The Entire Business Plan I Wrote For A Pizza Truck That Never Took Off

PIZZA GATE

Section 1 – Company Overview and Financing

1.1 Back Ground

Our aim: deliver the best pizza in Austin. Pizza Gate will enter a rapidly growing market with a premium product and a unique venue by establishing the Austin’s first wood fire, brick oven, Neapolitan pizza truck. Pizza Gate would be Austin’s only wood fire pizza truck. Austin has a need for better Italian dining and well-priced, high-quality pizza. Pizza Gate mobile restaurant would be in a prime position to establish itself as the most convenient and authentic pizza establishment in Austin.

Austin’s population is rapidly growing by 300 people between 22 and 35 years old per day – most coming from the east and west coasts where good pizza is prevalent.  We believe a locally owned restaurant that has the mobility of a food truck is the best option to serve the rapidly growing population with pizza that by its mere taste, authenticity and expertly prepared ingredients, will easily outclass and out price any comparable venue in Austin.

Pizza Gate’s pride, joy and key to success will revolve around its wood fire, brick oven which will stay at a constant 900 degrees, allowing Pizza Gate to cook a 14” pizzas in just 90 seconds. The oven’s short cook time enables the speedy service expected at a food truck while also lending to the products authenticity. This business plan calls for an exciting, profitable start-up year supported by an engaging theme (Pizza Gate is derived from the 2016 election conspiracy of the same name) and aggressive social media campaigns, which will drive awareness, attendance and revenue. 

1.2 Company Ownership

Pizza Gate will be established as a limited liability company (LLC).

Ben Potesky will be manage the business onsite

Ron Potesky will be an advisor and business consultant

Charlie Potesky will be senior conspiracy theorist (creative director)

1.4 Mission

Pizza Gate creates a casual and upbeat atmosphere for customers with a cost efficient and fantastically decorated food truck. The outside of the truck will be entirely decorated with popular conspiracy themes; Think the inside of an apartment owned by a conspiracy obsessed lunatic – an FBI type suspect chart that connects Papa John to faking the moon landing, ancient occult symbols alluding to pizza, the earth is actually flat and looks like a pizza, a crashed pizza like UFO at Roswell, Egyptian hieroglyphs with pizza added in, etc. The pizza box will also feature a detailed conspiracy theory that ties in pizza to a mysterious event in history and will change on a monthly basis.  We are extremely sensitive to the fact that our pizza’s and business aesthetic should look as incredible as our food tastes, and therefore we don’t only use the highest quality ingredients but take the highest quality care of our truck and all surrounding areas.  We look to provide the absolute best bang for our customers buck by providing them the satisfaction that comes from biting into a truly incredible slice of pizza. Additionally, we are the only wood fire food truck in our area.

As the company is managed and run by Austin residents, Pizza Gate will endeavor to facilitate the very best community relations possible in order to establish itself as a staple of the Austin culinary scene.  We seek a fair and responsible profit, enough to provide the best possible product and service as well as achieve the eventual goal of expansion.

Section 2 – Products and Services

2.1 Target Market and Services

Pizza Gate offers the highest quality, brick oven pizza to a rapidly growing city that currently has a limited, if a not non-existent variety of quality, but well priced pizza restaurants. 

At the start we will be open for 9:00am – 10:00pm Monday – Thursday, 9:00am – 1:00am Friday and Saturday as well as 10:00am – 8:00pm Sunday.  We will consider opening earlier in order to serve breakfast pizza if there is demand.

Our primary targets are the business lunch crowd, those picking up dinner, young professionals, UT students seeking a quality meal without breaking the bank and those taking advantage of downtown Austin’s night life.

Our secondary market will be people attending concerts, events and festivals. Austin is the live music capital of the world and is home to large events and concerts on an almost weekly basis. By making Pizza Gate a constant presence at as many events as are logistically possible to get to, Pizza Gate can play off of Austin’s vibrant social scene to gain publicity while also taking advantage of pre-made crowds, whom will naturally want access to quality food.

