How to Open a Pizza Delivery Only Business

Starting your own pizza delivery business is simple.

A pizza delivery business is one that can be handled quite easily, providing you have a strong recipe and a fast and efficient delivery system. All you need is the proper kitchen, permits and a reliable vehicle. You must also have a strong business plan that includes a way to market your business and build a solid reputation. Following are tips for planning your business, finding a location and marketing your pizza delivery operation.

Things You'll Need

• Equipment
• Location
• Recipe
• Delivery vehicle
• Business plan

Instructions

1. Construct a plan. Make a list of the things you need to begin making and delivering pizza. You will likely need an oven, delivery vehicle and a location. If you need to purchase equipment or a delivery vehicle, research the costs involved and make a list of capital needs. The best way to organize these thoughts is to construct a business plan. A business plan will help you map out your operation so it makes more sense to you, and to possible investors and lenders (see Resources below).

2. Decide on a location. Before you start spending money on equipment, you must decide where you will make your pizzas. The easiest way to get started is to find an existing kitchen. This may include a space for lease or an existing restaurant. Start by contacting restaurant owners who do not currently sell pizza. Ask them whether they'd be interested in adding pizza delivery to their operation. Give them a cut of the profits for the use of their kitchen. Or, you may rent a location and outfit it yourself. Contact a real estate agent to help you find a space.

3. Obtain the necessary equipment. Look in the classified section of your local newspaper for people selling used pizza ovens. Or shop at wholesale restaurant supply stores in your area for quality equipment. There are also many online distributors out there (see Resources below).

4. Form an official business entity. By incorporating, you will be able to make financial decisions in the name of your business and not have to tap into your personal funds. Incorporation also lessens your personal tax burden and makes obtaining financing much easier (see Resources below).

5. Find money. Once you have decided where you will prepare your pizzas, you will likely need money to buy an oven, delivery vehicle, cash register, credit card machine and telephone equipment, or to rent a space. There are many ways to go about raising capital.

   1. Investors or private loans. Ask your friends and family to invest in your business or float you a loan. Always get these agreements in writing.
   2. Small business loans. There are many programs available through the government to help small businesses get started. Contact the Small Business Administration for information on these programs (see Resources below).
   3. Bank loans. A loan for a restaurant could be more difficult to obtain than those for other businesses because of the high failure rate in the food industry. Your business plan, therefore, must be strong. Contact a CPA to help you strengthen your plan.

6. Get food permits. Unless you are running your business out of an existing restaurant, you will need to get your own food license. Doing so is simple and usually involves completing a health code course and paying up to a couple hundred dollars for permits. You must also have your operation inspected by your local health inspector before opening for business. Contact your local government office and health department. They will provide you with the necessary application forms.

7. Create a menu. Make your menu simple at first. The three most popular pizzas are cheese, sausage and pepperoni, with a variety of vegetables and other toppings. Start with those and ask for feedback and suggestions. Doing so will help dictate what you may need to add to your selection.

8. Open accounts with wholesalers. You will need accounts with food distributors to obtain cheese, flour, vegetable, meats, oil and sauces. Some distributors sell several ingredients, some specialize in only one. Contact restaurants in your area to find out where they buy their food. Or, search online for food distributors in your area (see Resources below).

9. Get the word out. Because pizza is a popular food, your marketing concentration can be broad and still be effective. Start with an ad in your local phone book. The phone book is often the first place people look for pizza, especially for delivery. Phone book ads can be pricey; however, they work wonders for pizza places. Inserts in newspapers also help pizza places get business. Contact businesses, government agencies---anyone who may need to have food delivered to staff. Fax your menus to the business community regularly.

Tips & Warnings

• Develop a strong networking campaign. Hand out cards, ask for referrals. Join your local Chamber of Commerce. Offer specials. Two-for-one specials, free delivery and discounts are great ways to sell more pizza. Sell beverages. Selling soft drinks will result in additional sales.

• Hire at least one person to take orders and employ enough delivery drivers. It will be close to impossible for one person to cook, take orders and deliver pizzas. Never operate without a food permit or license. Be fair with prices. Research pizza prices in your area. Do not price yourself out of your market.

Resources

• Business Plan Template
• Pizza Equipment
• Incorporating Your Business
• U.S. Small Business Administration
• Find Wholesale Food Distributors