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Pizza Business Plan Template

Written by Dave Lavinsky

Pizza Business Plan

You’ve come to the right place to create your Pizza business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Pizza businesses.

Below is a template to help you create each section of your Pizza business plan.

Executive Summary

Business overview.

Papa Jack’s is a new pizza restaurant in the Cincinnati, Ohio area that will serve residents, businesses and local schools. The restaurant will primarily be a dine-in establishment, but will also offer delivery and pick-up. The pizzeria offers an extensive menu that includes pizza, sandwiches, pasta, salads, desserts, and drinks. All of our food is made from unique and authentic Italian recipes created by the founder himself.

Papa Jack’s is founded and run by Jack Russo. Jack has spent the past 15 years in the restaurant industry, working as a waiter, chef, and restaurant manager. His experience in the industry has given him the knowledge and skills needed to run all aspects of a pizza restaurant.

Product Offering

Papa Jack’s will offer a full menu of pizzas, salads, sandwiches, and desserts. Pizza selections include thin crust, pan and stuffed, while pasta options include all traditional Italian specialties like spaghetti and meatballs, fettuccine alfredo and lasagna. Sandwiches include Italian Beef, Sausage and Chicken Parmesan.

The restaurant is also available for private events and catering.

Customer Focus

Papa Jack’s will serve the residents and workers of Cincinnati, Ohio and the immediately surrounding areas. The area is home to thousands of families and students who are always looking for high-quality pizza restaurants. Cincinnati is also full of hard-working laborers who need high-quality dine-in and takeout options after a hard day of work.

Management Team

Papa Jack’s is founded and run by Jack Russo. Jack has worked in the restaurant industry for 15 years and is knowledgeable of the operations and standard procedures of running a restaurant. Jack is also a well-respected chef who has made thousands of pizzas and other Italian dishes throughout his career. After spending years working at other restaurants, Jack has decided to run his own pizza restaurant where he can sell pizzas made from his own unique and authentic recipes. Though Jack has experience managing a restaurant, he will hire other management staff to help him run Papa Jack’s.

Success Factors

Papa Jack’s will be able to achieve success by offering the following competitive advantages:

  • Location: Papa Jack’s location is near the center of town, giving us access to commuters going and leaving, local office workers, students and passersby. We also offer adequate parking making it easy for customers to patronize us.
  • Great pizza and service at an affordable price: The pizza restaurant will offer dine-in, home delivery and carry-out services, providing convenience to our customers and further extending our market reach.
  • Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for 25 years, Jack Russo knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build branding and awareness of our restaurant.

Financial Highlights

Papa Jack’s is seeking a total funding of $400,000 to launch its pizza restaurant. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Restaurant design/build: $200,000
  • Equipment, supplies, and inventory: $50,000
  • Three months of overhead expenses (payroll, rent, utilities): $100,000
  • Marketing costs: $30,000
  • Working capital: $20,000

The following graph below outlines the pro forma financial projections for Papa Jack’s.

Papa Jack's Financial Projections

Company Overview

Who is papa jack’s, papa jack’s history.

Papa Jack’s was founded by Jack Russo. Jack has worked in the restaurant industry for 15 years and is ready to apply his experience and skills in his own pizza restaurant. His experience as a chef has helped him create an extensive menu made from his own unique and authentic recipes.

Jack incorporated Papa Jack’s on February 1st, 2023 and was able to achieve the following milestones since then:

  • Developed the company’s name, logo and website
  • Created the menu
  • Determined equipment and inventory requirements
  • Began recruiting key employees with experience in the restaurant industry

Papa Jack’s Services

Industry analysis.

The pizza industry has grown over the past five years due to rising consumer spending and changing preferences. Consumer spending is expected to increase an annualized 3.0%, as unemployment declines and economic conditions improve. As a result, the pizza industry has benefitted.

Changing consumer preferences have altered the industry over the past five years. Americans have become more concerned about their health and the food they eat, moving away from food high in fat, salt and sugar. Organic, locally grown and gourmet food has become more popular, and pizzerias are offering a greater array of flatbreads and whole-wheat and gluten-free crusts as a result. Consumers have also been indicating a preference for quick-service pizza shops, where pizza can be ordered online, rather than traditional, sit-down pizza restaurants.

The way operators use technology will also become increasingly important to the industry’s performance as consumers increasingly use their smartphones or tablets to order, expecting seamless internet interfaces that make it easy to customize pizza preferences.

Customer Analysis

Demographic profile of target market.

The following are the precise demographics of the Cincinnati area:

Customer Segmentation

Papa Jack’s will primarily target the following customer profiles:

  • Local workers

Competitive Analysis

Direct and indirect competitors.

Papa Jack’s will face competition from other companies with similar business profiles. A description of each competitor company is below.

Pizza Garden

Pizza Garden was founded in 1988 and opened its first franchise a year later. Pizza Garden has nearly 14,000 restaurants, about 60% of which are in the United States. Similar to its competitors, the company focuses on a franchise model, with over 90.0% of Pizza Garden restaurants operating under franchise or license agreements.

Pizza Garden’s menu features a range of pizzas, offering a variety of toppings suited to local preferences and tastes. Many Pizza Garden locations also offer pasta and chicken wings. Pizza Garden offers casual dine-in, delivery and carryout.

City Pizzeria

Founded in 1985, City Pizzeria is one of the largest pizza restaurant chains in the United States. The company operates and franchises pizza delivery and carryout. The company operates in all 50 states and in 34 countries.

City Pizzeria’s menu includes pizza, and other side items such as breadsticks, cheese sticks, chicken wings and desserts, all made of quality ingredients on a consistent basis. The company’s quality control center system takes advantage of volume purchasing of food and supplies and provides consistency in fresh dough production. The company’s marketing strategy has increasingly been focused towards online and digital marketing in response to increasing consumer use of online and mobile technology.

Checkers Pizza

Checkers Pizza has grown to over 14,800 company-owned and franchised locations worldwide since its founding in 1960. Checkers Pizza operates in all 50 states and has locations in more than 70 countries. Furthermore, it is the second-largest pizza company in the world. Checkers Pizza sales are primarily generated through its pizza delivery business. As a result, the company focuses on securing its position within the industry by providing convenient store locations and an efficient supply chain.

Checkers Pizza’s menu varies regionally, but is primarily focused on Italian-American entrees and side dishes. They recently added artisan-style pizzas and added handmade pan pizza to their menu. They also have pasta, chicken, bread bowls, desserts and oven-baked sandwiches.

Competitive Advantage

Papa Jack’s will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Papa Jack’s will offer the unique value proposition to its clientele:

  • Moderate price point
  • Offering a convenient location that offers dine-in, delivery and carry-out options
  • Family-friendly environment
  • Providing excellent customer service

Promotions Strategy

The promotions strategy for Papa Jack’s is as follows:

Papa Jack’s will initially give free pizza samples to passersby to enable them to taste the quality of our products and learn about us.

Website/SEO

Papa Jack’s will develop a professional website that showcases pictures of our pizzas, drinks, and other food offerings. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media

Jack Russo will create the company’s social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures of the restaurant and popular items on the menu. The company will use targeted marketing to appeal to our target demographics.

Word of Mouth & Referrals

Papa Jack’s is confident that its existing loyal clients will spread the word and refer the pizzeria to residents who may not be familiar with it. The pizzas speak for themselves and word will quickly spread around town of the delicious pizza and food that Papa Jack’s has to offer.

The pricing of Papa Jack’s will be moderate and on par with competitors so customers feel they receive value when purchasing our pizzas and other food items.

Operations Plan

The operations plan for Papa Jack’s is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:

Operation Functions:

  • Jack Russo will be the Owner and Restaurant Manager of Papa Jack’s. He will oversee the general operations of the restaurant, help out with customer service, and help out in the kitchen.
  • Jack will hire an Assistant Manager to help him manage the staff and run the general operations of the restaurant.
  • Jack will also hire an Administrative Assistant to help out with the administrative and executive functions of the company.
  • As the restaurant grows, Jack will hire several waiters, chefs, and other staff to run the service functions of the pizzeria.

Milestones:

Papa Jack’s aims to open in the next six months. The following are the milestones needed in order to obtain this goal.

  • 3/202X – Finalize lease agreement
  • 4/202X – Begin interior design and construction
  • 5/202X – Social media and advertising campaign begins
  • 6/202X – Final walk-through of construction and build-out
  • 7/202X – Order and pre-stock inventory; hire key employees
  • 8/202X – Grand opening of Papa Jack’s

Financial Plan

Key revenue & costs.

Papa Jack’s revenues will come primarily from selling pizza, sandwiches, pasta, drinks, and other food items.

The major costs for the company will be food costs and salaries. In the initial years, the company’s marketing cost is expected to be high, as it establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Year 5 : 110
  • Annual lease: $100,000
  • Average order value: $25

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Pizza Business Plan FAQs

What is a pizza business plan.

A pizza business plan is a plan to start and/or grow your pizza business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Pizza business plan using our Pizza Business Plan Template here .

What are the Main Types of Pizza Businesses?

There are a number of different kinds of pizza businesses , some examples include: Franchise Pizza Shop, Full Service Pizza Shop, and Quick Service Pizza Shop.

How Do You Get Funding for Your Pizza Business Plan?

Pizza businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Pizza Business?

Starting a pizza business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Pizza Business Plan - The first step in starting a business is to create a detailed pizza business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your pizza business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your pizza business is in compliance with local laws.

3. Register Your Pizza Business - Once you have chosen a legal structure, the next step is to register your pizza business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your pizza business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Pizza Equipment & Supplies - In order to start your pizza business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your pizza business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Other Helpful Business Plan Templates

Franchise Business Plan Template Restaurant Business Plan Template Fast Food Business Plan Template

  • Why Your Pie?
  • Our History
  • Our Concept
  • Our Leadership
  • Pizza Industry
  • Franchise Testimonials
  • Our Process
  • Ideal Franchisee
  • Available Markets

How to Write Your Pizza Restaurant Business Plan

business plan for pizza franchise

How to Write Your Pizza Business Plan

The best businesses start with a business plan. Do you have a plan for your pizza restaurant ? Learn what you need to know about how to write a dynamic pizza franchise business plan that delivers.

Choosing Your Brand

If you’re wondering how to open a pizza franchise , the process isn’t much different than any other industry. You will want to find a brand that aligns with your values and goals, offers an affordable buy-in with optimistic returns. And let’s face it: best of all, you may have to do some taste testing to find your ideal match.

If you have committed to the idea of owning a pizza restaurant franchise , you still need to decide on your potential investment by concept, startup costs, and various other factors. Finding the right franchise for you can be an extremely personal process, but some handy things to keep in mind include:

What is my initial investment? Initial investment costs will include the franchise fee, marketing fees, restaurant buildout, etc. Depending on the concept, some franchisors require a higher investment than others.

What is their reputation? Whether a pizza franchise has 10 locations or 10,000 it’s important to align yourself with a brand that is positively regarded both locally and across public opinion. A good reputation can go a long way to provide built-in business when you first open your doors.

What is their financial track record? It’s worth researching a franchisor’s history of profitability, if they’ve managed to maintain financial strength, and where or why they have faltered.

Are they part of a growing market? It’s safe to say that pizza is here to stay. Especially after a year marked by stay-at-home orders, pizza restaurants that offer a unique in-person experience are particularly positioned to continue growing with evolving flavors and people’s desire to gather together again in warm, friendly dining environments .

What’s the competition? Many franchisors have already done the market research to find the ideal locations for their brand, but it’s equally important for you to do your own research. By getting a sense of what businesses do well in certain areas, which others seem ill-positioned, and what neighborhoods are underserved by certain markets, you can focus on the type of pizza franchise that will work best in your community.

Map Out Your Plan

Writing a franchise business plan doesn’t have to be an overwhelming process. Once you have identified a few key factors and goals, with a little creativity and dedication, it basically writes itself.

While there is no particular set length for a business plan, keep in mind that it’s best to keep it concise and engaging while relaying as much information as possible to give potential lenders or investors confidence in your vision.