Our third focus, and possibly our most profitable market, will be those seeking to use us as a catering service.  Pizza Gate will have aggressive, sustained outreach to businesses with over 20 employees in Austin proper.

The city of Austin, and particularly its downtown population, has been growing at an ever-increasing rate of over 300 new residents a day. According to the Austin Chamber of Commerce, Austin grew by over 37% from 2005 – 2016, and the cities growth is expected to increase by as much as 98.5% by 2040.

According to the US Census Bureau, they are currently over 86k people working in Downtown Austin (Lamar Boulevard to the west Martin Luther King, Jr.) 12k people who live downtown (98k total within walking distance) as well as 25 million visitors annually. Pizza Gate product is a high quality gourmet pizza that will appeal to the majority of workers, residents and visitors.

2.2 Products

Our menu will exclusively serve 14” red and white Neapolitan pizzas, featuring fresh, gourmet toppings. Pizza Gate Pizza’s will be slightly larger than a personal pie and two inches larger than a classic Neapolitan pizza because every things bigger in Texas. As stated earlier, Pizza Gate’s brick oven will remain at a constant temperature of 900 degrees, allowing for the cooking of an entire pie in just 90 seconds. Additionally, Pizza Gate will serve a variety of soft drinks as well as beer and wine.

All products will be hand-made on site and at the time of purchase. Pizza Gate will only use the highest quality ingredients from locally sourced distributers. By keeping our menu simple, Pizza Gate is able to reduce costs and streamline the cooking process by having a high range of ingredient cross over on our menu. Our refined menu will allow us to serve customers quickly and efficiently while maintaining the lowest possible cost of production.

 3.2 Competitors (need further research)

There are roughly 900 truck based food vendors in Austin according to the Austin Chamber of Commerce. Currently, there are ? food trucks operating near Pizza Gates planned location. While many of these trucks make excellent food, there are no quality pizza restaurants, and the pizza that does exist downtown tends to be overpriced and of low quality.

In the five-block radius of our planned location there are over 10 Pizza restaurants. However, most have subpar product. The so-called quality Pizza Restaurants that operate near our planned location include Hoboken Pizza, Gino’s East, Frank & Angie’s and Roppolo’s. These establishments are over priced, serve product that is severely mediocre.

The few pizza restaurants that serve a relatively quality pizza near our planned location include The Backspace, Numero 28 and The Onion. All of these restaurants have large menus that deviate from pizza, and the pizza that they serve is extremely highly priced and, subpar quality in comparison with an average pizza establishment on the east coast. A single pie can run as high as $38 at all of these restaurants.

Section 4. Start Up Cost

4.1 Start-up Summary

Our start-up costs cover the truck, all kitchen supplies, professional fees, and expenses associated with opening our first location.  The start-up costs are to be financed by a mix of loans and OPM. Our assumptions are based on averages, which are shown in the following table.

4.2 Start-Up Costs Breakdown

 

·      Food Truck $30,000

·      Brick Oven $10,000

·      Kitchen equipment - $3000

·      Initial Product Inventory $2,000

·      Permits and Licenses $1000

·      Website – $500 (year). Facebook / Twitter Free

·      Register / POS $250. Can also use an iPad and an app for credit transactions. Uniforms / T-Shirts $200

·      Paper Products (Plates / Napkins, etc.) $$300

·      Misc. Expenses (Like a Chalk Menu) $$2000 Plan for some unexpected expenses here and put it into the budget.

·      Smallwares: Pots, Pans, etc. $1000 –

·      Fire Extinguisher: $50

·      Phone / Internet $200 Monthly

·      Fuel $500 weekly (logs included in this estimate) This will vary a lot, but using a wood fire oven as opposed to a conventional propane oven will significantly reduce costs

·      Insurance - $300 annually

·      Labor $8 – $15 per hour is average rate. Two prep workers from 5:00am – 9:00am at $10 an hour seven days a week = $280 weekly. Hours 9:00am – 9:00pm Monday – Thursday paying two workers for each shift $12.00 hourly = $576. Friday – Saturday hours are 9:00am – 2:00am (downtown) and Sunday hours being 10:00am – 8:00pm = $408. Total cost of weekly labor = $1024 weekly.

