Author Topic: Need Advice  (Read 1328 times)

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Offline Grilled Pizza

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Need Advice
« on: December 02, 2010, 12:27:56 AM »
My passion is to open a pizzeria.  I am lost to what is the best way to go.  Should I buy an existing place, start my own, etc.  The restaurant business is new to me, but I know the basics about business in general.  What are the things I need to lookout for or avoid?  I have my own recipe that is unique to Colorado, but I know a good product doesn’t sell itself if nobody knows about it.  Any words of wisdom would be helpful.

Thanks,
Grilled


Offline Essen1

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Re: Need Advice
« Reply #1 on: December 02, 2010, 12:45:35 AM »
I'm sure you have seen this one:

http://www.ehow.com/how_2074246_open-pizzeria.html

However, it's not that simple. 6 steps won't get you there but it gives you an ideas what's involved.

You'd need a solid business plan. You'd need financing unless all start up costs come out of your own pocket. You'd need a solid menu. You got to have a marketing strategy. You need to find out what regulations are in place where you live, what permits you'll need, what kind of insurance, etc.

But first and foremost, learn the restaurant trade...meaning work in a restaurant or pizza shop for awhile and go through all the motions. Learn the trade from top to bottom. Just having a good product that you made at home isn't enough.

I have worked I numerous restaurants, bakeries and even a hotel and it's not an easy task. It's a very fast-paced environment with very little room for error.

Like I said, learn the trade first before putting any of your own and some lender's money in it.
Mike

"Anyone who has never made a mistake has never tried anything new."  - Albert Einstein

http://thehobbycook.blogspot.com/

Offline Essen1

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Re: Need Advice
« Reply #2 on: December 02, 2010, 01:10:54 AM »
And...

Location, location, location. Easy access, parking, foot traffic, visibility, etc.
Mike

"Anyone who has never made a mistake has never tried anything new."  - Albert Einstein

http://thehobbycook.blogspot.com/

Online c0mpl3x

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Re: Need Advice
« Reply #3 on: December 02, 2010, 02:19:12 AM »
whatever your opening costs are, double that.

that is your expense out of pocket the first year, outside of normal costs.   there is always something that will go wrong, regardless of how new or perfect the system is.
Hotdogs kill more people than sharks do, yearly.

Offline aerotech

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Re: Need Advice
« Reply #4 on: December 05, 2010, 09:58:12 AM »
This has to be the greatest forum to gain knowledge about making pizza. As far as opening a pizzeria, I agree that it always cost you more than your plan. I would suggest checking out the Think Tank forum at  www.pmq.com, a awesome site for information on the business side of pizza. Good luck

Offline GotRocks

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Re: Need Advice
« Reply #5 on: December 05, 2010, 01:48:47 PM »
I recently opened my own restaurant in June, But I am not new to the industry in any way whatsoever. As a precursor to my place, I started a catering business and served my restaurant manu as catering only.
 I think you should go work at a restaurant for several months, get the restaurant owner to cover some of the cost of your "Serv-Safe" training and certification. (Required in some states for foodhandlers)
And see if this is still something you want to pursue. There are many important things that someone unfamiliar with the foodservice industry does not realize quite yet.
On top of your business plan, you should also do your P&L projections for the first 12 months, and the next 36 months after that. Figure your break-even point, (what you need to put in the register each and every day just to break even, anything over that can be considered profit if your foodcost and labor cost is correct)

Best case scenario, have reserve working capital for a full year, that means you should have enough reserve cash on hand to cover all expenses for a full year with zero profit (Yes, it can happen) But have 6 months of reserves on hand for a bare minimum. Many wonderful places fail mainly due to undercapitalization.

The old saying "if you build it, they will come" is a rare situation in restaurants, especially with pizza.
to start, find your local fulltime resident population, figure that maybe 18% of those people will eat pizza 2 times ea month, now divide that by the other pizza places in your area.that should be an optimistic estimate of traffic flow to your place, realistically, figure 10%-12%, but be ready for up to 20%
Good luck in your venture
A skinny cook is not to be trusted!


 

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