A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.
This includes anything from your restaurant's menu design, location, financials, employee training, and a lot more.
Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.
Create a business plan to set yourself up for success.
Here's how to get started.
Before writing a business plan, it is important to understand its fundamentals.
It serves as a roadmap for starting and running your restaurant, making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.
The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.
In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.
Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.
The Eat App Restaurant Business Plan template, created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.
Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below.
A restaurant business plan should always begin with an executive summary. Why?
An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.
The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.
The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.
To establish a distinct identity, you need to focus on common elements of an executive summary, including:
Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.
Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:
Your concept should reflect your passion and expertise in the industry.
The cuisine you select for your restaurant can significantly influence its success.
Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.
To make an informed decision, consider factors such as:
In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.
A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.
A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.
To create an impactful mission statement, consider the following steps:
Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.
This is where you carefully introduce the company in the restaurant business plan.
Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information.
Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description.
To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.
Here's an example of the page layout:
Restaurant Name: [Restaurant Name]
Location: [Restaurant Address]
Contact: [Restaurant Phone Number] | [Restaurant Email Address]
Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.
Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].
The market analysis portion of the restaurant business plan is typically divided into three parts.
What is your target market? What demographics will your restaurant cater to?
This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.
Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.
By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.
An example of analyzing your target market
Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.
By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.
Identifying your primary target market involves considering factors such as:
For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.
Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.
Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.
By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.
As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.
For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.
Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.
It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.
What restaurants have already established a customer base in the area?
Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.
Then explain to your investors how your restaurant will be different.
Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?
How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.
The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.
You most likely don't have a final draft at this time, but you should aim to create a mock-up menu for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.
There are several resources available online if you need assistance with menu design or don't want to hire a designer.
But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result.
You'll quickly see how important menu engineering can be, even early on.
The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.
The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.
The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.
Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.
The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment.
The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.
At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.
Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand.
Example for choosing an ideal location
Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success.
To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.
By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.
Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.
A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.
Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.
Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.
Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.
By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.
Conducting a market analysis can be a valuable step in this process.
To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.
Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.
Conducting market research will further strengthen your understanding of the local demographic.
The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.
Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.
With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.
The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.
To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.
This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems.
Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.
The most important part of your restaurant business plan is the financial section. We would recommend hiring professional help for this given its importance.
Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.
You should have some information prepared to make this step easier for the accountant.
He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.
In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator.
A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.
By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.
Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.
By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.