·      Repairs: no idea but better to budget for it.

·      Food / Beverage Re-stock ??? Depends on beverage & beverage cost and frequency of sales

·       Paper Product Re-stock ??? Depends on cost and frequency of operation. 

·      Cord of wood $425 every 1 ½ month

·      Total initial start up costs(includes first month of employee pay + $2000 for food, beverages and paper goods) = $55,096. $75k is likely a better option in reality given inevitable unforeseen costs.

·      Commercial General Liability Insurance - $500 yearly

·      Rent for Prep Space and Truck location

·      Loan Service?

·      Rent to Property Owner

 

4.3 Projected Revenue (Lunch)

1.     # of people within walking distance of Pizza Gate during lunch – 100k

2.     % of people who buy lunch during the week – 63% according to most studies

3.     Number of potential customers each day – 100k x .63 = 63k potential customers each day

4.     % of market that Pizza Gate occupies each day – 0.1% or 63 people

5.     Average sale from menu – $14

6.     Average daily sales on week day – $14 x 63 = $882

7.     Catering or events that make $1,000 per event 2 times per week = $2,000 (assumption based on other food truck sales.)

8.     Total monthly lunch sales = (($882 per day x 5 work days) + $2,000 in events) x 4 weeks per month = $25,640 per month

 

4.4 Monthly Projected Revenue (Dinner and Late Night) 5:00pm – 10:00pm Mon – Thurs / 5:00pm – 1:00am

 

1.     # of people within walking distance of Pizza Gate during dinner and late night – 100k

  1. % of people who buy dinner during the week 70% according to most studies
  2. Number of potential customers each day 100k x .70 = 70k potential customers each day
  3. % of market that Pizza Gate occupies each day – 0.1% or 70 people
  4. Average sale from menu – $14
  5. Average daily dinner sales – $14 x 70 = $980
  6. Total monthly lunch sales = (($980 per day x 7 nights) x 4 weeks per month = $27,440 per month

 

4.4 Monthly Total projected Revenue

 

4.5 Total Projected Revenue (Based On Similar Restaurants in Area)

2017

Unit Sales

 

Pizza

38,640

Soft Drinks

35,000

Alcohol

12,000

Price Per Unit

 

Pizza

$12

Soft Drinks

$2

Alcohol

$5

Sales

 

Pizza

$463,680

Soft Drink

$70,000

Alcohol

$60,000

Total Sales

$593,680

Direct Cost Per Unit

 

Pizza

$1.80

Soft Drinks

$.50

Alcohol

$1

Direct Cost

 

Pizza

$69,552

Soft Drink

$17,500

Alcohol

$12,000

Total Direct Cost

$98,552

Gross Profit

$495,128

Gross Profit %

81%

 

 

 

 

4.5 Operation Costs

 

4.6 Projected Monthly Profit After Operational Costs and Taxes

 

 

Section 5 – Marketing and Sales

5.1 Overview

Pizza gate will market its line of low-priced, high quality, high volume Pizza’s through aggressive social media campaigns on Instagram, Twitter, Facebook and will maintain powerful internet presence through a combination of SEO and content generation on multiple platforms. Our aim is to be on Google’s front page for those searching for pizza in Austin within five months of our websites launch. Our website will be created in-house using Squarespace.

Our prices will be generally lower than our competitors and our products are superior in taste. We will also place a greater emphasis on, and put a larger investment towards the design of our van than our competitors do with theirs, in order to add increased appeal. These points will all be emphasized on social media by constantly posting creative pictures of our food, specials, deals, popular pies, our van, pizza related conspiracy theories, as well as positive reviews and press.

