I’ve helped a lot of restaurants get off the ground—and if there’s one thing I’ve learned, it’s that opening a pizza shop is about more than just great dough and toppings. Success comes down to smart financial planning, especially early on.
About 17% of restaurants close in their first year, often because owners underestimate the real startup costs or miss key steps in planning.
In this guide, I’ll break down how much it costs to open a pizza shop, from initial costs to ongoing expenses—so you can build a successful pizza shop and make informed decisions for your future pizza business.
Key Takeaways
- Average Startup Cost Range: Opening a pizzeria typically costs between $175,000 and $750,000. Your expenses will vary based on size, location, dine-in vs. takeout model, and whether you choose to franchise or go independent.
- Budget for Kitchen Equipment and Furnishings: Pizza ovens, prep tables, refrigerators, and dough mixers alone can cost $50,000–$150,000. If you’re offering dine-in, add furniture and decor to your list.
- Restaurant Software Costs: You’ll need POS software and an online ordering system to sell directly from your website and reduce commissions from services like Uber Eats or DoorDash. Both systems should cost no more than $200-$400 per month—avoid commission-based platforms that could end up charging you thousands each month.
- Factor in Lease or Renovation Costs: Renting restaurant space can run from $1,000 to over $7,000 per month. Older spaces may also need significant renovations, driving your costs up fast.
- Account for Licensing and Permits: You’ll need a business license, food service permits, health inspections, and more. These can total around $1,000–$5,000, depending on your city and concept.
- Staffing Is a Big Ongoing Expense: From hiring cooks and servers to training a manager, labor costs are substantial. A manager alone might cost $50,000+ per year, not including benefits.
- Marketing Costs Should Be Built In: Allocate 2–3% of expected revenue to marketing, or even more during launch months. Think signage, local promotions, and digital ads.
- Plan for Inventory and Operating Cash: Your first inventory order (ingredients, packaging, paper goods) could cost $30,000–$50,000. You’ll also need cash on hand for payroll and bills in your first 3–6 months.
- Set Aside a Contingency Fund: Unexpected costs will happen—equipment breakdowns, supply chain delays, or staff shortages. Reserve 10–20% of your total startup budget as a safety net.
- Think Long-Term, Not Just Opening Day: Launching is just the beginning. Plan how you’ll sustain restaurant operations, pay off loans, scale revenue, and build customer loyalty to stay profitable over time.
What is the Average Opening Cost of a Pizza Shop?
According to a report by Restaurant Owner, the median cost of opening a restaurant is $375,500. This number can vary widely depending on factors like whether you’re doing a remodel or starting from scratch, and the type of property you’re working with.
If you’re thinking about opening a pizza shop through a franchise model, here are the startup costs for three of the most popular U.S. options:
- Pizza Hut: $367,000 to $2,063,500.
- Domino’s: $107,450 to $743,500.
- Little Caesars: $393,000 to $1,718,700.
Whether you choose a franchise or build your own pizza business, having a clear understanding of these startup costs will help you plan more effectively and avoid surprises down the line.
Pizza Shop Startup Costs Breakdown
To truly understand the startup costs of opening a pizza shop, it helps to break them down by category. This makes it easier to build a realistic pizzeria business plan, manage your budget, and avoid surprises along the way.
Let’s take a closer look at the key expenses involved in bringing your pizza shop to life in 2025.
1. Location
Your restaurant location strategy impacts everything from visibility to rent. Costs per square foot can range from $100 to $800, depending on whether it’s new construction or a remodel, and whether you’re in a busy city center or a smaller area.
If you’re opening a sit down pizzeria, expect higher rent and utility costs. And don’t forget to factor in permits, signage, and any build-out expenses as part of your initial costs.
2. Equipment
Outfitting your kitchen is one of the largest startup costs when opening a pizza shop. According to Bella Bacinos, you should be prepared to invest between $50,000 and $150,000 in equipment alone.
Here’s a breakdown of typical equipment costs:
Equipment
Cost
Pizza Oven: The heart of your pizzeria, a high-quality pizza oven.
