business plan for pizza roll

How to write a successful business plan for a pizzeria

Some flour, a pinch of salt, a little yeast, a layer of tomato sauce, and a dollop of cheese: pizza is as simple as it is delicious.

From basic margarita to the more extravagant capricciosa, it's incredibly versatile - and the pizzeria business model is no different. Just like pizza, it can take many forms - whether it be a classic Italian restaurant, pizza takeaway, fast-food joint, or a gourmet pizza place. 

Whatever way you decide to sell pizzas, you'll have to draft up a business plan for a pizzeria before being able to make it happen. In this guide, we'll explain how you can successfully launch a pizzeria by taking advantage of this practical tool. 

Before diving headfirst into writing the business plan for a pizzeria, let's first look at the market.

The UK pizza market

According to a study carried out by VoucherCodes, the average Brit will eat 731 pizzas in their lifetime (or 5,847 slices, to be exact.)

The market is therefore booming at around £4.9 billion - with around 6,164 pizza delivery and takeaway places alone.

Between pizza takeaway businesses, fast food chains, Italian restaurants, and independent pizzerias, the competition is very tough. So it's up to you to develop a business idea that will allow you to successfully take up your own space on the market.

Why the business plan for a pizzeria is essential

To successfully launch the restaurant of your dreams, writing a business plan for a pizzeria is imperative. 

If you're just starting out in the entrepreneurial sphere, then the idea of creating a business plan might seem scary - but it's important that you can see it for what it is: a remarkably effective tool to help you move your business idea forward. 

In other words, a business plan is your roadmap. 

It's a document in which you lay out the details for your project, the objectives you have for your business, and the steps you'll need to take to ensure it's a success. 

Giving you a clear and overall view of your venture, the business plan will allow you to iron out any kinks, highlight its strengths, quantify the amount of money needed to bring it into fruition, and estimate the potential profitability of a pizzeria.

You can then use this document to present your business idea to banks or potential investors, who will then decide whether or not they'd like to lend the funds to help get your business off the ground. 

It's therefore essential to have a solid, comprehensive business plan to prove your dedication and credibility as an entrepreneur. 

Writing a business plan for your pizzeria also means having to carry out market research to familiarise yourself with the pizza market in the town or city in which you'd like to base your business, as well as the strengths and weaknesses of nearby competitors. 

The prices you set will depend on your business model (whether it's a gourmet pizzeria or a pizza delivery place) and where you're based. From there, you can draw up a financial forecast for your pizzeria  to integrate into your business plan.

What information might a pizzeria business plan need?

Conducting market research is crucial. It helps you validate that there's potential for your business to prosper. Think about:

• The pizza industry market map (price and type of pizza segments) to understand where you could position your business in the market
• Successful methods used to build customer loyalty in your target market
• Any new trends in the market (the emergence of gluten free and vegan pizza)

You also need to gather data about potential operational costs (staff recruitment, training and other operating costs). We advise you to call suppliers and ask them for a quote concerning prices.

These are the two key areas that you will need to address before drawing up a business plan. A high-quality business plan will likely require an in-depth analysis of both.

Feeling lost? Let our business plan software guide you

If drafting up a business plan for a pizzeria on your own feels a little too complicated, then you've come to the right place

Our online business plan software  makes it easy for you. Designed specifically for entrepreneurs who've never written a business plan before, it will guide you step by step through the process - so you don't get lost in between the many different stages. 

It will also make creating a financial forecast a breeze - leaving you with a clear, well-presented, and professional document with which you can confidently showcase your business idea to investors. 

If you're still not sure, why not dip your toe and test our business plan software for free? Click here to try it out and let us know how you get on.

If you have any other questions or queries related to the launch or operation of a pizzeria, please don't hesitate to get in touch with our team. 

Also on The Business Plan Shop

• Business plan template for a pizzeria
• How to open a pizzeria without money
• How to take over a pizzeria
• Practical guides to help you open a pizzeria

Know someone who's about to write a pizzeria business plan? Share this guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Write a Business Plan for Pizza Shop in 9 Steps: Checklist

By henry sheykin, resources on pizza shop.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Are you dreaming of opening your very own pizza shop? With the pizza industry in the US experiencing a rapid growth rate, now is the perfect time to dive in. According to a recent industry report, the pizza industry generated over $46 billion in revenue in 2020 alone, and this number is projected to continue rising in the coming years. So, if you're ready to get a slice of the action, here is a checklist to help you write a business plan for your very own pizza shop.

Conduct market research: Before diving headfirst into the pizza business, it's essential to understand the local market. Research the demand for pizza in your target area, identify any gaps in the market, and determine the preferences of potential customers.

Identify target market: Once you've conducted your market research, define your target market. Consider factors such as age, demographics, and lifestyle choices to effectively tailor your pizza shop's offerings and marketing efforts.

Analyze competitors: Research and analyze existing pizza shops in your area. Understand their strengths, weaknesses, and unique selling propositions. This will help you determine how to position your pizza shop for success.

Determine the location: Location is crucial in the success of any pizza shop. Consider factors like foot traffic, accessibility, and proximity to other businesses. Choose a location that will attract your target market while being convenient for customers.

Create a detailed budget: Developing a comprehensive budget is essential for planning your finances. Consider all expenses, including rent, equipment, ingredients, and marketing costs, to determine the capital required for your pizza shop.

Develop a menu and pricing strategy: Your menu should reflect your target market's preferences while also considering the costs and profitability of each dish. Establish a pricing strategy that is competitive yet profitable.

Identify potential suppliers and vendors: Find reliable suppliers for quality ingredients at reasonable prices. Establish relationships with vendors who can consistently meet your demand and deliver on time.

Determine the required equipment and resources: Assess the equipment and resources needed to run your pizza shop efficiently. From ovens and dough mixers to delivery vehicles and POS systems, ensure you have all the necessary tools to serve your customers.

Define the unique selling proposition: Differentiate your pizza shop from competitors by identifying your unique selling proposition. Whether it's offering a specialty pizza, using locally sourced ingredients, or providing exceptional customer service, give customers a reason to choose your shop over others.

With these nine steps in mind, you're well on your way to writing a stellar business plan for your pizza shop. So, grab a pen and get ready to turn your dreams of owning a successful pizza business into a reality!

Conduct Market Research

Conducting market research is a crucial first step in developing a business plan for a pizza shop. It allows you to gather valuable information about the market landscape, understand consumer preferences, and identify potential opportunities and challenges.

When conducting market research for your pizza shop, consider the following:

• Demographics: Study the demographics of the area where you plan to open your pizza shop. This includes factors such as age, income level, and population density. Understanding the demographics will help you determine if there is a demand for a pizza shop and what target market to focus on.
• Competition: Analyze the competition in the area, including other pizzerias and food establishments. Assess their strengths, weaknesses, pricing strategies, and unique selling propositions. This information will help you identify ways to differentiate your pizza shop and attract customers.
• Trends and Preferences: Stay updated on the latest trends and preferences in the pizza industry. For example, gluten-free options, organic ingredients, or unique pizza toppings might be in high demand. Understanding these trends will help you tailor your menu and offerings to meet customer expectations.
• Consumer Demand: Determine the demand for pizza in the area by conducting surveys, gathering feedback, or analyzing existing data. This will give you insights into the potential customer base and help you estimate the market size and revenue potential.

Tips for Conducting Market Research:

• Utilize online resources, such as industry reports and websites, to gather market data and insights.
• Engage with potential customers through focus groups or online surveys to understand their preferences and expectations.
• Visit and observe other successful pizza shops in different locations to gain inspiration and learn about best practices.
• Network with other local small business owners to get their insights and recommendations regarding the market conditions.

Identify Target Market

Identifying your target market is a crucial step in developing a successful business plan for your pizza shop. Understanding who your ideal customers are will allow you to tailor your menu, marketing strategies, and overall business approach to cater to their needs and preferences.

Start by conducting thorough market research to gather data and insights about the demographics, socioeconomic status, and consumer behavior of the local community where your pizza shop will be located. Consider factors such as age, income level, occupation, and lifestyle habits to help you identify your target market.

• Are you targeting families with young children who often dine out for convenience?
• Or perhaps your focus is on college students who are looking for affordable and quick food options?
• Do you want to attract pizza enthusiasts who are willing to pay a premium for unique and gourmet toppings?

Tips for identifying your target market:

• Observe your competitors: Take a look at similar pizza shops in the area and analyze their customer base. This can give you insights into the types of customers who are likely to visit your pizza shop.
• Conduct surveys or interviews: Engage with the local community to gather direct feedback on their preferences and expectations when it comes to pizza. This will help you understand their needs better.
• Analyze local demographics: Utilize data from government sources, such as census reports or local statistical websites, to understand the characteristics of the population in your area. This can help you narrow down your target market.

By identifying your target market, you can tailor your marketing and advertising efforts to reach the right audience, create a menu that appeals to their tastes, and build a strong customer base that will support the growth and success of your pizza shop.

