Author Topic: Those of you who own pizzerias...  (Read 3286 times)

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Online jeffereynelson

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Re: Those of you who own pizzerias...
« Reply #20 on: May 07, 2013, 05:13:28 PM »
@Jeffereynelson - As La Sera alludes to, don't forget about the rest of your costs that have to be accounted for... equipment, hiring workers, rent, liability, pest control, advertising (though you could in theory just use social media nowadays), benefits for workers, professional memberships, etc.  It's not just ingredient costs that you have to pay out... which leads to the up charge. 

Also, you'll have to remember you can't divide the cost of flour strictly by the weight for how many doughballs you can get... after all, some flour will be used for coating your hands, or coating the dough balls when you prepare to stretch, etc.  Unless you plan to micromanage to that degree and count how much flour you use on the bench for prepping the dough (which would be maddening, even to me), you'll have to account for some fudge factor.

Oh I definitely understand the rest of those expenses, I am just merely curious about some of those high individual costs. I know you can't count only the flour from the dough balls, you obviously account for waste and bench flour etc, it just seemed high. That is saying there is over 50 grams of flour per ball not contained in the recipe amount.


Offline gabaghool

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Re: Those of you who own pizzerias...
« Reply #21 on: June 04, 2014, 12:05:36 PM »
I simply want to share with you ONE surprising fact that ive come up with in my years in the hell business.

SMALL places....which everyone seems to fawn over........are a MATTER of love.....passion.  Its an opportunity to be HANDS ON, detail oriented and TOTALLY INTO your product.  IF you do everything right, you can make a DECENT living.

I started out with small places.  I did because I wanted quality over anything else.  ANd, no lying, in 5 years of owning my FIRST restaurant, I recieved about 3 complaints......THAT I KNOW ABOUT.....im sure it was more....but I like that number....i just do.  This was back in 89.  I paid myself 40K annually.  BUt, i DID miss checks throughout those years.

The first pizza restaurant I owned, I opened in 2002.  It had 70 seats.  Small in my mind.  I TRIED to pay myself 100K a year.  And I WORKED.  6-7 days a week, open to close, not counting special occasions.  You gotta understand that all the bennies or being your own boss IS NOT CASH.  BUt, for those extras you pay.....worry, problems, sleepless nights......its all part of the deal.

After stuggling with owning my own places for 15 years....I simply sat down and asked myself WHY, if i am so busy just about every night, WHY im not making the kind of money I wanted......Now, Im married, with kids........my needs were different than if I was single.   If I was single, my salary and life style would have been fine, but, with a savings obsessed wife, kids headed to college, retirement not even begun to be funded.......MONEY has ceased to be a dirty word.   I had ALWAYS pushed my self in the direction of doing the BEST possible product......AT ALL COSTS........and, I partially succeeded....but I had people DEPENDING on my being able to PROVIDE.  My dreams and aspirations NOW had to be balanced with THEIR needs, not simply my artistic needs.  I HAD to make more money, simple as that.

So, I looked into starting BIG places.  And i went through the whole deal.....sba loans, taking big chances.  I got an sba loan for 1M and bought a BUILDING and the existing business (which was worth squat).  I was so frustrated with seeing BIG, ITALIAN RESTAURANTS run by non italians or coorporations, putting out crap food.....but being totally packed every night.  I guessed that a big building will attract big crowds, even if the food is so so.  Well, in my case I was right.  My first place opened to big crowds, thanks to them recognizing my name becasue of the little place.  Our first year we grossed 4M.  I opened two more and now i gross 12M annually.  I am kind of embarrassed to say what I earn, but it is beyond what i ever dared to imagine........and my food was soooooooooo much better when i struggled and fretted.  IT IS NOT FAIR....BUT ITS LIFE, I GUESS.

Its NOT that my food is bad, its simply a matter of numbers.  Its simply virtually impossible to maintain the top quality of a small place when you are feeding 1000 people a night. (and thats really how many)  But, I make everything in house, I use the best quality i can buy (thats why my protien selection is minimal)....if I can't give them quality product, i won't put in on the menu.

