: $2-7.5 per slice, $10-30 for a large pie
- Detroit-style pizza: $15-37.5
- Stuffed pizza: $20-52.5
- Calzones: $8-22.5
- Plain cheese pizza from a chain restaurant: £8-18
- Plain cheese pizza from a local pizzeria: £8-22.5
- Specialty pizza from a chain restaurant: £10-30
- Specialty pizza from a local pizzeria: £12-37.5
- Pizza by the slice: £2-6
- Neapolitan-style pizza: £10-30
- Chicago-style deep-dish pizza: £12-30
- New York-style pizza: £2-7.5 per slice, £10-22.5 for a large pie
- Margherita pizza: £8-22.5
- Stuffed crust pizza: £12-30
- Calzones: £8-18
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Checklist of Pizza making equipments
You need the following equipment for commercial pizza making:
- Pizza oven
- Dough maker
- Dough mixer
- Pizza screens
- Dough trays
- Pizza racks
- Pizza cutters
- Pizza wheel cutters
- Delivery bags
- Cheese graters
- Measuring cups & spoons
- Pizza trays
- Pizza peels
- Sheet pans
- Rolling pins
- Mixing bowls
- Knifes
- Chopping board
- Dough sheeter
- Microwaves
- Pizza boxes
- Oven gloves
- Food processors
Take most of the time to find a good location at cheap rent:
Follow a 3 Mile radius store opening formula using Google Maps. To open a Pizza shop, you need to find an economic space. Shop space depends on the decision of how big your business will be. Select a locality which has more population & gives you more footfall.
Pizza Store Menu
To be organized, you must make a list once you decide on your products. Set your rates that are affordable and are in a similar range to local Pizza shops to ensure your business is competitive.
Getting the price right is very critical. First, you must ensure that the amount you charge is enough to cover your raw materials and operating costs, including salaries, rent, electricity, etc.
The most selling Pizzas are-
- Cheese Pizza
- Veggie Pizza
- Pepperoni Pizza
- Meat Pizza
- Margherita Pizza
- BBQ Chicken Pizza
- Hawaiian Pizza
- Supreme Pizza
TIP: Is it necessary to offer delivery service in Pizza Business?
In this busy world, people always don’t get time to sit & dine; however, they like to order at home or office delivery to satisfy their taste buds.
So you should offer delivery service to customers, to reach the maximum number of people you can.
Consistently deliver Hot Pizza every time to satisfy customers, and always maintain the quality standard of the product.
Buy an existing business or franchise model or start from scratch
Buying a Pizza franchise of a recognized brand is a good idea; however, it is expensive also. Franchisor will benefit you will all the existing brand image, customer loyalty, advertising, market research & strategies.
In addition, you will get guidance from the franchisor about training the workforce & ambiance of the premises.
Top 10 Pizza franchises in the world-
1. Pizza hut
Pizza hut is one of the biggest pioneers in the Pizza industry with more than 60+ years of experience. Dan and Frank Carney were the founders of it. It also offers sitting-down, take-away & home delivery facilities. Its initial franchise fee is $25,000
2. Domino’s
It is the largest Pizza company in the world. They are also serving for more than 60 years. Like Pizza hut, they also offer sitting, take-away & home delivery facilities. Its initial franchise fee is $10,000
3. Papa John’s
John Schnatter is the founder of this brand. It is also one of the most popular pizza brands in the US. Its initial franchise fee is $25,000
4. Little Caesars
Mike Ilitch is the founder of Little Caesars. He started with just one Pizzeria in 1959 and grew multi-fold. Its initial franchise fee is $20,000
5. Marcos
Marcos Pizza is also a renowned brand in the US, it has given many franchises to buyers. Its initial franchise fee is $25,000
6. Sam & Louie’s
Its specialty is in New-York style pizza & its franchise is expanding at a good speed now. Its initial franchise fee is $25,000
7. MOD Pizza
MOD Pizza offers customized pies, they don’t have numerous franchises, but selectively they offer them. Its initial franchise fee is $30,000
8. Red Brick
Red Brick’s specialty is baking Pizza in brick ovens. They offer fire-roasted pizza of good quality. Its initial franchise fee is $30,000
9. Hungry Howie
Hungry Howie has more than 500 franchises. Its initial franchise fee is $25,000
10. The Press Pizza
At the press Pizza you can get custom pies. Its initial franchise fee is $35,000
Tips: How to increase Pizza Sales in your Store
- Research Sales figures and Offer discounts on low sale day
- Tie up with corporate office for bulk orders - farewell, birthdays, promotions
- Send timely offers on Twitter, FB & Instagram
- Launch a reward program
- Tie up with Online food delivery apps like UberEats, GrubHub, Deliveroo, and Quiqup
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Pizza Store SOP
Your pizzeria will need SOP to run your business with consistency & maintain standards, as any other business does.