You want to accentuate the positive while acknowledging any challenges your business may encounter, and how you will address them along the way. A huge benefit of being an owner as a part of a franchise system is the fact that a lot of the research and legwork has already been done for you.

The Franchise Disclosure Document (FDD) provided by the franchisor will offer you a lot of crucial information to help you complete you plan, including the brand’s background, description of the target market, competitive advantages, marketing plans, and a layout of your startup and ongoing costs.

Items To Include

  • Company Description –  If you are working with a franchise, a lot of helpful information for this portion can be found in Item 1 of the company’s FDD. Here is where you provide a general overview of your pizza franchise’s back story and outlook, including the products or services you intend to offer.
  • Products and/or Services Description –  Here you can go into further detail about what exactly will make your restaurant unique from other pizza shops. As the first of its kind fast casual pizza franchise concept in the United States, Your Pie stands apart from its competitors in an immediate and impactful way.
  • Market Analysis –  Here is where you can assure your investors or lenders that you have done your homework and have chosen a franchise model that will be a smashing success. Refer to Item 12 in the franchisor’s FDD to inform the territory description of your local, target market. Address the size and potential of your market to forecast how your pizza shop will fit into the mix. Include information like experts’ forecasts, demographic factors, and statistics on the prospective competition.
  • Managerial Structure –  Address how your restaurant will run on a day-to-day basis. Including you, as the owner—who will be responsible for making things happen? Detail all levels of operations and spell out all prior relevant business experience to imbue lenders’ confidence in your future success.
  • Marketing Plan –  This is the section where you reveal your plan for attracting and maintaining customers. Item 11 of your franchisor’s FDD will give you an overview of their marketing and advertising system—another massive advantage to investing in an established brand.
  • Funding & Future Financials –  Time to talk money and get really honest about what you need, provide a larger picture about your financial situation, and provide realistic projections about returns on investments and loan repayments. Your franchisor can provide a great deal of help here, through Items 5 and 19 of the FDD, as well as general counsel through the startup process. While many franchisors can’t provide you with precise projections of future earnings, you can get a strong sense of what to expect for your business.
  • Appendix –  While this isn’t a required part of the business plan, it offers you the opportunity to include any further information that may enhance your presentation, including press releases, awards, and franchisee testimonials. Give your readers a final taste of what possibilities are in store with your pizza restaurant.

Your Pie Gets You There

The process of getting your business up and running is long and intensive, and Your Pie is the perfect example of why franchising is the way to go! Your Pie has been an innovative brand in the $47.5 billion American pizza industry since 2008, and provides its owners with top-notch marketing, training, and ongoing operational support from the day they come on board.

Working with first time restauranteurs and seasoned owners, alike, Your Pie welcomes franchisees into the brand family just as they welcome customers to tuck into a warm and delicious meal. To find out more about how Your Pie can make your pizza restaurant dreams a reality, visit us today.

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How To Write a Business Plan for Pizza Franchise in 9 Steps: Checklist

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Are you considering opening a pizza franchise but not sure where to start? Look no further! In this blog post, we will guide you through the process of writing a business plan for your very own pizza franchise. With the increasing demand for pizza in the US, it's an industry that offers great potential for success.

According to the latest statistics, the pizza industry in the US generated over $45 billion in revenue in 2020. That's an impressive figure and shows the strong demand for this popular food. Furthermore, the industry is projected to continue growing at a steady rate of 2.7% annually. This means there is still plenty of room for new and innovative pizza franchises to thrive.

So, let's dive into the 9 essential steps you need to take in order to write a comprehensive business plan for your pizza franchise. By following this checklist, you'll be one step closer to turning your pizza dream into a reality.

Conduct Market Research

Before starting a pizza franchise business, it is essential to conduct thorough market research to gain a deep understanding of the industry and your potential customers. This research will provide valuable insights that will help you make informed decisions and develop a successful business plan.

  • Assess the demand: Begin by examining the demand for pizza in the local market. Determine if there is a need for another pizza franchise and identify any gaps or untapped opportunities.
  • Evaluate the competition: Study the existing pizza franchises in the area and their offerings. Identify their strengths, weaknesses, and strategies. This analysis will help you differentiate your business and develop a competitive advantage.
  • Analyze target market: Understand your potential customers, their preferences, and behaviors. Evaluate what sets your target market apart and how your pizza franchise can cater to their needs effectively.
  • Explore trends and challenges: Stay updated with current trends and challenges in the pizza industry. Identify any emerging opportunities or potential obstacles that may impact your business.

Tips for conducting market research:

  • Utilize online resources, industry reports, and statistics to gather relevant data.
  • Engage with potential customers through surveys, focus groups, or social media platforms to gain insights directly from them.
  • Visit competitor establishments and observe their operations and customer experiences.
  • Network with industry professionals, join trade associations, or attend conferences to stay connected and informed.

Pizza Franchise Financial Model Get Template

Identify Target Market and Competition

Identifying your target market and understanding your competition are crucial steps in developing a successful business plan for a pizza franchise. By conducting thorough research and analysis, you can determine the key demographics and preferences of your potential customers, as well as gain insights into your competitors' strengths and weaknesses.

  • Research your target market: Start by examining the local area where you plan to operate your pizza franchise. Look for information on population size, income levels, age groups, and other relevant demographics. Additionally, analyze consumer behavior trends, such as their preferences for dining out or ordering delivery.
  • Segment your target market: Once you have gathered data, segment your target market into specific groups based on their characteristics. These segments could be based on factors like age, income level, lifestyle, or even dietary preferences. Understanding your different market segments will help you tailor your marketing strategies and offerings to meet their specific needs and preferences.
  • Identify your unique selling proposition (USP): Differentiating your pizza franchise from the competition is essential in attracting and retaining customers. Determine what sets your business apart and why customers should choose your pizzas over others. This could be factors such as using fresh and local ingredients, offering unique toppings, or providing excellent customer service.
  • Research your competition: Study other pizza franchises and local pizzerias in your area to understand their strengths, weaknesses, and market position. Identify their pricing strategies, menu offerings, and customer reviews to gain insights into what is currently working in the market and where you can find opportunities to differentiate and improve.

Tips for Identifying Target Market and Competition:

  • Use online resources, such as market research reports and databases, to gather information about your target market.
  • Conduct surveys or focus groups with potential customers to gather direct feedback and insights.
  • Visit competing pizza franchises and local pizzerias to observe their operations and customer experience.
  • Stay updated on industry trends and changes in consumer preferences to remain competitive in the market.

Determine The Budget And Financial Requirements

When starting a pizza franchise, it is crucial to determine the budget and financial requirements for your business. This step will help you understand the financial commitment needed and plan accordingly.

To determine your budget, consider the following:

  • Franchise fees: Research and identify the initial franchise fees that you will need to pay to the franchisor. These fees can vary depending on the brand and size of the franchise.
  • Investment costs: Calculate the costs associated with setting up the franchise, including leasing or purchasing a location, renovating the space, purchasing equipment and furniture, and any necessary licenses or permits.
  • Working capital: Determine the amount of capital you will need to cover ongoing expenses during the initial phase of your business, including inventory, employee salaries, utilities, marketing, and other operational costs.
  • Royalty and marketing fees: Franchise agreements often include ongoing fees that you need to pay to the franchisor, such as royalty fees and marketing fees. Consider these costs and factor them into your budget.
  • Contingency funds: It's always wise to have some extra funds set aside for unforeseen expenses or emergencies that may arise during the early stages of your business.

Tips for determining your budget and financial requirements:

  • Consult with a financial advisor or a professional accountant who has experience in the franchising industry. They can help you analyze the costs and provide valuable insights.
  • Ensure that you have a thorough understanding of all the financial obligations outlined in the franchise agreement. This will help you avoid any surprises or unexpected expenses.
  • Consider exploring financing options such as loans or partnerships to secure the necessary funding for your pizza franchise.
  • Regularly review and update your budget as your business grows and evolves. This will help you stay on track and adjust your financial goals accordingly.

By determining your budget and financial requirements early on, you can make informed decisions, set realistic goals, and effectively manage your finances throughout the process of establishing and growing your pizza franchise.

Research And Select Appropriate Pizza Franchise Options

When it comes to selecting the right pizza franchise for your business, thorough research is essential. Consider the following steps to help guide your decision-making process:

  • 1. Evaluate franchising opportunities: Begin by compiling a list of potential pizza franchises to consider. Look for well-established and reputable brands with a proven track record in the industry.
  • 2. Review franchise requirements: Each franchise will have its own set of requirements and criteria for potential franchisees. Assess whether you meet the financial, operational, and personal qualifications outlined by the franchises on your list.
  • 3. Research franchise support: Look into the level of support and training provided by each franchise. A franchisor that offers comprehensive training programs, ongoing support, and marketing assistance can greatly contribute to the success of your business.
  • 5. Seek feedback from existing franchisees: Reach out to current franchise owners within the franchises you are considering. Their insights and experiences can provide valuable information about the franchise's support, profitability, and overall satisfaction.
  • 6. Conduct a SWOT analysis: Assess the strengths, weaknesses, opportunities, and threats associated with each pizza franchise option. This analysis will help you identify potential advantages and challenges of each franchise, allowing you to make a more informed decision.
  • 7. Consider geographical alignment: Determine the availability and appropriateness of franchise locations within your desired market. Look for areas with high foot traffic, a strong customer base, and limited competition.
  • 8. Seek legal and financial advice: Before finalizing your decision and signing any contracts, consult with legal and financial professionals to ensure that you are fully aware of the legal obligations and financial implications of entering into a franchise agreement.
  • 9. Make a well-informed decision: After conducting thorough research, carefully evaluating the options, and considering all relevant factors, make a decision on the pizza franchise that best aligns with your goals, resources, and market conditions.

Keep in mind that the process of researching and selecting an appropriate pizza franchise may take time, but this investment will pay off in the long run. By choosing the right franchise, you will be setting the foundation for a successful and profitable pizza business.

Analyze The Franchise Agreement And Terms

Once you have identified potential pizza franchise options, it is crucial to carefully analyze the franchise agreement and its terms before making any commitments. This step is essential to ensure that you fully understand the rights and responsibilities associated with operating a franchise.

When analyzing the franchise agreement, pay close attention to the following key points:

  • Franchise Fees: Review the initial franchise fees, ongoing royalty fees, and any other financial obligations you will have as a franchisee. Calculate these costs as a percentage of your projected sales to evaluate whether they are feasible and align with your budget.
  • Brand Restrictions: Understand any limitations on product offerings, marketing strategies, or operational procedures imposed by the franchisor. Make sure these restrictions do not conflict with your business goals or strategies.
  • Territory and Competition: Determine the exclusivity of your territory and evaluate the level of competition within that area. Consider whether the franchisor has protected your territory from potential cannibalization or encroachment by other franchisees or company-owned stores.
  • Training and Support: Assess the training programs and ongoing support provided by the franchisor. Look for comprehensive training that covers all aspects of the business, including operations, marketing, and customer service. Evaluate the availability of support systems such as a dedicated franchise support team or online resources.
  • Renewal and Termination: Understand the terms and conditions for franchise renewal and termination. Look for provisions that allow you to renew the agreement at a favorable cost and terms. Also, examine termination clauses to determine the circumstances under which either party can end the agreement.
  • Seek legal advice: It is highly recommended to consult with a franchise attorney to ensure you fully comprehend the agreement's legal implications.
  • Perform due diligence: Research the franchisor's reputation, financial stability, and track record. Speak with current and former franchisees to gain insights into their experiences.
  • Consider hiring an accountant: An accountant can help analyze the financial aspects of the franchise agreement and provide guidance on projected costs and profitability.

Assess Location Options And Site Selection

One of the crucial steps in setting up a pizza franchise is assessing location options and selecting the right site for your business. The location plays a significant role in the success of your franchise, as it determines the visibility, accessibility, and foot traffic that your restaurant will receive.

When assessing location options, consider factors such as the demographics of the area, competition in the vicinity, and the accessibility of the site. It is essential to choose a location that is conveniently situated in a high-traffic area, making it easier for customers to find and visit your restaurant.

