How Much Does It Cost to Start a Pizza Shop?

Read the article version of this video below.

A pizza shop is also called a pizzeria. The food industry is a fast-growing sector globally, and this is due to the high demands by the public and the ever increasing need to meet those needs. Pizza is known to be an easy to eat food. It is a universally preferred choice for anniversaries, birthdays, corporate parties, and sporting events, as well as small get-togethers. Statistics show that 93% of Americans purchase pizza at least once a month in the U.S.  The cost of starting a pizza shop ranges between $75,000 to $150,000. This costs covers for a pizza counter and maybe a few booths. Typically, about half a million is required to set up a sit-down pizzeria.  This video will enlighten you on the necessary costs required to start a pizza shop or pizzeria. 

How Do I Start a Pizza Shop?

  • Firstly, you are to conduct market research and feasibility studies to identify your competitors and their niche, to know how best to improve your recipes and menu and make it unique.
  • Secondly, develop your own unique pizza recipe and create a menu that appeals to your target customers.
  • Thirdly, decide on a theme and niche for your pizza shop and brand (i.e., is it going to be a Dine In, Carryout, Delivery, or Take ‘n Bake)? Your choice should narrow down to your target market.
  • There is no business without a business plan, so prepare one! Your business plan should include an executive summary, your company’s overview and description, market analysis, business offerings, management, marketing and public relations strategies and the financial projection of your business.
  • Decide if you will  buy a franchise or start building up from scratch.
  • Then, you are to search and select a suitable, visible, and accessible location for your pizza shop. 
  • The next and most important thing to do is to source capital for your pizza shop, and you can either secure a loan or fund it yourself. 
  • More importantly, ensure you get any required licenses or permits, and necessary professional certification for your pizza shop.
  • Then you are to purchase the necessary equipment required in your pizza shop. Some of these equipment includes an oven, mixer, dough presses, refrigerator, delivery bags, etc.
  • Furthermore, you need qualified hands and aids to help in your pizza shop, therefore, hire qualified employees for your technical and manpower needs.
  • Lastly, you need to let people know about your products, i.e., boost your brand awareness. You can use different advertising platforms like billboards, media, websites, emails, local paper, etc., and strategies to advertise your new pizza shop.

What Types of Equipment Do I Need to Start a Pizza Shop?

  • Refrigerator: This comes in a variety of choices.
  • Oven: it also consists of varieties such as, brick ovens, conveyor oven, convection oven, deck oven, and the impinger oven. Each type of oven has its own advantages and disadvantages. 
  • Dough Presses. 
  • Dough prep equipment
  • Dough Mixers.
  • Spiral Mixers.
  • Prep Tables. You cannot have a pizza without having a prep table.
  • Worktables.
  • Utensils
  • Fryers. There are also different kinds of fryers, so weigh your options well.
  • Griddles.
  • Sheeters.
  • Pizza pans
  • Pizza cutters
  • Hot holding cabinets
  • Peels and peel holders
  • Pizza pans
  • Delivery bags

What is the Estimated Cost of Starting a Pizza Shop?

To estimate cost, you are to consider all the costs involved, and they include your startup costs, fixed expenses, variable expenses, and mixed expenses. Typically, your start-up cost includes the cost of acquiring a land or space per square foot. On an average, the cost to start up a pizza shop is between $100 and $800 per square foot. Typically, this cost varies based on location, concept, size, materials, new or existing location, interior furnishing and equipment required. 

  1. Location: The location of your pizza shop should be easily accessible, visible and motorable. Usually, you have 3 options, and whichever option you choose, it has its own advantages and disadvantages and how they influence cost. You can either–
  • Start from the scratch, building and investing in construction of a new pizzeria or, 
  • Purchase an already existing pizzeria or restaurant or,
  • Purchase an operating commercial space and convert it into a pizzeria.
  1. Interior Decoration and Equipment: Your pizza shop needs furniture and interior decoration that communicates your brand properly to your customers. You will need to purchase some kitchen appliances and equipment needed to run your shop. Also, you will need to get signage, illuminations, and a music system, to enhance the ambience of your pizza shop. Typically acquiring this costs between $20,000 to $40,000.
  1. Inventories: You need to professionally train your staff to be efficient and ready to properly serve your customers. Also, you will need to purchase some items that pleases your customers such as food, plates, drinks, cups, and water pitchers. All of this usually costs between $30,000 to $50,000.
  1. Advertisements: You need to create proper brand awareness for your pizza shop. Advertising and promotion of your shop using various channels and outlets will cost between up to $35,000.
  1. Capital: You need to set aside a certain amount of money to keep your pizza shop running for the first six months of your business. This is because it takes time to get a strong customer base. You can put aside between $20,000 to $150,000 to fund your restaurant in case of low sales volume.
  1. Administrative and Development Costs: This is one of the most important costs in opening a pizza shop. This is because you need to pay for licenses and permits, insurance, and utility costs for your shop. This cost ranges between $2,500 to $100,000, depending on your state. 

It is easier to establish a pizza shop but maintaining it is exceedingly difficult. Proper budgeting for a running cost of up to six months will help to keep the pizza shop running effectively at the start of the shop, until it can independently run on its own. If you need any additional help opening a new pizza shop, please contact our business planning and funding experts at to schedule a free consultation.

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