Analyze Competitors

When starting a pizza shop, it is crucial to analyze your competitors in order to understand the market landscape and position your business effectively. Here are the key steps to analyze your competitors:

• Identify direct competitors: Make a list of existing pizza shops in your target area that offer a similar product or service. Look for shops that are popular and well-established.
• Evaluate their strengths and weaknesses: Visit their websites, social media pages, and physical locations to gather information about their strengths and weaknesses. Look for aspects such as menu variety, quality of ingredients, customer reviews, pricing strategy, and customer service.
• Assess their target market: Determine the target market your competitors are catering to. Analyze their marketing strategies and branding to understand the type of customers they are trying to attract.
• Examine their pricing strategies: Compare the pricing of your competitors' pizza offerings. Consider factors such as portion size, toppings, and meal deals. This will help you determine a competitive and profitable pricing strategy for your own business.
• Analyze their marketing efforts: Observe how your competitors promote their pizza shop. Look for social media advertising, online promotions, and any unique marketing campaigns they utilize. Take note of their tactics to help shape your own marketing strategy.

Tips for analyzing competitors:

• Visit the competitor's establishment in person to observe their operations and assess customer experiences.
• Engage with their social media pages and monitor customer interactions to gain insights into customer preferences and feedback.
• Consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to further understand your competitors and identify areas where you can differentiate your business.

By thoroughly analyzing your competitors, you can identify opportunities to differentiate your pizza shop and tailor your offerings to meet the needs of your target market. This valuable information will help you develop a unique selling proposition and establish a competitive advantage in the market.

Determine The Location

Choosing the right location for your pizza shop is crucial to the success of your business. The location will determine how easily accessible your pizza shop is to potential customers and can significantly impact foot traffic and sales. Consider the following factors when determining the location for your pizza shop:

• Demographics: Research the demographics of the area where you plan to open your pizza shop. Look at factors such as population density, age groups, income levels, and cultural preferences. This information will help you identify if there is sufficient demand for a pizza shop in that location.
• Competition: Analyze the competition in the area. Identify other pizza shops or restaurants offering similar cuisines nearby. Consider how you can differentiate your pizza shop from the competition and attract customers.
• Foot Traffic: Look for a location with high foot traffic, such as near shopping centers, office complexes, or residential areas. Having a steady stream of potential customers passing by your pizza shop can increase visibility and attract more customers.
• Parking and Accessibility: Ensure that the location has ample parking spaces available, especially if you plan to have a dine-in option. Additionally, consider the accessibility of the location for delivery drivers and customers who may be ordering take-out.
• Costs: Evaluate the cost of renting or purchasing a space in the desired location. It's essential to find a balance between a prime location and affordable rent or purchase price that aligns with your budget.

Tips for determining the location:

• Conduct a thorough analysis of potential locations using online tools and resources.
• Visit the desired location at different times of the day to observe the foot traffic and activity in the area.
• Consider seeking the help of a real estate agent specializing in commercial properties to assist you in finding the perfect location.
• Keep in mind any zoning regulations or restrictions that may affect the location of your pizza shop.

Create A Detailed Budget

Creating a detailed budget is a crucial step in starting a pizza shop. It allows you to understand and plan for the financial aspects of your business, ensuring that you have a clear understanding of your expenses, revenue projections, and profitability.

To create a detailed budget, start by identifying all the costs associated with setting up and running your pizza shop. This includes expenses such as lease or rent for the location, utilities, insurance, permits, licenses, and equipment purchases. Don't forget to also consider employee salaries, payroll taxes, and benefits.

Once you have identified these costs, it's important to research and gather accurate information to estimate their amounts. This can be done by contacting suppliers, vendors, and service providers to obtain quotes and pricing information. Additionally, consider consulting with industry experts or other pizza shop owners to get a realistic understanding of the costs involved.

Once you have compiled all the necessary information, you can begin organizing your budget in a clear and systematic manner. Categorize your expenses under headings such as 'fixed costs' (rent/utilities), 'variable costs' (ingredients), and 'operating expenses' (advertising/marketing). This will help you analyze and track your expenses effectively.

When creating your budget, it's essential to be realistic and conservative in your estimations. Be sure to account for unexpected expenses or fluctuations in prices. It's always better to overestimate your expenses and be pleasantly surprised by any cost savings rather than underestimating and facing financial challenges later on.

Tips for Creating a Detailed Budget:

• Research and compare different suppliers to get the best prices for ingredients and equipment.
• Consider seasonal variations in pricing or demand and adjust your budget accordingly.
• Allocate funds for marketing and advertising to ensure your pizza shop gains visibility in the market.
• Regularly review and update your budget to reflect any changes or adjustments in your business operations.
• Consider seeking professional assistance from an accountant or financial advisor to ensure accuracy and thoroughness in your budgeting process.

Develop A Menu And Pricing Strategy

Developing a menu and pricing strategy is a crucial step in creating a successful pizza shop business plan. The menu should offer a variety of pizza options to cater to different tastes and preferences. It is important to consider both traditional and unique pizza flavors to attract a wide range of customers.

Here are some important points to consider:

• Research the popular pizza flavors in your target market and incorporate them into your menu.
• Create a balance between classic pizzas and innovative recipes to cater to different customer preferences.
• Offer a variety of toppings, sauces, and crust options to allow customers to customize their pizzas.
• Incorporate vegetarian and vegan options to cater to customers with dietary restrictions or preferences.
• Consider offering specialty pizzas and seasonal variations to keep the menu fresh and exciting.
• Regularly update your menu based on customer feedback and market trends to keep it relevant and enticing.
• Consider offering pizza combos or meal deals to provide value for money to customers.
• Analyze the pricing strategies of your competitors to ensure that your pricing is competitive and attractive to customers.

When it comes to pricing, it is essential to find a balance that allows your business to make a profit while remaining competitive in the market. Consider factors such as ingredient costs, overhead expenses, and desired profit margins when determining your pricing strategy.

Furthermore, offering promotional deals and discounts can help attract and retain customers. These can include weekday specials, happy hour discounts, or reward programs for loyal customers.

Remember, your menu and pricing strategy should align with your target market's preferences and your unique selling proposition to set yourself apart from competitors and attract customers to your pizza shop.

Identify Potential Suppliers And Vendors

When starting a pizza shop, identifying potential suppliers and vendors is a crucial step in ensuring the smooth operations of your business. Reliable suppliers and vendors will provide you with the necessary ingredients, equipment, and other resources needed to run your pizza shop efficiently. Here are some key points to consider when identifying your potential suppliers and vendors:

• Research and Contact Local Food Suppliers: Look for reputable food suppliers in your area who can provide high-quality ingredients for your pizzas. Consider contacting wholesalers, distributors, and local farmers who can offer fresh produce.
• Source Equipment and Supplies: Identify vendors who can supply you with the necessary equipment, such as ovens, dough mixers, and refrigeration units. Additionally, research suppliers who can provide essential supplies like pizza boxes, napkins, and cleaning products.
• Establish Relationships: Building strong relationships with your suppliers and vendors is vital for long-term success. Seek suppliers who are reliable, punctual, and willing to work closely with your business needs.
• Consider Cost and Quality: Compare prices and quality among different suppliers to ensure you are getting the best value for your money. While it's important to consider cost, prioritize quality to deliver exceptional pizzas to your customers.
• Check for Sustainability: In today's market, sustainability is an important factor to consider. Look for suppliers who prioritize eco-friendly practices and offer sustainable packaging options.
• Ask for samples or visit the suppliers' facilities to assess the quality of their products.
• Consider establishing contracts or agreements with suppliers to ensure a steady and reliable supply chain.
• Regularly review and evaluate the performance of your suppliers to identify any potential areas for improvement.
• Network with other local businesses to gather recommendations on reliable suppliers and vendors.
• Consider participating in industry events or trade shows to connect with potential suppliers and stay updated on new products and trends.

Determine The Required Equipment And Resources

When establishing a pizza shop, it is crucial to determine the required equipment and resources needed to efficiently run your business. The right equipment and resources will enable you to produce high-quality pizzas and provide excellent customer service. Here are some key considerations:

• Oven: The centerpiece of any pizza shop, a high-quality and reliable oven is essential. Choose between a traditional deck oven, conveyor oven, or brick oven based on your specific needs and budget.
• Preparation and cooking utensils: Invest in durable and efficient utensils such as pizza peels, knives, dough rollers, and sauce ladles to ensure smooth operations during pizza preparation and cooking.
• Refrigeration and storage: Proper refrigeration and storage are vital for maintaining the freshness and safety of ingredients. Consider investing in commercial refrigeration units, walk-in coolers, and freezer storage to meet your inventory needs.
• Workstations and counters: An organized and efficient workspace is necessary for maximizing productivity. Install adequate workstations and counters to facilitate pizza assembly, ingredient preparation, and overall workflow.
• Delivery vehicles: If you plan to offer delivery services, procure reliable and properly maintained vehicles to ensure prompt and efficient deliveries to your customers.
• Point of Sale (POS) system: A modern and user-friendly POS system will simplify transactions, track sales, manage inventory, and assist in generating reports for better business analysis.
• Staff: Determine the number of employees required and ensure they are properly trained in operating the equipment and utilizing the available resources effectively.
• Consider purchasing equipment from reputable suppliers to ensure durability and prompt maintenance support.
• Regularly schedule equipment maintenance and servicing to prevent breakdowns and ensure smooth operations.
• Invest in energy-efficient equipment to reduce utility costs in the long run.
• Explore leasing or financing options for expensive equipment to manage initial costs.
• Keep abreast of industry trends and technological advancements that may improve efficiency and enhance customer experience.