Tips for assessing location options and site selection:

  • Research the demographics of the area to understand the target market and their preferences.
  • Identify nearby competition and determine how you can differentiate your business from them.
  • Consider the accessibility of the site, including parking space for customers and delivery personnel.
  • Evaluate the visibility of the location and its proximity to other businesses that can potentially drive customers to your restaurant.
  • Assess the lease terms and negotiate favorable conditions before finalizing the site.

In addition to these factors, it is important to evaluate the cost implications of each location option. Consider the rental or purchase cost, along with any renovations or modifications that may be needed to meet the requirements of the franchise. A thorough analysis of the financial aspects will help you make an informed decision and ensure that the location aligns with your budget.

Remember, selecting the right location requires careful consideration and research. Taking the time to assess location options and choose a site that meets your business needs will set a strong foundation for success in the competitive pizza franchise industry.

Develop A Comprehensive Marketing Strategy

Once you have conducted thorough market research and identified your target market and competition, it is essential to develop a comprehensive marketing strategy for your pizza franchise. This strategy will outline how you plan to promote your business, attract customers, and increase sales.

1. Define your brand: Start by clearly defining your brand identity and positioning. Determine what sets your pizza franchise apart from competitors and highlight those unique qualities in your marketing efforts.

2. Identify target audience: Identify and understand your target audience, including their demographics, preferences, and behaviors. This will help you tailor your marketing messages and promotions to effectively reach and engage your ideal customers.

3. Utilize various marketing channels: Take advantage of a range of marketing channels to reach your target audience. This may include traditional advertising methods such as radio, TV, and print, as well as digital marketing strategies such as social media, email marketing, and online advertisements.

4. Leverage online platforms: In today's digital age, having a strong online presence is crucial. Create a professional website for your pizza franchise and optimize it for search engines. Establish a presence on popular social media platforms and regularly engage with your audience to build brand awareness and promote your business.

5. Offer promotions and discounts: Running promotions and offering discounts is a great way to attract customers and increase sales. Consider implementing a loyalty program to encourage repeat business and offer special deals for new customers to entice them to try your pizza.

6. Collaborate with local influencers: Partnering with local influencers or social media personalities who resonate with your target audience can greatly boost your brand awareness. Arrange collaborations or sponsorships to leverage their following and reach new potential customers.

  • Regularly monitor and analyze the performance of your marketing efforts to identify what strategies are working well and what may need adjustment.
  • Stay up-to-date with industry trends and adjust your marketing strategy accordingly to stay ahead of the competition.
  • Create eye-catching visuals and mouth-watering food photography to make your marketing materials more appealing and enticing.

Create A Detailed Operational Plan

When it comes to running a successful pizza franchise, a detailed operational plan is an essential component. This plan outlines the day-to-day operations and procedures that will ensure smooth functioning of the business. Here are some key areas to consider while creating your operational plan:

  • Menu and Product Development: Determine the types of pizza and other menu items you will offer, ensuring variety to cater to different customer preferences. Consider incorporating seasonal specials and limited-time promotions to keep customers engaged.
  • Ingredient Sourcing and Quality Control: Research and identify reliable suppliers for your pizza ingredients. It is crucial to maintain consistent quality and freshness, as it directly impacts customer satisfaction and loyalty.
  • Staffing and Training: Determine the number of employees needed to efficiently run your franchise. Carefully hire and train staff members who are knowledgeable, friendly, and capable of providing excellent customer service. Consider implementing a training program to ensure consistency and adherence to your brand standards.
  • Operational Procedures and Workflow: Establish standard operating procedures for each aspect of your business, from order taking to food preparation and delivery. Clearly outline workflow and responsibilities for each task to maintain efficiency and minimize errors.
  • Inventory Management: Implement an inventory management system to keep track of ingredient stock levels and monitor usage. This will help you optimize ordering, reduce waste, and ensure that ingredients are always available to meet customer demand.
  • Technology and Equipment: Identify the necessary technology and equipment for your operations, such as point-of-sale systems, ovens, and delivery vehicles. Regularly maintain and upgrade these resources to ensure smooth functioning and efficiency.
  • Regularly review and update your operational plan to adapt to changing market trends and customer preferences.
  • Consider conducting regular staff meetings to address any operational challenges and gather feedback for improvement.
  • Implement a system for collecting customer feedback to gauge satisfaction levels and identify areas for improvement.
  • Monitor industry best practices and stay updated with new technology and innovations to stay ahead of the competition.

Identify And Secure Necessary Funding Or Investment.

Obtaining the necessary funding or investment is a critical step in starting a pizza franchise business. It is essential to have a clear understanding of your financial needs and determine how much capital is required to launch and sustain your franchise. In this step, you will identify potential sources of funding and develop a strategy to secure the necessary funds.

1. Evaluate your financial needs: Start by assessing the total investment required for your pizza franchise. This includes initial franchise fees, equipment costs, lease or purchase of a location, marketing expenses, working capital, and other associated costs. Conduct a thorough analysis to determine the amount of financing you will need to acquire.

2. Research funding options: Explore various funding options available to entrepreneurs, such as bank loans, Small Business Administration (SBA) loans, angel investors, venture capitalists, crowdfunding platforms, or seeking partnerships. Each option comes with its own set of requirements and advantages, so evaluate them carefully.

3. Develop a solid business plan: A well-prepared business plan is essential for attracting potential investors or securing funding from financial institutions. Present your franchise concept, market analysis, financial projections, and a comprehensive strategy to demonstrate the potential profitability and sustainability of your business.

  • Highlight the unique selling points of your pizza franchise to capture the interest of investors.
  • Include a detailed financial analysis and realistic projections to portray credibility and profitability.
  • Showcase your experience, skills, and industry knowledge to build confidence in potential investors or lenders.

4. Approach lenders or investors: With your business plan in hand, reach out to banks, credit unions, or other financial institutions offering business loans. Establish a rapport with potential lenders, clearly articulate your funding needs, and provide supporting documentation. Similarly, if seeking investors, present your business plan to venture capitalists, angel investors, or potential partners who may align with your franchise vision.

5. Prepare and negotiate agreements: Once you have successfully attracted potential investors or secured funding, it is essential to ensure clear communication and transparency. Consult with legal professionals experienced in franchising to review investment agreements, loan terms, or partnership contracts. Negotiate terms that align with your long-term goals and protect your interests.

6. Fulfill funding requirements: After securing the necessary funding or investment, fulfill any additional requirements specified by lenders or investors. This may include providing collateral, meeting funding milestones, or sharing regular updates on the progress of your pizza franchise.

By identifying and successfully securing necessary funding or investment, you will be equipped to proceed with confidence in launching your pizza franchise business. Remember to prioritize building strong relationships, showcasing your business potential, and staying committed to the success of your franchise.

In conclusion, writing a business plan for a pizza franchise involves several crucial steps. From conducting thorough market research and identifying the target market and competition, to determining the budget and financial requirements, each step plays a significant role in ensuring the success of the franchise.

The selection of appropriate pizza franchise options, careful analysis of the franchise agreement and terms, and thorough assessment of location options and site selection are also essential for making informed decisions.

Developing a comprehensive marketing strategy, creating a detailed operational plan, and identifying and securing necessary funding or investment are vital for establishing and managing a successful pizza franchise.

By following this checklist and considering the insights provided, entrepreneurs can increase their chances of launching and running a profitable pizza franchise in the competitive restaurant industry.

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Pizza Shop Business Plan Template

Pizza shop business plan.

If you want to start a pizza shop business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their pizza shops.

Below are links to each section of your pizza shop business plan template:

Next Section: Executive Summary >

Pizza Shop Business Plan FAQs

What is a pizza shop business plan.

A pizza shop business plan is a plan to start and/or grow your pizza shop business. A business plan provides details about your business concept, competition, target customers, presents your marketing plan and details your financial projections.

What Is the Easiest Way to Complete My Pizza Shop Business Plan?

Growthink’s Ultimate Business Plan Template  allows you to quickly and easily complete your Pizza Shop Business Plan.

Why Do You Need a Business Plan for a Pizza Shop?

If you’re looking to start a pizza shop business, or grow your existing pizza shop business, you need a business plan. A business plan will illustrate your business goals and your strategy for reaching them. Your Pizza Shop Business Plan should be updated as your company grows and changes.

What Are the Sources of Funding for Pizzerias?

Pizza Shop businesses are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

PIZZA SHOP BUSINESS PLAN OUTLINE

  • Pizza Shop Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan
  • 10. Appendix
  • Pizza Shop Business Plan Summary

Other Helpful Business Plan Articles & Templates

Use This Simple Business Plan Template

business plan for pizza franchise

Franchise Info

How the Slice House Pizza Business Plan Helps Owners

tony gemignani franchise founder

Getting a franchise up and running demands vision, experience, and a concept that’s built for growth. Working with a brand that has a clear pizza business plan , and the drive and leadership to make dreams a reality, can help future owners get started right.

When you become a franchise owner with Slice House , you join a team with the tools for brand development. We’re on the move, and we’ve created our operations to help us get there.

At Slice House, our owners are our priority. We center our pizza restaurant business plan around them and work every day with their interests in mind.

  • Flexible franchise model
  • Menu of favorites
  • Inclusive culture

Tony Gemignani

Slice House understands that today’s franchise landscape requires a fresh twist on the classic pizza business plan to help owners build their customer base and look to expansion. That’s why we created robust owner support designed for modern times.

Flexible Franchise Model

In a country that values change and the ability to adapt to circumstances, whatever those might be, it makes sense to connect with a franchise that has a pizza business plan designed to be as nimble and versatile as the owners who run it.

Business flexibility is practically a must-have today. 

Every person comes from their own specific background, and they each have individual strengths and needs. The brands that recognize this and adjust their pizza business plans to serve this new breed of owners could be placed for future growth.

Slice House knows that owners are often the heart of the franchise, and we’ve tailored our franchise offerings to deliver the setup that works best for each person. 

Our owners can select from various models, custom-designed to meet individual needs. It’s part of the way we work to keep Slice House franchise owners front and center at all times.

Menu of Hits

What’s a key aspect of a promising pizza business plan ? For many Slice House customers, the answer is simple — it’s all about the menu.

At Slice House, every pizza we make comes from a place of love, with selections that deliver flavor, authenticity, and quality.

We put our heart into our work, and it’s helped make us a destination for hungry guests everywhere we go. We start with the highest-quality ingredients available, and put our deep experience to work creating the kinds of pizzas our customers crave.

From New York and Detroit to Sicilian and Grandma, we’re experts on the most popular pizza styles and have developed award-winning recipes designed to highlight the strengths of each one. And we don’t stop at amazing pizzas — we’re also a go-to place for salads, antipasti, and other specialties.

Slice House has built a pizza business plan , and menu, aimed at satisfying our customers and aiding our owners in growing the brand.

Positive, Forward-Leaning Culture

Modern business operates on the idea that individual strengths can be combined to create something bigger than the parts. Potential franchise owners understand how important it is to join a brand with a pizza business plan that takes diverse viewpoints and backgrounds into account.

This kind of modern approach allows brands to recognize and celebrate every person on the team, and give each one the sense of worth and value they need to fully realize their potential. It’s how Slice House operates every day.

Slice House knows the importance of fostering an open, positive culture that looks to the future and encourages cooperation and mutual support. That kind of franchise model can more easily adjust to accommodate individual strengths and benefit the overall business.

We believe that a culture of inclusion across the brand, from team members to the vendors we work with, can give our owners the kind of assistance they need to grow.

Our nation increasingly values name recognition as a mark of quality. It’s all around us every day, and influences our daily lives in countless ways.

Expertise and celebrity can help grow a franchise. A pizza business plan like Slice House’s, that centers the brand around one of this generation’s culinary geniuses, could have the right tools to develop their customer base.

Slice House partners with award-winning pizza maestro Tony Gemignani, and that helps give us a drive for excellence our guests expect and appreciate.

Tony Gemignani is the heart of our operations. His influence is everywhere, from our menu, to our welcoming spirit, to the loving care we put into every pizza we make. And Tony Gemignani’s expertise can give our owners the confidence they need to focus on building the business.

Put Your Pizza Business Plan into Action with Slice House

A modern pizza franchise should give its owners the kind of support they need to grow the brand. A flexible franchise model, customer-favorite menu, positive culture, and a trusted name are all key aspects of the business, and it’s how Slice House has become a disrupting force in the industry.