Setting SOP will help you streamline the functionality of staff & their training, Kitchen standards, & reduce wastage.
- Cleaning the surfaces where food will be prepared
- Regular hand washing & keeping personal hygiene
- Organize your workstations
- Washing the veggies if to be used
- Need to be sure of allergic items
- Check on inventories if not stolen, how much needs to be ordered
- Use unexpired products, else dispose of them
- Knowledge of cooking time & temperatures
- Storage of pre-made stuff
- Proofing of dough balls
- Final look of the Pizza should be presentable
- Equipment like ovens, dough mixers, knives, etc., should be cleaned
- Avoid any hazardous chemicals in the kitchen
- Timely pest control on premises
Training & Customer Service:
If you have taken a franchise, you will get a list of SOPs from the franchiser. These SOPs generally have a training manual in the contract. Even a product expert may visit to train the new workers so that all the franchises maintain the standard of the parent company.
If you open a shop with a dining area, servers training is compulsory on serving & how to provide customer service. In addition, any interaction with customers at the counter, telephone, as a waiter, or as a supervisor shall maintain serving & speaking etiquette.
Conclusion
Yes, a Pizza business is a good idea; the profits are rewarding. However, you need to analyze your capabilities and limitations & there is no restriction to growing.
Remember to offer different toppings, as customers need varieties as per their tastes & food allergies. Try to provide customers with 12-15 types of toppings to satisfy everyone.
Do offer both Vegetarian & Non-vegetarian options on your Pizza Shop’s menu, and you may also deliver low-fat, gluten-free, or vegan pizzas.
Want to Save Time in your Business Launch?
- How to Create a Business Plan
- What is Market Research, USP, Niche & Positioning
- How to find a suitable name for your business
- How to create your brand image (Logo + Branding)
- How to Register Your Business
- How to Register for Taxes
- How to get Licenses / Permits
- How to Open a Business Bank Account
- How to Get Business Insurance
- Which Payment Processing Terminal (POS) to buy
- How to get Funds for your Business
- How to do Sales & Marketing – Offline & Online
- Why have a Website / Blog / Social Media
- How to build & train your Dream Team
- How to provide Excellent Customer Service
- Buying an Old Business Vs Franchisee Vs Own Brand from Scratch
Handpicked inspirational Youtube videos for you
The Pizza Making Master of London – Massimo’s Wood Fire Oven Sourdough Pizzas | Italian Street Food – YT Channel ‘Travels in India, London & the UK’
The Pizza Show: Naples, The Birthplace of Pizza – YT Channel ‘Munchies’
How to make a Papa John’s Pizza – Ty Channel ‘Dawson Gibbs’
A. The growth of your Pizza business depends on the quality of food you offer. A good marketing strategy is key to growing your business. Always keep a budget to advertise & promote your business.
A. Yes, it might take a little time to make your own clientele. However, if you focus on your USP, good quality, reasonable prices & good marketing; you can attract customers easily.
A. The pizza business profit is between 15%-25%. It all depends on the sales & business model you have chosen.
A. If you are starting a Pizza business then better to cater to these standard sizes of pizzas-
- Miniature (6″)
- Small (8″ – 9″)
- Medium (12″ – 13″)
- Large (14″ – 17″)
A. The most selling Pizzas are-
- Cheese Pizza
- Veggie Pizza
- Pepperoni Pizza
- Meat Pizza
- Margherita Pizza
- BBQ Chicken Pizza
- Hawaiian Pizza
- Supreme Pizza
A. Here are some steps to follow when starting a pizza business:
1. Develop a business plan outlining your goals and objectives.
2. Choose a business structure that best fits your needs.
3. Obtain necessary licenses and permits required to operate a business.
4. Find a location for your pizza business
5. Purchase equipment and supplies including ovens, refrigeration units, and utensils.
6. Hire employees to help with the day-to-day operations of your business, including pizza makers, servers, and managers.
7. Develop a marketing plan to promote your business
8. Launch your business
