The guide is prepared to help you know how to start a pizza business.
It features all the essential aspect you should know/consider and put in place before starting a pizza business.
I believe this will allow you to get the needed information or knowledge necessary to start this business successfully.
At end of this detailed guide, there is a valuable free gift waiting for you courtesy businessplantemplate.net
It’s a token of appreciation for stopping by entlifeonline and for reading this article.
Just read till the end to find that out…
Operating a successful pizza business will depend on the following 4 conventions:
- A practical plan (with a solid foundation)
- Dedication and willingness to sacrifice in other to reach your business goal
- Technical skills
- Basic knowledge of management, finance, record keeping and market analysis.
As a new owner, you’ll need to master this skill and techniques, if your pizza business is to be successful.
Hire someone or people who can do all of the above.
Before I go deep into today’s theme let me quickly point out the only way one can start a pizza business with no money.
Truth be told, it’s almost impossible to start, not just the pizza business, but any business at all without money.
But the only thought possible you can go about this is to seek investors upfront.
Don’t forget to go with your plan though.
Because that will be doing all of the convincing…
There’s a saying the best way to predict the future is to look at the past right?
So if there’s any business, investors love to patronize, it’s the pizza business.
How do I know this?
Americans love pizza, Nigerians loves pizza 👇
And investors can be likened to ants. Where there’s sugar, they are present. Simple
According to a research firm IBISWorld, U.S consumers spent more than $47 billion on it in 2018.
Investors can’t get enough either, pouring millions into many of the country’s 62,000 pizza businesses.
But don’t take my word for it.
Let’s check out some examples from the past…
3 Pizza Businesses That Have Gotten Millions from Investors
Scott and Ally Svenson founded the fastest pizza chain in November 2008.
MOD Squanders, prepare pizzas in plain view of customers, in an assembly line process. Now there are more than 400 stores across 28 U.S states and the U.K.
The husband-wife team has raised more than $185 million from private equity investors.
Serial entrepreneur Michael Lastoria started the Washington, D.C – based chain in 2012.
It has over 30, locations in the U.S, including one inside Miami’s Hard Rock Stadium.
Last fall, it partnered with Uber Eats to offer a delivery service. Uber Eats tracks when and where customers are ordering pizza. And &pizza is using the data to decide where to open new stores.
The company has reported raising more than $25million to date. That’s according to Crunchbase.
This is my favourite…
Co-founders Julia Collins and Alex Garden launched the futuristic pizza start-up in 2015.
At Zume locations, robots help human employees make pizzas. And trucks with smart ovens cook them on the way to your home.
In November 2018, Softbank’s Vision Fund invested $375 million, bringing the start-up funding to $425 million— according to Crunchbase
Despite the fact investors play a major role in their expansion and massive income, they didn’t start the pizza business without anything.
The business was already moving before those investments.
So if you’re looking for a business to start without money, I don’t think the pizza business is one you should consider. Because a lot— I mean lots of stuff go into starting a pizza business and some of them really need cash to get past.
Therefore, if you really want to start a pizza business, you need to start sourcing for funds like right now.
It’s about time we get into proper details on how to start a pizza business or store or shop. Whatever!
But I will be starting with the basic equipment needed. Just so you know what you’re getting into.
List of Equipment needed To Start A Pizza Business.
So I’ll be using Scot’s tips (a pizza business owner for at least 25years) to really go dip on why certain equipment is needed to start a pizza business successfully.
Talking about equipment. You know there’s all kind of equipment you can buy. Now you gotta get yourself a good equipment dealer; you gotta get yourself some good prices…
The key takeaway here’s this…
…do I get B equipment?, do I get equipment? or A+ equipment?. You don’t want the C equipment…
Now that you got the whole idea, let’s get the equipment listing started.
Revolving Oven [Recommended]
And the simple reason why is because it makes a consistent product and lowers your labour. Plus, this works so simply and you can train a guy (an employee) in literally 5 minutes to work out.
Unlike the wood fire ovens – though romantic — is more difficult to understand.
According to scot, the wood fire comes with a lot of work and stress not too many people can handle. Plus, you can’t even train guys to do it. They burn half the product and ruin half the product.
In simpler terms, it leads to wastage of resources. Which is the last thing you need right now for your new pizza business?
If you are interested in getting a pizza station to start a pizza business check out Scot’s expert advice below.
“there’s like pizza stations you can buy for $3000, 4,500, $5000 or 6000 or $7000” you know to me, warranty of the compressors, that’s all I really care about.