Slice House works every day to create a pizza franchise designed for today. We center our business around our owners, and make their professional development one of our top priorities.

Slice House is working to build a brand with potential, and we’re getting ready to grow again.

Want to learn more? Connect with us today , and find out how we can help you get your start.

Frequently Asked Questions

What is a pizza business plan.

A pizza business plan is a strategic document that outlines the goals, objectives, and tactics of a pizza business . It includes details on the products and services offered, the target market, competition analysis, marketing and advertising strategies, and financial projections.

What is a flexible franchise model?

A flexible franchise model is one that allows franchisees to tailor their business to meet their individual needs and circumstances. It typically includes multiple options for ownership structures, operational support, marketing and advertising, and product offerings.

Who is Tony Gemignani?

Tony Gemignani is an award-winning pizza chef and author who is widely recognized as one of the top pizza makers in the world. He has won numerous awards and accolades for his work, including several World Pizza Championship titles.

What is the importance of a menu in a pizza business plan?

The menu is a crucial component of a pizza business plan as it directly affects the customer experience and can impact the success of the business. A well-designed menu can attract and retain customers, increase revenue, and differentiate the business from competitors. Request our pizza business plan template .

How does the brand support its franchise owners?

Slice House offers robust owner support designed for modern times. This includes a flexible franchise model, a menu of favorites, an inclusive culture, and a trusted name in the industry. They work every day to make their owners’ professional development one of their top priorities.

Get Your Own Pizza Franchise Today

Whether you’re an aspiring entrepreneur or a seasoned business owner, our franchise offers a slice of the action. Join our passionate community of pizza lovers and let your dreams rise to new heights. Don’t wait, seize the opportunity and become the master of your own pizza empire.

business plan for pizza franchise

Pizzeria Business Plan for Pizza Shop or Restaurant

pizza restaurant business plan - free download

Use this pizzeria business plan as your template to create the best pizza shop in town that’s also a thriving, profitable business! This pizza  business plan includes market analysis, strategy, more.

Download this Pizza Business Plan free for easy editing in Microsoft Word, Google Docs or Apple Pages:

Download Now

Also Read: Starting a Small Business – A Complete Guide with Templates and Tools

Table of Contents

Pizzeria Business Plan

1.0 executive summary, 1.1 company & industry.

Olympic Pizzeria will become Seaside’s first, fast and free delivered pizza restaurant. The pizza restaurant industry in Seaside is minimal, with only one other pizza place. Olympic Pizzeria is conveniently located for both tourists and locals, and a complete restaurant with low lease terms has already been secured. The owners all bring business management background, as well as hospitality industry experience. This pizzeria business plan outlines the market and strategy to create a profitable pizza restaurant business.

1.2 PRODUCTS & SERVICES

Olympic Pizzeria offers fast and free delivered pizza. The pizza, made with unique, East Coast based recipes and a secret sauce, include a vast array of topping selections, as well as healthy alternatives. The company also will offer mobile beach vending carts to allow tourists on the beach a quick and easy dining option without leaving the beach.

1.3 MARKET ANALYSIS

Seaside has approximately 6,000 full time residents, which more than doubles during the tourist season. Olympic Pizzeria targets both the local segment and the tourist segment. In addition, the healthy menu items provide an alternative dining option for many tourists. It has been estimated that at least 25% of households will order pizza for delivery at least once per month.

1.4 STRATEGY & IMPLEMENTATION

Olympic Pizzeria will implement an effective marketing and advertising campaign, consisting of direct mailings, community and event sponsorships, and coupons. Additionally, the company has formed partnerships with area resorts and hotels to inform guests about Olympic Pizzeria and its dining options. Sales are expected to double during the tourist season, at which time a complete staff consisting of cooks, drivers, and wait staff will be hired.

1.5 MANAGEMENT

Olympic Pizzeria has a strong management team consisting of its three owners. Each owner brings education in business management. Additionally, each owner has experience working in either the resort industry or the food industry. The management team has successfully started one other restaurant in nearby Portland.

1.6 FINANCIAL PLAN

Olympic Pizzeria has a strong financial plan with first year earnings exceeding $30,000 and cash flow positive by month 5. It is expected that the company will have losses during the five months that tourism is slow, however during the busy months monthly profits will exceed $10,000. Yearend cash balances will exceed $30,000, and the bank loan will be paid off within two years.

1.7 FUNDS REQUIRED & USE

Olympic Pizzeria requires $85,000 in capital to begin operations as described in this pizza business plan. The three owners have personally invested $60,000 into the company. The remaining $25,000 will come from a bank loan that has already been secured. Funds will be used for building renovations, marketing and advertising, and daily operations for the first five months until the company becomes cash flow positive. Details are in the Strategy & Implementation section of this pizzeria business plan.

2.0 COMPANY SUMMARY

2.1 company & industry.

Olympic Pizzeria will become Seaside’s first chain of delivery oriented, family pizza restaurants. Although this is not a new concept, Seaside does not have a pizzeria that offers fast, free delivery along with a family dining atmosphere. Seaside is not only ready for a true pizza operation – it needs one, especially an operation that will focus on quality, price, and convenience.

2.2 LEGAL ENTITY & OWNERSHIP

Olympic Pizzeria is currently registered with the Secretary of State (Oregon) as a limited liability company under the name “Olympic Pizzeria LLC”.  The company is owned equally by its three managing partners.

2.3 HISTORY

Each of the founding partners brings different experience to the company. Having experience in the hospitality industry, management, and pizza making, the three partners have teamed up to create Olympic Pizzeria to fill the current need in the market.

2.4 FACILITIES & LOCATION

Olympic Pizzeria is located in a prime location in Seaside, Oregon, at the corner of Broadway and Highway 101. Not only does this appeal to all of the tourists, being centrally located on the main street in town, but also attracts travelers on the highway driving through.

At this location, an existing vacant restaurant has been secured. The building is fully built out to accommodate the needs of the pizzeria, including complete kitchen, dining, and office areas. The owner has agreed to $1.80 per square foot in rent ($900/mo.) and will include garbage pickup and water. Utilities will be based on use.

2.5 KEY ASSETS

The most significant assets will be the kitchen equipment, including the oven, mixer and prep tables. As the reputation for our pizza grows, our most important assets will become our recipes and the Olympic Pizzeria brand.

3.0 PRODUCTS & SERVICES

3.1 product description.

Olympic Pizzeria provides premium pizza with fast, free delivery to the Seaside area. Olympic Pizzeria specializes in making superior pizzas, with proven recipes that have successfully launched pizzerias in other parts of the country. The restaurant combines hand-tossed dough, along with a secret sauce, that entices customers to return. Menu items are priced marginally higher than pizzerias in other towns, as the primary customers are tourists, whom expect to spend more while on vacation. This allows for free delivery, as well as additional menu options, such as whole-wheat dough.

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3.2 FEATURES & BENEFITS

Olympic Pizzeria offers a wide menu selection to appeal to many different customer preferences. As more people are beginning to eat healthy, whole wheat options are available for pizza crusts and breadsticks. Additionally, Olympic Pizzeria is the only restaurant that provides vegan options to customers. Multiple flavored crust options (cheese, garlic, etc.) along with an array of pizza toppings, also sets Olympic Pizzeria apart from the current competition. Finally, expanded operating hours and fast, free delivery, allow customers multiple dining options.

3.3 COMPETITION

Currently there is only one direct competitor, Southside Pizza, which is the only pizzeria that delivers in the Greater Seaside area. Typically their deliveries take an average of an hour per order and incur a $2 surcharge. Additionally, they only deliver between the limited hours of 5-8 pm. A three-topping delivered pizza will cost over $17 and take an hour when ordered from Southside Pizza.

The indirect competition includes Bill’s Diner and China Wok Buffet. Bill’s Diner sells take-and-bake pizza at a very reasonable price; however they do not offer delivery. They also do not offer dough variations. China Wok Buffet does deliver for a $4 surcharge; however they do not offer pizza in their menu.

3.4 COMPETITIVE EDGE/BARRIERS TO ENTRY

As there is limited competition, Olympic Pizzeria will have a first mover advantage in offering quality pizzas for fast, free delivery. Once established, it will be difficult for another pizzeria to enter the market, as Seaside is not large enough to support three pizza restaurants year-round. Additionally, Olympic Pizzeria has lower fixed costs through negotiations on a long term building lease. The pizzeria also offers a wider variety of menu items, including whole wheat crust options, which the competition does not offer.

3.5 DEVELOPMENT

Olympic Pizzeria plans to open another location near the waterfront, which will serve as a convenient place to eat while tourists are enjoying the beach. This location will act as a hub for several mobile carts strategically located along the beach, which will offer pizza by the slice and drinks to customers. As customer’s preferences are further defined, menu items will be added to expand the target market. For example, a healthier alternative, such as wraps, will be added to the menu. Additional locations in other towns along the coastline may also be considered.

4.0 MARKET ANALYSIS SUMMARY

4.1 target market.

Seaside, like several other small towns along the Oregon coast line, has a tourist based economy. There are two distinct market segments that Olympic Pizzeria will target: the tourists and the locals. The tourists mainly consist of vacationers with disposable income that are willing to spend more for a quality pizza. The locals consist of either upper-middle class retirees or lower-middle class middle-aged workers, both which enjoy quality pizza 1-2 times per month.

4.2 MARKET SIZE

The full-time permanent population of Seaside is slightly more than 6,000 people, growing at an annual rate of 6%. However, the population doubles during the prime summer and fall vacation months. It is estimated that 90% of the population eat pizza, with 40% eating pizza at least two times per month.

4.3 MARKET TRENDS

The target market is experiencing growth annually in both full-time population and tourist visits. Additionally, a new market segment has begun to appear with people beginning to look for healthier dining alternatives. Olympic Pizzeria’s exclusive whole-wheat crust option targets this new market segment.

4.4 SWOT ANALYSIS

The SWOT analysis for this pizza business plan is as follows:

Strengths: fast, free delivery; unique recipes and secret sauce; first mover advantage; healthy menu options; low overhead and fixed expenses; prime location; management team

Weaknesses: higher variable costs for ingredients due to better quality; competing pizzeria already operating; three person management team

Opportunities: tourists allow higher margins; mobile beach carts for additional delivery method; capture local delivery market with faster and cheaper delivery

Threats: new pizzeria entering market; existing competition offering fast, free delivery

5.0 STRATEGY & IMPLEMENTATION

5.1 philosophy.

Olympic Pizzeria will be the premier pizza restaurant in the Seaside area, offering unique, healthy menu options and fast, free delivery.

5.2 PRODUCT DEVELOPMENT

Development of the facility will be minimal, with minor modifications and the addition of pizza ovens being the only major renovation. Proven recipes have already been secured. Delivery drivers will be outfitted with GPS units to aid in fast, efficient delivery. Development of the mobile beach vending carts will be finalized once the main restaurant has been operational for at least six months.

5.3 INTERNET STRATEGY

Although the internet may not play a vital part to the marketing of Olympic Pizzeria, a website will be designed and maintained to promote the company. Along with advertising specials, customers will be able to look through the complete menu, and place orders for takeout or delivery online.

We will build our website using Wix , which allows us to create an attractive pizza website with ecommerce capabilities very quickly. It also includes the ability to make updates as we tweak our product offerings and add regular promotions. Using Wix will also allow us to save on website development costs because we will not need to hire a company or consultant to manage our pizza website.

We will also use Send In Blue for email marketing to send weekly promotions and coupons to drive repeat business.

5.4 MARKETING STRATEGY

In the pizza delivery business, aggressive marketing is the key. Typically, having a pizza delivered to your home is an impulse purchase. This requires a strong advertising campaign including direct mailers and coupons placed in newspapers. Additionally, Olympic Pizzeria will develop strategic marketing campaigns to target guests of area resorts and hotels. Sponsorship of local sports teams and events will also be used to broaden reach.

