Just because you and everyone you know enjoy eating pizza, it takes much more than that to open and run a successful pizzeria. According to FranchiseDirect.com, the pizza business can be tricky. That website recommends that if you don't already have experience working in a pizzeria that you should get some. If after working in a pizza place, you decide this is for you, you should know a few things before trying to start your own shop.
Instructions
1. Find out about local ordinances. All states have local requirements for restaurants. You may need to get a certain type of license and have safety precautions in place. You can find this information by contacting your local chamber of commerce.
2. Stake out a good location. You need to decide where you want to locate. You might choose a residential area that lack other pizza places, or you may want to open one next to a college. Consider location, because this choice will make or break your business.
3. Decide on what type of pizza business you want to have. You can buy a franchise of a brand people already know, you could be in a big city and offer specialized, gourmet pizza or you could be in a rich suburb where you could offer organic pizza. Maybe you can get a place with a brick oven to make specialty pizza. Look around to analyze potential markets.
4. Figure out if your pizza restaurant will be dine-in or take-out or a shop for take-out only. Also consider if you will deliver and the size of your territory from your site.
5. Decide if you want to buy a franchise or create a one-of-a-kind restaurant. Franchises require you to adhere to certain specifications. A franchise gives you the advantage of an established name. However, you will have more creativity and autonomy if you open your own business. Typically, start-up businesses are more costly to open than franchises because they are riskier and they do not have a proven formula. Straw Hat Pizza is on the low end, costing $80,000. CiCi's is in the middle at $192,550, and Little Ceasars is on the high end at $599,500 (all figures as of November 2009).
6. Look into suppliers, another key factor in whether you open a franchise or not. Usually franchise companies require you to purchase supplies from them. If you want a restaurant that uses fresh, local suppliers, you will probably want to go with your own business. Run the numbers to see if you can afford to select your own local suppliers, because buying from the franchise is like buying from a warehouse store since it will be cheaper in many cases.
7. Plan an advertising budget. You have to let people know you have opened your shop. Consider all the options. You may want to advertise in the yellow pages, put your ad at a bus stop or advertise in your local newspaper. Two very effective forms of pizza shop advertising are coupons and fliers. You can also print your menu and deliver it to homes in your target neighborhood. If you go with a franchise, the franchise firm will often help with your start-up advertising. Franchisers recommend that you spend 3 percent of your gross revenues on advertising.
8. Go to banks or credit unions to see if you qualify for a loan. Also, see if you can get a small business loan from the federal government at GovLoans.gov. You can bring in investors, family or friends to get capital, too.
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