Buying A Pizza Restaurant For Sale Tips: What You Need To Know
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
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Jerome Thissen, Broker, National Franchise Sales
BROKERAGE - Specializing in the Resale of Franchise Businesses Since 1978 ASSET RECOVERY - Asset Recovery through Bankruptcy, Receivership & Foreclosure ADVISORY SERVICES - Buy-Side Representation, Valuations, Dispute Consulting, Restructuring Advisory, and Brand Development Advisory ...
|AJ Rana - Business Broker, San Francisco Bay Area
Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.
|Angela Wu, Business Broker: San Francisco Bay Area
Business brokerage services in the San Francisco Bay Area.
|Cheryl Maloney, Business Brokerage Services: City Of San Francisco
I have over 20 years of small business experience, a law degree and well-versed in real estate regulations and best practices. I work tirelessly to create successful strategies & effective negotiations for those wishing to sell or buy a SF business. Call 415-309-2722 (Cell/Text).
|Al Zamora, Business Broker: San Diego County
La Jolla Pacific Is A Business And M&A Brokerage Company Specializing In Business Transactions, Business Valuations, And Mergers & Acquisitions. We Help Business Owners Sell Their Business And Help Individuals Or Investors Buy A Business. We Specialize In Selling Privately Owned Businesses
|Mike Bauman, Business Broker: Los Angeles County, South Bay
Aspire Realty Advisors is a full service commercial real estate firm specializing in commercial property sales and leaseholds. Additionally, we are one of the highest rated and most successful business brokerage firms serving Los Angeles County.
|Tricia Bernhardt, Restaurant Broker: Sacramento Area
Restaurant eXchange specializes in the confidential sale of restaurants. In general, our market area includes the following Northern California counties: Sacramento, Placer, El Dorado, Nevada, Yolo, Solano, Amador, Calaveras, Sonoma. Assisting restaurant sellers and buyers - call today 916-482-7979.
|Hal Janke CBI, FIBBA, Business Broker: Southern California
Sunbelt of San Diego Coast and Omega Business Advisors, Hal Janke, President, Broker, has been selling businesses for 30 years. Business sales, Mergers & Acquisitions, Appraisals, Consulting, SBA financing options. Serving: San Diego County, Orange County, LA County, SF Bay Area.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|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.
|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.
|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 925-785-3118 covers this topic for buyers.
|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
|SBA PPP Loan Update: When Buying And Selling Small Businesses In California
Small businesses who have PPP Loans and are seeking to sell their business (or buyers looking to buy) should pay attention to the latest on PPP Loans when it comes to selling and buying small businesses throughout California. Attorney William Ziprick, Attorney At Law gives BizBen readers an update.
|How Many Listings Is Too Many For One Broker To Handle? Is It 5? 10? 20?
Peter Siegel, MBA in this Vlog/Podcast discusses how many listings is too many for one business broker to handle at one time. Is it 5 is it 20? I recently had a coaching call with one of my BizBen broker clients who asked that question this week. There are many factors that go into the answer.
|Buying A Cheap Small Business For Sale: How To Find? What To Watch Out For?
Yes, there are ways to find businesses with growth potential that can be purchased with modest investments. But before offering any ideas about finding cheap businesses, it's important to review some of the risks involved. Here are some of the best ways to buy a less expensive small business.
|BizBen ProBuy Program - Professional Assistance With Buying A Small Business
Buying a California business can be a confusing and/or frustrating process for many business buyers. Statistics show that over 80% of all buyers never end up buying a business. The BizBen ProBuy Program assists potential buyers of California businesses with the process of buying a small business.