Pizza Business Plan Template
If you want to start a Pizza business or expand your current pizza restaurant, you need a business plan.
The following Pizza business plan template gives you the key elements to include in a winning Pizza business plan.
Pizza Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new pizza restaurant in the [location] 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.
Founded by [Founder’s Name], [Company Name] envisions the restaurant to be a place that families gather to enjoy a variety of pizza selections. [Founder’s Name] is an experienced chef for a national restaurant chain. When he noticed that there was only one pizza place in [location], he decided to open up his own pizza restaurant.
Products Served
[Company Name] 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
[Company Name] will primarily serve the residents within a 15-mile radius of our restaurant. The demographics of these customers are as follows:
- 31,268 residents
- Average income of $69,350
- 51.9% married
- 47.3% in Management/Professional occupations
- Median age: 36 years
Management Team
[Company Name]’s founder, [Founder’s Name], will serve as the restaurant manager. Having worked in the restaurant industry for 15 years, he is knowledgeable with the operations and standard procedures of running a restaurant. He is also experienced in team management and customer service.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are currently few pizza restaurants in the community. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passersby each day.
- The management team has a track record of success in the restaurant business.
- The pizza business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is seeking a total funding of $370,000 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: $250,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
II. Company Overview
Who is [Company Name]?
[Company Name] is a new pizza restaurant in the [location] 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.
[Company Name] 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.
[Company Name]’s History
[Company Name] was founded by [Founder’s Name]. [Founder’s Name] has worked in the restaurant industry for 15 years. He noticed that there was only one pizza restaurant in [location], so he decided to open up his own pizza restaurant.
[Founder’s Name] incorporated [Company Name] on [date of incorporation] 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
[Company Name]’s Products/Services
Below is [Company Name]’s initial menu classified under the following main categories:
- Pizza
- Pasta
- Sandwiches
- Dessert
- Drinks
III. 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 2.9%, 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 flat breads 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.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [location] and the immediately surrounding areas as well as those who work in [location].
The area we serve is affluent and has disposable income to dine out or order in dinner.
The following are the precise demographics of the area:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following four customer segments:
- Parents: The town has a large population of families who are active in the school and community. These parents are often looking for a family-friendly place to bring their children.
- Local office workers: approximately 6,000 individuals work in offices within a quarter mile of our location, and we expect a fair portion of these individuals to visit us during lunch hours.
- Students: there are middle schools and high schools within the [location] area. Schools will be a great target market for the company as they often order in pizza for special lunches and events.
V. Competitive Analysis
Direct & Indirect Competitors
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 entrées 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 Pricing
| Small, one topping, pizza | Medium, one topping, pizza | Large, one topping, pizza | |
|---|---|---|---|
| Pizza Garden | $13 | $16 | $19 |
| City Pizzeria | $14 | $17 | $19 |
| Checkers Pizza | $15 | $18 | $20 |
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going and leaving the train station, local office workers, students and passersby. We also offer adequate parking making it easy for customers to patronize us.
- Great 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, [Founder’s Name] knows all the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build branding and awareness of our restaurant.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- 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
[Company Name] expects its target market to be residents, businesses and schools within a 10-mile radius of each of its stores. The Company’s promotions strategy to reach these individuals includes:
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other enticements for people to frequent the restaurant.
Public Relations
We will contact all local and area newspapers and television stations to tell them about the opening and unique value proposition of [Company Name].
Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.
Sampling
[Company Name] will initially give free pizza samples to passersby to enable them to taste the quality of our products and learn about us.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
VII. Operations Plan
Functional Roles
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Service Functions
- Waitstaff
- Cooks
- Cashier
- Delivery personnel
- Maintenance personnel to keep the restaurant clean
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Hiring and training staff
Milestones
[Company name]’s long term goal is to become the leading pizza restaurant in the [city] area. We seek to the standard by which other restaurants are judged.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s founder, [Founder’s Name], will serve as the restaurant manager. Having worked in the restaurant industry for 15 years, he is knowledgeable with the operations and standard procedures in running a restaurant. He also has experience in managing teams and customer service.
He graduated from the University of ABC where he majored in Culinary Arts.
Hiring Plan
[Founder] will serve as the restaurant manager. In order to launch the restaurant, the following personnel are needed:
- Wait staff (2 full-time equivalents to start)
- Chefs (1)
- Cooks (1)
- Assistant Restaurant Manager
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from dine-in and food delivery sales.
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.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $370,000 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: $250,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Menu Items | % of Sales | Average Price Point | Cost of Goods Sold |
|---|---|---|---|
| Pizza | 45% | $18.00 | 16% |
| Other Food Items | 25% | $11.00 | 19% |
| Alcohol | 20% | $7.00 | 25% |
| Dessert | 10% | $6.00 | 30% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
