Is Store No. 2 for You? A Veteran Operator Explains Why, When and How to Open Your Next Location

By Michael P. LaMarca

Michael LaMarca, USPT Captain and Franchise Master of Master Pizza in Cleveland, OH.

So you had an idea to open a pizza shop and your store has become a fan favorite—congratulations! You have built your store’s sales to numbers you could only have imagined. As an entrepreneur, you are programmed to constantly think of ideas, then develop and expand your ideas. You’ve always had thoughts of building a pizza empire, so what’s next? 

Does this mean you should open store No. 2? Why and when should you open a second location? How and where do you even open a second location? Are your crew and your building maxed out? All of these are questions that should be running through your head when you’re considering the idea of store No. 2.

Why Open a Second Store?

Why should you open a second store? One reason is, you have presented your staff with a clear vision of how you want to build this company, and your team is all in with you. The leadership wants to grow with you, but there are too many chefs and not enough cooks. You are struggling to find hours for everyone, and fears of losing a key team member—because they feel they have hit their professional ceiling with you—are real.

Another reason for a second location: Sales have become higher than you ever imagined, and the opportunity presents itself for growth. The customer experience is so unique that it has gone viral. There are times during the week when there are just not enough phone lines, work space and pizza makers to handle all of the orders. You have built a proven model, and opening a second location seems like the next logical step in building your pizza empire.

Related: Stop renting customers’ attention: How to build loyalty with a robust marketing database

If you’ve got more business than you can handle at your first location, that might indicate it’s time to open store No. 2. (Master Pizza)

Where Should I Open Store No. 2?

You are now convinced that opening store No. 2 is the right decision. Now the question shifts to where it should be located. Current customer information and data are vital and will help determine the location of the new store. Data might show a disproportionate number of customers on one side of town or a large number of customers coming in from a certain area. Store No. 2 should be close enough to help alleviate some of the pressure but not too close that it will cannibalize store No. 1.

As the options for the new location narrow down, the final decision could come down to the plaza in which each option is located. Should you do a complete build-out or look for an existing pizza shop that has gone out of business? Your budget and desired footprint will determine these and many more questions. For a full-service restaurant, you might need upwards of 3,000 to 4,000 square feet. For a delivery/carryout (DELCO) model, your desired footprint might range from 1,000 to 2,000 square feet.

Opening a new location today has its benefits. Social media can make any announcement much more impactful and achieve further reach than you’d get with traditional media in the past. With that in mind, opening a location that extends past your customer base and into a new market is feasible if your online presence is strong. That’s why it’s crucial to secure your handles (for example, @masterpizza) on all social media platforms as well as your web domain (such as www.masterpizza.com).

Training the trainers who will train your employees is a key step in scaling your pizzeria brand. (Master Pizza)

Training the Trainers

So you’re all in on location No. 2 and you think you’ve found the perfect spot. You have the beginnings of a team assembled and ready to go. But how do you tackle being in two spots at the same time? How do you make sure the pizzas from store No. 1 are exactly like the pizzas coming out of store No. 2? How do you manage a whole new team of people who are not familiar with the culture you have created? There is so much to do and plan out. When you decide to move forward with store No. 2, most of this work must be done prior to any commitment.

The first job is to build your Lead Team, and your No. 1 priority is to train the trainers. It will be crucial to choose a team of surrogates that will convey your message, set your standards and be your No. 1 advocate. Your Lead Team must emulate your abilities and standards with every procedure, every skill and every behavior. This team will give you the best chance and ability to be in both locations at the same time.

You will teach your Lead Team not only to train employees how to perform every task, but, more importantly, why to do something. Having your new teammates learn why to do something will help them achieve your standards and construct common values—a crucial factor in success. These values are the building blocks of developing your core culture and getting everyone rowing in the same direction.

Related: Michael LaMarca explains how to create an operations manual for your pizzeria

Two Must-Have Manuals

Your Lead Team will need the proper tools to succeed in building Store No. 2’s team. An employee manual and a food prep manual are essential tools not just for your Lead Team, but for your new teammates as well. Creating these manuals will give your Lead Team a map and a set of rules to follow while guiding your new teammates to building a successful store No. 2.  

An employee manual is a handbook that sets the expectations between the management and your staff. This handbook will clarify any and all of your procedures and policies, from meal benefits to 401(k) benefits. It’s one of the most important documents you will put together. Take your time creating it and make sure you have a written policy for everything. If a policy is not included or not written clearly, it could cost you thousands in potential litigation.

A food prep manual is a must-have in order to save on food costs and ensure consistency across all locations. (Master Pizza)

Your food prep manual is just as important as your employee manual. Again, if not put together properly and clearly, it could cost you thousands in higher COGS (cost of goods sold). The goal is to create the most efficient procedures and eliminate any unnecessary steps. Just assume everyone has no idea how to do anything, let alone how to do anything the way you want it done. Being as precise as you can be in creating your recipes and procedures on how to make your food will save you thousands in labor costs as well.

Building a Structure

Your Lead Team now has the tools they need to start building Team No. 2 for Store No. 2. The hardest part about growing your company will be going from a one-store operation to two stores. This, most likely, will be the only time you double the size of your company with a flip of the switch. So, the earlier you can put together your team to run Store No. 2, the better chance of success you will have.

Hire early in the process and train the new team in Store No. 1. This will get your new team acclimated to your culture and the pace of the business. The ideal situation is to have enough members of your new team hired and trained up, ready to go on day one.

Now everything is falling into place, and creating the proper structure of your company will be the cornerstone to holding it all together. Who answers to whom, and who is in charge of what needs to be addressed and organized prior to opening? This is more than just creating titles like general manager or assistant general manager; it is also, and more importantly, about creating and defining the responsibilities of each position and to whom each position reports. 

Businesses will either succeed or fail based on how well they communicate, so communication is key. Hold regularly scheduled meetings with your Lead Team and require them to hold meetings with their teams to make sure your message reaches all the way through to everyone. Meetings should be structured, efficient and consistent. Having a structure to your meeting familiarizes your attendees with what to expect during each meeting. Efficiency is important, because you want your team back on the floor and spreading the new information to the rest of the team as soon as possible. Also, the longer a meeting goes, the more risk you run of losing your audience.

Consistency is also a priority—never miss or postpone a meeting! The more serious you make these meetings, the more serious everyone else will take them.

Once you’ve opened your newest location, take a little time and savor the feeling of accomplishment. It’s a big deal! (Master Pizza)

Savor the Moment

Finally, with your hard work and planning done, Store No. 2 is here. Take a minute for yourself to walk around the new store, inside and out, and take in all that you have done. As you’re walking around, watch and listen to all of the phones ringing, printers printing orders, the sounds of pizza pans banging around, and the kitchen crew yelling order numbers. Watch all of the customers come and go.

It is special. It’s a big deal, and it’s something that should not be taken for granted. It is an incredible feeling to see an idea in your head become tangible. But don’t take too long looking around—we have Store No. 3 to work on next!

Michael P. LaMarca is the owner and CEO of Master Pizza Franchise. His family purchased Master Pizza, located in Mayfield Heights, Ohio, in 2001. LaMarca opened the second Master Pizza location in Chagrin Falls, Ohio, in 2012, and, as its master franchisor, has grown the brand to 15 locations.

Picture of Brian Hernandez

Brian Hernandez