Point of sale

From Concept to Kitchen: 9-Steps Guide to Starting for Your Pizzeria

Diksha Adhikari
March 27, 2024
1 mins

Table of Content

94% of Americans eat pizza regularly. In 2022, pizza restaurants in the United States saw their sales reach approximately $46.98 billion, marking an uptick from the prior year's $45.59 billion. These stats underscore a vibrant prospect for prospective pizzeria entrepreneurs.

However, entering the restaurant industry goes beyond your passion for pizza. You must have a firm grasp of financial planning and forecasting about the cost of opening a pizza shop to launch a business model capable of sustaining growth and overcoming obstacles.

If this is where you're stuck, this is your guide for the financial planning journey to opening your pizzeria. This 10-step guide will navigate you through every financial detail necessary for a smooth start of your pizzeria.

How Much Does it Cost to Start a Pizzeria?

Opening a restaurant usually ranges from $95,000 to $200,000, depending on the region you want to establish your business. This investment touches on many essential aspects. Let's take a closer look at the primary expenses you'll encounter:

Factor Cost Range
Location $100 to $800 per square foot
Utilities $1,000 to $1,200 monthly
Equipment $20,000 to $40,000 initial investment
Licensing $75 to $14,000
Food Investment $5,000 to $25,000 initially
Staff Costs 30-35% of total revenue; Manager: $50,000/yr
Marketing Costs 7-8% of sales, scaling up as needed
Admin Expenses Typically around $1,000

Costs to Consider While Starting a Pizza Shop: 9-Step Checklist

Launching a pizzeria requires detailed budgeting and a solid business plan. Consider the following checklist to ensure a successful start and a sustainable operation.

1. Understanding Startup Costs and Ongoing Expenses

First, we must consider startup costs and ongoing expenses on our list for opening a pizzeria. Start with a clear view of your initial investment: 

  • Securing a spot, 
  • Kitting out the kitchen and 
  • Covering the administrative fees 

These are your startup costs. They are one-time expenses but crucial to getting your doors open. 

Next, tally up the regular expenses you'll face. It includes rent or mortgage payments, utility bills, and employee wages. These are ongoing and will recur monthly. They are the pulse of your business's finances. 

Understanding these costs to open a restaurant means less chance of financial surprises. 

Pro Tip: While you can't always predict every cost, you can prepare for them. Start with accurate estimates and keep reserves for those unpredictable moments. 

2. Location for Your Pizza Shop

Costs per square foot for your space will range from $100 to $800, varying wildly depending on several factors. Size, design, region you want to operate, and how close you are to a busy city center all play a part. 

You have a few options for the type of location:

  • Building a new place gives you freedom in design but demands a higher investment. 
  • Buying an existing pizza shop can cut costs and initial setup time, yet it limits how much you can make your own space. 
  • Opting for a commercial space that you can transform might offer a balance. It lets you tailor it to your vision without starting from scratch. 
  • Leasing is also a choice, with security deposits ranging widely. 

The location should be somewhere with good visibility and traffic—whether that's people on foot or cars with easy parking. Your perfect spot depends on your specific audience. 

Partner with experienced real estate experts to locate a place that aligns with your vision satisfies your requirements, and keeps your budget intact. Commissions for land sales are around the national average rate of 5.49%

Pro Tip: Choose your pizza shop's location wisely by carefully analyzing local demographics and traffic flows. Research details about the local population, age demographics, and peak pedestrian traffic times.

3. Kitchen Equipment, Appliances, and Utensils

Equipping your kitchen with the necessary restaurant hardware is essential for launching your pizzeria. Budgeting wisely here is critical. Essential items include:

  • A reliable pizza oven could cost from $10,000 for a basic model to $20,000 or more for a specialized wood-fired option. 
  • Dough mixers and rollers are following, which might set you back around $5,000.
  • You must not overlook a commercial dishwasher and a sturdy fridge; together, these could cost upwards of $15,000. 
  • The ventilation system, including a canopy or hood, is necessary for safety and comfort. It potentially adds another $10,000 to $15,000 to your tally. 
  • Adding assorted trays, fryers, workstations, and various utensils and accessories will complete your setup, costing about $10,000 extra.

Opting for second-hand equipment can lead to significant savings for those watching their budget. You might cut your equipment expenses by up to 50% compared to the cost of new items.

Regarding food, your first batch of ingredients for a modest menu will range from $30,000 to $50,000. This estimate covers essentials such as flour, cheese, and meats, which are less expensive than other restaurant ingredients.

Pro Tip: Spend wisely on critical items like ovens and fridges. Quality gear lasts longer and saves money on energy and repairs. Look for second-hand deals to stretch your cost to open a restaurant without sacrificing performance.

4. Managing Inventory

Effective inventory management is crucial for your pizzeria's success, with initial costs typically ranging from $30,000 to $50,000. This covers food, dishes, cups, and other essentials to delight customers. 

  • Begin by finalizing your menu to determine the necessary ingredients and supplies. 
  • Next, choose your suppliers wisely. Many opt for wholesale platforms or local vendors for their inventory needs. Whichever route you take, invest time in researching and selecting trustworthy suppliers.
  • Use restaurant inventory management software to monitor your stock levels and deliveries closely. This tool is invaluable for maintaining a seamless flow of supplies. 
  • Consider setting up a restaurant accounting system early on. It helps track expenses and identify opportunities to cut costs or improve efficiency. 

