How Much Does It Cost to Start a Pizza Shop Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 10
- 3 min read
Starting a pizza shop is a flavorful way to enter the restaurant industry—but it’s important to understand the financial commitment involved. From leasing space and buying equipment to hiring staff and securing insurance, launching a pizza restaurant requires careful budgeting and planning.
In this guide, we’ll break down the typical startup costs for a pizza shop and explain how insurance fits into your overall investment.
Key Startup Costs for a Pizza Shop
1. Lease or Rent
Your location plays a big role in your success. Expect to pay anywhere from $2,000 to $8,000 per month depending on your city, foot traffic, and square footage.
2. Renovations and Build-Out
You may need to remodel the space to meet health codes and create a welcoming environment. Renovations can range from $10,000 to $50,000 depending on the condition of the property.
3. Kitchen Equipment
Essential items include commercial pizza ovens, refrigerators, dough mixers, prep tables, and sinks. Equipment costs typically range from $15,000 to $40,000.
📌 Read More: Pizza Shop Equipment?
4. Furniture and Fixtures
If you offer dine-in service, you’ll need tables, chairs, counters, and décor. Budget $5,000 to $15,000 for this.
5. Initial Inventory
Stocking up on ingredients like flour, cheese, sauce, and toppings will cost around $3,000 to $8,000 initially.
6. POS System and Software
A reliable point-of-sale system helps manage orders, payments, and inventory. Expect to spend $1,000 to $5,000.
7. Marketing and Branding
Launching your brand with signage, a website, social media ads, and local promotions can cost $2,000 to $10,000.
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Bids & Estimates– Send professional proposals for catering and bulk orders
8. Licenses and Permits
You’ll need food service licenses, health permits, and possibly alcohol licenses. These typically cost $500 to $2,000.
9. Staff Hiring and Training
Hiring cooks, servers, and delivery drivers will require an upfront investment of $3,000 to $10,000 for onboarding and training.
10. Insurance Coverage
Protecting your pizza shop is essential. Insurance costs vary based on your location, size, and services offered. On average, expect to pay $2,000 to $6,000 annually for:
Estimated Startup Cost
Expense Category | Estimated Cost Range (USD) |
Lease or Rent (monthly) | $2,000 – $8,000 |
Renovations & Build-Out | $10,000 – $50,000 |
Pizza Ovens & Kitchen Equipment | $15,000 – $40,000 |
Furniture & Fixtures | $5,000 – $15,000 |
Initial Inventory (food/supplies) | $3,000 – $8,000 |
POS System & Software | $1,000 – $5,000 |
Marketing & Branding | $2,000 – $10,000 |
Licenses & Permits | $500 – $2,000 |
Staff Hiring & Training | $3,000 – $10,000 |
Insurance Coverage | $2,000 – $6,000 annually |
Total Estimated Startup Cost | $43,500 – $164,000 |
Final Thoughts
Starting a pizza shop requires a significant investment, but with the right planning and protection, it can be a highly profitable business. Insurance is a critical part of your startup budget—it safeguards your equipment, staff, and operations from unexpected risks.
At Wexford Insurance, we specialize in pizza shop business insurance tailored to food service businesses. Whether you’re opening your first location or expanding, we’ll help you find the coverage you need.
📞 Need help insuring your pizza shop?