Pizzeria business plan: market overview + plan creation + type of establishment + registration + location of the establishment + search for investors + purchase of equipment + hiring staff + marketing + opening.
According to surveys alone, about a third of all Russians eat pizza once a month, and in terms of popularity, it is not inferior to other fast foods, be it pancakes, hot dogs or hamburgers.
More than 200 factories are opened across the country every year, most of them franchised, but some are starting to work on their own in the form of mini-bakeries and distribution points.
All this suggests that the idea of opening a pizzeria can be very beneficial and profitable. This is true, but like any other business, it has its own nuances and peculiarities.
A novice entrepreneur who does not have sufficient experience and awareness can make mistakes at the beginning, which can seriously damage the institution later.
In this article, you will learn how to open a pizzeria and at the same time avoid pitfalls, what type and approach to choose, and also learn how to write a business plan for a pizzeria and get the most out of the building.
Explore the Russian market
Despite the fact that pizzerias in Russia are a fairly new business, since the early 1990s, large companies have firmly occupied it. It was these companies that prevented small businesses from breaking through.
As mentioned earlier, more than two hundred new facilities are being opened across the country, but not all of them “survive” for more than 1-2 years.
Therefore, before starting a new business, study the local market and see which establishments are your potential competitors.
Now you can conduct such a “survey” in two mouse clicks: just open a map of your city in Yandex or Google Maps and search for the keywords: “pizza”, “pizzeria”, etc.
At this stage, try to determine exactly what “chips” make them successful, what promotions they use and what menu they offer, in general, check everything that has anything to do with their success.
Yes, in a small business you won’t have the resources that large franchises have, but their results and successes can form the basis of your business plan.
This industry is shaped by new trends and trends, so one must be ready to quickly adopt any new developments.
Pizza “for breakfast”, options with vegan and keto pizza, up to fruit pizza – such unusual options are increasingly appearing on the menu of pizzerias in Moscow and St. Petersburg.
According to the same recent surveys, about a quarter of shoppers prefer healthier options with high-quality, albeit expensive, ingredients.
Think about what will differentiate your pizzeria from the competition – a vegan, gluten-free, or low-carb menu might be the only one in town.
Google Trends is a great way to analyze web search frequency. Including this data in the business plan of a pizzeria will help predict further growth or decline in popularity.
Pizzeria: business plan
Creating a business plan is the foundation for anything from a small tobacco kiosk to multi-billion dollar high-tech firms.
It doesn’t matter if it’s a mini pizzeria business plan, a takeaway bakery project, or a bistro pizzeria, in any case, you must describe all the smallest details, from the name to the location, and fully realize your idea.
This is necessary for several things. Firstly, the business plan will serve, oddly enough, as a plan for the further development of the business. Of course, it makes no sense to follow everything that you indicated there, any plan can be changed if the situation requires it.
Secondly, if you are planning to take out a loan from a bank or any other financial structure, a business plan will not only add “legitimacy” to your business, but also clearly justify creditors where and what their money will go to.
Thirdly, a business plan is a necessary air for notaries who will draw up your documents to create an individual entrepreneur or LLC.
Important! When calculating costs, take into account the associated costs, whether it be the purchase of raw materials, wages of workers, rent, utility bills, as well as 50-60% of additional investments in “strength”.
Such savings help to avoid a shortage of funds in the event of force majeure, so not a single pizza business plan can do without it.
What should be in the business plan of a pizzeria?
There is nothing difficult in developing the first business plan for a pizzeria, an example of which you will now see, nothing complicated, but only “superficial”. Specifically, each plan should be adapted to the situation, you can’t take the first one that comes across from the Internet, however, when you work out your plan, you can build on it and build on it.
Start with a brief description of your business. Indicate in it what goals you are pursuing, what your pizzeria focuses on, what products and services you will provide, and the expected market coverage.
80% of all investors pay attention to the first 3-4 points of a business plan. Therefore, the most accurate and honest approach is required, there is no point in hiding something, because this information will appear immediately after the adoption of the business plan.
Also write down the previous market analysis, the number of competitors, set realistic goals for 2-3 years ahead and also indicate how you will achieve these goals.