Define The Unique Selling Proposition

Defining your unique selling proposition (USP) is crucial for the success of your pizza shop. Your USP is what sets you apart from your competitors and gives customers a reason to choose your pizza shop over others. It is the distinctive factor that makes your business unique and memorable in the minds of consumers.

When determining your USP, consider your strengths, specialties, and what makes your pizza shop different from the rest. Are you using locally sourced ingredients? Do you offer a wide variety of unique and custom toppings? Are you known for your secret sauce recipe or a special cooking technique?

Identifying your USP can help you target and attract a specific demographic of customers who value the unique experience or product you offer. For example, if your pizza shop focuses on organic and gluten-free options, you can appeal to health-conscious customers who are looking for healthier alternatives.

Tips for Defining Your Unique Selling Proposition:

• Research your target market to understand what they value and what they are looking for in a pizza shop.
• Evaluate your competitors to identify gaps in the market that you can fill with your unique offering.
• Consider conducting surveys or focus groups to gather feedback and insights from potential customers.
• Focus on highlighting the key features or benefits that your pizza shop offers that others don't.
• Communicate your USP clearly and consistently through your branding, marketing materials, and customer interactions.

Defining and promoting your USP can help you attract loyal customers and stand out in a saturated market. It gives potential customers a reason to choose your pizza shop over the competition, creating a strong and memorable brand identity.

Writing a business plan for a pizza shop is crucial for success in the competitive food industry. By following the nine steps outlined in this checklist, entrepreneurs can effectively research the market, identify their target market, analyze competitors, select the best location, create a detailed budget, develop a menu and pricing strategy, identify suppliers and vendors, determine necessary equipment and resources, and define their unique selling proposition. By implementing marketing strategies and promotional activities, such as social media advertising, a pizza shop can attract and retain customers, generating revenue and achieving long-term success.

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Pizza Shop Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write A Pizza Shop Business Plan?

Writing a pizza shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Highlight the pizzas you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of pizza shop you run and the name of it. You may specialize in one of the following pizza businesses:

• Traditional Pizzeria
• New York Style Pizzeria
• Neapolitan Pizzeria
• Gourmet Pizzeria
• Fast-Casual Pizza Chain
• Take-and-Bake Pizza Shop
• Vegan or Plant-Based Pizza Shop
• Mobile Pizza Truck
• Gluten-Free Pizza Shop
• Describe the legal structure of your pizza shop, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established pizza shop, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your pizza shop business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Mention your menu:

Mention the pizza shop menu your business will offer. This list may include:

• Classic pizzas
• Specialty pizzas
• Pizza customization options
• Sauces & sides

Pizza offerings:

Quality measures:.

This section should explain how you maintain quality standards and consistently provide the highest quality.

Additional Services:

In short, this section of your pizza shop plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your pizza restaurant business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your pizza shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for a pizza shop, such as an oven, dough mixer, refrigerators, pizza press, food prep tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your pizza shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your pizza shop, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your pizzeria business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample pizza shop business plan will provide an idea for writing a successful pizza shop plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our pizza shop business plan pdf .

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Frequently asked questions, why do you need a pizza shop business plan.

A business plan is an essential tool for anyone looking to start or run a successful pizza shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your pizza shop.

How to get funding for your pizza shop?

There are several ways to get funding for your pizza shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your pizza shop?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your pizza shop business plan and outline your vision as you have in your mind.

What is the easiest way to write your pizza shop business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any pizza shop business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Pizza Business Plan Template & Guidebook

Starting a pizza business can be an exciting opportunity to bring delicious food to your area; however, it can be daunting to begin the process. A pizza business plan template and guidebook is a helpful resource that can provide guidance and insight on how to build a successful business and create a profitable product. This article will introduce readers to the #1 Pizza Business Plan Template & Guidebook, its features, and how it can help entrepreneurs launch their pizza business with confidence.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Pizza Business [11 Steps]
• 10+ Best & Profitable Pizza Business Ideas [2023]
• 25 Catchy Pizza Business Names:

How to Write a Pizza Business Plan in 7 Steps:

1. describe the purpose of your pizza business..

The first step to writing your business plan is to describe the purpose of your pizza business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a pizza business:

Our purpose at [Insert Business Name] is to provide a convenient, cost-effective, and delicious approach to pizza that allows customers to enjoy pizza as both an everyday meal and a special treat. We strive to create an enjoyable experience for our customers every time they order with us.

2. Products & Services Offered by Your Pizza Business.

The next step is to outline your products and services for your pizza business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your pizza business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your pizza business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your pizza business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a pizza business?

• Refrigerator/Freezer
• Prep Tables
• Smallwares (Knives, Cutting boards, measuring cups, etc)
• Mixers/Blenders/Food Processors
• Pizza boxes & Bags
• Serving & Packing Supplies (Napkins, Plates, Forks, etc)
• Cleaning & Maintaining Supplies (Mops, brooms, cleaning fluids, rags, etc)
• Business Permits & Licenses (liquor license if selling alcohol)

5. Management & Organization of Your Pizza Business.

The second part of your pizza business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your pizza business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Pizza Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a pizza business varies based on many different variables, but below are a few different types of startup costs for a pizza business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your pizza business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your pizza business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your pizza business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Pizza Business Plans:

Why do you need a business plan for a pizza business.

A business plan is a valuable tool for entrepreneurs starting a pizza business. It can help to ensure that the business is on track to be profitable, and outlines steps to reach financial targets. It also serves as a roadmap for how the business should be run and provides a clear strategy of how to develop and grow the business. A well-crafted business plan can help secure funding, attract partners and investors, set objectives, inform day-to-day operations, and provide guidance on future plans and decisions.

Who should you ask for help with your pizza business plan?

There are a variety of professionals who may be able to help you with your pizza business plan. This could include consultants, such as those in the field of accounting, finance, and business management, as well as attorneys who specialize in small business law. You can also speak with other pizza entrepreneurs who have experience starting and running their own businesses. Additionally, your local Small Business Administration (SBA) office can provide guidance on writing a business plan and provide other resources to help get your business off the ground.

Can you write a pizza business plan yourself?

Yes, you can write a pizza business plan yourself by following some basic steps. First, research the pizza industry to understand the market and competition. Next, develop a business plan that outlines your goals and objectives for your pizza business. This should include an analysis of your target market, pricing strategy, marketing plan, financial projections, and operations plan. Finally, seek feedback and advice from industry professionals or other experienced entrepreneurs to ensure that all areas of your business plan are well-thought-out before beginning your venture.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Pizza Shop Business Plan

Pizza, pizza, pizza! Who doesn’t love a delicious slice of cheesy, saucy heaven? If you’re considering starting a pizza shop business, you’re in the right place! This blog will dive into creating a solid business plan to ensure your pizzeria’s success. From market research and financial projections to menu development and marketing strategies, we’ve got you covered. So grab a slice, and let’s get started!

What Is A Pizza Shop Business Plan?

A pizza shop business plan is a document that guides how to start and manage a pizza shop business. The plan includes details on how you will make money, how you will keep track of expenses, and your business goals. A good pizza shop business plan should consist of all these elements. Pizza shops are only sometimes easy to start, but if you have an excellent idea for a pizzeria and have the right resources, it can be done! A good pizza shop business plan will help you decide where to find investment capital, how much money you need to start up your pizzeria, what kind of pizza you want to sell, and what your marketing plans should be.

A good pizza shop business plan should include the following:

A Description Of Your Target Market

If you are starting a pizza shop business, the first step is identifying your target market. You can observe people visiting your local businesses and asking them what food they like. This will enable you to establish an idea of what kind of customers you are aiming for.

The target market for your pizza shop business will be based on how many people live in your area, what type of people they are, and how much money they make. For example, if you live in an area with many young couples with children (and therefore many customers), you’d want to open a pizza shop that caters to those people. If you live in an area with many elderly people who don’t have much money, it would be smarter to open a grocery store instead of a pizza shop.

The Location Of Your Business

To open a pizza shop business, you must decide where it should be. It can be anywhere in the world, but certain factors must be considered before making this decision. These include environmental factors like climate and weather conditions, traffic patterns, distance from other restaurants and shops, etc. You need to know if there are any restrictions on where you can open up shop and what legal requirements might be for owning a restaurant in certain areas.

The Type Of Product You Will Be Selling

You need to know what products you will sell in your pizza shop business plan and how much they will cost. Consider making pizzas for a particular event, like a wedding or birthday party. You might also have some ideas about which foods customers would buy at the shop. If you’re planning on selling frozen pizzas, consider whether you want to run a frozen food delivery service or sell them in-store.

Your Cost Structure

You should decide how much money you need to start up and run the business and what percentage of profits will go towards paying taxes and other expenses. This should include all expenses involved in running your pizza shop business, including rent, utilities, payroll, supplies, and additional operating costs. These expenses should be broken down into several categories to identify and monitor over time easily. These categories include legal fees, rent, utilities, and payroll. You should also include the profit margin for each category and any other expenses incurred during the business operations, such as advertising or marketing costs.

