March 19, 2024
Lauren Platero

How Much Does It Cost to Start a Pizza Shop? 9 Common Costs

Do you ever find yourself asking the question: How much does it cost to start a pizza shop? If so, you’re in the right place! Maybe you’re in the process of learning how to start a pizza shop from scratch. Or, perhaps you’re a seasoned F&B professional in search of ways to scale back on operating expenses. No matter which side of the coin you’re on, this blog post should guide your restaurant business in the right direction. Now, let’s get to it!

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How Much Does It Cost to Start a Pizza Shop | 9 Common Costs

The cost to start a pizza shop can vary depending on a number of factors. Where is your business located? Will you be implementing solutions to offer pizza delivery? If so, will customers be able to order pizza online? These are just a few of countless questions that can contribute to the total cost to launch  a pizzeria. See below for a list of the most common costs associated with the question, how much does it cost to start a pizza shop?

1. Rent 

It’s inevitable that your pizza shop will incur monthly rent. More often than not, entrepreneurs rent their brick and mortar location. Depending on the city in which you operate your business, rent can range quite a bit. However, it’s safe to assume that you’ll be spending at least several thousand dollars per month.

2. Utilities 

Once you secure the restaurant space, it’s time to invest money in keeping the water running and the lights on. Generally speaking, monthly utility bills can cost you anywhere from $1,000 or more a month. The biggest determining factor of what you’ll be spending on gas, water, and electricity is the size of your restaurant.

3. Tech Solutions

One of the first tech solutions you’ll need to invest in is a POS system for pizza shop operations. A product that can connect to third-party integrations is essential, especially for something like online ordering. After all, the majority of your customers will often order a pizza for delivery. Therefore, you need flexible solutions that can streamline pizza deliveries, order management, and more. As for the total cost, a pizza POS system and integrations can cost several hundred dollars per month. However, your total number of units will determine this dollar amount more precisely. 

If you’d like to take the guesswork out of the cost of pizza POS solutions, invest in products with a company like Revolution Ordering that offers flat monthly rates. Book a demo today to learn about our simple subscription model and so much more!
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4. The Labor Cost

Labor will likely be your most expensive cost, so ensure that you employ talent that’s suitable for each position. Without the proper team in place, pizza shop operations would be nonexistent. You’ll need to begin by hiring more than one sous chef who can alternate shifts with one another. Then, if your dessert menu consists of items like Italian pastries, it’ll certainly be worth hiring a talented pastry chef. Then, if you offer in-house dining, a wait staff is a must. Dishwashers will be needed during each shift, too. Meanwhile, all of these roles will be overseen by a restaurant manager.

5. Food and Beverage Inventory

One of the best parts about operating a pizzeria is that food and beverage inventory can be extremely simple. In fact, some pizzerias achieve steady restaurant success by only serving pizza. So, what will you need? Use a wholesale directory to purchase items like flour, cheese from dairy suppliers, and fresh produce like basil for toppings. You can also use this tool to purchase meat products like sausage and pepperoni. You can also purchase soft drinks through the same platform to keep your refrigerator full at all times. 

If you choose to operate a more extensive pizzeria and restaurant, there will be much more items to purchase wholesale. However, apps like BlueCart make it easy. Plus, you’ll be able to streamline restocks and inventory forecasting like a pro. While the inventory can cost several hundred dollars each month to keep a pizzeria’s doors open, this cost can venture well into the thousands for a full-scale restaurant. 

6. Kitchen Appliances

Your food menu will determine what kinds of restaurant equipment and kitchen gadgets you’ll need to run your pizza shop. You’ll certainly need commercial-sized ovens, refrigerators, and freezers. You’ll also need mixing bowls, baking accessories, and cutlery. On average, all of these items combined can cost anywhere from $5,000 to $20,000.

7. Restaurant Furnishings

From wall art and light fixtures to comfortable dining room furniture, every pizza shop owner must furnish the space. If not, it won’t be an environment that customers enjoy spending time in. Luckily, there are ways to furnish a dining space without spending an obscene amount of money. As for decor, there are endless amounts of DIY inspiration online. If you budget wisely, you can furnish a pizzeria for as little as a few thousand dollars. 

8. Marketing Campaigns

The beauty of restaurant marketing efforts is that they can cost almost nothing and be effective. For instance, a website that follows restaurant SEO guidelines alongside an active social media presence can attract customers. However, if you decide to invest a few hundred dollars per month in paid advertising, these efforts will surely pay off, too. If you should hire a digital marketing professional to manage these tasks, you can probably find freelancers with packages starting at around $800 a month.

9. Legal and Financial Services 

It’s strongly advised that any business owner receive financial and legal advice as needed. For larger enterprises and franchises, it might even be worth having an accountant and attorney on retainer. This way, you can receive quick assistance in the event of financial or legal troubles. Costs for these kinds of services will vary depending on the professional’s level of expertise. Plus, the amount of time that their services will stay accessible to you will  also be a major determinant of the total price. 

Frequently Asked Questions About How Much Does It Cost to Start a Pizza Shop

So, how much does it cost to start a pizza shop? Now that you have a clearer idea of what each business aspect will cost you, it’s time to broaden your knowledge about the topic at hand. See below for a brief selection of commonly asked questions regarding the inquiry: How much does it cost to start a pizza shop?

Is Pizza a Profitable Menu Item?

Yes, pizza is a super profitable menu item due to its low-cost ingredients. Cheese, sauce, and dough are very simple and inexpensive ingredients to obtain. As a result, charging upward to $20 for a pizza creates a very steep markup. Keep all other operating costs to a minimum, and you’ll have a very lucrative business model on your hands.

Is Owning a Pizza Shop Profitable?

Yes, since the markup on pizza is very high, pizza shops have a tendency to be extremely profitable. However, it’s important to always keep an eye on the performance of your business. Going into a business venture with the assumption that it must be profitable is never a good idea.

How Many Pizzas Does a Pizzeria Sell Each Day?

On a busy night, a pizzeria can sell anywhere from 300 to 500 pizza pies. To sustain high profits, you want to sell no less than 50 pizzas per day. If you fall below this threshold, you’ll be at risk of losing profits and the business entirely later on.

How Much Money Do Pizza Shop Owners Make Per Year?

Pizza shop owners can make around $50,000 per year. However, this person’s income will depend on their revenue and restaurant expenses.

What Features Make a Pizza Shop Profitable?

Innovative tech solutions are what will make one pizza shop more profitable than local competitors. Whether customers are ordering pizza for a group or need fast pizza delivery for just one person, online ordering integrations can do the trick. It’s also worth looking into contactless pizza delivery solutions to speed up related processes.

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Keep the Cost of Pizza Shop Technology At a Minimum

Costs like kitchen appliances and marketing efforts may not surprise you with hidden fees. But unfortunately, tech solutions can. Consider integrating your POS system with Connect for a simple, stress-free payment structure. Then, none of your online ordering solutions will hurt your wallet or financial projections.