Then provide an estimate of estimated income and expenses. At this stage, do not worry: later in the article we will analyze in detail what equipment you need to purchase, what type of inventory, how much it will cost to rent, and so on.
Based on these calculations, the estimated costs and benefits can be easily calculated.
Franchise or independent pizzeria?
Another important detail that should be included in a pizzeria business plan is whether you are going to open the place as a “standalone” or if you are planning to buy a franchise.
If you choose the second option, managing your business will be much easier. The franchisor will provide you with ready-made schemes for the purchase of equipment, the production of pizza and its sale.
It is also unprofitable for the franchise to “burn” your business, so, among other things, you will be provided with an experienced manager to train and help you manage. Of course, not forever, but for the first time.
But franchising also has its drawbacks: many enter into contracts in such a way that “your” establishment, in fact, is not yours, but belongs to the franchisor, part of the income will be withheld in the form of royalties, and your menu, pizzeria furniture, etc. management will be strictly regulated by the charter of the company.
|Royalties are a percentage of turnover when the franchisee pays the franchisor a percentage of sales.The percentage of turnover is paid according to the results of the company’s work for a certain period of time. Royalties can be fixed.A fixed royalty is a regular payment that is tied to a contract and has a fixed percentage of sales. This amount is linked to the cost of the franchisor’s services, the number of enterprises, the area of the facility, and the number of clients served.|
1) Select the type of institution
The type of institution is a separate topic that must be specified in the business plan. Find out what kind of business you are going to open.
Whether it’s a mini-oven, a delivery-only pizzeria, a self-service pizzeria, a family-run wood-fired pizzeria, or a “classic” pizzeria, a bistro that has other, more traditional dishes in the kitchen, and the like.
In the same place (although this is not necessary, but you can make a note to yourself), indicate what kind of pizza you are going to bake. The initial purchase of equipment depends on this, as well as the recruitment criteria.
Chicago pizza (in a deep plate), Sicilian, Neapolitan, Calzone, New York on the bone and the like. It is important to decide what types will be on the menu, but remember: most customers prefer quality over quantity.
We leave pizza in the main menu, and move on to the additional one. His dishes should complement the “base” with what is not there: salads, fresh vegetables, fruits and desserts, a variety of drinks and snacks.
You should not exclude the presence of alcohol, however, for this, when obtaining documents for an individual entrepreneur, you must issue an additional license.
Menu items should look harmonious, do not overdo it with its assortment – Chinese cuisine next to burgers and pizza looks at least inappropriate and ridiculous, this will distract guests and create additional problems for your chefs.
The menu perfectly combines pizza, pasta, bread sticks, various sauces, baked and fried meat, seafood.
2. Logo and name
It happens that in the process of developing a business, such things as the logo and the name of the institution may change, but it would be wise to include them in the business plan.
All this, without a doubt, is an important part of the pizzeria. The name should be aesthetic, sonorous and memorable, the same can be said about the logo.
it is important that it reflects the type of design you have chosen. Are you tradition oriented? Or treat your guests to a super trendy keto-vegan gluten-free pizza? The logo, like the name, should reflect this idea.
2) Business registration
According to the business plan, your next step should be to register an individual entrepreneur or LLC.
As mentioned above, if you intend to open a bar with drinks (sometimes even alcohol) in your establishment, it makes no sense to register a pizzeria for a private person.
|it is better to register the kitchen and the bar with two different documents. The kitchen and other premises can be opened as an individual entrepreneur, and a bar with alcoholic beverages can be opened with an LLC. This will not only facilitate financial activities, but also save taxes.|
If you decide to open a business not alone, but with investors, the only option is to open the entire institution with the registration of an LLC.
To register you will need:
- application for registration (not required if you send documents in person);
- LLC registration protocol;
- original receipts for payment of state duty;
- the passport;
The form of taxation can be general or mainstream taxation. However, if your estimated income is low, it will be more profitable to switch to a simplified taxation system.
In addition, after choosing the premises and determining the type of services provided, it will be necessary to obtain certificates from the SES and the fire inspectorate. It is impossible to conduct business legally without this package of documents.
3) Culinary experience
The largest and most successful pizzerias, such as Papa John’s or Pizza Hut, were born as small pizzerias and their founders took care of the preparation and delivery of the product themselves.
