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How much money do you need to open a pizza place

  1. Abodabt profile image49
    Abodabtposted 8 years ago

    How much money do you need to open a pizza place

  2. Cagsil profile image61
    Cagsilposted 8 years ago

    How long do you plan on being open?

    It would be wiser to create a business plan. If you're not sure how to write one, then seek help.

    On another thought- the duration of hours you'll be working, your employees will be working, product prices, wholesale distributors for all kinds of things(tools, utensils, extras, napkins and boxes all have costs.

    You must investigate the community where you are to put your pizza place. You need to check out competition in the area. You need to learn about marketing/advertising, and it must be cost-effective as possible.

    Before you think about how much money is required, you can answer that question by getting deeper into the subject itself.

    However, I wouldn't suggest you start a Pizza place, with anything less than $500,000.00 to start.

    If your products are good, customer service is good and you manage your business right....then you'll be in profit after your first year.

    Just a rambling thought. smile

  3. Abodabt profile image49
    Abodabtposted 8 years ago


  4. profile image0
    Twenty One Daysposted 8 years ago

    Abo, mostly depends on location.
    the heaviest expense to restaurant/food stores is Rent & Insurance (for you, customer, employee, etc).

    I used Executive Insurance Corp. They are very reliable.

    Cost for heavy equipment: 10k-40k.
    Cost for just the hood/ansul system: 10k per foot (usually 6 foot)

    So the base cost is around 100k.

    Tax set aside, Payroll, non-food items (paper/chemicals) is usually 15% of your total sales volume. So if you project doing 50k in business, 8k is going to cover.

    Make sure you have enough cash flow to cover the first 90 days.
    your food cost for a pizza shop should be no more than 28% of your sales volume.

    here's the actual formula:

    opening inventory + purchases - closing inventory = usage / sales.
    this will always give you the exact cost to sales ratio.

    a Biz Plan is crucial!!!
    not so much for anyone else by you -so you know what you want to do from beginning to end and can always go back and look it over.

    feel free to ask me, cuz i have been there.

    1. Abodabt profile image49
      Abodabtposted 8 years agoin reply to this


    2. profile image54
      londonontarioposted 4 years agoin reply to this

      I already have a location that has been in the town i live for over 35 years, we have an extra hood that is not being used which we plan on using for pizza to further expand our menu. the risk factor is really low because we are paying the bills with our current menu but since pizza has such a high mark up i was wondering how much it would cost me to buy the oven and all the necessary equipment to start serving my customers pizza to give them more variety and also tap into a new market to increase revenue.

  5. Mamelody profile image60
    Mamelodyposted 8 years ago

    If you have a good pair of tits it shouldn't cost you anything to start up! lol

  6. livewithrichard profile image87
    livewithrichardposted 8 years ago

    It really depends on where you're located and how much competition you have.  I have a buddy that opened a pizza place a couple years ago with just under $5,000.  Now he didn't start from scratch he took over a business that was under-performing and made a buyout plan with the owner.  It's located in a suburb of Chicago where there is a pizza place every 1/4 mile and competition is extreme.  He had a vision though for more and he was able to acquire the adjacent property and convert it into a sports pub. Now he has $5,000 nights and not sure what his profits are but he realized his dream and didn't worry too much about the start up costs.  He had a plan and built upon what was already in place. It helps too to have a lot of charisma and a lot of friends.

    If you don't have a lot of charisma or a lot of friends then you might want to look into franchise options and then you're looking at hundreds of thousands of $$$ in start up costs.