If it has a 3-year warranty, that’s the only you need to worry about. So do you need to spend money on a 5000 or 6000 pizza station versus $3000 one – I don’t think so. You want to save money keep your budget tight – Scot added.
Refrigerator and freezer
Butcher block table
Pans and racks
Flat bottom ladles
Pizza boxes and napkins
In summary, what I learned from scot concerning equipment needed to start a pizza business is pretty simple.
instead of looking at the possibility of buying 16, 17, $18,000 for brand new tools (which is not a bad idea if you have the money); You can just settle for reconditioned used ones for $5,000 with a warranty from somebody.
Finally, don’t settle for junks but middle brands are always good. However, of course, it depends on your pizza business size.
NOTE: if you’re starting small on a tight budget, it not compulsory you get all the listed material at once.
You want to focus on major equipment needed to start and run your pizza business effectively.
As time goes on, you add to your inventory.
Furthermore, ensure you employ the recommended maintenance tips or measures for your equipment. Resource maximization is very important for business success.
How much to start a pizza business?
For the required cost needed start a pizza business, a couple of things have to be put into consideration.
At least to arrive at an almost perfect amount you’ll need to open your pizza shop, you’ll be looking at
- Size of your pizza business location (store or building size)
- Salaries or wages of employees.
- Expenses incurred in business documents. (this ensures you’re law-abiding with your business. And to avoid unnecessary sanctions )
- Equipment cost
- Promotion and advertising cost
Although they’re a couple of more kinds of stuff to be looked at, capital of $10,000 (at least ₦3,500,000) will be enough for you to start a pizza business. (small scale business one to be specific.
Now that you’re clear on the equipment and estimated cost, allow me to walk you through the process of starting a pizza business notwithstanding your location.
So whether you are 100% prepared to open your pizza shop or you’re deciding if you want to open one, it’s important to understand what is necessary to start a successful pizza-serving business.
And that is exactly you’re about to know right now.
11 Practical Guidelines To Start A Pizza Business In Nigeria You Need To Know
1. Learn to cook pizza
Whether you decide to go to a cooking school, or you acquire the training by reaching out to someone is your choice.
The most important thing is that you know how to bake or cook this thing.
Please, don’t just be normal. Be different. It’s key to start a pizza business that will go a long way.
So make sure you learn to cook pizzas very well.
If you don’t mind, I have a place in mind. Not really a place but more like a secret I got based on my research.
Some pizza chefs recommend travelling to Italy for an apprenticeship to learn the original art of making delicious pizza
Let it be between us.
2. Acquire knowledge on how to run a pizzeria.
You basically need to understand the concept of a business and how to run one.
Therefore, in order to start and run a successful pizza business by yourself, you need some deep knowledge on how to go about it. Or just work on someone who can.
But how can you get some business knowledge under your belt in no time?
The idea here is that you meet with business consultants and get professional advice concerning on to manage a business. Plus, anytime you run into a business challenge or at crossroads concerning an offer, you can also pay the consultant a visit or put a call through.
There’s a saying: look before you leap.
So you want to make sure you ask around or do some research before settling for a consultant. Not just to avoid being scammed, but to also ensure you’re dealing with someone with the right knowledge and experience to help you.
- Leverage part-time business school (if that isn’t an option – I understand)
- …working as an apprentice for a pizza business owner (recommended)
Because it gives you the opportunity to not just read or hear – but see for yourself how things are done. Here, you literally get familiar with the daily operations. And that’s how you gain the expert experience needed to start a pizza business.
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3. Conduct a market survey
Before you actually settle and start a pizza business of your own, you need to conduct a market survey.
It is very important…
In a few words, this involves the process of checking out other pizza businesses in other to know how they operate.
Imagine you launched your pizzeria this week.
Actually, your pizza shop is the latest in town. And the external decoration is AWESOME! EVERYTHING, PERFECTO!
But, after stopping by on my way from my girlfriend’s place;
- Your customer service
- Your pricing policy (not competitive) and lastly
The taste and size of your pizza
…has little or no difference from the shop I was patronizing before you came around.
Do think I would gladly stop by next time?
Why would I?
And that’s the essence of a market survey.
You need something to make first-time customers or consumers repeat purchases. And that’s why you need to make the research.
It’s your only hope to fish out competitors weaknesses you can leverage.
If you’re offering nothing absolutely new or advanced, they’ll go back to where they came from.
See, even if its just speed you noticed. That’s something really huge.
Allow me to make you understand this better…
This is the 21st century, a time whereby the need for instant gratification is on the rise. People want stuff like immediately.