Although opening a pizzeria does not require any exams, you should not miss the opportunity to immerse yourself in the process of preparing this dish “with your head”.
This will help you get to the heart of the matter, understand the preparation of dishes and understand what your guests really need, thereby increasing the restaurant’s chances of success.
4) Pizzeria business plan: choice of premises
The next point of the plan is the choice of the location of the future pizzeria. The choice of location / building should be based on your initial requests, which should be reflected in the business plan of the pizzeria.
For example, if you are considering opening a gourmet pizzeria, a city center location and upscale food courts are your best bet.
There are a whole galaxy of other factors here, be it the size of the city, its location, the number of tourists, and so on.
There are several interesting options to consider when choosing a location:
- family pizzeria in a residential area;
- pizzeria in a shopping and entertainment center;
- institution in the city center;
- the so-called “Restaurant” street of the city.
The proposed location for the future institution must be indicated in the business plan of the pizzeria. This also includes various criteria: area, traffic, order volume, number of storeys, rent.
For the first option, pizzerias offer a wide and varied menu, even for children. Much of the cuisine should be geared towards the average consumer, with no gourmet frills.
The size of the room is largely determined by the room and layout, but for such rooms, a pizzeria for 20-25 tables is optimal for at least 4-6 seats. The number of floors and/or balconies is allowed.
- Total area 180-220 sq.m;
- number of seats – from 80 to 150;
- the average cost of a check is 350-500 rubles;
- monthly rent – 45-80 rubles;
- features – a varied menu, extensive cuisine, affordable pricing, the presence of a bar with alcoholic beverages.
2. Food court in the mall
A pizzeria in a shopping center is a separate issue. In the gastronomic zones themselves, there may be several establishments similar in menu, the competition is quite high, but the total number of visitors will be much higher.
The main feature of food courts is their high turnover with a limited number of seats. The best option would be a takeaway establishment with limited seating.
- Average area 50-120 sq.m;
- average check – 500-600 rubles;
- monthly rent – 60-120 thousand rubles;
- number of seats – 10-20;
- features – high speed, a variety of additional menus: vegan, dietary pizza.
3. City center
What can I say, the city center is also the center of Africa. Firstly, this is the concentration of the greatest traffic, in the same place, somewhere nearby, important transport interchanges and other infrastructure.
In these places, it makes sense to open highly specialized pizzerias, whose guests are used to paying for quality, and at the same time paying well. However, due to the high cost of rent (and often simply inaccessibility), this option should not be considered for beginners:
- the area of the institution is 140-180 sq.m;
- monthly rent – 110-140 rubles;
- number of seats – 50-70;
- average check – 800-1100 rubles;
- characteristics: wide choice of dishes, variety of ingredients, high level of service.
4. Street with a lot of restaurants
A fairly new phenomenon, now in almost every major city in Russia there is a street or square with a large number of bars, cafes, restaurants and similar clubs.
The competition in such an establishment is slightly less than in public catering outlets, while the number of visitors can remain at the same level, and the approximate area of the establishment, as well as the number of seats, will be larger.
- The area of the institute is 120-160 sq m;
- rental price – 60-100 thousand rubles;
- average check – 600-800 rubles;
- the number of seats – up to 80 + the possibility of installing a summer veranda for an additional 20-30 seats;
- features – a menu designed for a wide range of visitors, a large number of visitors, high competition.
Any room can be selected both independently and with the help of a realtor. If you chose the second option, then you need to pay attention to intermediaries with extensive experience in selecting business premises.
There are companies that offer analysis of the number of potential buyers, daily traffic, competition, and so on. Of course, all this will be included in the surcharge, but if you are not tied to funds, this option is possible.
Regardless of the choice, the pizzeria business plan should include the estimated area, number of seats and traffic, as well as competition, the presence of similar and similar establishments.
Make sure that the premises fully comply with SES and fire regulations, carefully check the terms of rent and payment of rent. Of course, you don’t have to worry about these things if you decide to leave all the paperwork in the hands of realtors, which means it makes sense to do other things, for example, choose the financing option.