This wasn't a post to wax poetically about myself, it simply tried to answer the OP.  Yeah, theres money to be make in this business, but if you want or need to make big bucks, THAT is what you have to shoot for.  If you want to open a place where YOU PERSONALLY cook 50% or more of the food, than a small place is for you.  You can make a decent living, more than decent if you are really good........but plan on working lots, and lots of hours.  Whether that is possible or not is up to your own personal situation.  Want to hang with your wife??  Want to be around your kids growing up??  want to celebrate when OTHERS are celebrating......well, then you got to think long and hard. 

People ALWAYS assume that now that I have multiple big places, I am working MORE than before....and its not true.  I, because of luck and gods blessing, am doing well, I work FAR less than I did when i threw ALL the responsibilities on me.  Its a tough life.  AN exciting life, but never forget how tough it will be.

I know this is an old thread, but I am hoping SOMEONE who is thinking about this life reads this.  I will ALWAYS help anyone who needs it.....and nothing is a secret.   Sometimes when I read these posts, i am struck on how commited so many of you are.......I remember that commitment, and how much I would have loved to talk to someone with experience that didn't think every GD thing was such a big secret.

Hope this helps some........

PS  there are a TON of so called "facts" about this busines that I have found to NOT be true....now, every situation is different, but i hate it when I hear someone NOT in the business saying stuff that just isn't right.  You would be surprised how individual restaurant owners stories are..........

Offline gabaghool

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Re: Those of you who own pizzerias...
« Reply #22 on: June 04, 2014, 12:12:30 PM »
That's hardly a P&L.

The catch-all "Miscellaneous costs" doesn't seem enough for equipment amortization, insurance, garbage pick up, worker's compensation, and the all important "protection money" for NY.

Even so, does anyone really think that every nickel gets counted for the top line in a small business? As a business owner, I can expense an awful lot - cars, gas, insurance, home office, supplies, business dinners, etc. You need to add that back into compensation.

I net 40% of gross sales in my business. That's really, really high. Most pizza businesses in the U.S. might be about 20-25% net, but U.S. prices for pizza are low... Cutthroat low.

La Sera......

40%!!!!!!  Wow, hats off to you my friend.....what, is alll you sell pizza and booze?????

Online tinroofrusted

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Re: Those of you who own pizzerias...
« Reply #23 on: June 04, 2014, 12:48:56 PM »
I remember that commitment, and how much I would have loved to talk to someone with experience that didn't think every GD thing was such a big secret....

Thanks Gaba. It's great to have someone with real world experience who is generous with that experience.  Very helpful and interesting. I bet you have a book in you! 

Regards,

TinRoof

Offline Chaze215

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Re: Those of you who own pizzerias...
« Reply #24 on: June 04, 2014, 01:09:19 PM »
I simply want to share with you ONE surprising fact that ive come up with in my years in the hell business.

SMALL places....which everyone seems to fawn over........are a MATTER of love.....passion.  Its an opportunity to be HANDS ON, detail oriented and TOTALLY INTO your product.  IF you do everything right, you can make a DECENT living.

I started out with small places.  I did because I wanted quality over anything else.  ANd, no lying, in 5 years of owning my FIRST restaurant, I recieved about 3 complaints......THAT I KNOW ABOUT.....im sure it was more....but I like that number....i just do.  This was back in 89.  I paid myself 40K annually.  BUt, i DID miss checks throughout those years.

The first pizza restaurant I owned, I opened in 2002.  It had 70 seats.  Small in my mind.  I TRIED to pay myself 100K a year.  And I WORKED.  6-7 days a week, open to close, not counting special occasions.  You gotta understand that all the bennies or being your own boss IS NOT CASH.  BUt, for those extras you pay.....worry, problems, sleepless nights......its all part of the deal.