5.5 SALES STRATEGY

Given the target market of tourists, Olympic Pizzeria can charge a premium for its menu items. As dining is often an impulse purchase, it is difficult to estimate sales forecasts, however it is expected that during the tourist season, sales will increase significantly. We have estimated that of the 3,000 full time households, 25% will make at least one order per month, which equals 25 pizzas per day. During the tourist season we expect at least 50 orders per day. This equates to 14,250 pizzas per year, and gross revenues of $285,000.

5.6 STRATEGIC ALLIANCES

Olympic Pizzeria has formed alliances with area resorts and hotels to allow marketing and advertising of our menu to guests and tourists. Additionally, the restaurant has been given permission to place mobile vending carts on the beach, in exchange for sponsorships of local community events. Partnerships with fresh ingredient suppliers are also being negotiated.

5.7 OPERATIONS

Operations will be managed by the three managing partners. This will include all marketing activities, financial and accounting activities, and operational activities. The restaurant will employ a small staff of waiters, cooks, and delivery drivers. Staff will be trained by the management team to ensure quality and consistency of food preparation.

  • Be the premier pizza delivery restaurant with quality menu items
  • First year revenues of $250,000
  • Expansion to second location and beach mobile vending carts within 12 months
  • Have a strong community involvement
  • Open additional locations in other neighboring coastal towns

5.9 EXIT STRATEGY

This pizzeria business plan anticipates that within 10 years, there will be 10 Olympic Pizzeria locations in operation. At this time, company valuation is expected to be around $5 million, which will allow an adequate-sized venture to become interested in acquiring the company.

6.0 MANAGEMENT SUMMARY

6.1 organizational chart.

The company will follow a typical hierarchical structure with the management team discussed below as the co-owners., who will be responsible for all operations and management duties early on. Additional staff will be needed for pizza preparation, delivery, and wait staff. Once the company has expanded operations, a general manager will be hired to take the duties of the owners.

6.2 MANAGEMENT TEAM

The initial management team consists of the following three owners:

Sean Smith is currently the Resident Manager at Oceanside Resort. He has extensive experience resorts operations and management, as well as computer database administration. He also is experienced with resort marketing. His background will aid in resort relations, as well as handling public relations and special events. He has a degree in business from Oregon State University.

Aaron Lambert is currently the front desk manager of Pacificview Resort. He has experience in starting and operating an upscale deli at the Hilton in Portland. He has a broad based management background that includes very large, four-star resorts to a smaller, hands-on resort. Aaron has a degree in business with emphasis in resort management from Azusa State University.

David Crawford is the assistant front desk manager at the Pacificview Resort. He has worked with Aaron for the last three years, beginning with the deli project at the Hilton. David comes from the East Coast, where he has experience in the pizza business. He has background with backline operations such as dough and sauce prep, consistency control, and recipe creation. He has experience as revenue auditor for restaurant, casino and hotel operations. David has a degree in business administration from the University of Ohio.

6.3 PERSONNEL NEEDS

It is estimated that a staff of 10 will be needed to maintain operations. As this industry does not require special training and turnover is typically high, staff wages can be relatively low. Most of the staff will maintain part time hours, as many will be high school students and retirees. This will eliminate the need for expensive benefits and other requirements.

6.4 BOARD MEMBERS & ADVISORS

Olympic Pizzeria’s advisory team consists of a certified public accountant, who takes care of all tax accounting requirements, as well as a corporate attorney that is held on retainer in case any legal needs arise.

7.0 FINANCIAL PLAN

7.1 requirements.

Olympic Pizzeria has secured a funding in the form of a bank loan for the amount of $25,000. This is personally guaranteed by each of the owners. Additionally, the owners have invested a total of $60,000 into the company. Investment contributions were made equally by each of the three partners.

7.2 USE OF FUNDS

Funds will be used primarily for renovation and upgrades to the kitchen ($55,000), including new pizza ovens, kitchen equipment, and dining room décor. Additionally, advertising expenses and marketing collateral, as well as initial inventory, insurance, rent, and utilities, will all need to be purchased in the first month of operations. Remaining funds will be used as operating capital, including tasks mentioned earlier in this pizza business plan.

7.3 INCOME STATEMENT PROJECTIONS

It is projected that first year revenue will exceed $285,000, with the sale of nearly 15,000 pizzas. Monthly revenues are expected to vary between $15,000-$30,000, depending upon tourist seasons. Fixed expenses are projected to be around $15,000 monthly, which includes wages, marketing and advertising, insurance, rent, and utilities. Variable costs are estimated to be $3 per pizza. Net losses are anticipated during the non-tourist months, however during tourist seasons the monthly profits are expected to exceed $10,000. First year earnings are estimated to be $37,000, with second and third year earnings projections of $45,000 and $52,000.

7.4 BREAK-EVEN ANALYSIS

The break even analysis works out to an annualized average of 900 pizzas per month or $18,000 in sales.

7.5 PROJECTED CASH FLOW

The company is expected to be cash flow positive by the fifth month of operations. The initial owners’ investment of $10,000, along with the bank financing of $25,000 ensures that free cash never drops below $2,000, with most months exceeding $5,000. By the end of Year 1, the bank account balance is expected to exceed $35,000, which will allow expansion of the company operations.

7.6 BALANCE SHEET

Olympic Pizzeria’s balance sheet will show $85,000 in assets, attributed mainly to equipment, leasehold improvements and cash. Liabilities will be only $25,000 upon launch and zero within two years. Equity will continue to increase as retained earnings stay positive and debt is paid down.

7.7 IMPORTANT ASSUMPTIONS

  • Variable costs (including ingredients, packaging, and delivery) remain at $3
  • Tourist months stay strong April-October
  • The tourist economy continues to grow over the next 5 years

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How to Write a Profitable Pizza Business Plan

August 15, 2023

business plan for pizza franchise

When opening a new business, it’s always best to have a plan. Even if you pride yourself on being able to fly by the seat of your pants, it’s good to at least have a general outline of how you’re going to run your business. Restaurants are no exception; there’s more to running one than just whipping up food and getting it to the customers’ tables or delivering it to their homes on time. Here’s our guide on how to create the best pizza business plan.

A Recipe for Success

People who prefer to play things by ear may wonder what benefit there is to creating a business plan. Creating a pizza restaurant business plan is an important tool for securing funding. Many banks, lending companies, and investors want evidence that an entrepreneur will be able to make the money to pay off their debt or provide investors with a good return on their investments. A business plan also helps you convey your vision for your business and ensure all your employees and any business partners are all on the same page, that everyone understands their responsibilities.

All the Right Ingredients

To create a good pizza business plan, there are certain elements you should be sure to include. These parts can be broken down into four sections:

The Executive Summary

This part of your plan provides an overview of your business and key highlights from the remaining three sections. It’s also a good place to talk about your long-term vision.

The Research Section

It’s important for your pizzeria business plan to include information gathering. Your plan should include an industry analysis to determine the market’s existing size and growth trends. A customer analysis will help you understand the wants and needs of your customers. A competition analysis will help you determine the strengths and weaknesses of rival pizza businesses.

The Strategic Section

Your pizza business plan also needs to outline how you intend to operate your location. Your marketing strategy should go over the products and services you provide, your place of business, your pricing, and your promotional efforts. Your operations strategy should cover how you handle your day-to-day business and milestones you’re pursuing. Your financial strategy should have your financial projections and calculations on how much funding you’ll need to achieve your long-term objectives.

The Organization Section

Finally, your plan should include an overview of your business organization. You should lay out the names and number of positions you’ll have, as well as creating an organizational chart to determine who will be supervising different areas of your business. Also, make sure to designate your management/leadership team so your business’s decision makers will be clearly identified.

Creating a business plan can be a complex task, with all the above-mentioned parts going into making sure it’s comprehensive and properly organized. If you want to open an independent pizzeria, you’ll have to take on this responsibility yourself. However, you have an alternative: opening a franchise.

Franchising allows you to operate your business for yourself, but not by yourself. With a franchisor like Antioch Pizza®, you’ll receive support in a variety of ways, including receiving financial data based on a proven business model to assist you in developing your business plan. You’ll also receive support services like initial and ongoing training, as well as marketing and advertising services.

Get Your Recipe for Success from Antioch Pizza®

We’re eager to welcome an ambitious entrepreneur like you to our team. We’re ready to provide our 46 years of experience in the pizza industry to help you with opening a pizza shop . Submit a form today to learn more out your franchising opportunity with Antioch Pizza®.

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Pizzeria Business Plan Sample

Published Oct.04, 2013

Updated Apr.23, 2024

By: Brandi Marcene

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Pizzeria Business Plan Sample

Table of Content

Introduction

Everyone loves pizza, but as with any business plans for pizzeria , passion alone will not make it a success. Starting a restaurant business is a high cost proposition, so the pizzeria business plan will need an in-depth financial section. The financial plan includes detailed information on the projected revenues and expenses, hourly labor costs, start-up capital expenses, equipment investments, and much more. A detailed personnel plan is required because a staff shortage can quickly hurt a pizzeria’s ability to provide quality and timely customer service. Many restaurants do fail, unfortunately, so banks and private investors will carefully analyze sales projections and break-even analysis in relationship to the targeted market and competition. As experienced investors, they can spot overly ambitious projections, so ensure your financial statements are well researched and realistic.

Executive Summary

Your executive summary is a broad overview of the business plan for a pizzeria  and should give the reader just enough information to make them want to read more.

For this reason, it is normally written last, using one or two lines from each of the other sections of the business plan for a pizzeria .

It’s important to grab the reader’s attention, so show your passion for the business plans for pizzeria and the market sector knowledge you have that will make it a success.

Company Overview and Description

Setting up your company correctly from the very beginning will pay dividends in the long run. This section is often the shortest in your business plan for a pizzeria , but very important.

Provide a brief summary of the whole company, and a short history for an existing company or the reason for forming the company if new business plans  for pizzeria .

Explain the type of business structure, such as a partnership or limited company, and who owns the company. Your pizza place business plan should also describe the physical location of your business plans for pizzeria and whether the premises are rented or bought.

The services section of your pizza parlor business plan should describe what you are offering your customers. Will the business plans for pizzeria be a restaurant only, takeout only or a combination of the two? Will you offer food delivery services ? Do you intend to expand the range of services in the future? Perhaps an online ordering system will make you stand out from the competitors?

Market Analysis

Knowing the local market is essential to your success and a business plan for a pizzeria  establishment must include detailed information on this.

What is your local competition and how will your business plans for pizzeria stand out from the crowd? Will your business have a unique selling point missed by the others?

Is the business plans for pizzeria restaurants in your area growing or shrinking? What is driving the market and how can you make sure your business thrives against the competition?

This section of your pizza takeaway business plan should describe the management structure within the company and give more information on the people holding important roles.

Describe who is in charge of marketing, sales, administration and other areas that require management. For the critical roles, give details of the persons experience in the business plans for pizzeria area, their qualifications and why they are suitable for the job. A copy of their CV can also be included along with details of their remuneration package.

This may seem excessive, but if your business plan for a pizzeria is being written to interest investors then a qualified management team is essential to your success.

Provide an organizational chart, showing top management right down to the staff making and selling the pizza.

Marketing plan

Information in this section should cover the 4 Ps of marketing: product, price, place and promotion. The 4 Ps cover what you are selling, the pricing structure, where you will sell your products from and how you contact your target market.

A business plan for a pizzeria will need to cover each of these aspects in detail to convince the reader that you know your target market and have a solid plan to make sure your customers find your business plans for pizzeria .

business plan for a pizzeria

Financial plan

If you need investors to provide start-up funding, then your pizzeria business plan must include key accounting reports showing the business viability.

The income statement or P&L gives an overview of your company’s income and expenses, showing the net income. For a new business plans for pizzeria , an estimation will need to be generated for the coming year.

The balance sheet is a snapshot of the financial position at a specific time and shows what you own, what is owed to you and what you owe to others.

Last, the cash flow statement covers a specific time period, such as a quarter, and your income and expenses during that period.

Taken together, the reports should persuade your investors that the company will make a profit.

Pizzeria Franchise Business Plan

Do you want to start a business that can take care of your passion for food as well? Well, if you are a baking enthusiast and possess a desire to build wealth and empire, launching pizzeria franchise can be the best startup choice for you.