Now, if you noticed your competitor make delivery in 60 minutes. Let those consumers know you can make delivery in 20-30 minutes max and see if they won’t rush.
Who doesn’t want a fresh hot delicious pizza at their doorstep in just 20-30 minute after ordering from the comfort of their home?
Note: I’m trying to paint a picture here if you can deliver in less time, perfect. However, don’t promise and fail. You won’t get very far doing that.
Moving forward on how to start to a pizza business…
4. Determine what kind of pizza place you want to open.
I wish I can skip this part but, it’s just a wish. I can’t. It’s very important.
Lemme just get to it…
So after the market survey, here is where you cut your coat according to your measurement. (😉)
You know it’s impossible to start a pizza business like everyone else’s…
So In essence, choose your pizza shop service style and brand. Simple!
So below are some types in summary…
- Delivery pizzeria
Here, you start a pizza business that focuses only on deliveries. Not forgetting customer satisfaction of course. However, you should note that the safety of your delivery drivers us a thing. Plus the final price of the pizza because of the labour cost.
- Sit-out pizzeria
This pizza business type is one in which people come, sit down and order pizza(s). This particular pizzeria happens to be more expensive because you have to focus on the space and size of your pizza shop; plus decorations and other equipment have to be in check.
- Take out pizzeria.
As the name implies – here, you own a small shop whereby you cook pizza, people just come in pay for it and take their orders away. Starting a pizza business leveraging this style is literally the least expensive of them all. Just a neat well-structured shop will do.
Needless to worry about delivery, decorations, customer service, big space and a couple of other stuff.
However, your pizza must be great. I believe this applies to all of the above pizzeria styles.
Note: While it’s advisable to pizza a particular style and leverage if you’re on a tight budget; You can also combine the above styles in you have the capability to do so.
5. Choose a business name
After determining the kind of pizza place you want to start, it’s about time you deliberate and come up with a good pizza name for your business.
I know you know this aspect is mandatory so I won’t be saying much.
However, it’s essential you ensure the name you picked isn’t trademark.
Plus, make sure your business name is simple and can be easily remembered.
After working on the above
- Create a logo (mandatory)
A logo is a very crucial part of branding your pizza business. Over the years, I noticed consumers are easily sold to brands. And that’s why Maggi and Indomie have been used to generalize cube seasoning and noodles respectively. Let me not get started with why people buy Gucci, Nike, etc despite their over the roof prices.
Aside from that, it helps in differentiating your product or your business from the rest. Which is something very important when you’re that good.
If you know you can’t get come up with a good design yourself, get an expert (graphic designer) to help you out.
Finally, make sure the logo depicts what you’re into. It does make marketing easy as people can easily or be quick to relate.
- Register the business name (mandatory)
Requirement and procedures to register a name business vary from country to country, state to state, and even city to city.
So depending on where you’re reading from (United States, United Kingdom, Philippines, Australia, Nigeria, India etc) meet with local authorities to know how to go about your pizza business name registration.
6. Come up with a business plan for your pizzeria.
A business plan is a written document that describes in detail how a business—usually a new one—is going to achieve its goals. That’s according to Investopedia
In my own opinion, a business plan is simply a guide that entails a business aims & objectives and strategies on how to go about achieving those aims and objectives.
Furthermore, your business plan must be specially drafted for your business; should remind you of your why and helps you achieve your business goals if or when adhered to. The same goals you listed while starting the business in the first place.
That is that about that…
However, here’s a basic overview of areas your pizza business plan should cover
- Executive Summary
- Company Overview and Description
- Market Analysis
- Business Offerings
- Marketing and Public Relations Strategies
- Financial Projection
7. Strategically choose a location
I didn’t just say choose a business location. I particularly emphasized on being strategic while at it.
Because it can make or break your business.
While your pizza should be tasty and affordable, it shouldn’t be cheap.
I remember interviewing a pizzeria business woman who complained of having low sales because only a few can afford her product.
i know for a fact her pizzas taste good… because i was having some while discussing with her.
So i asked… did you conduct a research on the profile of people living in this area before siting your shop here?
She answered No.
I then told her one of the reasons for the low turn up is this:
The population of your target audience living and gracing this area who can afford your pizza without having a heart attack are very few.
The income for majority is low, they’ll rather buy a Congo/paint of garri for N300-500 than pay just N1,500 for your pizza.
…and that’s why you must follow this mandatory steps before choosing a business location… because if anything goes wrong, your business might not survive long term.