Pizza Gate will aggressively aim to develop its catering business through maintaining a constant relationship building campaign with local Austin businesses in order to attract their employees for lunch, as well as develop our catering service.

5.2 Location

Pizza Gate will be located in downtown Austin, the center of the cities vibrant business and social atmosphere. Pizza Gate offers a truly unique addition to the downtown culinary scene by its status as the only wood fired, brick oven, Neapolitan Pizza Truck in the area. In addition, our high volume, low cost, gourmet 14” pizzas will stand out from other pizza restaurants in the area by offering the bigger portions at lower prices, as well as superior quality.

Pizza Gate will build relationships with as many of the other businesses in the area as possible, while developing cross-promotional events and promoting our catering service. Downtown Austin is always home to a plethora of monthly concerts, festivals and general events. Pizza Gate will maintain a presence at as many events with large crowds as is logistically possible. This will provide Pizza Gate with excellent opportunities to hit high sales numbers as well as promote our brand. 

There are over 86k people working in downtown Austin, 12k residents, as well as over 25 million visitors annually. UT Texas is also located within just a five-minute drive of our planned location. The city of Austin is expanding at a rate of over 250 people per day, and the city is expected to grow by an astounding 98% or more in the next two decades. The vast growth this area is experiencing in conjunction with the lack of quality pizza restaurants to compete with, put Pizza Gate in a prime position to take a major share of the pizza market in Austin and expand as the city grows.

5.3 Pricing

Pizza Gate has determined that its target consumer is fairly price sensitive, and therefore looking for a cheaper, higher volume meal. Therefore, the company’s pricing strategy is to offer a premium product at a value price point.

Compared to competitors in Austin our price per Pizza will be cheaper. On average, our price per pie will be $12.00, ?% lower than our competitors. We will nonetheless maintain a high profit margin because of the simplicity of the ingredients we use on our Pizza’s as well as our lower cost of dough per pie, because of our thin crust. We also have the ability to produce pizza’s a higher and more efficient rate than our competitors with our brick oven that can cook an entire pie in just 90 seconds, driving down cost, decreasing wait time and increasing possible sale volume. Our brick oven also allows us to spend far less on fuel then our competitors, as our oven is wood fueled and does require expensive propane.

5.4 Catering and Delivery Promotion With Local Businesses

In order to promote our delivery services with local business, as well as establish Pizza Gate firmly within the minds of the downtown business lunch crowd, Pizza Gate will immediately implement an aggressive campaign that goes as follows:

·      Identify 50 businesses and the corresponding managers before the start of each business week.

·      Deliver 10 free pies with our menu and a special catering/ delivery offers to 10 managers, Mon – Fri between the hours of 11:00am and 1:00pm.

·      Get contact info of each manager / owner / whoever I speak with and hit each lead on a monthly basis.

·      Print out 1000 windshield flyers at the start of each week, and distribute 200 a day in parking lots.

5.5 Internet Marketing

Essential to the success of Pizza Gate will be an aggressive and all encompassing internet presence that uses all forms of free social media daily in order to promote our deals and products, SEO in order to get us to Google’s front page and a strong presence onyelp and other review sites. Equally important are generating positive reviews in high numbers. As such, Pizza Gate will offer generous discounts to anyone who leaves us a positive review on any medium and then tags us. Pizza Gate will maintain an especially strong Instagram and Facebook presence.

5.6 Media

Pizza Gate will generate immediate newspaper coverage through contacting the Austin Chronicle, Statesman and all other forms of Austin media and emphasizing our incredible products and unique vibe.  

5.7 Events

Austin has large concerts and events such as SXSW and ACL with a regularity that is not rivaled in most other cities. Pizza Gate will take advantage of these pre-made crowds by investing in maintaining a presence at these events in favorable areas. Events such as SXSW do not only provide the chance for high volume sales, but also intense brand promotion.