Established in 1960, Pizzeria has been earning fame for its Italian foods, brick oven pizzas, and fresh, diced toppings. The restaurant holds millions of the market share and enjoys a good reputation among consumers from all walks of life. At present, pizzeria franchises are running in a few U.S. states. So, it has immense opportunities to explore in other parts of the U.S.

To enter this venture, first thing that you need to do is making a pizzeria franchise business plan. Like all other food franchise business plans, it should describe the executive and company summary, menu, operational plan to link with stakeholders, personnel plan, marketing plan and a detailed financial plan.

To assist you in making a business plan, this pizzeria franchise business plan sample will shed light on all these components by providing segments from original business plan for Pizzeria franchise startup in Atlanta.

This sample business plan pizzeria franchise will specifically outline the segments that were developed by professional business consultants. And that helped the franchise generate $30k per month in profits by the end of just first year of the launch.

In case you want to have an even deeper insight, you may visit restaurant franchise business plan sample for straw hat pizza franchise or dominos pizza franchise.

How to order writing business plan for a pizzeria

OGS Capital consultants are experts in the development of a variety of business plans for restaurant start-ups and expansions. If you are ready to prepare a business plan for a pizzeria  restaurant , simply complete the online contact form to get the process started.

Frequently asked questions of pizzeria

  • Are business plans for pizzeria for a start-up, franchise or expansion of existing business?
  • Does the pizzeria follow a dine-in, takeout, or delivery model or any combination of the three types of services?
  • How will the pizzeria brand itself to differentiate the business plans for pizzeria from the competition, i.e. upscale, local and friendly, family-oriented, healthy or organic ingredients, etc?
  • Who are the direct competitors? Are grocery stores indirect competitors?
  • What are the menu options and pricing? Will more than pizza be offered?
  • What suppliers will provide recipe ingredients and restaurant supplies‘? How will rising commodity prices be managed and controlled over the long-term?
  • Where will the pizzeria be located, and will the space be leased or the building purchased? ls there a floorpan?
  • Does the local market analysis show projected population growth providing the business new opportunities for future growth?
  • Does your pizza shop business plan should clearly indicate how much money is needed for start-up and pre-opening costs?
  • ls the specific target market segment identified, and what are the demographics of those who will be likely customers‘?
  • How much money will be invested in equipment, including ovens, stoves, drink machines, dining area furniture, etc.?
  • How will the pizzeria be marketed and advertised, and what promotions are planned to attract customers, i.e. special events, meal coupons and discounts, rotating menu, frequent buyer cards, etc?

Download example pizzeria business plan pdf

Professional writers OGS capital specialized also on theme such as business plan for a seafood restaurant , starting coffee roasting business , start a barbecue business , restaurant business plan , Indian restaurant business plan , food business plan and many other business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Key Elements A Business Plan For A Pizza Franchise Should Contain – A Comprehensive Guide

Are you ready to franchise your pizza business in India? You may have found this the right time to grow your business but remember you must do it with proper planning and for this, you need to have a solid business plan, which should be carefully crafted to meet your business requirements and need of expansion. So here is a comprehensive guide for all those pizza business owners looking to franchise their business immediately! Get Your Business Plan for the pizza franchise in simple steps.

Pizza Franchise Business Plan

Important Aspects Of A Business Plan For A Pizza Franchise

To get potential investors interested in a pizza franchise, developing a detailed business plan is essential. This strategy acts as a road map to success and helps attract potential investors.

When designing a business plan for a pizza franchise, franchisors should consider the following crucial elements:

  • Provide a concise explanation of the franchise concept as well as the distinctive selling factors of the pizza brand.
  • Bring attention to the most important corporate goals and financial estimates.
  • Give a summary of the pizza industry as well as the clientele that you intend to attract.
  • Describe the franchise model, including the assistance and resources that are made available to franchisees.
  • Carry out a comprehensive analysis of the pizza market, taking into consideration trends, demographics, and the nature of the competitors.
  • Determine where the franchise stands in the market and what its competitive advantages are.
  • Establish the terms and conditions of the franchise agreement clearly and concisely.
  • It is important to specify any financial commitments that franchisees have, including initial and recurring fees, royalty payments, and any other financial obligations.
  • Provide information about the training programmes that are offered to franchisees, including those that include customer service, marketing, and operations.
  • It is important to highlight continuing support, which includes things like marketing support, field assistance, and technological tools.
  • Detail the overall marketing strategy for the franchisee.
  • Make sure to include specifics regarding the various promotional activities, digital marketing, and national and local advertising strategies.
  • It is important to provide comprehensive financial projections, which should include income statements, balance sheets, and estimations of cash flow.
  • You should incorporate a break-even analysis as well as estimations of return on investment (ROI).
  • Describe the day-to-day activities, including the requirements for staffing, the management of inventories, and quality control.
  • Describe the standard operating procedures and criteria that should be followed to ensure uniformity across all franchise sites.
  • Develop an understanding of the potential dangers and difficulties that are associated with running a pizza franchise.
  • It is important to provide solutions for risk mitigation and contingency preparations.
  • Take the necessary steps to ensure that the franchise plan satisfies all applicable legal and regulatory requirements.
  • Include details about the many licenses, permits, and health and safety regulations that are in place.
  • It is important to provide investors with an outline of prospective exit plans, such as selling the franchise or going public.
  • Specify the course of action you intend to take if franchise agreements are terminated or not renewed.

In short, it is important to keep in mind that a well-thought-out business plan not only assists in attracting investors but also acts as a guide for the successful setup and expansion of the pizza franchise.

Why Is It Important For Business Owners To Draft A Business Plan While Franchising Their Pizza Business?

The business plan for a pizza franchise is very crucial for several reasons as below..

  • Clarity of vision: When it comes to the pizza franchise in India, franchisors may better communicate their vision and goals with the assistance of a business plan. It offers a comprehensive comprehension of the ambitions, principles, and values that will serve as the foundation for the expansion.
  • Understanding of the market you are targeting: India is home to a broad market that caters to a wide range of consumer tastes. Understanding the local pizza industry, customer behaviors, cultural nuances, and competition is essential to developing a comprehensive business plan. This is possible through conducting extensive market research. To adapt the franchise model to the Indian market, this understanding is necessary.
  • Helps in legal and regulatory compliance: Particular legal and regulatory criteria of businesses in India, including franchising arrangements. A business plan that is carefully done guarantees the franchisor is aware of and in compliance with all applicable laws, licenses, permits, and other regulatory aspects.
  • Customization of your franchise business model: A one-size-fits-all strategy could not be successful in every industry because every market has its distinct qualities. The business plan gives franchisors the ability to modify their franchise model so that it is suitable for the Indian market. This is possible by taking into consideration a variety of elements, including cost, menu modification, marketing techniques, and cultural sensitivity.
  • Financial forecasting: Both budgeting and financial predictions are essential elements that are part of the company strategy. In the context of franchising in India, this entails taking into account factors such as initial investment, ongoing expenses, pricing strategies, and revenue projections. The franchisor and potential investors both benefit from this because it helps them understand the financial feasibility and expectations of the business.
  • Risk Mitigation: India may bring a variety of one-of-a-kind problems as well as dangers, which may include market instability and changes in regulatory policies. Franchisors can identify potential hazards and develop methods for managing such risks through the use of a business plan. By using this preventative approach, the franchise is better able to withstand the unpredictable circumstances that it faces.
  • Long-Term Planning: The commitment required for franchising is long-term. To facilitate strategic planning for the long-term growth of their pizza franchise in India, franchisors might benefit from developing a business plan. It makes the design of growth strategies, expansion plans, and prospective modifications depending on changing market trends easier to accomplish due to its facilitation.

In short, for franchisors who want to enter the Indian market, it is vital to have a well-thought-out business strategy. This plan, therefore, should provide a road map for success by addressing market-specific factors, managing risks, and attracting the appropriate partners and investors.

How We Can Help?

Sparkleminds is well-known for offering franchise advisory services and support to companies that show interest in franchising their businesses. Moreover, to assist in the process of developing a business plan for your pizza franchise in India, here are some guidelines:

  • Researching the Indian pizza market, consumer preferences, and competition, which is essential for adapting the company plan to the Indian market.
  • The consulting company can help adapt the franchise concept to the Indian market, considering the menu, pricing, and culture.
  • We can advise on Indian franchising regulations, licenses, and permits to ensure the business plan is compliant.
  • The consulting firm can help create accurate financial projections based on initial investment, operating expenses, revenue forecasts, and ROI. This is crucial for investor and franchisee recruitment.
  • We can detect Indian franchising risks and propose mitigation strategies. The company strategy benefits from this proactive approach by showing awareness of difficulties and a solution.
  • We can help develop techniques to attract and recruit franchisees, helping the pizza business thrive in India.
  • Creating a clear and engaging business strategy will help you communicate with investors, stakeholders, and franchisees.

In short, this study may provide insights into long-term growth plans. This will assist franchisors in planning for the sustainable expansion of their pizza franchise in the Indian market.

To Conclude,

Reach out to our experts at Sparkleminds and get the right guidance on drafting your business plan right away!

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Sparkleminds

  • Business Plans Handbook
  • Business Plans - Volume 06
  • Pizzeria Business Plan Business Plan

Pizzeria BUSINESS PLAN

PIZZA TO GO, INC.

3215 Sturges St. Pittsburgh, PA 15233

This plan relies on a proven name and business philosophy to propose the creation of a franchise takeout pizza store. The company does an excellent job of establishing the typical area these franchises are started in, then showing the proposed location to be identical. Ideas for capital cost reduction, as well as the proven success of the other franchises, solidifies this proposal's viability.

INTRODUCTION

Strategic plan.

  • THE FRANCHISE/FRANCHISOR

THE FRANCHISE AGREEMENT

Purpose of financing, the initial store, the competition, marketing plan, pro-forma financial statements.

Pizza to Go, Inc. is a Pennsylvania corporation, having been incorporated in September of 1996, primarily for the purpose of selling pizza, salads, submarine sandwiches, and various other food products, as a licensed franchisee under the franchise name of "Mama's Pizza." The company presently maintains an office in Pittsburgh, Pennsylvania. The president and principal shareholder of the company is Robert Warren.

The company intends to open, over the course of the next three years, several franchised retail pizza establishments in the greater Pittsburgh, Pennsylvania area, with its first store scheduled to open in January of 1997. The company's primary thrust will be to locate each of its stores in newly developing, high density, residential areas, with little pre-existing competition. The company also will maintain high quality control standards, strictly adhering to the Mama's Pizza "formula," which has, to date, proven successful (Mama's Pizza has previously been voted the number 1 best tasting pizza in Pennsylvania). The company also will utilize mid-level pricing.

The name of the franchisor is Mama's Pizza Franchising, Inc., a Pennsylvania corporation formed in 1996 for the purpose of offering and selling Mama's Pizza franchises, and servicing, supporting, and administering all functions inherent in operating the franchise system. William A. Becker is the president, treasurer, director, and 50% shareholder of Mama's Pizza Franchising, Inc.

The names of Mama's Pizza predecessors are William A. Becker, Inc. and the Becker Group, Inc., both Pennsylvania corporations. William A. Becker, Inc. and Mama's Pizza Franchising, Inc. maintain their principal business address in Pittsburgh, Pennsylvania. Since its inception in 1990, William A. Becker, Inc. has been engaged in the ownership and operation of Mama's Pizza stores that specialize in the sale of pizza and other food products in the metropolitan Pittsburgh area. Over the last three years William A. Becker, Inc. has owned and operated two Mama's Pizza stores, located in nearby suburbs. There are presently eight additional franchised Mama's Pizza establishments in the metropolitan Pittsburgh area. Negotiations are pending for additional stores. Another company store is expected to open in January of 1997.

On November 12, 1996 the company did execute with Mama's Pizza Franchising, Inc. the Franchisor's standard franchise agreement with numerous amendments, deletions, and additions. Under the agreement, the company has a protected territory defined as a five-mile radius from each of its stores. Under the agreement, no other Mama's Pizza franchise or company store can be opened within this five-mile radius protected area. Furthermore, the company has negotiated and the agreement provides that the company has a 30-day right of first refusal anywhere within Washington and Westmoreland counties. This right of first refusal will allow the company, if it chooses, to "lock-in" these counties, thereby becoming and remaining the sole Mama's Pizza franchisee in such counties.