How Will You Finance Operations At First

It is essential to have enough capital to start a business. You cannot start off with an empty bank account because you need to invest in items such as your restaurant, furniture, and equipment. Capital can come from bank loans or angel investors. You can use your savings or borrow money from banks and other lenders as required. Getting a loan from a bank or any other financial institution is a good idea to start with good credit ratings and continue operating your business without worrying about finances.

How To Write A Successful Pizza Business Plan

Define your target market.

Pizza is popular worldwide and can be found in many different forms, from fast-food outlets to high-end restaurants. A successful pizza business plan should define the type of customers you want to attract. You should also decide whether you want to focus on specific areas, such as pizza delivery or if you want to open up a restaurant that serves both takeaway and dine-in options.

Develop A Unique Selling Proposition

You will need to develop a unique selling proposition for your business plan to attract customers. This might include offering special deals, discounts, and offers on certain products or services. You should also take into account other competitors who are already operating in the marketplace and make sure that there is enough difference between your business plan and theirs so that it stands out from the crowd.

Establish Your Pricing Strategy

Pricing is one of the most important aspects of any Pizza business plan. You need to determine what kind of price points you want to offer, what level of service you will provide, and how much your customers will pay for it all. You can rely on the local market or set yourself apart from other restaurants in town by offering unique or exotic pizzas or toppings that aren’t typically available elsewhere. In addition, consider whether you want to provide take-out or dine-in options so that customers can choose whether they want their food delivered or served in-house at a table.

Create A Marketing Plan

The first step in starting any new business is to develop a marketing plan. The Pizza business plan should include a detailed description of how the company will be marketed and promoted and how it will conduct its overall sales and marketing strategy. For example, it’s important to include information about how you will advertise your pizza delivery service and what types of promotions you will offer customers. Also, ensure you include any special promotional events you plan on doing throughout the year to attract more customers to your business.

Outline Your Operations Plan

You need to outline the key aspects of your business, including where you intend to source your ingredients from, how many deliveries you expect to make per week, and how many customers you will be able to attract. You should also consider the costs involved, such as staff wages, rent and delivery fees. This information will help you determine what type of equipment, licenses, licenses, and permits are needed to run your business effectively and efficiently.

Create A Financial Plan

This will help you determine how much money you need to start up your business and keep it running each year. It is important that you include all potential costs so that you can see where any profits can be made or lost. You should also have an idea of how much money will be coming in each month and what percentage of this is going towards paying back loans or borrowing more funds from investors.

Write A Management And Organizational Plan

The pizza business plan should include a detailed description of your pizzeria’s management and organizational structure, including how many employees you will hire, where they will work, how much money you will spend on employee training, and how much time you expect each employee to work. This is especially essential if you plan to expand your business by opening additional locations or acquiring another restaurant franchise.

Identify The Team And Staffing Needs

Your business plan should include information about who will be involved in your pizza business’s daily operations and their specific responsibilities. For example, who has responsibility for ordering ingredients? Who has responsibility for scheduling delivery drivers? Who has responsibility for training new employees? It is essential to consider factors such as customer traffic, kitchen and equipment needs, and peak business hours when determining the appropriate number of staff. Additionally, it is important to consider the qualifications and experience of the team members, as well as their ability to work well together. This will ensure that the business runs smoothly and can meet customers’ needs.

Describe The Exit Strategy

The exit strategy is the most important factor that can help you determine if your business has a chance at success. An exit strategy is a plan that outlines how you will work to achieve your goals, including how much money or equity you want to get out of the business, what assets you would like to sell, and when you think this will happen. You should always have an exit strategy in place before starting any business because it helps prevent problems later on down the line.

Continuously Update And Improve

One of the most vital aspects of any successful business plan is constantly updating it to reflect current market conditions, technological changes, and customer preferences. This means being aware of new industry trends and ensuring that your plans reflect these changes when possible. It also means keeping an eye out for opportunities that might arise from these changes so that you can take advantage of them before anyone else does. This could be anything from launching new products or services to changing pricing structures or distribution channels.

Advantages Of Having A Pizza Shop Business Plan

To have an understanding of the competition and market.

Pizza is one of the most popular fast-food meals in the world. It’s easy to make, delicious and quick, which makes it very appealing to consumers. With so many pizza shops opening up worldwide, there is bound to be fierce competition between them. However, having a concrete business plan in place will give you a better idea of how much profit you can expect from your business and how much time it will take you to reach your goals.

It Helps Set Realistic Financial Projections And Goals

When setting up a business plan for your pizza shop business, it is important that you consider all aspects of running an establishment like this, including the costs involved in getting started as well as what sort of profits you can expect from your venture. By doing this, you will be able to establish a more accurate timeline for your project and know when you should be able to start making money from it.

It Helps You Identify Potential Risks

You may have a great idea to start a pizza shop business, but there are many things that can go wrong. For example, you may have to hire employees, but not in the numbers of desire or find customers who are willing to pay for your product. In this case, having a business plan will help you identify potential risks and mitigate them with detailed plans for each step. This is important since it helps you stay focused on the goal of starting your own business.

Improved Organization And Efficiency

By planning ahead for each step of your process, you will be able to ensure that everything runs smoothly when it comes to opening your new business up for business or servicing customers on a day-to-day basis. This means that when you open your doors, customers will be greeted by helpful staff who know precisely what they need and how to get it done quickly without wasting their time waiting around while others work on getting orders ready or calling in more staff if they’re busy.

It Works As A Tool For Strategic Planning And Decision Making

A business plan outlines the direction of the business and helps the owner identify opportunities and challenges, as well as make informed decisions to achieve the business’s goals. This is especially important when making decisions about marketing and expansion.

In conclusion, a pizza shop business plan is the recipe for success in the pizza industry. With the right ingredients, a well-researched market analysis, a unique concept, and a solid financial plan, you’ll be on your way to baking up profits in no time! So, roll out your dough, add your toppings, and fire up the oven – it’s time to open your own pizza shop and serve up some delicious slices!

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Pizza Delivery Business Plan

Start your own pizza delivery business plan

Tsunami Pizza

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The westside of South Gate has experienced explosive growth the past three years. Over 3,000 new residents live in the westside area. Area businesses are slowly catching up with this new opportunity. Tsunami Pizza is opening a new pizza delivery service that will focus on the westside area.

Currently, the area’s closest pizza restaurant takes up to 45 minutes to deliver a pizza. Tsunami will cut the delivery time to no more than 20 minutes. 

Tsunami will offer a better pizza, at a lower price, and will deliver it hot to the customer’s door faster than the closest competitor.

1.1 Objectives

• Capture the majority of the pizza delivery business in the westside area.
• Offer our customers a superior product, at a low price, and provide customer service that is second to none.

1.2 Mission

Tsunami Pizza’s mission is to offer residents of the westside the best pizza delivery service in the city.

1.3 Keys to Success

• A superior product that will promote customer loyalty.
• A business location that will assure that the pizza will be delivered quickly.
• Delivery people that have great customer skills.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Tsunami Pizza is a new pizza delivery service started in the city’s westside area. John Lindsay, owner of Tsunami Pizza, has seven years experience in the restaurant industry. His focus is to satisfy the customer’s demand for a quality pizza that is delivered quickly with a smile.  Tsunami Pizza will serve a seven mile area with over 25,000 residents. Overhead will be kept low so that Tsunami Pizza’s prices will beat the competition. Delivery people will use their own vehicles so the business will not have to purchase delivery vehicles.

2.1 Start-up Summary

The start-up cost of Tsunami Pizza will consist primarily of kitchen equipment. John Lindsay will invest $50,000.

2.1.1 Company Ownership

Tsunami Pizza is owned by John Lindsay.

2.2 Company Locations and Facilities

Tsunami Pizza will be located at the corner of 11th and Tyler.  These two streets are the area’s busiest and provide easy access to our service area.

Tsunami Pizza will offer a wide variety of New York style pizzas, as well as sodas and fruit juices.

Market Analysis Summary how to do a market analysis for your business plan.">

The westside is a growing middle-class area with 25,000 residents.  A majority of these residents are families of four or more.  The average income for the area is $38,000.   The boom in the area is primarily in response to new employment opportunities in the city’s Westside Industrial Park.  Businesses that traditionally do well with this population have demonstrated the potential for Tsunami Pizza.  A neighbor of Tsunami Pizza, Magic Videos, has been in operation in the area for a little over a year.  Magic Videos is the closest video store serving the westside area. Their sales have grown by 40% due to its location and the absence of direct competition in the westside.

With continued growth in the area, opportunities to serve the westside residents will increase.   The company will sell predominantly to individuals, but it will also accept some catering jobs to individual parties and company functions in the westside.

Strategy and Implementation Summary

Tsunami Pizza will use advertising to promote the business.  We will use the local westside flyer to advertise.  In addition, we will hire people to hold signs at the corner of 11th and Tyler. We will also use door handle flyer promotion throughout the westside neighborhoods.