While setting up a business, identify and focus on your target audience. Know where they are, and make your goods available to them at the
- Right time
- Right place
- Right form & in the
- Right quality and quantity
so when I say strategically choose…
I want you to strategically listen…
And who knows – the point below could strategically help you out in getting the best location. (mind you, these are just some of them…)
- Secure the help of a realtor.
The essence of this is to make life a bit easier for you while being serious and professional with your pizza business location search. However, make your sure the fellow has done something similar before. In other words, go for someone with experience on commercial property, especially in dealing with restaurant locations.
- Choose a place that is easily accessible, visible and that’s is exposed to huge traffic.
For example, places or areas prone to traffic include shopping malls, busy downtown streets, college campuses, general car park, event, event centres etc. Getting a location for your pizza business close to areas like these would be a great idea.
- Settle for a location with very little or no competition at all.
I simply mean…
…a place where they’re no pizza shops will also be beneficial. In a situation where they are, make sure they’re not more than two (2).
Finally, keep in mind parking space and security. These things matter. You know, everything that ensures your customers are comfortable should not be underestimated.
8. Source for the required finance needed to start your pizza shop
You need money to start a pizza business. But that I am sure you know already.
However, how to generate the required amount to start your preferred pizza business?
…below are some of the ways I can think of right now
- Meet friends and family for financial assistance
- Contact your preferred financial institutions for a loan.
I believe this is self-explanatory. But needless to say, its something that doesn’t come easy without meeting up with a few requirements. All you have to do is go to your bank and meet up with customer service personnel to know what’s required.
- Seek investors
Now, this I highly recommend. And with your well-written business plan, it could turn out to be the fastest way to raise the needed money to start a pizza business.
The majority don’t like giving out something without expecting anything back in return. So if you meet an uncle or anyone with a business plan that clearly outlines what they stand to gain when they invest in your business; they’re more likely to support you.
Since the pizza business is one that is prone to investments, your success rate is high trying to raise capital by meeting with investors.
9. Stock up essential equipment for your pizza business.
They’re lots of equipment needed to start a pizza business. A couple of them I have highlighted and dropped a few words on earlier.
However, make sure you go for the ones that are essential and 100% unavoidable to commence operations. For example, pizza oven, pizza pans, cutters, air conditioners (mandatory to cool off the place or room you’ll be cooking the pizza) etc.
Furthermore, I believe by now you must have concluded on the type of pizza shop you’ll like to open. If you intend to combine the different styles I explained above – GREAT!
However, just make sure you setup up your pizza shop pretty nicely. Ensure it spacious, beautiful and well ventilated
10. Recruit extra hands (employees).
Since I was born, and I know I am getting old I have never seen a reputable pizzeria without qualified employees.
You’ll be the one to decide you’ll be needing the help of course. But I have personally not seen a pizza business without employees that are
- Friendly and
Note: Employees could also make or break your business. So avoid hiring based on sentiments.
11. Get to work and Advertise your pizza business.
What I mean by “get to work” is that you begin operation or launch your pizza business.
But at the same time, you need to spread the word. Or rather, make people know that your pizza business is up and running so you won’t cook for shadows.
The last I checked, when you fail to ring the bells of your product in the ears of your target audience, they won’t know you have what they need. And when aren’t aware, they don’t buy.
- Take your pizza business online by creating a website. This will help you get more and more orders. Make sure to also include necessary information. Working hours, price, delivery time etc.
- Social media advertisement will definitely help you go along way. You just to have to figure how to run it properly. And be ready to make swift deliveries too.
- Also, create pages for your business and educate and inform viewers or readers of your content.
- Leverage word of mouth advertising. Tell your friends to come to try your food, tell them to tell their friends too.
- Offer discounts
- Encourage customers to like your page and drop an honest review.
Starting a pizza business could be a lot of work without guidance. And that’s why I went to through hell and back to come up with such an in-depth guide you can follow to make life easier.
All you have to do right now is follow this guide – step by step when you’re set to start and check ✔ every step you complete.
A lot has been talked about…
But I’ll like to leave you with this…
✔ You can’t get far if you don’t have the training. If you don’t how to cook good tasty pizzas, hire someone who can.
✔ Make sure your business is in line with the law. Gather all the necessary documents you’ll need to run a successful pizzeria.
✔ Embrace good customer service
✔ Create excitement around your new pizzeria to entice customers to want to try it.
✔ Leverage google business
✔ Manage your business well
So that’s it on how to start a pizza business from my end.
We don’t know it all, so if there’s anything we missed and you’ll add based on your research or experience, share your thoughts via the comment section.
As promised, the free gift is a pizza business plan. This I believe you’ll find helpful because it will spring into action right away. Click here to get it.
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