Buying a Pizzeria? Here’s What You Need to Consider

Whether you prefer deep-dish or extra thin crust, the numbers show that pizza is one of the most popular dishes in America, and pizza shops are happy to cater to the demands. However, many factors determine the success of a local pizza shop. If you’re contemplating buying a pizzeria, utilize Sunbelt Business Brokers’ buyer resources to find the right business opportunity for you.

General Questions to Ask When Buying a Pizzeria

Given pizza’s ever-growing popularity, now could be the time to invest in your very own shop. Before buying into this industry, be sure to do your research and ask your seller these questions.

1. How much does a pizzeria make?

According to a 2019 industry report by PMQ Pizza Magazine, 83 percent of consumers polled reported they eat pizza at least once per month. Also, 60 percent of respondents reported an increase in sales over the previous year,  which further underlines the finding that pizza is America’s No. 1 comfort food. With a majority of the country’s population consuming pizza regularly, there is undoubtedly money to be made for pizza shop owners, whether they’re with a major franchisor or a ma’ and pa’ small business.

Industry reports show the average sales of independent pizza restaurants total $446,885, and chain restaurants total $770,808. To ensure your pizza shop falls in line with these averages, one of the best factors to consider is its location. Be sure to look at the accessibility of the prospective shop and the surrounding population. Successful pizza joints are typically located in high foot traffic areas or areas that many people pass on the way to and from their homes. Most pizza shop orders are take out, so being where your customer base is is immensely important.

2. What sets this pizzeria apart from competitors?

In a highly saturated market of both chain-style pizzerias and independent shops, business owners must consider how to differentiate their pizza store. When looking at an established pizza parlor, new owners want to think about how it compares to Domino’s and local competitors. Ways a shop might stand out include but are not limited to:

• Offering high-quality health-conscious options such as vegan or gluten-free items;
• Online ordering;
• Unique menu items; or
• Using organic or locally grown ingredients.

More and more customers are turning to local businesses and shops rather than big-box retailers. Ensure the pizza shop you are considering for purchase is known for delivering a memorable experience.

3. Why is the owner selling the pizzeria business?

One of the most crucial questions to ask the current pizzeria owner is, “Why are you selling your pizzeria?” Common reasons owners list pizzerias for sale include retirement, burnout, illness, poor performance, financial issues, and new opportunities.

If a seller indicates that he or she is selling the shop due to performance or financial issues, take it as a red flag that the business is not doing well. While it is possible that under new ownership, the performance of the restaurant may turn around, you will want to do some further investigation before signing on the dotted line.

Financial Questions to Ask Before Buying a Pizzeria

Opening a pizzeria is a serious investment. To be sure you’re fully prepared to purchase a pizza shop, you’ll need the answers to these financial questions, as well.

4. Is real estate included in the sale?

To begin evaluating the pizzeria’s financial details, you first need to inquire whether the building is leased or owned. If the current tenant owns the shop, you’ll need to ask if they are interested in selling the real estate as well and, if so, determine the cost of rent per month. For leased restaurants, it’s essential to understand and discuss the lease agreement and parameters for transferring ownership with a professional.

5. Is the equipment included in the sale?

Equipment, stock, and furnishings can run up quite the tab for a new business. During negotiations, determine what assets are included in the sale. For example, a conveyor pizza oven alone can cost upwards of $5,000. Buying all new kitchen equipment and machines could add thousands more to an already sizable investment.

6. What are the current business expenses?

To get an idea of how much running your shop will cost, you’ll want to ask the current owner about their expenses. Use these details to determine the average cost of bills, materials, employee compensation, general building maintenance, and more.

7. How much is a pizzeria worth?

Another vital question to ask the pizza shop owner is, “How did you arrive at your asking price?” From revenue to location, many value drivers can impact the asking price of a pizzeria. By understanding how the owner reached the asking price, you will get a better sense of bargaining power. An asking price without a credible valuation behind it is likely to be negotiable.

For help receiving the most accurate valuation when buying a pizzeria, consider contacting a business broker. Sunbelt Business Brokers is proud to offer business buyer advice and services to help you close a successful deal from start to finish. To locate a Sunbelt broker near you, browse our locations.

If you’re ready to begin browsing local pizzerias for sale, consider working with Sunbelt Business Brokers. With years of experience connecting buyers and sellers, you can depend on our business brokers to help you find your dream pizza shop. Plus, working with a professional business broker ensures you have an expert guiding you through every step of the business buying process from start to finish. Contact a Sunbelt office near you today to begin your journey to buying a pizzeria.