{"id":131211,"date":"2016-03-01T05:01:00","date_gmt":"2016-03-01T05:01:00","guid":{"rendered":"https:\/\/pizzatoday.com\/departments\/branching-out\/"},"modified":"2025-08-21T09:48:40","modified_gmt":"2025-08-21T09:48:40","slug":"branching-out","status":"publish","type":"post","link":"https:\/\/pizzatoday.com\/news\/branching-out\/131211\/","title":{"rendered":"Branching Out"},"content":{"rendered":"

Pointers and pitfalls when opening a second location<\/h2>\n
\"COAL\u2019S

Coals Artisan Pizza recently opened a second location.<\/p><\/div>\n

Few restaurants last more than a few years, but for those that turn a healthy profit, expansion<\/a> is a sensible next step. Opening a second location is easier said than done, though.<\/p>\n

Between hidden costs, new crews and slow openings, unforeseen problems can quickly put a damper on your long-term plans.<\/p>\n

Fortunately, there are plenty of steps you can take to successfully transition to multiple locations. For many, these steps require a change in mindset \u2014 from a chef, foodie or pizza enthusiast to an entrepreneur. A passion for pizza may fuel the rise of your first location, but you\u2019ll need solid business skills and a well-developed plan to keep multiple shops afloat.<\/p>\n

Location, Location, Location<\/h3>\n

The basics of picking your plot are simple enough: high visibility, proximity to the competition and the right demographic for your brand and price point. Do these principles differ when picking a second spot? \u201cNo, and if you pick a great location you can even get away with messier systems,\u201d says Brewer Stouffer, founder of Roman Candle Pizza. Smooth operations are ideal, but great foot traffic can make up for shaky operating procedures when you open up.<\/p>\n

Still, there are a couple considerations specific to a second shop. First, don\u2019t open up too close or too far from your first location. \u201cIt should be fairly close, so you can run around and perform triages if needed,\u201d says Marc Cosentino, founder of Goodfella\u2019s Brick Oven Pizza. At the same time, Stouffer notes that, \u201cWith a pizzeria, you can\u2019t just open up a block over. You have to go further away to make an identical restaurant make sense.\u201d<\/p>\n

Next, it\u2019s best to establish the second shop in the same type of area as the first, be it a strip mall, urban sprawl, suburb or college campus. \u201cYou\u2019re not going to take the friendly neighborhood mom-and-pop store and put it in a mall,\u201d says Cosentino. The fewer new variables the better, and the types of customers who made your first shop successful will most likely patronize your second.<\/p>\n

Logistics Lessons<\/h3>\n

Location is just one of several considerations you\u2019ll need to make as you open a second shop. From payroll to ordering to customer complaints and more, every concern requires scalable solutions. \u201cYou\u2019ve got to build systems and come up with solutions to problems just one time,\u201d says Stouffer. You won\u2019t have time for one-off fixes, and your managers need to know how to patch up problems themselves.<\/p>\n

For many restaurateurs, cash flow management is the greatest logistical hurdle. \u201cWith expansion, you have to frontload your costs,\u201d say Casey and Sam Askar, owners of Askar Brands. \u201cThat includes training all the staff, and that payroll comes from the proceeds of the first location.\u201d Even if you\u2019re turning a great profit at your first store, you can\u2019t assume it will be enough to fully fund a second. You\u2019ve got to run the numbers.<\/p>\n

In the long term, though, you also need to factor in greater revenues and lower costs. \u201cIf you have a $1 million restaurant, and you open another one across town, you should expect to have two restaurants earning $1.1 million due to greater awareness,\u201d says Scott Gittrich, founder and president of Toppers Pizza. Economies of scale will also allow for lower wholesale costs as you expand. Overall, you\u2019ll need to ensure a reliable cash flow on the front end to reap the advantages of expansion later on.<\/p>\n

Key Personnel<\/h3>\n

You may have your funds, properties and operating procedures planned out \u2014 but how should you allocate labor? \u201cI would take my guys who are well-seasoned and well-trained and use them for the opening of the new store,\u201d says Cosentino. \u201cHave those people train the new hires.\u201d The reliable crew that\u2019s helped build your business will be indispensable during your expansion.<\/p>\n

As important as your crew is, however, they can only run your shops if you adopt the right role. \u201cIf you\u2019re the kind of person who\u2019s always putting out fires, it might be a better decision to expand your hours or add delivery or takeout,\u201d says Stouffer. Running a multi-store business requires delegation, top-down thinking and a big picture focus. If those aren\u2019t your strengths, you\u2019ll need to develop them or partner with someone whose skills complement your own.<\/p>\n

Getting the Word Out<\/h3>\n

The U.S. pizza market is more or less flat, and you\u2019ll have to fight for market share early on at your new location. \u201cYou have to create awareness beforehand,\u201d says Askar. \u201cYou have to do a great job of communicating your story from one community to the next.\u201d Your employees, current customers and prospects should be able to tell your story and describe your products before the new store\u2019s grand opening.<\/p>\n

To accomplish that goal, a combination of social media, flyers, newspaper ads and radio spots will do the trick, and the industry average for ad spend is between two and five percent of gross sales. \u201cThat may seem like a lot, but you absolutely have to invest in marketing if you want to grow your sales,\u201d says Stouffer.<\/p>\n

The method is more important than the medium, however. Before you fret over Facebook ads, Twitter posts and other minute marketing details, you need to identify what \u2014 and who \u2014 made your first shop successful. \u201cYou\u2019ve got a certain number of critical customers who already love what you do,\u201d says Gittrich. Ultimately, the success of your second shop will be a matter of communicating and replicating the product quality and customer appeal of your first.<\/p>\n

David LaMartina is a Kansas City-based freelance copywriter who specializes in the finance, food and health industries.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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