Finally, under the agreement, the company is required to pay an ongoing franchise royalty equal to 3% of gross revenues during the first year of operations and 4% thereafter. An industry wide review of franchise fees and royalties reveals that the Mama's Pizza royalty is substantially less than those found with competing pizza franchises.

The company is seeking financing for the express purpose of providing cash funding to allow (1) the acquisition of various machinery, equipment, and supplies and (2) the construction of its first retail pizza establishment.

  • The Equipment: Schedule A, is a pro-forma list of the equipment and supplies anticipated to be required for the operation of the company's first pizza store, together with a projected aggregate cost of such items. It is important to note that the company has decided to acquire wherever possible used equipment and supplies, recognizing that quality used equipment is readily available in the marketplace at substantial savings. The purchase of high quality, well maintained used equipment will allow the company to reduce its capital outlays to approximately 30% of what would otherwise be expected as a result of purchasing new equipment. This will obviously preserve working capital, reduce ongoing interest costs, and increase net profitability.
  • The Build-Out: Schedule B is a list of the items associated with the "Build-out," which is capable of being financed together with their anticipated cost.

The total cash financing sought for both the equipment and the "Build-out" is $90,000.

The company's initial store will consist of 1,600 square feet of retail space. Indeed, the company has executed a five-year lease with a five-year renewal option at an annual rent of $12.00 per square foot. This results in a monthly rent charge of $1,600, plus common area charges which are anticipated to approximate $300 monthly. The initial store will be located in a plaza consisting of 7 retail establishments. The plaza includes two other retail food establishments an Outback Steak House which can be described as an "anchor" and Bagel Factory. Neither the Outback Steak House nor Bagel Factory are considered to be direct competitors. Each of their product lines are substantially different and their markets are likewise different. The company is a takeout retail pizza franchise, while both Outback Steak House and Bagel Factory are essentially sit-down restaurants with different product lines. The remaining retail outlets in the plaza include Delta Florist, Century Cellunet, Airway Oxygen, and Benjamin Moore.

The company has examined in detail the geographic area consisting of a two-mile radius from the initial store to determine the extent of competition. It is apparent that little competition exists. The nearest retail pizza establishment west of the initial store is located in a town which is approximately five miles further west. In this town one will find a wide array of pizza establishments, including Little Caesars, Dominos, Pizza Hut, and Hungry Howies. The nearest competing business is approximately one quarter mile to the east and is a nonfranchised, independent pizza establishment known as Jack's Pizza. Approximately two miles to the east are Little Caesars and Papa Mario's. Approximately one and one half miles to the south is a Whatta Pizza. There are no competing pizza establishments within three miles to the north of the initial store.

The company's marketing thrust will be twofold. First, the company will be participating in and benefiting from the franchise wide marketing fund. Under the "agreement," each franchisee pays to the franchisor a marketing fee equal to $.10 per pizza box purchased. This amount is then forwarded to the franchisor by the box manufacturer and utilized for the benefit of the franchise. The advertising is not store specific and is geared toward promoting the franchise name and the franchise's product line as a whole. Second, under the "agreement," the company is obligated to expend 1% of its gross revenues on local advertising. However, the company fully expects to exceed the 1% requirement. Indeed, the company's marketing thrust will consist of fliers, discount coupons, and inserts as well as direct mail promotions.

With respect to packaging, it is important to understand that as a franchisee, the company will be licensed to utilize each and every one of the Mama's Pizza trademarks. Indeed, the "agreement" specifically requires that each of the franchisees strictly adheres to trademark packaging. This is common industry practice.

Editor's note: this plan also includes a Schedule C reflecting the probable pricing structure of each of the company's proposed products. This pricing is mid-tier and represents, in the opinion of the company, good value, when compared to the quality of the company's product line.

Schedule C is a pro-forma income statement, before depreciation charges, reflecting the company's anticipated cash flow generated by the initial store during the calendar year ending December 31, 1997.

Pizzeria Business Plan

MIDDLYBY MARSHALL  
350 DOUBLE OVENS 15,000
ACME SHEETER 1,600
VCM MIXER 3,000
3 DOOR PIZZA PREP TABLE 1,800
3 DOOR SALAD PREP TABLE 1,500
THREE COMPARTMENT SINK 675
TWO HAND SINKS (125ea.) 250
FREEZER 400
THREE 8' SS TABLES (275ea.) 825
ONE 6' SS TABLE 125
SMALLWARES 6,000
EXTERIOR SIGNS 4,000
INTERIOR SIGNS 600
UNDERCOUNTER COOLER 900
PROOFER 1,100
PHONE SYSTEM 2,600
CAR TOP SIGNS 850
FAX MACHINE & CASH REGISTER 600
PIZZA BAGS 265
8' X 12' WALK-IN COOLER (INSTALLED) 5,300
TOTAL 47,390
TAX 2,843
DELIVERY AND SET-UP 750

Pizzeria Business Plan

FLOORING $3,680
CEALING 840
WALLS 4,100
COUNTERS & CABINETS 2,000
HVAC 1,000
MAKEUP AIR 5,000
HOOD FOR MAKEUP AIR 2,000
ELECTRICAL 2,600
PLUMBING 4,400
MISC. LABOR & RELATED SERVICES 7,200
MISC. EXTRAS 1,200

Pro-Forma Income Statement

Net income before depreciation & taxes, first year-3% per month growth.

Pizzeria Business Plan

 
INCOME          
Sales-Food 36,000 37,080 38,192 39,338 40,518
Sales-Pop & Bottles 1,800 1,854 1,910 1,967 2,026
Sales-Deliv. 2,600 2,678 2,758 2,841 2,926
40,400 41,612 42,860 44,146 45,471
COST OF GOODS SOLD          
Purchases 10,100 10,403 10,715 11,037 11,368
Delivery Expense 1,620 1,669 1,719 1,770 1,823
Operating Supplies 121 124 128 132 136
11,841 12,196 12,562 12,939 13,327
28,559 29,416 30,298 31,207 32,144
EXPENSES          
Franchise Fee 1,212 1,248 1,286 1,324 1,364
Insurance 350 350 350 350 350
Maintenance & Repair 400 400 400 400 400
Office Supplies 40 42 43 44 45
Advertising 3,500 2,000 1,000 1,000 1,000
Bank Charges 40 42 43 44 45
Laundry 121 125 129 132 136
Rent - Office 1,900 1,900 1,900 1,900 1,900
Equipment Lease 1,500 1,500 1,500 1,500 1,500
Rubbish Removal 40 40 40 40 40
Telephone 300 300 300 300 300
Utilities 525 541 557 574 591
Sales Tax 2,160 2,225 2,292 2,360 2,431
Wages 9,898 10,195 10,501 10,816 11,140
21,987 20,907 20,340 20,785 21,244
6,572 8,509 9,959 10,422 10,900
  15,081 25,040 35,462 46,361

Pizzeria Business Plan

41,734 42,986 44,275 45,604 46,972 48,381 49,832
2,087 2,149 2,214 2,280 2,349 2,419 2,492
3,014 3,105 3,198 3,294 3,392 3,494 3,599
46,835 48,240 49,687 51,178 52,713 54,294 55,923
           
11,709 12,060 12,422 12,794 13,178 13,574 13,981
1,878 1,934 1,992 2,052 2,114 2,177 2,243
140 144 149 153 158 162 167
13,727 14,139 14,563 15,000 15,450 15,913 16,391
33,108 34,101 35,124 36,178 37,263 38,381 39,533
           
1,405 1,447 1,491 1,535 1,581 1,629 1,678
350 350 350 350 350 350 350
400 400 400 400 400 400 400
47 48 50 51 53 54 56
1,000 1,000 1,000 1,024 1,054 1,086 1,118
47 48 50 51 53 54 56
141 145 149 154 158 163 168
1,900 1,900 1,900 1,900 1,900 1,900 1,900
1,500 1,500 1,500 1,500 1,500 1,500 1,500
40 40 40 40 40 40 40
300 300 300 300 300 300 300
609 627 646 665 685 706 727
2,504 2,579 2,657 2,736 2,818 2,903 2,990
11,474 11,819 12,173 12,538 12,915 13,302 13,701
21,717 22,203 22,705 23,245 23,807 24,387 24,984
11,391 11,898 12,419 12,933 13,456 13,994 14,549
57,753 69,650 82,070 95,003 108,459 122,453 137,001

Pizzeria Business Plan

 
BEGINNING BALANCE          
Checking 14,154 12,337 14,534 13,216 15,111
SALES          
Food 0 2,900 3,335 3,835 4,411
Pop 0 100 110 121 133
Deliveries 0 200 220 242 266
Total 0 3,200 3,665 4,198 4,810
COSTS          
Drivers 30 102 117 134 154
Food 0 598 992 1,099 1,259
Total 30 700 1,109 1,234 1,413
Subtotal 14,124 14,837 17,090 16,180 18,507
EXPENSE          
Franchise Fee       217  
Insurance          
Maintenance & Repair          
Office Supplies     50    
Advertising     590 460  
Bank Charges          
Laundry     34 34 34
Rent - Office 0       1,975
Equipment Lease 0 0 0 0 0
Rubbish Removal   129   128  
Telephone 354       354
Utilities 79       350
Wages - Gross 1,354   3,000   3,000
Taxes 0 174 200 230 265
Total Expenses 1,787 303 3,874 1,069 5,978
Ending Balance 12,337 14,534 13,216 15,111 12,530
Labor         38.2%

Pizzeria Business Plan

         
12,530 14,799 15,286 19,479 17,342 23,030 24,685 29,903
               
5,072 5,833 6,708 7,714 8,871 8,871 8,871 8,871
146 161 177 195 214 214 214 214
293 322 354 390 429 429 429 429
5,511 6,316 7,239 8,299 9,514 9,514 9,514 9,514
               
176 202 232 266 304 304 304 304
1,443 1,653 1,895 2,172 2,490 2,854 2,854 2,854
1,619 1,856 2,126 2,437 2,794 3,159 3,159 3,159
16,422 19,260 20,399 25,341 24,063 29,386 31,040 36,259
               
270 0 355 0 466 0 571 0
336 0   336 0 0 0 336
50     50 0 0 0 50
500 590            
34 34 34 34 34 34 34 34
      1,975 0 0 0 1,975
0 0 0 1,149 0 0 0 1,149
128   128          
      354 0 0 0 354
      500 0 0 0 500
  3,000   3,137 0 4,135 0 4,412
304 350 402 463 532 532 532 532
1,623 3,974 919 7,998 1,032 4,701 1,137 9,343
14,799 15,286 19,479 17,342 23,030 24,685 29,903 26,916
  29.1%   23.1%   23.2%   23.2%

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business plan for pizza franchise

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Own a Slice of the American Dream with a Rosati's Pizza Franchise! A Rosati's Pizza Franchise is a booming restaurant, catering and delivery business that is gathering steam as diners reset their out-of-home dining preferences to a new economy.

By Matthew Goldstein Jun 28, 2024

Rosati's Pizza brings years of experience in all things pizza, from deep dish to thin crust to its overall brand and new franchisees. With the retail pizza market growing to a 40 billion dollar industry, Rosati's and its over 175 franchise locations nationwide provides a great opportunity for success.

3 Benefits of owning a Rosati's Pizza franchise:

  • Access to family recipes and high-margin, quality ingredients.
  • Comprehensive training and ongoing operational support.
  • National recognition with branding and marketing assistance.

Rosati's Pizza is an authentic Chicago-style pizza and Italian food franchise, offering a well-established brand with over 50 years in the restaurant industry. Franchisees benefit from proven systems, high-quality products, and extensive franchisor support to operate dine-in, carryout, and delivery services. Click Here to learn more about Rosati's Pizza.

