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.