After stuggling with owning my own places for 15 years....I simply sat down and asked myself WHY, if i am so busy just about every night, WHY im not making the kind of money I wanted......Now, Im married, with kids........my needs were different than if I was single.   If I was single, my salary and life style would have been fine, but, with a savings obsessed wife, kids headed to college, retirement not even begun to be funded.......MONEY has ceased to be a dirty word.   I had ALWAYS pushed my self in the direction of doing the BEST possible product......AT ALL COSTS........and, I partially succeeded....but I had people DEPENDING on my being able to PROVIDE.  My dreams and aspirations NOW had to be balanced with THEIR needs, not simply my artistic needs.  I HAD to make more money, simple as that.

So, I looked into starting BIG places.  And i went through the whole deal.....sba loans, taking big chances.  I got an sba loan for 1M and bought a BUILDING and the existing business (which was worth squat).  I was so frustrated with seeing BIG, ITALIAN RESTAURANTS run by non italians or coorporations, putting out crap food.....but being totally packed every night.  I guessed that a big building will attract big crowds, even if the food is so so.  Well, in my case I was right.  My first place opened to big crowds, thanks to them recognizing my name becasue of the little place.  Our first year we grossed 4M.  I opened two more and now i gross 12M annually.  I am kind of embarrassed to say what I earn, but it is beyond what i ever dared to imagine........and my food was soooooooooo much better when i struggled and fretted.  IT IS NOT FAIR....BUT ITS LIFE, I GUESS.

Its NOT that my food is bad, its simply a matter of numbers.  Its simply virtually impossible to maintain the top quality of a small place when you are feeding 1000 people a night. (and thats really how many)  But, I make everything in house, I use the best quality i can buy (thats why my protien selection is minimal)....if I can't give them quality product, i won't put in on the menu.

This wasn't a post to wax poetically about myself, it simply tried to answer the OP.  Yeah, theres money to be make in this business, but if you want or need to make big bucks, THAT is what you have to shoot for.  If you want to open a place where YOU PERSONALLY cook 50% or more of the food, than a small place is for you.  You can make a decent living, more than decent if you are really good........but plan on working lots, and lots of hours.  Whether that is possible or not is up to your own personal situation.  Want to hang with your wife??  Want to be around your kids growing up??  want to celebrate when OTHERS are celebrating......well, then you got to think long and hard. 

People ALWAYS assume that now that I have multiple big places, I am working MORE than before....and its not true.  I, because of luck and gods blessing, am doing well, I work FAR less than I did when i threw ALL the responsibilities on me.  Its a tough life.  AN exciting life, but never forget how tough it will be.

I know this is an old thread, but I am hoping SOMEONE who is thinking about this life reads this.  I will ALWAYS help anyone who needs it.....and nothing is a secret.   Sometimes when I read these posts, i am struck on how commited so many of you are.......I remember that commitment, and how much I would have loved to talk to someone with experience that didn't think every GD thing was such a big secret.

Hope this helps some........

PS  there are a TON of so called "facts" about this busines that I have found to NOT be true....now, every situation is different, but i hate it when I hear someone NOT in the business saying stuff that just isn't right.  You would be surprised how individual restaurant owners stories are..........

Thanks for that insight and info! Where are you and your places located? Website? Would love to check them out. Thanks again man!
Chaz

Offline gabaghool

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Re: Those of you who own pizzerias...
« Reply #25 on: June 04, 2014, 01:14:24 PM »
Thanks Gaba. It's great to have someone with real world experience who is generous with that experience.  Very helpful and interesting. I bet you have a book in you! 

Regards,

TinRoof

Thank you so much, tin.....
it is very nice of you to say that...im glad you got something out of it.....really.  I don't remember reading any posts from you a while back......it seems like all the posts i remember are from recent times.......I appreciate your contributions.
« Last Edit: June 04, 2014, 01:19:40 PM by gabaghool »

Offline gabaghool

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Re: Those of you who own pizzerias...
« Reply #26 on: June 04, 2014, 01:17:21 PM »
Thanks for that insight and info! Where are you and your places located? Website? Would love to check them out. Thanks again man!

Thank you Chaze.......