Our most important promotion will done in conjunction with Magic Video.  We will offer a two for price of one video coupon with each purchase at Tsunami Pizza that can be used at Magic Video.  Magic Video will offer its customers a $2 off coupon that can be used at Tsunami Pizza.

5.1 Competitive Edge

  Tsunami Pizza’s competitive edge is:

• Location:  Tsunami Pizza is located in the heart of the westside area on the corners of 11th and Tyler.  These two streets are the area’s busiest. The closest pizza restaurant to the westside area is a fifteen minute drive. Tsunami Pizza can deliver in half the time of its competitors.
• Low Overhead/Lower Prices: Since Tsunami Pizza only delivers pizza, its prices don’t reflect overhead demands of a traditional pizza restaurant.

5.2 Sales Strategy

The sales strategy of Tsunami Pizza is simple. First, offer the customer a superior pizza at a low price. Second, make sure that pizza is delivered quickly. Third, the delivery people must work to create customer loyalty.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

John Lindsay will be the manager of Tsunami Pizza. John started as a waiter at the city’s famous Sweetwater restaurant. At the time, John was in his junior year at Robertson University. He graduated in 1995 with a BA in history. Soon after graduation, John was offered the position of shift manager at the Sweetwater. He has held that position for five years.

6.1 Personnel Plan

The Tsunami will have the following staff:

• One kitchen staff.
• Two delivery staff.

Financial Plan investor-ready personnel plan .">

The following is the financial plan for Tsunami Pizza.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis.

7.2 Projected Profit and Loss

The following table and charts show the projected profit and loss for three years.

7.3 Projected Cash Flow

The following table and chart is the projected cash flow for three years.

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7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812, Eating Places, are shown for comparison.

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Coastal Pizza

41558 Brown Ave. Corpus Christi, TX 78412

This plan raised $30,000 for the prospective owner of a coastal Texas pizza operation aiming to capitalize on both resident and tourist appetites for tasty, East Coast–style pizza.

EXECUTIVE SUMMARY

Corpus Christi, Texas, is a typical coastal Texas small town. There are a large number of second homes and the economy is tourist based. Corpus Christi has all of the amenities of any destination town, as well as the thrill of 24–hour gambling. What Corpus Christi lacks is a true pizza delivery business. We, the partners of Coastal Pizza, believe that now is the time to give Corpus Christi what it wants.

In short, Coastal Pizza is aiming to become Corpus Christi's first chain of delivery–only, pizza restaurants covering the Corpus Christi area. Costal Pizza wishes to raise $40,000 from a private investor(s) to take advantage of the opportunity explained in the plan.

Coastal Pizza will become Corpus Christi's first, fast and free delivered pizza. For quite a while, Corpus Christi has had only one pizza deliverer who charges for a delivery which takes an average of one hour. It is time the residents and visitors of Corpus Christi have access to a pizza that is made fresh, hot and delivered free.

This is not a new concept. Every town in the country has some form of "Domino's". They all earn large profits; the reason being the lack of necessary space and overhead required to operate a delivery–only business.

Corpus Christi is not only ready for a true pizza delivery operation—Corpus Christi needs one, especially an operation that will focus on quality, price and convenience.

We seek $40,000 to properly ensure a successful enterprise. How the money will be used is covered in detail in the balance of this business plan.

We, the three partners of Coastal Pizza, plan on being open by December 15, 1995. A location will be agreed upon by the end of October 1995. For the first two years of operation, we will be working managers drawing small salaries. This will enable the profits to be used for future expansion. By 1998, new locations will be investigated and will require our total attention.

By 2000 we intend to have a four–location pizza delivery chain throughout the Corpus Christi area. We are confident we can do so because:

• Pizza delivery is the Number One growth business in the United States,
• The Corpus Christi area is rapidly growing,
• Competition is virtually non–existent.

In summary, the primary Coastal Pizza objectives are as follows:

• Achieve over $360,000 in gross sales by end of first year of operation.
• Begin work on a second location in the early part of 1998.
• By 2000 we intend to have a fourth location underway.
• Be the number one growth business in the Corpus Christi area.

MARKET ANALYSIS

Corpus Christi, like every town in the metropolitan area, has a tourist–based economy. The key to a successful business in this area is the ability to capture a healthy local clientele.

Target market

The most recent demographic study of Corpus Christi shows a permanent population of 9,193 growing at a rate of 6% annually. During peak winter and summer months, the population more than doubles. Here lies the bonus of a pizza delivery business: Everyone of all ages loves pizza! Our target market is not a segment of the whole, but indeed the whole. Every single person in the Corpus Christi area is a potential customer and a target of our marketing campaign.

We conducted a market survey of some of the Corpus Christi residents. The results were not so surprising.

• 76% purchase take–out food
• 90% eat pizza
• 38% would have pizza delivered 4 times per month (theoretically, 14,000 pizzas per month)
• 31% would have pizza delivered twice per month (theoretically, 6,000 pizzas per month)

Of course, the theoretical numbers are excessive but good signs nonetheless.

Intermediate Influences

The influences on the local market will differ somewhat from those on the tourist end. Our local market wants quality pizza at a franchise price and free, prompt delivery. The tourist market wants convenience above all else. We can satisfy all of the above needs which is explained in detail later in the business plan.

Competition

Present direct competition is Pepperoni's Pizza, primarily an eat–in pizza restaurant that also delivers. At present they are the only deliverers of pizza in the Corpus Christi area. Their hours of delivery are from 5 to 8 p.m. Delivery time averages one hour and at a $2 surcharge. Your average three–item pizza, delivered, costs over $17 from Pepperoni's.

The indirect competition includes Frank's Diner and Wok Buffet Bar. Frank's sells pizza at a very reasonable price, but they do not deliver and you bake it yourself. Their dough is pre–made and not hand tossed. The Chinese place delivers. Again, they charge for delivery ($4), and only deliver until 10 p.m. nightly.

Any anticipated future competition would be in the form of our present competition playing catch–up. We figure that free delivery will be the first move by the others. Then, possibly a price war with Frank's. Our advantages being lower fixed expenses, a superior ad campaign, a better pizza and the best service. As far as pricing, overall, our prices will be comparative to the franchise delivery outfits that operate in larger areas. Along with low prices, free toppings and free soda are effective sales boosters.

The break even analysis works out to 874 pizzas per month or $10,925 in sales.

There are two ways to go: Either find a great location and build the kitchen from scratch, or find an existing kitchen to lease. Although building a kitchen would allow for a layout designed to our specifications, this option is cost prohibitive. Construction/renovation costs would exceed $45,000. So, an existing kitchen is the answer and we have found one. This kitchen is currently in limited use and is located in one of Corpus Christi's drinking establishments. The owner has agreed to $1.80 per square foot in rent ($900/mo.) and will include garbage pickup and water. Utilities will be based on use.

This location is on Hwy 48, the main road through town, allowing for excellent exposure. Specific terms of the lease have yet to be discussed.

The kitchen is fully equipped but lacks a pizza oven, large mixer, and a few miscellaneous items. Also, we will need to purchase a computer. The total equipment costs will be $9,800, which includes maintenance expenses.

Variable Items

The variable costs involved are for the flour, cheese, vegetables, etc. including the carry–out box; each pizza will cost us an average of $2.85. Quality control is important, so each topping will be weighed to specified amounts. This will also help in cost control.

MARKETING AND SALES

In the pizza delivery business, aggressive marketing is the key. For the most part, having a pizza delivered to your home is an impulse purchase. So, a lot of reminders are needed to trigger the need for a hot pizza delivered whenever desired.

We will have a complete marketing package which will include extensive advertising, strong resort/condo relations, computerized sales and sponsorship of local sports teams and events.

Advertising

The advertising campaign will consist of a mass–mailing program and print ads.

The mass mailing will cover every box holder in Corpus Christi. There will be a flyer style menu with a circular, fridge magnet affixed to the bottom portion. The magnet will look like a pizza and will have our name and phone number printed on it. This will be the perfect constant reminder. The bottom half–inch of the flyer will always be blank. This will enable us to stamp a coupon with one of four different rubber stamps. Each stamp will have a special deal or price break written on it, saving on added printing expenses. There will be four mailings in the first year of operation: The first, in December, will announce our grand opening and the others will occur in January, July and August.

Corresponding with the mass–mailing dates, we will have an insert in the Corpus Christi Press, a local bi–weekly newspaper with a distribution of 13,000. The insert will be similar to that of the mailing but larger and without magnet. Also, on a weekly basis there will be three 3–inch print ads in the Corpus Christi Press and the Metro Texan, a free magazine dealing with local events and news. The Metro Texan is popular both with locals and tourists, and has a distribution from 18,000 to 30,000 (depending on the season).

Television ads have been considered but have yet to be proven effective in the area due to limited cable subscribers.

Resort relations

Our collective background in the resort arena is going to be a big plus with Corpus Christi's large number of condo vacation rentals. Of course the competition puts out menus at the few well known, hotel–type establishments, but untapped are management companies and Realtors who deal in short term rentals. These people cater to a large chunk of the tourist trade of Corpus Christi. Our strategy is to develop a relationship with these businesses by offering an incentive program of free pizza and special, preferred rates. If we treat them right they will be more than happy to supply their clients with our menus and a positive recommendation. This will be an ongoing relationship that will not only increase tourism sales but boost our image within the community.