Google Trends will help you find a place if you use your search terms correctly. In addition, the analytics indicates the frequency of calls by city and sub-region, it would be reasonable to include this data in the business plan of the pizzeria
5) Find funding
It is impossible to draw up a correct business plan for a pizzeria without specifying the amount of the initial investment.
In this part of the plan, think about where you will get the money to start your business, potential investors (if you decide to open an LLC), and also calculate the approximate costs and estimated break-even point.
|The break-even point (CVP) is the volume of production and sales of products at which the costs will be offset by income, and in the production and sale of each subsequent unit of production, the company begins to make a profit.The break-even point can be defined in terms of production units, in monetary terms, or in terms of the expected rate of return.Not to be confused with the depreciation (project) point. It is calculated to determine the time when the income from the project exceeds the costs spent on it, this is the same break-even point, only it is measured not in pieces, but in months and years.|
the business plan of the pizzeria must include an approximate period for exceeding the break-even point, as well as depreciation of the establishment
As a rule, new businesses rarely pay off in the first year of operation, the average payback period for pizzerias is 22-34 months. Even the business plan of a pizzeria should include this information, very often investors pay attention to numbers and calculations, and not to speculation and hypotheses.
The estimated cost of your property should include:
- the cost of renting the premises (from 3 to 12 months in advance);
- public services;
- equipment purchase costs;
- repair and arrangement of premises, design;
- registration of all necessary documents;
- logo creation, marketing campaign;
- purchase of raw materials and delivery costs;
- employee salaries;
- insurance premiums.
By itemizing expenses, you increase your chances of getting a larger loan from a bank or other institution, or you increase the number of potential investors.
Of course, the initial investment can be completely different, for example, a mini-pizzeria business plan will be the most “economical” option, great for entrepreneurs with limited capital.
The best option is a business loan in banks. Russian financial institutions offer a wide range of various loans and credits for medium and small businesses.
Of course, you will need to provide the loan officer with your business plan, detailing everything that has been discussed above and will be discussed later in the article.
It will not be superfluous to look for individuals or legal entities interested in investing in your institution, but here you cannot do without an LLC, while you need to understand that you will not be the sole owner of the business.
On the other hand, third-party investments make it possible to conclude an agreement on mutually beneficial terms, as well as expand financial opportunities.
6) Purchase of equipment
Then a premise was chosen, a source of investments was found, all documents were drawn up. It remains to buy equipment.
The equipment depends on how you have your pizza business plan, as well as the focus of your business. Here we return to the part of the article that discussed the menu of the establishment and the method of marketing products.
If you are planning to open a restaurant with a classic pizza, then you need to purchase a few dough stones, wood-fired ovens or their more modern counterparts.
In any case, there is equipment common to all types of all pizzerias:
- refrigerators, separate for meat, dough, vegetables and so on;
- dough preparation equipment, including dough sheeters, dough presses and proofers;
- ovens for pizza, of your choice: belt ovens, specialized electronic Impinger ovens, convection or stone ovens with an open fire, the desired option to include in the business plan of the pizzeria;
- kitchen utensils: pots, pans, cutting boards, knives and so on;
- tables, chairs, sofas for furnishing rooms;
- electronic equipment, speakers, terminals;
- pizza boxes, napkins;
- if you are ready to take takeout orders, you will need a vehicle to deliver products.
Be prepared to purchase equipment as the most expensive part of your pizza business plan. On average, the total amount varies from 650 thousand to 3.9 million rubles, depending on the area and the number of guests.
The most expensive part of the plan is the purchase of kitchen appliances. Professional convection ovens can cost up to $30,000, but for smaller pizzerias, $200-240,000 options are great.
7) Create a menu
Any pizza business plan is complete without a description of the menu. You can follow our advice and divide the menu into several parts, in the first place only pizza and dishes that look harmonious with it.
Also extra meals. These are, first of all, a variety of salads, steaks, cheese dishes, sauces, snacks, desserts. The third element is drinks. They can be both alcoholic and non-alcoholic.
