“I Quit My Job And Built A $10M Pizza Business” - Thom Elliot Founder of Pizza Pilgrims

Added: Nov 9, 2023

Thom and his brother decided to quit their corporate jobs and start a pizza business after being inspired by the street food revolution in London. They saw an opportunity to enter the food industry without a large capital investment, and they were drawn to the idea of creating a business that could bring joy to people through food.

The brothers initially planned to start a pizza oven company, but after realizing the challenges of transporting and selling pizza ovens, they shifted their focus to creating a pizza business. They embarked on a pilgrimage to Italy to learn about the art of pizza-making and ended up producing a TV show about their journey. This unexpected opportunity opened doors for them and gave their business a momentum they hadn't anticipated.

Thom emphasizes the importance of making connections and reaching out to people, even if it seems unlikely that they will respond. He shares examples of how cold emails and chance encounters have led to unexpected opportunities and connections that have benefited their business.

Thom also highlights the importance of genuine human interaction in the food industry. He believes that the immediate feedback and connection with customers that comes from selling food in a street food setting is a unique and rewarding experience. This personal connection with customers has been a driving force behind their business and has allowed them to build a loyal following.

Thom emphasizes the importance of networking and building relationships in the hospitality industry. He highlights how everyone in the industry is willing to help each other, creating a small and supportive network. This camaraderie is a unique aspect of the hospitality industry that sets it apart from others.

When Thom and his brother decided to start a pizza business, they initially bought a van in Italy for just over 10K euros. They began by doing events and testing their product. They faced challenges in finding a place to sell their pizza, but they persisted and eventually secured a pitch at a market in Westminster for just £10 a day. This marked the beginning of their journey as pizza vendors.

In the early days, the business was challenging, with Thom and his brother investing all their profits back into the business. They would sell pizza for £5 each, and a good day would bring in around £500 in cash. However, the margins were tight, and they were only able to take a £100 each per week as profit. Despite the financial challenges, they were determined to grow their business and invested their earnings into expanding their operations.

One of the key turning points for Pizza Pilgrims was when they decided to go cashless. Thom recalls the challenges of dealing with cash, including safety concerns, insurance costs, and the inconvenience of managing change. They eventually made the switch to a cashless system, which improved efficiency and safety for their staff.

As the business grew, they continued to invest in new ideas and opportunities. They took risks, such as creating a world's first vespa pizzeria and driving it around Naples for 10 days. While some decisions were met with skepticism, they were willing to take calculated risks to push the business forward.

Thom also emphasizes the importance of resilience and adaptability in the restaurant industry. He highlights the need to constantly problem-solve and make quick decisions to keep the business running smoothly. He also acknowledges the blurred lines between work and personal time, as the business demands constant attention and dedication.

One of the key takeaways from Thom's experience is the significance of understanding the financial aspects of a business. He admits that he wished he knew more about profit and loss, VAT, and other financial concepts when they first started. He emphasizes the need to have a good grasp of the numbers to understand the business and make informed decisions.

Thom also discusses the growth trajectory of Pizza Pilgrims, which has grown to 24 pizzerias and employs over 500 people. He shares the revenue and profit margins, highlighting the company's focus on reinvesting profits for future growth. He also talks about the challenges of managing head office costs and the balance between growth and maintaining a healthy business.

The conversation delves into the anxieties and uncertainties that come with running a successful business. Thom shares his personal experience of constantly feeling like the business could fail at any moment, despite its success. He draws parallels to Paul McCartney's worries about the future of The Beatles and the advice he received to simply enjoy the success and not worry about the future.

Thom also shares the challenges Pizza Pilgrims faced during the pandemic, with a sudden drop in revenue and the need to make tough decisions to survive. He emphasizes the importance of modeling different scenarios, including worst-case scenarios, to prepare for unforeseen challenges.

One of the key takeaways from the discussion is the importance of testing ideas before fully committing to them. Elliot advises aspiring entrepreneurs to test the waters and see if their ideas have potential without immediately quitting their jobs. This approach allows for a more gradual and informed transition into entrepreneurship.

Elliot also emphasizes the value of taking a hands-on approach and learning through experience. He believes that there is no one-size-fits-all formula for success and that entrepreneurs should trust their instincts and find their own path. This mindset is especially relevant in the restaurant industry, where creativity and innovation are highly valued.

The conversation also touches on the topic of work-life balance, particularly for entrepreneurs with families. Elliot candidly shares his own struggles with balancing work and family life, highlighting the challenges of being mentally present while juggling business responsibilities. He acknowledges the difficulty of finding a perfect balance but emphasizes the importance of being present for family moments, even if it means being mentally preoccupied at times.

Another valuable lesson from the discussion is the idea that growth should be purposeful and aligned with the company's values. Elliot cautions against pursuing growth for the sake of growth, especially if it leads to unsustainable practices or compromises the company's core principles. Instead, he advocates for growth that is driven by a genuine desire to provide opportunities for the team and to make a positive impact.

The conversation also delves into the concept of entrepreneurship being celebrated and put on a pedestal in modern society. While acknowledging the positive shift in perception, Elliot cautions against the notion that entrepreneurship is the ultimate goal for everyone. He believes that entrepreneurship is well-suited for certain individuals but may not be the right path for everyone. It's important to consider one's own strengths, preferences, and motivations before embarking on the entrepreneurial journey.