You can check us out at "joey garlics"....NOT JOHNNY GARLICS....We already got sued for that....that is DDD guy fieri's place.  It is what it is....a basic chain.......I know what I am, and what Im not.........someday......when I can sack enough money away.....I would like to open a place near and dear.

But, thank you for y our response, I really appreciate it.  I've read a ton of your posts.

Offline Chaze215

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Re: Those of you who own pizzerias...
« Reply #27 on: June 04, 2014, 01:35:13 PM »
Thank you Chaze.......

You can check us out at "joey garlics"....NOT JOHNNY GARLICS....We already got sued for that....that is DDD guy fieri's place.  It is what it is....a basic chain.......I know what I am, and what Im not.........someday......when I can sack enough money away.....I would like to open a place near and dear.

But, thank you for y our response, I really appreciate it.  I've read a ton of your posts.

Thanks man. I'm just a rookie in this whole business. Starting out as a weekend warrior with a mobile set up and go with the flow with wherever this takes me. I enjoy it but it is a lot of work....especially with a full time job mon-fri :-)
Chaz

Online jeffereynelson

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Re: Those of you who own pizzerias...
« Reply #28 on: June 04, 2014, 04:46:18 PM »
Thank you Chaze.......

You can check us out at "joey garlics"....NOT JOHNNY GARLICS....We already got sued for that....that is DDD guy fieri's place.  It is what it is....a basic chain.......I know what I am, and what Im not.........someday......when I can sack enough money away.....I would like to open a place near and dear.

But, thank you for y our response, I really appreciate it.  I've read a ton of your posts.

So is Joey Garlics your place? If so what do you mean by you would like to open a place?

Also, I've never seen someone with so much of an affinity for ellipses  :-D

Offline Chaze215

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Re: Those of you who own pizzerias...
« Reply #29 on: June 04, 2014, 05:41:22 PM »
So is Joey Garlics your place? If so what do you mean by you would like to open a place?

I think he meant he would like to open a place near Johnny Garlics.
Chaz


Offline waltertore

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Re: Those of you who own pizzerias...
« Reply #30 on: June 04, 2014, 05:50:52 PM »
I think he meant he would like to open a place near Johnny Garlics.

I think he wants to open a small mom/pop shop where he can be involved with the entire show vs. the large set up he now has.  I appreciate gabaghool's sharing.  He is a wealth of information for people like me that can run a shop and make the products but have no idea of the buying/renting end of things.  I use to live in Santa Rosa CA for 15 years.  Johnny Garlics was popular till it burned down.  That was the time when Guy made it on tv.  He came to the high school I taught at in a limo and talked to the kids.  I never met him.   Walter

Online Sirius

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Re: Those of you who own pizzerias...
« Reply #31 on: June 05, 2014, 07:10:15 AM »
My whole life I've always know I would end up with a restaurant. Now that I'm in a position to actually do it I am definitely looking at the alternatives. My German GF is nearing retirement and I just might wait until we go over there for good and then open a guest house(German for family style restaurant/tavern)...at least I'll be able to live upstairs and have a roof over my head if business gets slow.  :)

Hey Bob, where to Germany do you wanna move?

Offline deb415611

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Re: Those of you who own pizzerias...
« Reply #32 on: June 05, 2014, 07:25:36 AM »
I think he meant he would like to open a place near Johnny Garlics.
So is Joey Garlics your place? If so what do you mean by you would like to open a place?

Also, I've never seen someone with so much of an affinity for ellipses  :-D



Joey Garlics is Nick's place, he was saying not to confuse it with Johnny Garlic's. here is the link to his website   http://www.joeygarlics.com/   

I have been there and it's very good but I can't wait for the future place, that's where I want to eat



Offline Pete-zza

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Re: Those of you who own pizzerias...
« Reply #33 on: June 05, 2014, 09:13:59 AM »
I know what I am, and what Im not.........someday......when I can sack enough money away.....I would like to open a place near and dear.