5.8 Distribution

Pizza Gate’s point of distribution is our food truck, which will be located in a downtown Austin location that has yet to be determined. In the future Pizza gate plans on opening a second food truck in order to increase amount of potential customers and market share.

Section 6 – Strategy and Implementation

6.1 Milestones

·       Month 1-2: Secure business loan, work out a deal with a landlord to operate in geographically appealing lot for a good price, make deal with commissary / industrial kitchen, identify our distributors, begin social media campaign, acquire food truck, hire employees and open business.

·       Month 2-12: Reach $50,000 in monthly sales

·       End of year 1: Pay off the business loan completely

6.2 SWOT Analysis

Strengths

Our products are simple, cheap to make, quickly prepared and great pizza from a unique setting has been historically been in high demand. These facts are in conjunction with the undeniable fact that the current pizza options are terrible tasting, usually more expensive then it’s worth and not even remotely representative of good pizza that can easily be found in NY or NJ. These strengths are in combination with our low operational costs, business and sales savvy that is not common in the food truck industry and willingness to spend extensive amounts of time and energy promotion through every available platform.

 

Weaknesses

Pizza is not an original concept and there is no shortage of food trucks operating in Austin. We compensate for these weaknesses by the fact that our pizza is the best tasting In Austin, our truck better managed then our rivals, our process more refined and our sales strategy more competitive than our competitors.

Opportunity

Austin’s unprecedented growth, in conjunction with its lack up of pizza competition open the door for Pizza Gate to quickly establish itself as the premier pizza maker in the city of Austin. If launched and managed properly, Pizza Gate will quickly find itself in a position to open new locations.

Threats

The only obvious threats are competition from other pizza restaurants, but based on their current quality and prices, it is unlikely they will pose a threat to Pizza Gate on either front anytime soon.

 

Section 7 – Financial Plan – need help

Section 8 – Financial Statements – no clue what to do here

 

512-974-7800 – sbdp

512-928-2425 - score

 

 

Required Funds

Pizza Gate will require $75,000 in starting capital. We are seeking to obtain a $75,000 Bank of America loan. The loan is required to purchase the Pizza Gate food truck and cover initial startup expenses. The loan will be structured as a long-term 36-month loan and will be repaid at 6% interest.

 

Menu

RED PIZZA

·       The Clinton Accuser • 15
Crushed & Cherry Tomatoes, Bufala Mozzarella & Basil

·       The Podesta • 13
Crushed Tomatoes & Fresh Homemade Mozzarella

·       The Gucifer • 13
Crushed Tomatoes, Fresh Homemade Mozzarella & Basil

·       The Rodger Stone • 15 » Fan Favorite!
Crushed Tomato, Eggplant, Caramelized Onions, Ricotta & Homemade Mozzarella

·       The Cover Up • 15
Crushed Tomatoes, Meatballs & Fresh Homemade Mozzarella

·      The Interdimensional Globalist • 16
Crushed Tomatoes, Soppresata, Meatballs, Roasted Sausage & Fresh Homemade Mozzarella

·       Kiss of Putin • 14
Crushed Tomatoes, Soppresata & Fresh Homemade Mozzarella

·       The Unexpected Leak • 15
Crushed Tomato, Cherry Peppers, Onions, Sausage & Homemade Mozzarella

WHITE PIZZA

·       The Alex Jones • 14
Vodka Sauce, Ricotta, Homemade Mozzarella & Basil

·       The White Water • 14
Fresh Homemade Mozzarella, Bufala Mozzarella & More Mozzarella

·       The Bohemian Grove • 15
Arugula, Cherry Tomatoes, Prosciutto with Balsamic

·      Comet Ping Pong  • 15
Fresh Homemade Mozzarella, Kale, Eggplant, Mushrooms, Caramelized Onions with Truffle Oil

·       The Fake News • 14
Mushrooms, Bufala Mozzarella with Truffle Oil

·       The Infowar • 15
Roasted Cauliflower, Kale, Fresh Homemade Mozzarella, Garlic Parmesan Sauce