Local relations

This brings us to the sponsorship of local teams and events. Of course, the free publicity and local recognition factor goes without mentioning, but another benefit is a positive image within the community. If they know you … like you … they will buy from you. This is true for any small community and we plan to take full advantage.

Computerized sales

The computer is going to be one of our great marketing tools. To capture the office lunch crowd, we will take orders by fax. Also, we will advertise with the fax by hooking up a modem to the computer. Everyday at 11 a.m. the computer will fax the day's specials with an order form to be faxed back to us. We will also have a complete database of our customers. So complete, it will aid in creating charge accounts for local businesses and personalize our relations with our customers. When someone calls to order a pizza, and he has been a customer before, we will have all his information logged by his phone number. The customer's name, address, ordering history, preferred method of payment, etc. will instantly appear on the computer screen. Here is an example of how a typical order would be taken:

Us: Thanks for calling Coastal Pizza, may I have your phone number please?

Customer: 831–1234

Us : Thank you. (The number is entered and the customer's file appears.) Is this Mr. Smith?

Customer: Why yes.

Us: Would you like to order your usual large pepperoni & olive pizza and charge it to your Visa card?

Customer: Sure, why not.

Us: Thanks for your order Mr. Smith, we'll see you in a little while.

Also, the database will aid in forecasting, accounting and inventory.

Product features

Of the great selling points our product will have, hand–tossed dough and the secret sauce are going to be the biggest. The other top–selling points are the price, free delivery, available wheat dough and flavored crust.

Everyone agrees that the best pizza comes from out East: New York, Chicago, Boston. As of yet, there are not many great pizzas made in this area. Along with our desire to succeed, we are bringing tried– and–true recipes into this business—recipes that have launched some of the biggest pizzerias on the East Coast.

Price is going to surprise many. Our average large pizza will be priced between $13 and $14, delivered. The competition can not deliver a large pizza for less than $17. Along with the great prices, there is the free delivery. Until every other deliverer follows suit, this will be a large selling point.

More and more, people today want to eat healthier. So, as an option, we will offer wheat dough at no additional charge. Along those same lines, there will be an added choice of five crust flavors. They will be called "crust toppings": garlic, butter, cheese, poppy and sesame seed. This will be a unique feature to Coastal Pizza, and again, offered at no extra charge.

As well as delivery, we will provide slices on premise in conjunction with bar sales. Our hours of operation will be between 11am until midnight (2am on weekends).

Sales results. Earlier in the plan, we mentioned the results of our market survey which were quite impressive. Although those numbers would be more than welcome, we do not foresee selling 4,000 pizzas in a month during our first year. To achieve a more realistic picture of sales, we based our numbers on the 2,963 permanent residential households in Corpus Christi. The following is a projection of pizza sales per household.

• 5 percent will order one pizza per week for a total of 7,704 pizzas per year
• 8 percent will order two pizzas per month for a total of 5,689 pizzas per year
• 15 percent will order one pizza per month for a total of 5,333 pizzas per year
• 9 percent will order six pizzas per year for a total of 1,600 pizzas per year
• 63 percent will order no pizzas

That comes out to 20,326 pizzas per year or 56 pizzas a day. The above numbers show that 56 pizzas sold per day will yield $254,000 in gross sales. When weekends and tourism are added into the picture, these numbers will increase. For example, 56 pizzas a day equates to roughly five per hour of operation. Non–holiday weekends, between 7pm and 1am, we figure on 10 pizzas per hour. During the peak months, (January, February, July, and August) 100 pizzas per day will be a minimum. Then there are the "in–between" months (second half December, first half September and March) where tourism is either picking up or starting to slow down—90 pizzas per day should be the norm. These added pizza sales (8,760 pizzas) total $109,000. Therefore, along with the previous sales estimate, we will have $363,575 in gross sales. This is a moderate projection; those numbers could easily be doubled.

ORGANIZATION

The management will consist of three people:

Jon Anthony is currently the Resident Manager at Timberwoods Resort. He has extensive experience in computers such as creating database and reservation programs for resorts plus spreadsheets to track marketing and sales. He has a strong sales background which includes two years of door–to–door sales and three years as a life insurance representative, servicing 300 clients in Southwestern Texas. His marketing experience consists of budgeting, design and execution of numerous advertising campaigns for two resorts in the Jubilee area, as well as handling public relations and special events. He has participated fully in the preparation of this plan. Jon Anthony is 38 years old, has a degree in business and minored in computers at Texas A&M University.

Adam Smith is currently the front desk manager of Waterways Resort. His experience includes starting, from the ground up, an upscale deli at the Hilton in Corpus Christi. He supervised all aspects of floor design, purchasing, menu pricing, forecasting, hiring and scheduling of employees. He has a broad based management background that includes very large, four–star resorts to a smaller, hands–on resort. Adam is 32 and has a degree in business with emphasis in resort management from Ohio State University.

Brody Pierce is the assistant front desk manager at the Waterways Resort. He has worked with Adam for the last three years, beginning with the deli project at the Hilton in Corpus Christi. From the East Coast, he has experience in the pizza business which consisted of back–line operations such as dough and sauce prep, consistency control, and recipe creation. He has experience as revenue auditor for restaurant, casino and hotel operations. Brody is 29 and has a degree in business administration from Penn State University.

Breakeven analysis

Breakeven units (X)

Fixed costs (FC) $101,228.00

Variable costs (VC) $2.85 X

Breakeven sales (BES) $12.50 X

$12.50 X $101,228.00 $2.85 X

$12.50 X $2.85 X $101,228.00

$9.65 X $101,228.00

X 10,490 units per year, or 874 units per month, or 29 units per day ($362.50 per day).

Fixed costs

Variable costs

Projected income statement

Cash flow projection 1994–1997

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Japanese authorities inspect second Kobayashi Pharma factory after deaths

Health authorities searched a second Kobayashi Pharmaceutical factory in western Japan on Sunday after the company reported five deaths possibly tied to dietary supplements, an official said.

China's Xi meets American CEOs in bid to boost confidence in ailing economy

BEIJING — Chinese President Xi Jinping met with top U.S. executives in Beijing on Wednesday as his government tries to reassure foreign businesses about a market that remains crucial for their bottom lines despite persistent tensions between the world’s two biggest economies.

Xi met the group of American businesspeople and academics at the Great Hall of the People , Chinese state media reported. The meeting was preceded by a group photo.

Participants included Blackstone founder Stephen Schwarzman, Bloomberg Chair Mark Carney, FedEx President Rajesh Subramaniam and Qualcomm President and CEO Cristiano Amon, according to state media reports.

During the meeting, Xi said the Chinese economy was “healthy and sustainable,” an achievement that “cannot be separated from international cooperation,” according to state media, which reported that he “listened carefully” to the American participants.

The executives were in China for a series of business-related events, including the China Development Forum, an annual high-level meeting that ended Monday. Other prominent U.S. business leaders, such as Apple CEO Tim Cook , have also been in China in recent days as the government and American companies engage in a mutual charm offensive.

China has been struggling to bounce back from three years of pandemic isolation , its economic recovery weighed down by structural issues that include a real estate crisis, high local government debt, industrial overcapacity, lackluster consumption and youth unemployment , though the economy managed a 5.2% growth rate last year.  

“The mood here is still pretty dark — about the economy, about the trajectory of the country overall, about China’s place in the world,” Scott Kennedy, senior adviser and trustee chair in Chinese business and economics at the Center for Strategic and International Studies, CSIS, in Washington, said in an interview in Beijing last week.

“There’s been some economic recovery, but it has not translated into people having more positive, optimistic sentiment,” he said.

U.S. and other foreign companies who still see the potential for big business in China, meanwhile, have been alarmed by regulatory crackdowns, a new anti-espionage law, the use of exit bans , raids on consulting and due diligence firms , and other measures amid Xi’s national security drive.

“China’s success the last 40 years has been built on the private sector and openness and collaboration with the West,” Kennedy said. “And so people’s sense of the future is very unclear and ambiguous, and I think that’s what’s leading consumers to not spend as much, companies not to invest as much and for there to be this general malaise that you encounter just about everywhere you go.”

During a visit to China last year, Commerce Secretary Gina Raimondo said U.S. firms had told her the country was “uninvestable because it’s become too risky.”

And a report released in February by the American Chamber of Commerce in China found that the top concerns of U.S. businesses in the country were U.S.-Sino relations, China’s regulatory environment and rising costs.

Hopes rose in November when Xi and President Joe Biden held a summit in California , their first encounter in a year. During the trip, Xi also met with U.S. business leaders at a dinner in San Francisco, where he received a standing ovation.

Among those at the dinner was Apple CEO Cook, a frequent traveler to China, who arrived for another high-profile visit last week.

Even as the company shifts some production to countries such as India , Cook emphasized on this visit that Apple is still committed to China, a key overseas market for the company, as well as a major manufacturing base.

For the first time last year, Apple was China’s largest smartphone vendor , with market share of 17.3%. But the company is under intense pressure from domestic competitors such as Huawei, and iPhone sales reportedly f ell by 24% in the first six weeks of this year compared with a year earlier.