Nick,

You may also have to sock away a few shekels for the taxing authorities in Connecticut  ;D:

http://wills.about.com/od/stateestatetaxes/a/stateestatetaxchart.htm

The states not listed in the table have no state estate taxes. The 5+ million numbers in the table is the current Federal estate tax exemption (which is adjusted annually).

Peter

Offline waltertore

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Re: Those of you who own pizzerias...
« Reply #34 on: June 05, 2014, 09:44:24 AM »
Nick,

You may also have to sock away a few shekels for the taxing authorities in Connecticut  ;D:

http://wills.about.com/od/stateestatetaxes/a/stateestatetaxchart.htm

The states not listed in the table have no state estate taxes. The 5+ million numbers in the table is the current Federal estate tax exemption (which is adjusted annually).

Peter


Peter:  I could never live where I grew up, Essex County NJ.  That area is insane with taxes.  I have no idea how a small mom and pop pizzeria could start up there today.  My brother owns a home similar to ours in OH.  We pay about 2k a year in property taxes which is more than double the amount most pay in our county.  Our village is an island of 6 figure income households. Most in our county pay well under 1k in taxes for a house like ours and my brothers.  My brother pays 13 k a year in taxes.  Anything inside or touching NYC borders has become a place for the rich or  living in a ghetto.  I still can't figure out why the rich haven't moved the ghettos of NYC/NJ/CA (LA/Bay Area) to inland wastelands because these ghettos take up prime realestate zones.  Walter

Top 15 Counties in Median Real Estate Taxes Paid, 2010

1. Westchester County, New York: $9,003

2. Nassau County, New York: $8,711

3. Hunterdon County, New Jersey: $8,523

4. Bergen County, New Jersey: $8,489

5. Rockland County, New York: $8,268

6. Essex County, New Jersey: $8,117

7. Somerset County, New Jersey: $7,801

8. Morris County, New Jersey : $7,707

9. Passaic County, New Jersey: $7,544

10. Union County, New Jersey: $7,443

11. Putnam County, New York: $ 7,331

12. Suffolk County, New York: $7,192

13. Monmouth County, New Jersey: $6,917

14. Hudson County, New Jersey: $6,426

15. Lake County, Illinois: $6,285
« Last Edit: June 05, 2014, 09:56:22 AM by waltertore »

Offline Chicago Bob

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Re: Those of you who own pizzerias...
« Reply #35 on: June 06, 2014, 11:38:45 AM »
Hey Bob, where to Germany do you wanna move?
My gf is from Siegelbach.....just outside of Kaiserslautern.

Bob
"Care Free Highway...let me slip away on you"

Offline Camaro10

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Re: Those of you who own pizzerias...
« Reply #36 on: June 06, 2014, 09:38:46 PM »
I think if I  ever opened a pizzeria  I would stick to pizza, knots, strombolis and calzones. I believe when you starts adding pastas and all these other dishes your Quality decreases. Some say one would lose business this way but it's kind of a catch 22.

I remember growing up I would go to CT every summer and there was this little hole in the wall pizzeria that sold only pizzas. No bread, no salads, nothing else. But by all means they were packed all day every day and had the best pizza I ever had in my life. The owners retired and moved over seas but they did so much business by just selling a fantastic pie.

Offline Chicago Bob

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Re: Those of you who own pizzerias...
« Reply #37 on: June 07, 2014, 12:59:58 PM »
 ^^^

CB
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Offline gabaghool

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Re: Those of you who own pizzerias...
« Reply #38 on: June 07, 2014, 04:22:01 PM »
So is Joey Garlics your place? If so what do you mean by you would like to open a place?

Also, I've never seen someone with so much of an affinity for ellipses  :-D

Ellipses??? Does that mean using caps??  I know....im trying to break the habit, it buggs people, i know.........Im just stressing certain words......but, yeah, ive been yelled at before!!

Offline gabaghool

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Re: Those of you who own pizzerias...
« Reply #39 on: June 07, 2014, 04:23:15 PM »
What I meant was that I would open a small place where profit wasn't so much of an emphasize......where the action isn't so fast that I can't keep up....which is the case here.........


 

pizzapan