Step by Step Guide with Examples:
Are you thinking of opening a restaurant? It’s something you have wanted to do for years, and now you can finally make it happen.
No matter how long you spend researching the industry and conceptualizing your idea, it will fail if your restaurant doesn’t plan properly.
A restaurant business plan is essential. A restaurant business plan helps you plan and forecast all aspects of restaurant management and operations. It includes menu design, location, financials, employee and training plans, as well as helping to make your restaurant dreams a reality.
Continue reading to learn everything you need about creating a restaurant business plan, including sample plans and tips.
What is the importance of a Restaurant Business Plan?
Because it can be time-consuming and difficult for new restaurateurs to create a business plan, many fail to do so. Without a restaurant business plan, you are shooting blindly without a goal. Without a plan, it’s unlikely you will attract investors to fund your dream restaurant. Even if you have a plan, it is unlikely that your restaurant will succeed without proper planning, forecasts, and regulations.
The restaurant business plan will show you how to make a profit and fit in the market. It also shows you how you intend on standing out.
It is worth taking a little bit of time and pain to get a restaurant off the ground.
How do you write a restaurant business plan?
A business plan is different for every restaurant. It considers factors such as the type of restaurant, target market and location. It can seem daunting to create a business plan if you are new to the restaurant industry. We have listed the essential elements you should include in a restaurant business plan to help you get started.
You can alter the order of sections depending on the audience to which your business plan is being presented.
These are the key components of a restaurant plan.
- Executive Summary
- Description of the Company
- Market Analysis
- Restaurant Design
- Market Overview
- External assistance
- Financial Analysis
- Executive Summary
An executive summary should be included in a restaurant business plan. A summary is an introduction to the business plan and a summary of the whole idea.
An executive summary serves the main purpose of a business plan.
The common elements of an executive summary include:
- Learn more about the mission statement.
- Here’s a quick look at the potential costs
- Expected Return on Investments
Investors looking to finance their projects need to have an executive summary. Investors can read the executive summary instead of reading through the entire restaurant plan to find all the details.
Description of the Company
This section is where you introduce your restaurant. This section should include the name of the restaurant that you plan to open, along with contact information and details. Include the details of the owner and a description of their experience.
The second section of the company description should outline the legal status of the restaurant as well as the long-term and short-term goals of the restaurant. A brief market study should be provided to show that you are familiar with the local food market and the reasons why your restaurant is likely to succeed.
The market analysis section of a restaurant business plan is usually divided into three parts.
Which market are you targeting? What demographics is your restaurant catering to? This section will explain your target market to investors and why guests will choose your restaurant.
Analysis of Competition
It is easy to assume everyone will come to your restaurant. However, it is crucial to research the competition to make this happen. Which restaurants are already establishing a loyal customer base in the region? Note everything, from the prices and hours to the interior of their restaurants. Next, explain to investors what your restaurant will look like.
Investors will want to know how your restaurant is going to be promoted. What will make your marketing campaigns different from others? How can you secure your target market? What type of offers can you make to your target market? Be sure to list everything.
The menu is the most important aspect of launching a restaurant. Your restaurant will not be able to offer any food without it. Although you don’t likely have a final version at this point, a mockup is a good idea for restaurant business plans.
You can add your logo to the mockup and pick a design you can use. Many resources online can help you if you have trouble coming up with a menu idea or don’t want a professional designer.
Pricing is the key element of your sample menu. The cost analysis you have done for investors should be used to determine the price of your sample menu. This will allow them to understand your restaurant’s price range better. This will allow you to quickly realize how important menu design is, even before starting.
The restaurant business plan’s company description section briefly describes the owners and provides information about them. This section should provide a complete description of the restaurant management staff.
Although investors won’t expect you to have your entire team on board, they recommend that you at least have a few people. Highlight the collective work experience of everyone by using the talent you’ve chosen so far.
Design is the best place to show investors your ideas and thoughts. It’s okay if you don’t have professionally rendered mockups for your restaurant. To convey your vision, create a mood board. Look for images that have a similar style to the one you want in your restaurant.
Restaurant design should go beyond aesthetics and include all aspects of the kitchen, from software to equipment.
Your target market should be considered when choosing a location for your restaurant. You might not pinpoint the exact location, but it is a good idea to have several options.
You should include as much information about potential locations as possible to explain why they would be ideal for your restaurant. It would be best to mention everything, from square footage to demographics.
The market overview is closely related to the market analysis section of the restaurant business plan. This section will provide details about the micro and macro conditions of the area where you plan to open your restaurant.
Discuss current economic conditions and what you can do to overcome them. Discuss the competition and how you plan to stand out.
Investors are interested in how your restaurant will be known to the world. Many restaurants are opening all day. You should include details in the marketing and publicity section about how you intend to market your restaurant both before and after it opens. You may also need to include plans to get a PR firm on board to spread the word.
You will need to have a lot of help to make your restaurant a reality. It would be best to list any software or companies you are looking to hire to open your restaurant. You can include everything, from designers and accountants to suppliers that will help your restaurant succeed, like POS systems and restaurant reservations systems. Your investors should be aware of each component’s importance and what they will do for your restaurant.
The financial section is the most important part of your restaurant business plan. This is a critical area, and we recommend hiring professional help. A trained accountant can help you get your financial forecasts in order and provide you with a realistic view of owning a restaurant.
To make the task easier for the accountant, you should have some information. The accountant will need to know the number of seats in your restaurant, the average check per table, and how many people you intend on seating each day.
Additionally, you can calculate your profit margin per dish by doing rough food cost calculations on different menu items. A free food cost calculator can help you do this easily.
Restaurant Business Plan Template
Are you ready to get started? Get our free template for a restaurant business plan to help you get started.