The use of iPhones at Chinese government agencies and state-owned enterprises has also reportedly been restricted amid national security concerns, much like the Chinese app TikTok has been banned from U.S. government devices.

Those are not the only challenges facing Apple, which the U.S. Justice Department sued Thursday over its alleged monopolization of the smartphone market.

Earlier that day, Cook was all smiles as he opened a new Apple store in downtown Shanghai, the company’s 57th outlet in China and its second-largest flagship in the world after its Fifth Avenue location in New York.

Cook said he was “very confident” in the future of Apple’s China operations. “I love being here. I love the people and the culture,” he told reporters. “And it’s just like every time I come here, I’m reminded that anything is possible here.”

Though fans mobbed Cook at the store opening, where some people had lined up overnight, that does not necessarily translate into sales. The economic downturn appears to be making Chinese consumers more price-sensitive, increasing the appeal of cheaper smartphones from Huawei and other local rivals.

“The iPhone is more expensive than other phones, so I think people will choose cheaper ones,” Shi Zhongnuo, 17, said in an interview Monday outside an Apple store in Beijing.

Cook also met with Commerce Minister Wang Wentao, who urged him to “continue to unlock the Chinese market and achieve shared development with China,” the ministry said in a statement.

It was unclear whether Cook attended the meeting with Xi on Wednesday.

China’s courting of executives is in part an effort to revive business interest from abroad. The country’s foreign direct investment fell 19.9% in the first two months of this year to 215.1 billion renminbi ($30 billion), the Commerce Ministry reported last week, after it shrank 8% year-on-year in 2023.

“There’s still huge numbers of multinationals and American companies here, but China has basically lost its place at the very top of the list of where they are targeting strategic investment long term,” Kennedy of CSIS said.

A Chinese regulatory official Tuesday dismissed the drop in foreign investment as nothing unusual.

“The volatility is quite normal when viewed from a global or Asian perspective or when the trend is viewed on a longer timeline,” Xu Zhibin, the deputy head of China’s foreign exchange regulator, said at the Boao Forum for Asia, an annual gathering in China’s southern island province of Hainan that is known as the “Asian Davos.”

Premier Li Qiang , China’s No. 2 official, told Cook and other global business executives at the China Development Forum in Beijing on Sunday that China welcomed foreign investment and was taking steps to improve its business environment.

Vice Commerce Minister Guo Tingting also said Monday that foreign companies would be treated the same as Chinese ones so they “can invest in China with confidence and peace of mind.”

Last week, Chinese officials eased some rules on foreign investment, as well as some security rules on the cross-border flow of data, an issue that has concerned foreign companies. Beijing said this month it would make access to the manufacturing sector easier for foreign investors.

Sean Stein, chair of the American Chamber of Commerce in China, said that while such announcements were encouraging, “announcements don’t move markets and promises don’t drive investment.”

“The key, as ever, will be full and timely implementation,” he said.

Janis Mackey Frayer reported from Beijing, and Jennifer Jett reported from Hong Kong.

Janis Mackey Frayer is a Beijing-based correspondent for NBC News.

Jennifer Jett is the Asia Digital Editor for NBC News, based in Hong Kong.

Fast-food restaurants in California are laying off workers to prepare for the $20 minimum wage hike

• Californian fast-food restaurants are cutting workers to prepare for the $20 minimum wage.
• Pizza Hut franchisees plan to lay off around 1,200 workers, for example.
• Restaurants are also raising prices to offset wages; some are worried about spooking diners.

Fast-food restaurants in California are laying off hundreds of workers to cut back on costs as they prepare for the state's $20 minimum wage for fast-food workers that comes into force in April, a new report by The Wall Street Journal details.

Two franchisees for Pizza Hut , with restaurants across various counties in California, have said they'd lay off around 1,200 workers as they scrap delivery-driver roles to rely on third-party delivery instead.

Southern California Pizza Company, a Pizza Hut franchisee, said it planned to lay off nearly 850 workers in February, according to filings made under California's Worker Adjustment and Retraining Notification Act in December and viewed by Business Insider.

In December, another Pizza Hut franchisee, PacPizza, and its affiliates filed plans to lay off more than 350 workers in February.

And in February, Excalibur Pizza LLC, a Round Table Pizza franchisee, said it planned to lay off 70 workers in April, WARN Act filings show.

Round Table Pizza, which has more than 400 locations in the US, mainly along the West Coast, told BI that the employees being laid off were delivery drivers and that Excalibur was moving to third-party delivery services. The company said it saw the layoffs as a "transfer of jobs," with more workers required at third-party delivery services instead.

"That said, delivery service fees may increase, and the customer will most likely see even higher prices as a result of this ongoing shift," Round Table Pizza's statement continued. "This is the reality of today's restaurants."

Related stories

One fast-food franchisee has even roped in his 73-year-old parents to help out after cutting staff.

Alexander Johnson, who owns 10 Auntie Anne's and Cinnabon locations in California, told the Journal that the new law would have otherwise cost him an extra $470,000 in labor a year.

Franchisees are worried about higher prices spooking diners

California is raising the state's minimum wage for workers at limited-service restaurants to $20 an hour from April 1 — 25% higher than its general minimum wage.

The law only applies to chains with at least 60 locations nationwide, though analysts note that it could lead to wage hikes at other restaurants and workplaces in the state as they try to compete for talent.

The legislation — especially in its original form as the FAST Recovery Act — faced fierce opposition from the restaurant industry, with some chains saying it would drive up operating costs so high that they'd have to lay off workers and charge customers more.

The franchisees generally set prices, and some are concerned that higher prices could scare off diners .

"I can't charge $20 for Happy Meals," Scott Rodrick, owner of 18 McDonald's restaurants in Northern California, told the Journal. He said that in the hunt to save money amid the wage increase, he was "leaving no stones unturned."

Another McDonald's franchisee who owns restaurants in Los Angeles County previously told KTLA 5 News that her food would become "unaffordable" if she raised prices enough to cover the wage increase.

Brian Hom, the owner of two Vitality Bowl açaí bowl restaurants in San Jose, told the Journal he's raising menu prices by about 10% to cover the higher wages. He's also running his stores with two employees, down from four, which he said is slowing down order times.

"I'm definitely not going to hire anymore," Hom told the Journal.

Vitality Bowls has taken "significant measures to optimize profitability," like changing its menu and improving its tech, CEO Roy Gilad told BI in a statement. The company is "well prepared" to offset higher costs, he said.

Are you a fast-food worker who'll soon be getting the new minimum wage? Or a franchisee worried about how it will affect your business? Email this reporter at [email protected] .

Watch: How Domino's makes 1 billion pizzas a year amid labor shortages

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Politics | Boston Mayor Wu rolls out ’emergency’ plan to…

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Politics | boston mayor wu rolls out ’emergency’ plan to increase commercial tax rates.

Mayor Michelle Wu rolled out an “emergency law” to allow Boston to begin increasing property taxes on businesses beyond the state limit next year, saying that residents could otherwise face higher taxes driven by a decline in commercial values.

The mayor’s home rule petition, if approved by the City Council and state lawmakers, would provide a statewide option allowing municipalities to shift more of the tax burden from residents to businesses, exceeding the state cap of 175% up to 200% in the next fiscal year that begins July 1.

The new tax rates would be based on property valuations from Jan. 1, 2024, assessments of which are not expected to be completed by the city until the fall with the impact first felt in tax bills that would go out in January 2025.

In making her pitch, Wu cited the city budget’s heavy reliance on property taxes, which contribute three-quarters of annual revenue, most of which comes from commercial property. The breakdown is particularly cumbersome today, given the empty office buildings and declining values that are steadily eroding Boston’s commercial tax base, she said.

“What we are trying to avoid here is a sudden dramatic and concentrated shock to residential property owners, which could hurt residents and businesses alike,” Wu said during a Thursday press briefing on her new proposal.

Wu’s home rule petition mirrors what was proposed by former Mayor Thomas Menino in late 2003 and signed into law in January 2004 by Gov. Mitt Romney, in that it would provide a tiered shift of the commercial rate — from up to 200% of the residential rate in fiscal year 2025, 197% in FY26, 190% in FY27, and 183% in FY28 before returning to the standard state limit of 175% in FY29.

The differences lie in the timing of the petition, which seeks to avoid the confusion of property tax bills that went out in 2004 without reflecting the new rates approved by the state, and a three-year opt-in period that allows Boston and other municipalities the ability to wait to implement tax classification changes.

The mayor said the city would only begin implementing higher tax rates on businesses next year if “an anticipated loss” in commercial values occurs. She noted that the scenario is likely, citing the “signs” that point to that continued trend, which, per a recent report, could lead to a more than $1 billion budget shortfall in five years — a flip from her administration downplaying those findings from the Boston Policy Institute last month.

Without legislative intervention, Wu said those declining commercial values could lead to “significantly” higher taxes for homeowners, but her administration said the lack of completed assessments made it impossible to determine what that exact increase could be.

The mayor’s spokesperson, Ricardo Patròn, said the administration was using the reported scenario from 2004 as an example of how the higher tax classification shift could impact property taxes.

