Pizza Business - How to establish the most suitable type of service?

[Alevar]

Hello everyone,

This is my first post in what I have found to be an incredibly resourceful forum, I have been lurking for some time but finally decided to register and post myself, I am very excited to be part of this community.

First things first, I am Italian-born, living in London for 10+ years with a background in hospitality but currently working in the property management sector.

I have decided to change my career and start my own pizza business. I have always had an interest in entrepreneurship but never dive into it too much (lack of time, probably a lot of fear of failure...), I feel it is now the time to seriously considering starting my own business, doing something I truly love, which is cooking for other people.

My idea is to open a roman-style pizzeria, which is a different style of pizza normally found in London (round, Neapolitan style). This is extremely popular in Italy and normally served "by the slice" with most people eating on the go (perfect for lunch or an afternoon snack).

My first point of action would be to devise a comprehensive business plan but I am struggling to make a decision on what type of eatery I would like to have. I have narrowed it down to two options:

1) Restaurant-style pizzeria: 30-50 covers, table service, open for lunch and dinner. No takeaway. Average spend £25-£35 per person.
2) Pizzeria "Al taglio" or pizza by the slice: Counter with ready made pizza, no table service but 10-15 seats for client to sit down. Can also be offered to take-away. Average spend £8 - £15 per person.

The type of service will affect the costs that I need to calculate, which in turn will affect my business plan.

I am stuck as to what to choose and I was wondering whether anyone can make any recommendations on a good method I can use to draw a conclusion?

Any help will be truly appreciated, thank you.

 

[MBE2017]

Personally I have always asked potential clients for their views. Nothing to stop you doing some simple market research, clipboard amongst the lunchtime crowds.

Friends and family will give you answers you want to hear, Joe Public tends to be more honest. To ask 5-8 quick questions should not take too much time, starting with the obvious would you eat pizza for lunch, type, budget, do they prefer eat in to take away, can they name a pizza place nearby etc.

You might think the idea great, but if most prefer subways at £8 each, how does that effect you?

Best of luck.

 

[Mark T Jones]

As @MBE2017 says, focused local market research is the way to get real feedback.

A minimal investment way to test your concept as as a pop-up, residence or street food stall - there is no shortage of opportunities for any of these in London.

I'm sure you are aware that the F & B sector is currently under a lot of strain with rising costs and staff shortages - good financial planning is essential!

 

[Alevar]

Personally I have always asked potential clients for their views. Nothing to stop you doing some simple market research, clipboard amongst the lunchtime crowds.

Friends and family will give you answers you want to hear, Joe Public tends to be more honest. To ask 5-8 quick questions should not take too much time, starting with the obvious would you eat pizza for lunch, type, budget, do they prefer eat in to take away, can they name a pizza place nearby etc.

You might think the idea great, but if most prefer subways at £8 each, how does that effect you?

Best of luck.

Thank you for you input. I thought about this, but as I do not have a set location as yet, didn’t think this would give me the answers I need (as price and competitors would be heavily reliant on location). Would I be correct in thinking that?

For example, my local neighbourhood in West London would have a completely different set of demographics than Central London, or even any area in East London, so the answers I’d get would be quite different I assume?

 

[Alevar]

As @MBE2017 says, focused local market research is the way to get real feedback.

A minimal investment way to test your concept as as a pop-up, residence or street food stall - there is no shortage of opportunities for any of these in London.

I'm sure you are aware that the F & B sector is currently under a lot of strain with rising costs and staff shortages - good financial planning is essential!

Thank you Mark, I’ll consider this.

And yes, I want to very carefully plan this, I am in no rush and definitely need to get financial planning down to a T before starting!

 

[WaveJumper]

Just adding to the above comments a sound business plan has got to be key, don't underestimate rent, business rates and the real killer for many at the moment in the restaurant trade energy costs.

I would also add there is a reason why every major restaurant in my area all have online services availble don't underestimate the scope for this side of the business.

 

[Alevar]

Just adding to the above comments a sound business plan has got to be key, don't underestimate rent, business rates and the real killer for many at the moment in the restaurant trade energy costs.

I would also add there is a reason why every major restaurant in my area all have online services availble don't underestimate the scope for this side of the business.

Thank you WaveJumper. On the topic of business plans, can you recommend any particular template? I’m working on templates found online via the Prince’s Trust and British Business Bank, which seem good and have a handy cashflow spreadsheet as well.
Just wondering if there are any others I should look at, just before I start?

With regards to your comment about online services, assume you mean food delivery service, whether via website or via delivery providers (Deliveroo, JustEat etC…)?

Thank you again for your responsez

 

[Nico Albrecht]

Have you ever thought about beginning on a smaller scale? I know someone who operates something similar from a trailer with a wood-fired oven. It could significantly reduce your startup expenses and serve as a proof of concept. This person often caters to shopping centers and private events. https://www.pizzavantastica.co.uk/photo-gallery Not sure about wood fired ovens in a trailer and insurance premiums.