If your restaurant has vegan pizza, consider including fresh juices and a variety of salads on the menu of your business plan. Prepare the menu carefully, try not to make mistakes.
|Now all the restaurants in the world use the “classic” menu engineering method, developed in the early 1980s by scientists at the University of Michigan: Donald Smith and Michael Casanawa.In this method, everything is simple: it uses a standard model for analyzing the position of the product on the market, adapted for catering. The menu itself was divided into two categories: based on the share of sales in the category and based on the margin per unit of goods, 4 groups of dishes were obtained.Stars: high margins and good sales. The basis of a profitable menu.|
“Workhorses” – good sales, but not too much margin. It is not worth removing them from the menu, but efforts should be made to reduce their cost or raise the price.
Riddles: high margins, but weak sales. It is necessary to stimulate the demand for such positions.
Dogs” – low margins and low sales. Remove trash from the menu. Such dishes only distract visitors.
Typically, a pizza business plan does not include a list of dishes, but the information on the menu can be left as a reminder.
Not a single pizzeria business plan is complete without an analysis of the working staff, our article can serve as an example, in which we will consider the approximate composition of the staff:
- cooks – 3 people. 2 pizzerias and 1 cook. It is advisable to hire experienced people, if this is not possible: take a novice, an intern and an experienced chef who will teach the rest.
- Managers. 2 cashiers who will take over the receipt and issuance of orders, it is desirable that they have experience in the field of catering and know how to handle the cashier.
- Delivery service operator. Your establishment must be able to accept orders for delivery (if you are considering such a feature).
- more urgent. If your pizza business plan calls for delivery, the courier is the person who takes care of it directly.
- Room cleaner.
|If you decide to deal exclusively with pizza delivery or focus on it, a good option would be to conclude an agreement with courier services that will take full responsibility for the delivery of orders.In this case, you avoid additional costs for a courier and personal transport, moreover, this can be done with one manager, and if you know how to work with a cash register, then it is quite possible to process orders yourself.Of course, this will not always be the case, but only at the beginning.|
9) Pizzeria. Business plan for marketing and promotion
In restaurants, location is everything. If your pizzeria is located near the center, near major transport hubs, in a shopping center or in a busy place, up to 70% of all advertising hassle is immediately removed.
Although the pizzeria is a new phenomenon, it is very competitive and in some cases you still have to compete for your customers. Get creative with your marketing efforts to increase your chances of success.
Trust social media and the internet. In the modern world, up to 80% of all advertising is in the information space. This information should be reflected in the business plan of the pizzeria.
Create a page on Vkontakte, Facebook and Instagram and start sharing images of delicious pizza and add to the accompanying text messages about the upcoming opening and interesting promotions for new visitors.
In addition, you can target your ads to only appear in your city. A good solution would be to order advertising in local publics and official city groups.
Encourage your customers to leave pizza reviews and use them as a word of mouth marketing ploy. For example, offer a free drink, discount coupons, or other goodies to post a photo of your pizza.
Consider launching a loyalty program and write it into your pizzeria business plan.
Highlight your strengths when advertising a pizzeria. For example, if your restaurant has a diet menu, let customers know about it.
Launch holiday combos and family deals to boost your sales. Another option is to cater for parties and other events, because pizza is clearly more attractive than burgers and other fast food establishments.
Various methods and approaches to processing structured and unstructured data fit perfectly into the promotional marketing plan, which obviously needs to be introduced into the pizzeria business plan.
10) Consider opening an establishment
But while the business plan of the pizzeria is not finished. It needs to think over some other points, for example, options for opening a restaurant. A “trial” opening with a limited number of visitors is recommended.
So you can check the work of new staff and equipment, choose the most interesting options with pizza toppings and the way it is prepared.
You can organize an action on social networks or simply invite all your friends and acquaintances. In addition, these events can attract new supporters who will want to share the activity with you.
Business plan for a pizzeria. How to start your business?
How to open a pizzeria from scratch?
Results of opening a pizzeria
So we have compiled a business plan for a pizzeria, an example of such a plan can be found on the net, but you should not rely on it, since each business plan is drawn up individually, all the nuances are raised for a specific place, type, financial capabilities, and so on.
For example, you can draw up a business plan for a cafe where pizza will be just an addition to the main product – alcohol. Or draw up a business plan for a mini-pizzeria that will not exceed the area of a small stall. By the way, such establishments are incredibly popular in Italy.
In any case, novelty and business direction allow you to experiment and combine, who knows, maybe in 10 years your pizzeria will be among the ten most popular franchises in Russia.