Without the change that year, residents were facing a roughly 35% increase in taxes, while commercial property owners would have seen a decrease between 15-20%. Shifting more of the burden onto businesses resulted in a 15-18% residential tax increase, while commercial taxes decreased by 5-8%, Patròn said.

Today’s figures would be dependent, in part, on data showing what’s going on with the commercial market, in terms of sales, vacancies, and business income, Nicholas Ariniello, the city’s assessing commissioner, told the Herald.

The city is not considering budget cuts to offset any residential property tax increases, should the mayor’s proposal fail to receive local and state approval, Ariniello said, saying the impact to municipal services would be too great.

While the mayor’s team loaded up the day’s press call with supportive voices from the business community, the proposal has already prompted criticism around plans to hit property owners with higher taxes while the commercial sector is struggling.

When tax rates are raised on commercial properties, “that further depresses the value of those properties which are already in distress,” Evan Horowitz, executive director of The Center for State Policy Analysis at Tufts University, said Tuesday.

“So over the long term, with approximate values going down, we actually collect less in future property taxes as well,” Horowitz said. “There are much more efficient ways to raise taxes and in general you want to raise taxes from healthy factors and healthy industries that can withstand the additional costs.”

CEO Greg Vasil said Thursday that the Greater Boston Real Estate Board is “deeply concerned that increasing commercial tax rates to recoup lost revenue will only take us closer to the urban doom loop being seen in many other cities.”

“This is a time unlike any other in the last 30 years, and piling more financial burdens on a struggling industry is no solution at all,” Vasil said in a statement that called the proposal “fiscally irresponsible.”

The Boston Municipal Research Bureau raised concerns as well, stating that with the “City of Boston’s heavy reliance on commercial tax revenue to fund its operating budget, there is a risk of creating too great a burden on these taxpayers.”

Wu and others on the call insisted the plan is not intended to “harm” businesses and is a “non-revenue”-generating measure, but the mayor did note that the larger effort has to be around tackling the city budget’s structural problem of being overly reliant on property taxes, to reduce the burden on taxpayers.

The city would have to petition the state before introducing an additional tax, the mayor said, noting that while there are a number of revenue-generating local options being kicked around at the state level, Boston has been focused on lobbying for a real estate transfer fee — in the form of a 2% tax on big-ticket sales over $2 million that has faced resistance from industry groups.

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Biden administration revs up plans to transition from gas-powered vehicles to EVs

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The nation’s slow transition to electric vehicles got a boost Wednesday when the Biden administration announced it had finalized the strongest-ever pollution standards for cars and light trucks.

The Environmental Protection Agency rule, which would begin taking effect with model year 2027, would require car manufacturers to increase sales of electric vehicles while cutting carbon emissions from gasoline-powered vehicles.

EPA Administrator Michael S. Regan said at a news conference that the rule marks the “strongest vehicle pollution technology standard ever finalized in United States history.”

“These technology standards for model years 2027 through 2032 will avoid more than 7 billion tons of carbon pollution,” Regan said. “That’s four times the total carbon pollution from [all] transportation in the year 2021. Cleaner vehicles and lower emissions mean so much to the people across this country.”

Transportation is the largest source of greenhouse gas emissions in the United States, including in California. The new EPA standards would represent a nearly 50% reduction in average projected greenhouse gas emissions levels for light-duty vehicles and a 44% reduction for medium-duty vehicles, the agency said in a statement.

Climate & Environment

Can California pull off the epic transition to EVs? Read our coverage here

California has ambitious climate goals, including a pledge to ban the sale of new gasoline- and diesel-powered cars and light trucks by 2035.

March 29, 2024

The rules are also expected to reduce health-damaging soot emissions from gas cars by more than 95% — a move that could improve air quality in cities like Los Angeles where many homes are near freeways.

In many ways, the federal rule follows the lead of California, which has been a pioneer in efforts to eliminate reliance on gas-powered cars. In 2022, regulators announced they would halt the sale of new gas cars in the state by 2035.

Twelve states and Washington, D.C., have chosen to adhere to California’s more stringent rules. Along with California, the group accounts for roughly 33% of the nation’s new car registrations, according to state officials.

American Lung Assn. President and Chief Executive Harold Wimmer applauded the Biden administration’s move as a “critical step to address climate change and reduce air pollution.” Still, Wimmer said, the EPA has more work to do to reduce emissions, particularly from heavy-duty vehicles including freight trucks and buses.

When soot, or fine particulate matter, is inhaled, the microscopic pollution not only aggravates the lungs and raises the risk of respiratory disease, but it also can travel into the bloodstream, where it can trigger stroke or heart attack.

“Trucks represent a small fraction of total on-road vehicles but generate the greatest share of harmful air pollutants,” Wimmer said. “Reducing emissions from both cars and trucks is critical to improving public health, advancing health equity and addressing climate change.”

The EPA rule does not ban vehicles with internal-combustion engines. While the rule is expected to increase electric vehicle sales nationally, car manufacturers have autonomy in deciding how to meet the reduced emission standards. They could achieve the standards by selling more hybrid cars or improving the efficiency of gas-powered engines.

The final rule also gives car manufacturers more time to phase in pollution limits than the EPA had proposed last year. Under that more ambitious plan, electric vehicles would have accounted for 67% of all new passenger cars sold in the U.S. by 2032.

John Bozzella, president and CEO of the auto manufacturing trade group Alliance for Automotive Innovation, said that while automakers are committed to transitioning to electric vehicles, the pace at which it happens is crucial for those companies.

“Moderating the pace of EV adoption in 2027, 2028, 2029 and 2030 was the right call because it prioritizes more reasonable electrification targets in the next few very critical years of the EV transition,” Bozzella said. “These adjusted EV targets — still a stretch goal — should give the market and supply chains a chance to catch up. It buys some time for more public charging to come online, and the industrial incentives and policies of the Inflation Reduction Act to do their thing.”

News of the EPA rule comes on the heels of an agreement between the California Air Resources Board and vehicle manufacturing giant Stellantis. Under the agreement, the company is to abide by state requirements that zero-emission vehicles account for a growing share of sales in California through 2030, even if the policy is challenged in the courts or by federal action.

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Zero-emission cars represent about 7.6% of vehicles sold today in the United States, up from nearly 6% in 2022 and just over 3% in 2021. They remain the fastest-growing car sales category, according to Kelley Blue Book.

In California, electric vehicle sales dropped significantly in the last half of 2023 for the first time in more than a decade, a phenomenon experts attributed in part to unreliable charging technology, higher prices for zero-emission vehicles and concerns about vehicle range. Still, California has more electric cars on its roads than any other state, with electric vehicles making up 20.1% of its new car sales.

Electric vehicle sales growth also has slowed nationally as automakers such as Ford and General Motors have cut back for the moment on EV and battery production plans.

Hertz is also pulling back on its plan to shift toward EVs. The rental car company had announced plans several years ago to buy 100,000 Teslas, but in January said it was selling its EV fleet, citing higher expenses for collisions and damage involving the vehicles.

The National Automobile Dealers Assn., which represents more than 16,000 car and truck dealerships, was among the automotive trade organizations that expressed concern over the federal requirements. The new targets, they say, don’t reflect the demand for electric vehicles.

“The EPA’s final rule remains too aggressive and far ahead of consumer demand,” Mike Stanton, the association’s president and CEO, said in a statement. “Our experience working with consumers every day makes us highly skeptical that consumers will adopt EVs anywhere near the levels required. The charging infrastructure is not ready, the current incentives are not sufficient, and high EV prices will price out millions of consumers, particularly low-income Americans, from the new-car market.”

But environmental activists say the EPA’s move is necessary to combat climate change. Amanda Leland, executive director of the nonprofit advocacy group Environmental Defense Fund, said at a news conference that the EPA rule will cut air pollution and bring more choices and savings to consumers.

“The future is electric,” she said, “built on a shared pollution-free vision grounded in economic prosperity, job growth and consumer savings. So today we continue on our journey for a better, healthier world.”

Due to its historic air pollution woes, California is the only state that can adopt its own vehicle emissions standards, with federal approval.

Last year, state air regulators adopted a rule to eventually phase out heavy-duty trucks and locomotives that burn fossil fuels. But the EPA has yet to sign off on the rule, delaying its implementation.

Set to start this January, the rule was to prohibit the registration of new gas- and diesel-fired cargo trucks that operate at California ports and rail yards. That would have effectively ensured that all new heavy-duty vehicles taking part in the state’s bustling movement of goods would be zero-emission vehicles.

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Hannah Fry covers breaking news for the Los Angeles Times. She most recently covered Orange County for The Times and has written extensively about criminal trials, housing, politics and government. In 2020, Fry was part of the team that was a Pulitzer finalist for its coverage of a boat fire that killed 34 people off the coast of Santa Barbara. Fry came to The Times from the Daily Pilot, where she covered coastal cities, education and crime. An Orange County native, Fry started her career as an intern at the Orange County Register.

Tony Briscoe is an environmental reporter with the Los Angeles Times. His coverage focuses on the intersection of air quality and environmental health. Prior to joining The Times, Briscoe was an investigative reporter for ProPublica in Chicago and an environmental beat reporter at the Chicago Tribune.

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