I'm Thinking Of Rolling Up Food Establishments

I want to start rolling up local food establishments like Ice Cream, Frozen Yogurt, or Pizza Places.

No restaurants, just the high volume speciality places like named above.

I know it sounds weird because private equity is focused on roll ups of home service companies, car washes, laundromats, and stuff like that and food has much lower multiples

But I think it would be way easier to roll up food places. What I'm losing in roll up valuation i'm trading off for low friction of getting deals done.

I think it will be low friction because most owners of local hole in the wall pizza places for example are totally burnt out.

They got into it for the love of making food, and ended up getting struck with the stressful reality of running a business.

Most of these guys would jump at the chance to get out and retire

There's no competition because private equity has it's sites focused on other businesses with higher multiples, like home service, so I would have virtually no competition when contacting pizza shop owners.

Pizza places are simple businesses compared to extremely operationally heavy businesses like home service, They're easy to scale, most of them suck at marketing, and it's AI resistant. '

I actually think local food establishments are one of the very few truly AI resistant industries.

Here's what I'm thinking..

Lets say I started with pizza shops

Pizza shop owners would contribute their business to the larger parent company i'm building (the roll up)

They may get a small cash payout up front, they may not.

Either way the benefit of them being a part of it is instead of owning 100% equity in their one pizza place, they now own a smaller % of a much bigger pizza org that has say 20 pizza places in it, and that small % is worth way more than their 100% stake in their one shop, and we will lead it to an exit so they can realize those gains.

On top of that I'll basically tell them they'll keep making what they're making now, anything we produce above that goes to us.

So now these pizza place owners will be going into work everyday just like they do now, are making the same as they make now, but all the backend stressful work is done by the parent company reducing their stress and letting them focus on the love of making good food again, and they have an equity stake in a large pizza org that we'll sell and retire them with.

Thoughts on the plan?