 

[MBE2017]

Thank you for you input. I thought about this, but as I do not have a set location as yet, didn’t think this would give me the answers I need (as price and competitors would be heavily reliant on location). Would I be correct in thinking that?

For example, my local neighbourhood in West London would have a completely different set of demographics than Central London, or even any area in East London, so the answers I’d get would be quite different I assume?

I would not worry about competition pricing just yet, I would concentrate on deciding whether to have a traditional place with covers, or a takeaway counter type offering. The latter would probably involve a lot less initial investment and risk, personally I would look to offer a street offering, such as a trailer or pop up site.

That said, I know very little about pizza.

 

[MOIC]

I would start with option 2 for the following reasons:

1. Lower set up costs.
2. Lower overheads.
3. Less staff required.
4. Delivery is where it’s at for food.

Get the right location.

 

[Thom_Baker]

Hello everyone,

This is my first post in what I have found to be an incredibly resourceful forum, I have been lurking for some time but finally decided to register and post myself, I am very excited to be part of this community.

First things first, I am Italian-born, living in London for 10+ years with a background in hospitality but currently working in the property management sector.

I have decided to change my career and start my own pizza business. I have always had an interest in entrepreneurship but never dive into it too much (lack of time, probably a lot of fear of failure...), I feel it is now the time to seriously considering starting my own business, doing something I truly love, which is cooking for other people.

My idea is to open a roman-style pizzeria, which is a different style of pizza normally found in London (round, Neapolitan style). This is extremely popular in Italy and normally served "by the slice" with most people eating on the go (perfect for lunch or an afternoon snack).

My first point of action would be to devise a comprehensive business plan but I am struggling to make a decision on what type of eatery I would like to have. I have narrowed it down to two options:

1) Restaurant-style pizzeria: 30-50 covers, table service, open for lunch and dinner. No takeaway. Average spend £25-£35 per person.
2) Pizzeria "Al taglio" or pizza by the slice: Counter with ready made pizza, no table service but 10-15 seats for client to sit down. Can also be offered to take-away. Average spend £8 - £15 per person.

The type of service will affect the costs that I need to calculate, which in turn will affect my business plan.

I am stuck as to what to choose and I was wondering whether anyone can make any recommendations on a good method I can use to draw a conclusion?

Any help will be truly appreciated, thank you.

As other folk have said - check your market - if you go for restaurant style - who are you competing with? Same with Al Taglio - who are you competing with?

What area are you serving - who are you targeting. What we're talking about here is brand strategy:

Who are you?
What do you do?
Why do you do it?
Why do people care?

You're aiming for an authentic and *Unique* position that sets you apart from everyone else.

Your heritage gives you authenticity. I can't think of many places selling by the slice as you have described (but I've done little research!) so that might be worth researching further?

 

[fisicx]

Germany has loads of pizza places where they sell by the slice. Usually where there is high footfall and you buy at the window. Some will have a restaurant as well but the idea is you don't go indoors. It's almost like street food. Cheap and filling and you have your food in your hand seconds after paying.

Nobody cares about you Italian heritage, all they want is the food. If it's tasty, cheap and quick then you should be OK.

 

[BillyB]

Personally if it was me and I was located in London I'd look to start small and open a stand at the likes of BoxPark, Camden Market, Seven Dials Market etc. This way you can start up relatively cheap and test the market with your customers rather than spending upwards of £100-£200k.

Your marketing needs to be key and the brand needs to really be pushed on social media platforms like TikTok and Instagram, there are some great success stories of people who have done the same and are now preparing to open their own standalone restaurant.

If you run the business as a stall for say 1-2 years and it's successful you have a better chance of finding investors and raising capital.

 

[Paul Kelly ICHYB]

Why can't you do both?

As mentioned, by the slice depends on (passing) volume traffic.

You can start slice only in a small unit/kiosk, with lower costs.

A lot of what you can do will be guided by your finances!

 

[MBE2017]

I recently returned from Madeira, and took the family to a pizza restaurant at a marina. It was packed every night, no table could be booked after 7pm, and the regularly had 10-30 people queuing for half an hour waiting to be sat.

All my group agreed that they were the best pizzas they had ever had, it was run by a lovely Italian family, and complimented by the best home made Italian Ice cream made by their grandfather.

They had a great location at the marina, they had a crowd passing by with money, they charged €15 per pizza per person, but it was the quality that had them packed every night. Thankfully I was only in the area for two weeks, the last time we went there it cost myself $300 plus for the meal.

 

[Ian J]

I recently returned from Madeira, and took the family to a pizza restaurant at a marina. It was packed every night, no table could be booked after 7pm, and the regularly had 10-30 people queuing for half an hour waiting to be sat.

Me too. I'm guessing that you are talking about Manifattura Di Gelato in Calheta which we went to quite a few times for lunch

 

[MBE2017]

Me too. I'm guessing that you are talking about Manifattura Di Gelato in Calheta which we went to quite a few times for lunch

100% correct, small world.