$5,000 – $20,000+
Mixer: Industrial mixer for pizza dough preparation.
$1,000 – $5,000
Refrigeration Units: Walk-in coolers and freezers.
$2,000 – $15,000
Prep Tables: Tables and counters for food preparation.
$500 – $2,000
Slicers and Graters: Equipment for slicing and grating cheese and other toppings.
$500 – $1,500
Dough Sheeter: For efficient dough rolling.
$1,000 – $5,000
Kitchen Utensils and Cookware: Knives, pans, and other essential tools.
$500 – $1,000
Investing in reliable, high-quality restaurant equipment is key to running an efficient operation and delivering consistent quality from day one.
3. Labor Costs
Labor is one of the biggest ongoing expenses when opening a pizza shop. Whether you’re running a small takeout counter or a full sit down pizzeria, you’ll need to budget for hiring, training, and payroll taxes from day one.
On average, labor accounts for 25% to 35% of a restaurant’s total operating costs.
Here are typical U.S. salary ranges to help you estimate your labor budget:
| Position | Average Hourly Wage | Monthly Estimate (Full-Time) |
|---|---|---|
| Pizza Cook / Line Cook | $14 – $20 | $2,240 – $3,200 |
| Prep Cook | $13 – $17 | $2,080 – $2,720 |
| Cashier / Front Staff | $12 – $18 | $1,920 – $2,880 |
| Delivery Driver | $12 – $19 + tips | $1,920 – $3,040+ |
| Shift Manager | $16 – $25 | $2,560 – $4,000 |
| General Manager | $20 – $35+ | $3,200 – $5,600+ |
To keep your pizza business running smoothly and profitably, restaurant labor costs should be carefully forecasted as part of a solid business plan.
4. Software
The right software can streamline your operations, improve efficiency, and boost sales from day one. It’s smart to include tech tools in your startup costs—not just for taking orders, but for managing everything behind the scenes.
Here’s a breakdown of common software expenses for a pizza business:
Software
Cost
Pizza Ordering System: An online ordering system with a website builder and marketing tools like UpMenu.
$49 – $300+/month
POS System: Manages orders, payments, and inventory.
$1,000 – $3,000 (hardware)
+ $69 – $500/month
Restaurant Mobile App: Custom restaurant mobile app tailored to your brand.
$5,000 – $20,000 (one-time)
or
$49/month with UpMenu
Restaurant Delivery Software: Software to manage delivery orders, driver assignments, and real-time tracking.
$49 – $300/month
Restaurant Marketing Tools: Tools for email campaigns, promotions, loyalty programs, and social media integration.
$0 – $200/month
Restaurant Accounting Software: Tracks finances, billing, and taxes with tools like QuickBooks or Xero.
$20 – $300/month
Restaurant Inventory Management Software: Tracks stock and reduces food waste with tools like Ordorite or MarketMan.
$100 – $200/month
While some tools can be bundled, it’s important to choose a software stack that fits your business model and budget. Investing in the right tools early on is a smart move for long-term efficiency and should be part of your pizza shop business plan.
5. Licenses and Permits
These legal requirements ensure your business operates within local, state, and federal regulations. Costs can vary based on your location and the specific nature of your pizza business.
Here’s a breakdown of standard licenses and permits, along with their typical costs:
License / Permit
Estimated Cost
Business License: Authorizes you to operate a business legally within your municipality.
$50 – $300+
Employer Identification Number (EIN): Required for tax reporting and hiring employees.
Free
Food Service License: Confirms your restaurant meets local food safety regulations.
$100 – $1,000
Health Department Permit: Certifies compliance with health and sanitation standards.
$100 – $1,000
Sign Permit: Grants permission to display exterior signage.
$20 – $200
Certificate of Occupancy: Confirms your space is safe and meets all building code requirements.
$100 – $1,000+
Liquor License (if applicable): Allows the sale of alcoholic beverages at your location.
$300 – $14,000+
Source: Restaurant Licenses & Permits
6. Inventory
Effective restaurant inventory management is crucial. It ensures you have the necessary ingredients on hand while minimizing waste and controlling food costs.
