has anyone had experience owning or running a pizza shop

[mcgilla]

i am interested in the profitability of pizza shops as in theory dough, cheese and meat seem quite cheap and is sold for what seems to be huge margins or do pizza shops have huge over heads ect. Just interested in finding out more info

 

[billie1]

I haven't any experience in running a pizza shop, but the one thing I can say is profit margins for pizzas are big. I've made them at home in the past, the amount of pizza you can get from a ball size amount of dough is many. Add cheese, onion or what ever topping, it doesn't cost much to make.

 

[mcgilla]

billie1 - thanks for the reply, i was just thinking why there isnt more national chain pizza shop competition as pizza hut and dominos are beyond outrageously priced for adverage at best pizzas, there are so many independents shops that are better quality and cheaper, it just seems strange why if it is such a popular food with huge profit margins why people havnt tried to compete

 

[businessfunding]

Gross margins are good

Set up and operating costs are relatively high

Which means you will be coining it in after you hit break even!

 

[Talay]

Looked at franchising a few years ago as I was attracted to the cash generation of the take away pizza & delivery business model.

Didn't like the set up fees !

Then like most food franchises, you're stuck on the hamster wheel of giving away a hefty slice of your gross as commission and then paying over the odds for your supplies from the franchisors, who essentially become ingredient distributors.

The right ones print money; the wrong ones lose a packet.

 

[antoine82]

Buying stuff to make pizzas cost nothing but you've got lots of others costs which are real business killers.

You can start with VAT, a 20% tax on your turnover that you need to pay, whether or not you're making profit (which is by the way for me a total nonsense. Companies should start paying taxes when they start making profit...). This is huge particularly when you can't claim anything back on most of your costs.

Then you have the rent. A3/A5 units are just crazy particularly in large cities.
Then business rates. Can be crazy as well.
Then you have of course the staff. If you plan to be opened 7 days a week, it will cost you a small fortune in wages.
Then the utility bills, insurance, license for music, EPOS, packaging for take away, rubbish collection, banking fees, accountant, card processing... It all adds up very quickly.

So in conclusion, cooking pizzas is very cheap but running a business that cooks pizzas is very expensive.

 

[Cons]

I'm not sure of the practicality of my suggestion but could you make this 'mobile' to save on most costs?

 

[Jmcco]

Hi
I have been looking at this idea too! With pizza being so big in America why are there so few pizza chains in the uk...... ..?
I agree re the running costs, in my bs plan so far the rent, rates and wages are a killer! But it's the principle of why hasn't this taken off as a sector more here that concerns me in taking a risk on the business.

 

[ethical PR]

McGilla

You've been coming on the forum asking about lots of different business concepts.

Are you actually looking to set up a business?

 

[KeithP]

Is this not a saturated market? We live in an 'average' sized town and there must be 8-9 pizza outlets including the larger ones such as Pizza Hut, Dominos and Papa Johns. How they all make money is beyond me.

Rather than investing in yet another pizza franchise, why not develop a different fast food offering and spend the franchise money on building your own brand and some great marketing.

As a footnote, pizza is one of the most unhealthy fast foods our there so in an age where consumers are becoming increasingly health concious, I wonder if the pizza market will suffer? We haven't had a pizza in our house for years as they're just loaded with fat and processed junk.

 

[Feldon]

Someone in my village started their own pizza business and seems to be doing quite well, although they use a mobile wood fired pizza over which makes much better pizza's and taste delicious. They operate go round pub's, caravan parks and show's, always have to wait a while for mine which i don't mind as allows me to have a couple of beers whilst i wait. A lot cheaper to run and operate than a traditional bricks and mortar business too.

 

[Jmcco]

Actually, there are some interesting models elsewhere in.the world making great pizza on no fat bases and packed with fresh and healthy toppings. They don't resemble the typical Dominoes etc that we are familiar with !

 

[Private Detective London]

As said while their is a large mark up its also a very busy market. Locally we have three big name franchises going head to head with various promotion gimmicks. There is also a couple of private business operating. It depends on market, the big names are fighting over the home delivery market whilst the others seem to be looking toward passing daytime trade and the post pub/club market.

I guess it really depends on what you are looking for.

 

[mcgilla]

the world food wrap business seems although it is going to take off, adding that into a pizza shop so you can make money through the day sawell as on a night time surly must be appealing