Keeping your inventory well-organized and being proactive is beneficial. It minimizes waste, cuts costs, and guarantees that your pizzeria is always equipped to efficiently satisfy your customers.

Pro Tip: Maintain solid connections with several suppliers, including a local provider for fast restocking. This ensures you're always caught up due to supply chain issues. 

5. Must-have Technology for Modern Pizzeria

Having the right technology increases your profit margins, and solves daily headaches of your pizzeria's operations. Investing in a high-quality Point of Sale (POS) system is crucial for efficient operations. Your POS system should also easily support promotions, discounts, and coupons. Features for delivery or pickup, kitchen operations and integrations keep your service smooth and fast. 

It must also include a customer loyalty program to turn one-time visitors into regulars. Having delivery options, including third-party integrations, can expand your reach. While initial costs may vary, the ROI, through improved efficiency and customer loyalty, is invaluable.

OneHubPOS delivers cutting-edge POS solutions and makes managing your restaurant a breeze. For just $1 for the first three months, our modern, all-in-one Android system simplifies operations from order to payment. 

It supports dynamic pricing, promotions, and contactless ordering. Plus, it includes hardware tailored to your needs. Inventory management, online ordering, and a loyalty program are all part of the package. 

6. Navigating Licenses, Permits, and Administrative Fees

Licenses, permits, and administrative fees vary by state and can impact your startup budget. Start this process early to avoid any delays. You'll need to understand the location's specific tax, employer, and licensing obligations. Hiring an in-house or external tax professional can help manage this complex area.

Securing a DBA (doing business as) name for your unique trade name and applying for an Employer Identification Number (EIN) for payroll are two essential tasks to comply with tax laws and hire staff. The cost for these licenses and permits varies significantly, ranging from a few hundred to a few thousand dollars. For instance, the cost of a food-handling service license is typically around $100 to $1,000, while a liquor license costs anywhere from $300 to $14,000, depending on state regulations.

While managing these details requires time and investment, ensuring everything is in order avoids costly fines and delays. Stay informed and consult with professionals to navigate these administrative hurdles successfully.

Pro Tip: Create a checklist of all required licenses, permits, and tax obligations specific to your location. Engaging with a local small business advisor can also find lesser-known grants or tax incentives for new businesses.

7. Marketing: Building Buzz Before Opening

Start crafting your marketing plan early to make your pizzeria shine among competitors. Marketing expenses differ, but social media is a budget-friendly and favored choice. 

Marketing on platforms like Instagram and Facebook helps you engage with prospects, highlight your offerings, and generate buzz. Although these platforms are free, investing in targeted ads can extend your reach to more people. Partnering with a marketing agency can provide more comprehensive visibility at a significant expense. 

Whether you handle marketing or seek professional help, marketing requires continuous effort. Initially, plan to allocate 3-6% of your sales to marketing activities. This expenditure aids in drawing in customers and enhancing brand recognition.

Pro Tip: Leverage the power of local influencers and food bloggers to create a buzz around your pizzeria before it opens. This cost-effective strategy can generate significant interest and anticipation.

8. Preparing for the Unexpected Costs

Launching a pizzeria, like any business endeavor, comes with unexpected hurdles. In addition to your planned budget, setting aside funds for unforeseen expenses is a wise move. These unexpected costs can range from urgent equipment repairs to unexpected regulatory changes or abrupt rises in ingredient prices.

A wise practice is allocating about 10% of your budget for unexpected costs. This buffer helps you manage unforeseen issues without compromising your business goals.

Pro Tip: Maintain a separate emergency fund and check on it often. As your business expands, increase this fund accordingly. This approach not only readies you for surprise expenses but also offers security.

9 Pizzeria Funding and Loans

You have various financing options, from conventional bank loans to modern strategies such as crowdfunding. 

Crowdfunding doesn't just provide capital; it also serves as a marketing tool by drawing in future customers from the start. Alternatively, you can seek out investors convinced by your idea and prepared to support your venture in exchange for a stake in its earnings.

Moreover, explore government grants and loans for small businesses, as they often come with attractive terms. Fully understanding the intricacies and obligations of your chosen financing method is vital. Starting your pizzeria will likely require an investment of $95,000 to $200,000, depending on your location and business size.

Pro Tip: Develop a detailed business plan for potential lenders or investors. This plan should clearly outline your vision, analyze the market, describe your operational strategy, and project your finances.


The path to making your dream pizzeria into a prosperous reality necessitates having diligent financial preparation. The adventure begins by getting to grips with the startup costs required, including securing an ideal spot, equipping your kitchen with vital tools, and acquiring the necessary technology to ensure your operation runs seamlessly.

This 9-step guide sets you up about the cost of opening a restaurant and making it successful in the busy restaurant world.

Diksha Adhikari
Content Marketer - OneHubPOS

Diksha, a seasoned content marketer, brings hands-on experience in website management, social media marketing, and branding. Her expertise drives efffective and results-driven digital strategies.

Read more