Show Me More Franchise Options

  • Minimum Initial Investment: $147,200 - $1,249,000
  • Initial Franchise Fee: $35,000
  • Liquid Capital Required: $80,000
  • Net Worth Required: $250,000
  • Veteran Incentives: 25% off franchise fee

Learn more about Poolwerx

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MOD Pizza acquired by Elite Restaurant Group

business plan for pizza franchise

MOD Pizza has agreed to a sale in a deal that could save the fast-casual pizza chain from what many saw as an impending bankruptcy filing.

The Bellevue, Washington-based chain said Wednesday that it has been acquired by Southern California-based Elite Restaurant Group.

Terms were not disclosed. But with the deal, MOD officials hope to restructure debt and shore up the 512-unit chain’s capital base.

Elite has been a collector of financially troubled restaurant brands over the years. Led by Michael Nakhleh, the former Sizzler and Fatburger franchise operator has acquired brands like Slater’s 50/50, pizza concepts Project Pie and Patxi’s Pizza, family-dining chain Marie Callender's, as well as the Mediterranean concepts Daphne’s and Noon Mediterranean, and cupcake chain Gigi’s Cupcakes. It's not clear whether those brands remain in Elite's portfolio.

Nakhleh in a statement said, “MOD has an outstanding culture and passionate, loyal guests and employees. We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”

Last week, reports indicated MOD was considering a Chapter 11 filing as the company worked to improve its capital structure . In a statement at the time, company officials said they were exploring all options, and that a “solid turnaround plan was underway that is making progress.”

That plan has included “rightsizing the portfolio,” as well as refreshing the brand and elevating the guest experience, the company said Wednesday, though no details were offered. Year to date, 44 underperforming restaurants have shuttered, all company owned, and it’s not clear whether more will close.

For years, MOD—known officially as MOD Super Fast Pizza Holdings LLC— was seen as the leader in the fast-casual pizza niche, growing to more than 500 units. Of the 512 currently, 89 are franchised.

It was founded by Scott and Ally Svenson in 2008, and was one of the first fast-casual pizza concepts to emerge in what soon became a crowded pack of contenders offering a walk-the-line, build-your-own personal, artisanal pizza, with as many as 40 toppings available for one price.

It quickly became a favorite of investors, and the chain raised a total of $345 million over the years, with investors that included Nigel Travis, the former chair and CEO of Dunkin’ Brands Group Inc., and Spencer Rascoff, CEO of the real estate website Zillow, as well as investment firms PWP Growth Equity, Fidelity Management & Research. Most recently, in 2019, MOD announced it had raised $160 million in equity financing from private-equity firm Clayton, Dubilier & Rice.

At the time, the company pledged to double its unit count to about 1,000 restaurants. That funding supported rapid expansion in a drive to earn national brand awareness, with the goal of going public. In 2021, the chain filed confidential plans for an initial public offering .

But the IPO never came to fruition and there were signs earlier this year that MOD was in serious trouble—perhaps in part because that rapid expansion resulted in poor real estate choices.

Scott Svenson in January stepped down as CEO, moving to an executive chairman role, and the company brought in former Cooper’s Hawk executive Beth Scott to take the helm . She took quick action.

In the first quarter, the company closed 26 restaurants, scattered across the country, in a culling of underperforming units. And the closures continued into the second quarter, for a total of 44.

The chain had ended 2023 with about 553 units, an increase of 4.1% over the prior year, according to Restaurant Business sister brand Technomic. MOD also generated an estimated $699 million in domestic sales, up 5.7%, and the average unit volume was $1.3 million, which increased from the AUV in 2022 of $1.2 million. But, because MOD is a private company, officials declined to verify those estimates.

MOD is not the only fast-casual pizza chain to face challenges.

The pandemic was not kind to fast-casual pizza , which was fundamentally designed to be a better alternative to legacy delivery brands like Domino’s and Pizza Hut. MOD’s style of pizza was best served hot out of the 800-degree ovens, and it made for a quick lunch for office workers.

But post-pandemic consumers gravitated to delivery and digital ordering (and chicken concepts), and many workers never returned to offices, changing the equation for fast-casual pizza’s lunch-focused real estate selections.

To address these challenges, competitor Blaze Pizza—which last year saw its unit count shrink 2.3% to 295, recently unveiled a brand overhaul that includes a new menu . Last year &Pizza brought in a new CEO with the hope of bringing the brand’s edginess back. Pieology also closed restaurants in 2023, with its unit count down 8.4% to 109, according to Technomic.

MOD has long been known for its mission-driven employee culture. The Svensons were believers in the idea of second chances, and the chain made a point of welcoming workers from all walks of life, including those with challenging backgrounds, like previous incarceration, homelessness or those with developmental disabilities.

It’s not clear whether that mission will change under new ownership.

“MOD is a beloved brand with a strong following,” said CEO Beth Scott, in a statement about the sale. “We’re excited to work with Elite Restaurant Group to strengthen MOD’s future.”

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business plan for pizza franchise

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  • Toppers Pizza :

Toppers Pizza Honors Top Franchisees at 2024 National Convention

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July 11, 2024 // Franchising.com // WHITEWATER, Wis. - Toppers Pizza held its 2024 National Convention in Green Bay, Wisconsin from June 10 - 12 with an enthusiastic crowd of franchise owners, General Managers, store employees and executives. The event focused on recognizing top performers, providing valuable education sessions and fostering connections among attendees.

Making, baking, and taking quality pizza to the customer fast is one of the brand’s competitive advantages. This concept is what led to a Toppers Convention fan favorite: The Rush Competition. Rush contestants must make one Large Handtossed Pepperoni, one Large Handtossed Toppers Classic, and one Triple Order of Topperstix. The person who does this in the fastest time - while made up to the brand’s standards – wins. This year’s Rush Award winner - presented to the fastest pizza maker – was Brian Albrecht, a supervisor with PJD Investments. The investment company owns Toppers franchises in La Crosse and Onalaska, Wisconsin, and Winona, Minnesota. This is Albrecht’s second win. He won the award two years ago, and was runner-up in last year’s competition.

PJD Investments, owned by Phil and Denise Downing, took home the Franchisee of the Year Award and Nathaniel Stolpa won Manager of the Year for the restaurant he runs in Sheboygan, Wisc., owned by J&R Ventures LLC.

“As our brand expands across the country, our annual convention gets bigger and more impactful,” said Vice President of Operations Matt Martin. “While we are extremely proud of all our franchisees and team members who work with us, we are thrilled to shine a spotlight on exemplary award winners like Brian, Phil, Denise and Nathaniel. Their tireless work and dedication are what makes Toppers such an amazing brand.” 

Headquartered in Wisconsin, Toppers Pizza has fresh, handmade and customizable pizzas baked in about 360 seconds and delivered extremely fast, with combinations of fresh, high-quality toppings. The brand recently introduced a limited-time carryout deal in which guests can get a large House or Three-Topping Pizza for just $9.99.

SOURCE Toppers Pizza

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Behind the scenes of Blaze Pizza’s transformation

Leigh Anne Zinsmeister 1 | Jul 08, 2024

Blaze Pizza attracted attention last month when it announced it was re-vamping its signature menu line, the first such overhaul in the restaurant’s 12-year history. But the new menu is only the beginning, as the Pasadena, Calif.-based fast-casual restaurant brand has many more plans in store, from redesigns to a long-term charity partnership.

“We are introducing our purpose for existing,” said CEO Beto Guajardo at a June event launching new menu items and the charity partnership.

Related: L&L Hawaiian BBQ, Blaze Pizza CEOs share glimpse at future for their restaurant franchises

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“The pizzas are bigger, better value,” he said. “More ingredients, more value versus what you were getting previously.” The pizzas cost the same as the older versions, which altogether made up just 11% of the company’s sales mix, the rest being mainly build-your-own pizzas.

Related: Pizza franchisee on bringing Blaze Pizza to the Las Vegas market

The original signature line was designed to give customers a baseline if they didn’t want to jump straight into the brand’s “build-your-own pizza” ethos. After a while, though, they weren’t needed for that purpose.

“It didn’t serve us anymore,” said chef Matt Eland, who joined Blaze in August 2022. “We want a great pizza that makes [customers] go, ‘That’s the one I want, and I don’t need to do anything else to it.’”

The new signature line, which launched last month, includes five pizzas:

  • The Carnivore, with pepperoni slices, julienned ham, crumbled meatballs, housemade tomato sauce, shredded mozzarella cheese, and a Balsamic drizzle;
  • The Meatball Pie, with crumbled meatballs, house-made tomato sauce, shredded mozzarella, and dollops of ricotta cheese;
  • The Blazed BBQ Chicken, with BBQ sauce, mozzarella cheese, grilled chicken, red onions, pickled jalapeño peppers, and ranch dressing;
  • The Herbivore, with spicy red sauce, shredded mozzarella, mushrooms, roasted garlic, tomatoes, banana peppers, arugula, and olive oil; and
  • The Four Cheese, with house-made red sauce, shredded mozzarella, Ovalini mozzarella, ricotta, parmesan, and a swirl of olive oil.

It won’t be another decade before the next update. “Our intention is to continue to expand that signature menu,” Guajardo said.

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Mod Pizza acquired by Elite Restaurant Group

The transaction comes several months after the chain closed underperforming locations and will help it avoid bankruptcy, which it was reportedly considering.

Julie Littman's headshot

Dive Brief:

  • Mod Super Fast Pizza Holdings has been acquired by Elite Restaurant Group, the pizza chain said in a Wednesday press release. Elite has acquired 100% of the equity in the company as part of the transaction. The purchase price was not disclosed.
  • Mod has been working on a plan to rightsize its portfolio, refresh its brand and improve the guest experience, the company said. 
  • The deal will help Mod avoid bankruptcy, which reports last week stated that Mod Pizza was considering . Earlier this week, Mod said in an emailed statement that it was considering all avenues to boost its capital structure.

Dive Insight:

In addition to working on improving its business, Mod Pizza has undergone some leadership changes this year. Beth Scott became CEO in January, succeeding co-founder Scott Svenson. Her restaurant experience included working at Cooper’s Hawk and Fleming’s. The chain also hired Jennifer Anderson as its CMO after her tenure as CMO at Raising Cane’s Chicken Fingers. 

“MOD has an outstanding culture and passionate, loyal guests and employees,” Michael Nakhleh, president and owner of Elite Restaurant Group, said in a statement. “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”

Nakhleh and Elite Restaurant Group have a history of acquiring struggling restaurant brands. In 2018, it bought 12-unit Noon , a Mediterranean brand, and turned them into Daphne’s, another Mediterranean concept with over 20 units that it acquired earlier that year. In 2019, it bought Project Pie  and 68-unit Gigi’s Cupcakes

In January, Mod said it had more than 540 locations system wide, but that number has likely declined with the closure of several stores.

During the first quarter, the chain closed underperforming locations and provided severance to employees who could not be transferred to another location. Reports indicated that the amount of store closures was over two dozen, but the chain did not confirm this with Restaurant Dive. 

“We have occasionally closed units that are unprofitable, which is the normal course of business for any company our size,” the company said in a statement emailed to Restaurant Dive in April. 

Before its recent struggles, Mod had been thriving. In 2019, it received a $160 million equity financing investment led by Clayton, Dubilier & Rice, at which point it decided to accelerate growth to reach 1,000 units in five years. That goal was never reached, however, as the chain has yet to push past 600 units. In 2021, it submitted a confidential draft registration to the U.S. Securities and Exchange Commission for a proposed IPO , but that never materialized.

The company posted net income of $4.2 million in 2023, a decrease of about 6% compared to nearly $4.5 million in 2022, per the company’s 2024 franchise disclosure document filed in Wisconsin. The chain is largely company-owned, with 465 outlets open and 87 franchised units open at the end of 2023. Its biggest market is Texas, where it has over 100 units.

Recommended Reading

  • Mod Pizza hires Cooper’s Hawk exec as CEO By Julie Littman • Updated Jan. 8, 2024
  • Mod Pizza hires Raising Cane’s exec as CMO By Julie Littman • April 17, 2024

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LI-born restaurant chain rebrands amid franchise expansion 

David Winzelberg // July 9, 2024 //

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Inside the new Bango in Hauppauge. / Courtesy of Bango

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  24. Behind the scenes of Blaze Pizza's transformation

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  26. LI-born restaurant chain rebrands amid franchise expansion

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