Who doesn't love a good pizza right? It's a low cost food that appeals to all ages and genders. Buying an established pizza restaurant is a great way to avoid startup costs and buying an independent pizza restaurant is a great way to avoid franchise fees. According to IBISWorld.com, pizza restaurants were projected to generate nearly $43 billion in revenue in 2012 and independent pizzerias control almost 52% of those sales. So, when you see a pizza restaurant for sale, give it some consideration because there is definitely money to be made. If you are already considering it here is what you need to know.
As the owner, you most likely be spending a lot of time at the business. I've seen pizzeria owner's put in 60-70 hour work weeks so you may want to find an established pizza restaurant that is for sale close to your own home. Pizzerias are most successful when the owner is onsite and a part of the day to day operation. Like many other businesses, there is potential for employee theft given the high volume of cash going in and out of most established pizza restaurants. Labor costs in this business should be below 20 percent, not including the manager's salary, but be careful not to cut this too short. You want to be adequately staffed and have the right team in place to provide good customer service.
Next, and this may sound ridiculous but make sure the pizza is good at the restaurant you are considering! If the pizza isn't that great, you may not be buying into a loyal customer base. If that's the case, you will have to change the pizza recipe, perfect it and re-introduce it to the market. You would basically be building the business from the ground up like you would a startup. This will most likely increase your marketing and advertising costs significantly too, so be sure the pizza restaurant is already producing a quality product.
The most common places for an established pizza restaurant are either in a stand-alone building, a strip mall or a shopping center. Almost 48% are found in standalone buildings so unless you are specifically seeking out a shopping center/strip mall location, you will likely find an established business in its own facility. Regardless of where it is located, consider the rent or lease agreement. Rent and utilities should be less than 9% of your total costs. Also, consider the competition that is within a 10 mile radius. Obviously the fewer competitors the better, then when your customers need to grab something quick on their way home from work, they will have less options to choose from and hopefully end up at your counter!
Next you want to look their financials. Dig into their records and get a handle on their expenses, revenue, profit, and debt. Have an accountant take a look, as well, so you have an accurate range of expected revenue. In looking at the company's inventory, check to make sure they are keeping food costs below 30 percent. Taking benchmarks like this into consideration will help you to be sure that you buying into an efficiently run business. You may also want to have your professional team, such as your attorney or accountant, take a look at everything you find as they may be able to provide additional insight as to what you would actually be getting should you purchase this pizza restaurant.
So if you have a love for pizza, don't mind long hours and have found an efficiently run established pizza business for sale, you have the potential to generate some good revenue. Despite our sluggish economy, the pizza industry is expected to grow as new variations of pizza are being introduced into the market regularly, which ultimately expands your potential customer base.
View all: California Pizza Restaurants For Sale
Need Help?: Pizza Restaurant Business Brokers & Agents To Assist You
About This Contributor: Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, small business owners/sellers, business brokers, agents, investors, and advisors). Phone him at 866-270-6278 or 888-212-4747 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|Jack Oh, Business Broker - LA, Orange Counties
Business broker and real estate services in the Los Angeles and Orange County areas. 10 years experience with great negotiating skills. To sell a business or buy a business in the LA or Orange County Areas phone Jack and his team at 562-787-4989.
|Steve Zimmerman: Restaurant Broker Specialist
Steve founded Restaurant Realty in 1996. He has personally sold/leased over 900 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker - An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.
|Chris Seaman, Business Broker - San Diego County Area
Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.
|Abdul Jobah, Business Broker, Central Valley, Kern County
As A Real Estate Agent, I offer my clients assistance with the sale or purchase of commercial properties and/or businesses. Please contact me if you are looking to sell or buy a Central Valley business. If at any time you have any questions please do not hesitate to call me at 661-703-3916.
|Michael Floorman, Business Broker, BTI, San Francisco Bay Area
Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.
|Bob Baumgarten, Business Broker: Orange, LA Counties
National Business Brokerage is a full service brokerage company that has been serving buyers and sellers of Southern California businesses since 1994. We are dedicated to providing the highest standards of professional service for our clients. Phone Bob direct at 949-588-8727.
|Prabhjot Randhawa, Broker: SF Bay Area, Northern Central Valley
I'm a Business Advisor at Liberty Business Advisors of San Fransisco. I have over 20 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 10 businesses.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Financing The Purchase Of A Frozen Self-Serv Yogurt Shop - Tips For Buyers
Financing a frozen self-serv yogurt shop for can be challenging. Here, you'll learn the real scoop behind financing a yogurt shop purchase to help it be profitable from the start. Peter Siegel at BizBen.com
|Buying A Restaurant Can Be Challenging: 3 Key Tips For Restaurant Buyers
People always need to eat; there should be plenty of business. Some buyers think there is prestige to owning a popular eating establishment. But it isn't an easy purchase. Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program at 866-270-6278) reviews this topic.
|Don't Buy A Restaurant Without Checking The Competition - Key Buying Tips
Looking to buy a restaurant business? Check out these tips first to avoid getting blindsided when you buy any type of small or mid-sized California restaurant. Peter Siegel, MBA (BizBen's ProBuy & ProSell Programs & Restaurant Purchase Financing Expert) at 866-270-6278 covers this topic for buyers.
|Restaurant And Fast Food Franchises - Successful Tips From Franchise Buyers
Restaurant franchise offerings are among the most popular of the business types potential business buyers seek. What many would-be owners don't realize is that there are specific tips for buying fast food or restaurant franchises that don't necessarily apply to independent restaurants for sale.
|Buying A Pizza Restaurant, Pizzeria Tips: What Pizzeria Buyers Need To Know
Peter Siegel, MBA discusses buying pizza restaurant for sale tips and what to watch out for. Topics: Owner involvement in the business as pizzerias are most successful when the owner is onsite.
|I am Buying A Business: Should I Buy The Property As Well? A Good Decision?
There are advantages and disadvantages to owning commercial property. Here are a few questions to ask when it comes to deciding whether or not to buy the property along with the business. Peter Siegel, MBA with the BizBen ProSell Program reviews this issue with potential sellers and intermediaries.
|Why Deals Fall Out: Unrealistic High Asking Prices Are Usually The Reason
The unfortunate truth is that approximately 50% of all small business sales transactions fall out. While failed transactions can happen for a many reasons, Peter Siegel, MBA (BizBen Director & Business Purchase Financing Expert) discusses the main reason deals fall through; steep asking prices.
|Tips For Faster SBA Loan Approvals For California Small Business Purchases
In this article on BizBen, business purchase financing advisor and SBA loan broker, consultant Peter Siegel (Business Purchase Financing Expert/Advisor & the ProBuy Program Director at BizBen) at 866-270-6278 shares his views of getting SBA loan financing faster for business purchase financing.
|See All News, Tips And Events|