So you wanted to be a restauranteur all your life? Whether you’ve been thinking about it for years or just starting to research, it’s essential to have a plan. A business plan for restaurants is a roadmap that will help you realize your dreams. A business plan will help you think through every aspect of your restaurant, from the menu to the location to the financials. It will also help you identify potential problems and develop solutions.
So if you’re serious about opening a restaurant, don’t skip writing a restaurant business plan. It’s the best way to increase your chances of success. In this blog, let’s learn a few simple tips to create a business plan for your restaurant.
Why writing a restaurant business plan is vital?
Starting a restaurant business can be a thrilling venture, but it’s essential to have a well-thought-out business plan to guide you toward success. Sure, the process might seem challenging and time-consuming, but trust me, it’s worth the effort! Without a proper restaurant business plan, it’s like trying to find your way in the dark without a flashlight. Besides, securing investors for your dream restaurant becomes much more challenging without a clear plan.
Think of your restaurant business plan as a roadmap that leads you to profitability and helps you navigate through the competitive market. It’s your chance to showcase how your restaurant will stand out and flourish. While it might take a little time and effort to create, the rewards of a thriving restaurant are worth it in the long run. So, let’s dive in, plan wisely, and turn your dream into a delightful reality!
Top 11 steps that a business plan for restaurants should include
Starting a restaurant is a lot of work, and writing a restaurant business plan is a big part of it. But don’t worry! It doesn’t have to be as daunting as it sounds. The important thing is to include the key elements that will help you succeed.
The elements you must include will vary depending on your restaurant’s style, target market, and location. But some general elements that all business plans for restaurants should include are:
Executive Summary
An executive summary is the most important segment of your restaurant’s business plan. It’s a brief overview of your business, often the first thing investors will read. So it’s essential to make sure that it’s well-written and engaging.
A few general elements of an executive summary involve:
- Proposed concept
- Execution
- Expected return on investments
- Mission statement
- A brief look at potential costs
Instead of having to read through the entire restaurant business plan, investors can just read the executive summary and get the key information they need. This makes it much easier for them to decide whether or not to invest in your business.
Company Description
When writing a restaurant business plan, it’s vital to introduce your company properly. Start by sharing your name, location, contact information, and other relevant details. Including information about yourself and your experience as the owner is also a good idea.
The next part of your company description should focus on the legal aspects of your restaurant and any short- and long-term goals you have. Lastly, provide a brief market study that shows you understand the trends in the local food industry and highlights why your restaurant is set up for success in this market.
Market Analysis
Market analysis for your restaurant business is divided into three main parts:
Industry analysis
The industry analysis section of your restaurant’s business plan is where you’ll explain who your target market is and why they’ll choose your restaurant over others. This is important because it helps investors understand who you’re trying to reach and why they’ll be interested in your business.
Competition analysis
Analysing your competition helps you understand who your competitors are, what they’re doing well, and how you can differentiate yourself.
When conducting a competition analysis, you’ll want to consider the following factors:
Who are your competitors? What restaurants are located in your area that offer similar products or services?
What are their strengths and weaknesses? What do they do well? What could they improve on?
What are their prices? How do their prices compare to yours?
What are their hours? What days and times are they open?
What is their menu design like? What kind of atmosphere do they create?
What is their restaurant interior like? What is the overall look and feel of their restaurant?
Once you’ve gathered this information, you can begin working on making your restaurant unique.What can you offer that your competitors don’t? What will make your restaurant stand out?
Marketing analysis
Your investors will want to know how you plan to get the word out about your restaurant. What makes your marketing campaigns different from what other restaurants are doing? How are planning to reach your target market? What kind of offers will you provide to attract guests? Make sure to mention everything.
Menu
The menu is one of the most essential elements of your restaurant, so it’s important to get it right. Your menu should reflect your restaurant’s concept and target market and be priced competitively. You can use a mock-up to get started and find plenty of resources like boons.io online to help you design your menu.
Your menu is an excellent opportunity to showcase your creativity and show your potential investors you have a clear vision for your restaurant. Creating a well-designed and well-priced menu can set your restaurant up for success.
Employees
The company description section of your restaurant business plan should introduce the owners and management team. You don’t need to have your entire team in place yet, but you should highlight the talent you’ve already secured and the combined experience they bring to the table. Investors will be impressed by a strong team passionate about your concept.
Restaurant Design
The design part of your restaurant business plan is your chance to show off your vision to investors. If you don’t have professional renderings of your restaurant yet, that’s okay! You can put together a mood board to get your ideas across. Find pictures of restaurants with a similar aesthetic to what you’re looking for.
The restaurant design extends beyond aesthetics alone. It should also include everything from restaurant software to kitchen equipment. Make sure to think about how the design will affect the overall customer experience.
Location
The location of your restaurant is one of the most vital decision you’ll make. It should be in a convenient spot for your target customers. If you don’t have a specific location yet, that’s okay! You can start by researching a few neighborhoods and see which best fits your concept.
When describing potential locations to investors, include as much information as possible. This includes things like square footage, demographics, and foot traffic. You should also explain why each location would be perfect for your restaurant.
Market Overview
The market overview section of your restaurant business plan is an excellent opportunity to showcase your knowledge of the local market. You’ll want to discuss the micro and macro conditions that could affect your business and the competition you’re likely to face.
Here are some things to keep in mind when writing your market overview:
- Micro conditions: These are the factors specific to your local area, such as the demographics of your target market, the availability of real estate, and the competition in the area.
- Macro conditions: These factors affect the economy as a whole, such as the interest rates, the unemployment rate, and the overall economic growth.
- Competition: You’ll need to research the other restaurants in the area that are similar to yours. What are their strengths and weaknesses? What do they offer that you don’t?
- Your strategy: How do you plan to set yourself apart from the competition? What makes your restaurant unique?
Marketing
Investors want to know how you will create a buzz about your restaurant. Your marketing and publicity section should explain how you plan to promote your restaurant before and after it opens and whether you plan to partner with a solution provider like boons.io. This is an important section because it shows investors you have a clear plan for success.
External Help
Running a restaurant is a lot of work, and you’ll need some help along the way. In this part of your business plan, it is essential to mention any external firms or software that you intend to employ to launch your restaurant. This could include accountants, designers, suppliers, or even software like POS systems and restaurant reservation systems.
Financial Analysis
The financial section of your restaurant business plan is one of the most important, so it’s a good idea to hire a professional accountant to help you get it right.
An accountant can help you estimate your costs and revenue and give you a realistic idea of running a successful restaurant. They’ll want to know how many seats your restaurant has, the average check, and how many guests you plan on seating daily.
In addition, you can do some rough calculations to get an idea of your profit margin per dish. Free food cost calculators are available online to help you with this.
By getting your financials in order, you’ll be well on your way to opening a successful restaurant.
Conclusion
Writing a restaurant business plan can be difficult, but increasing your chances of success is essential. By following the tips in this blog, you can create a concise plan to help you achieve your goals.
Remember, your restaurant business plan is a living document. It must be updated as your business changes and grows. So don’t be afraid to make changes as needed.
The most important thing is to have a plan in place. With a well-written business plan, you’ll be all set to open a successful restaurant.