Initial Inventory Costs
Your initial investment in inventory will depend on your menu offerings and the scale of your operations. For a modest menu, initial inventory costs can range from $5,000 to $15,000, covering essentials like flour, cheese, meats, and vegetables.
Ongoing Inventory Management
Many pizza shop owners utilize inventory management software to maintain optimal stock levels and reduce food waste. These tools help track usage, forecast demand, and automate ordering processes.
7. Marketing and Branding
No matter how good your pizza is, your pizza shop won’t get far without strong branding and smart marketing. This plays a huge role in attracting new customers to your restaurant, especially when you’re new in town.
Your initial marketing and branding budget might include:
Marketing Assets
Estimated Cost
Logo & Brand Design: Professional logo, colors, and brand assets.
$500 – $5000 (one-time)
Website with Online Ordering: Essential for visibility and sales.
$5000 – $10,000 (one-time)
or
$49/month with UpMenu
Social Media Setup & Ads: Facebook, Instagram, Google Ads, etc.
$500 – $2,000+ per campaign
Promotional Materials: Flyers, menus, signage, etc.
$100 – $1,000+
Grand Opening Campaign: Local promotions, giveaways, PR.
$500 – $5,000
To build brand recognition and gain traction, many pizza shop owners also invest in:
- Restaurant loyalty program to keep customers coming back.
- Restaurant email marketing for promotions and new menu offerings.
- Influencer collaborations or community events.
Tools like UpMenu help streamline restaurant marketing strategies with built-in automation, loyalty features, and integrations with your online ordering system—all valuable assets in your launch strategy.
Including a strong restaurant marketing plan gives your pizzeria the best chance of standing out in a competitive restaurant industry.
8. Renovation and Interior Design
Unless you’re taking over a fully equipped existing pizza shop, chances are you’ll need to make renovations to fit your business concept.
Renovation costs can vary widely based on the condition of the space, your design goals, and whether you’re creating a sit down pizzeria or a quick-service counter.
Here’s a general breakdown:
Renovation Element
Estimated Cost
Basic Renovation (paint, flooring, lighting)
$10,000 – $50,000
Custom Interior Design & Furniture
$5,000 – $20,000+
Kitchen Build-Out
$10,000 – $100,000+
Plumbing & Electrical Upgrades
$5,000 – $30,000
Designing a space that reflects your brand and appeals to your target market isn’t just about aesthetics—it’s part of delivering excellent customer service and boosting customer satisfaction.
Confirm what the landlord will cover before you start the build-out if you’re leasing.
9. Utilities
Utilities are often overlooked when estimating costs, but they’re a recurring and necessary part of running a pizza shop.
Costs will vary depending on your location, the size of your space, equipment load, and whether you’re operating a dine-in or takeout model.
Here’s a rough estimate of monthly utility costs:
Utility Type
Estimated Monthly Cost
Electricity
$1,000 – $2,500
Gas
$300 – $800
Water & Sewer
$150 – $600
Internet & Phone
$100 – $300
Waste Disposal
$150 – $500
If you’re using high-powered pizza ovens, dough mixers, and large refrigeration units, expect higher electric and gas bills. These ongoing expenses should be factored into your business plan and monitored monthly to protect your restaurant’s profit margin.
10. Staff Training
Hiring the right team is just the start—proper restaurant training is what turns staff into a well-oiled machine. For a pizza shop, that means training cooks on recipes and safety, cashiers on your POS system, and everyone on delivering excellent customer service.
Training costs will depend on how much experience your team has and whether you’re using outside help or developing materials yourself.
Here’s what to consider:
Training Expense
Estimated Cost
Initial Training Hours (per employee)
$300 – $1,000+ total
Training Materials (manuals, videos)
$200 – $1,000+ (one-time)
Health & Safety Certification (if required)
$100 – $500 per employee
Ongoing Staff Development
$100 – $300/month
Investing in strong training from the start improves efficiency, boosts customer satisfaction, and helps reduce costly mistakes. It also supports long-term retention—something many small businesses struggle with.
11. Insurance
Restaurant insurance protects your business from accidents, property damage, and legal claims—costs that could otherwise derail your progress.
At minimum, you’ll need general liability insurance, property insurance, and workers’ compensation if you have employees. If you offer delivery, commercial auto insurance is also essential.
Optional but smart: business interruption insurance to cover lost income if you’re forced to close temporarily.
Altogether, insurance can cost anywhere from $1,500 to $8,000+ per year, depending on your location, staff size, and services offered.
12. Miscellaneous
Even with the most detailed budget, unexpected expenses always pop up in the restaurant business. That’s why it’s smart to leave room in your startup budget for miscellaneous costs.
These might include:
- Cleaning supplies and janitorial services
- Staff uniforms and name tags
- Replacement parts for kitchen equipment
- Unexpected repairs or delays
- Office supplies, décor, or tech accessories
A good rule of thumb is to set aside 5–10% of your total costs for these extras. It’s a small buffer that can make a big difference in keeping your pizza business on track.
How to Raise Money to Open a Pizza Shop?
Once you know how much it costs to open a pizza shop, the next step is figuring out how to fund it.
Whether you plan to launch a sit down pizzeria, a food truck, or take over an existing pizza shop, choosing the right restaurant financing option is key to building a successful business.
Let’s explore three common ways aspiring pizza business owners raise capital.
1. Bank Loans
Traditional bank loans are a go-to option for many small businesses. To qualify, you’ll need a solid business plan, financial projections, and possibly some collateral. Banks typically lend based on your creditworthiness and the strength of your pizza shop business plan.
Loans are often used to cover large initial costs like kitchen equipment, renovations, or leasing commercial space. Just be prepared for a detailed application process and strict repayment terms.
2. Investors and Partnerships
Some entrepreneurs team up with investors or make restaurant partnerships to open a pizza shop. This approach can help reduce personal financial risk and bring in complementary skills, like marketing or operations.
To attract an investor, you’ll need to clearly present your business model, market research, projected profit margins, and how your concept stands out among the many pizza shops already out there. A clear path to long-term success makes all the difference.
3. Crowdfunding
Crowdfunding might be a good fit if you’re starting a community-driven or niche pizza place. Platforms like Kickstarter or Indiegogo allow you to raise money from supporters in exchange for perks, like free pizza, merchandise, or loyalty programs.
Crowdfunding works best when your story connects emotionally with your target audience and has strong branding and a compelling pitch. It can also help build early brand recognition and buzz for your grand opening.
How to Reduce the Cost to Open a Pizza Shop?
Opening a pizza shop doesn’t have to break the bank. Here are practical ways to reduce your expenses while still building a strong pizza business:
- Start small: Consider a takeout-only spot, kiosk, or food truck instead of a full sit down pizzeria to save on rent, utilities, and staffing costs.
- Lease equipment: Leasing expensive items like your pizza oven, prep tables, or refrigeration units helps reduce large upfront expenses and frees up your startup budget.
- Buy used equipment: Look for gently used restaurant equipment from closed or upgraded pizza shops to save thousands without compromising quality.
- Use all-in-one software: Platforms like UpMenu offer online ordering, a delivery management software, and marketing tools in one package, helping you cut down on tech and marketing expenses.
- Share a commercial space: Using a ghost kitchen or commissary kitchen can dramatically reduce costs compared to leasing your own commercial kitchen.
- DIY when possible: If you or someone you know can handle basic branding, interior updates, or website setup, you can significantly reduce your initial costs.
- Negotiate with suppliers: Building good relationships with restaurant food suppliers and buying in bulk can lower your ongoing food costs and improve your profit margins.
Frequently Asked Questions (FAQ)
How much money does a pizza shop make?
Pizza profit margins typically range from 15% to 25%, depending on factors like food costs, rent, and labor. A well-run pizza shop can generate $5,000 to $17,500+ in monthly profit, but this varies widely based on location and business model.
How long will it take to achieve profitability in a pizza shop?
Most pizza shops reach profitability within 6 to 18 months, depending on initial costs, overhead, and how quickly they can build a loyal customer base.
