Opening a restaurant can be an exciting yet daunting endeavour. You can set your establishment up for success with careful planning and research. A well-thought-out business plan is essential for any restaurateur, providing a roadmap and benchmark as you get your concept.
To help inspire your restaurant business plan, let’s look at some key components to address using real-world examples.
Describing Your Restaurant Concept
The first section of your business plan should outline your vision for the restaurant. Sell what makes your eatery unique. This overview helps investors and other readers understand your concept at a high level.
Your Concept Statement
Articulate what you want your restaurant to be in a short, memorable statement. For example:
“Urban Fresh is a fast-casual restaurant offering healthy global street food made with high-quality ingredients at affordable prices.”
Briefly explain the voids you intend to fill in the market or how you’ll differentiate from the competition.
Detailed Concept Description
Expand on your concept statement by describing the following:
- Restaurant atmosphere and layout
- Types of cuisine/dishes
- Target customer demographics
- What will set you apart from other options locally
Support your descriptions with photos, design plans, and market research insights.
Analysing Your Market
Now that readers understand your restaurant provide an overview of the market landscape you plan on entering. This gives vital context on significant opportunities and barriers you’ll encounter.
Industry Performance & Trends
Outline market size, growth rates, and recent developments within your restaurant niche nationally or locally. Source data from market research reports and local business statistics.
For example, discuss how fast casual restaurants have grown 34% in your metro area from 2017 to 2022.
List and analyse competitors near your planned location or within your niche. Rate on criteria like cuisine style, price points, and target audience to find gaps you can fill.
Modelling Your Operating Plan
This section explains the playbook for how your restaurant will function week to week to create a viable business. Address key priorities here like:
Staffing Roles & Responsibilities
Document the hourly and salaried positions needed for your restaurant to run smoothly and project hiring timelines. Clearly define duties for each role and hierarchy.
You may need servers, line cooks, dishwashers, a general manager, a chef, etc.
Sourcing Food & Suppliers
Outline relationships with food distributors and suppliers you’ll leverage for ingredients and other goods. Emphasise partners capable of delivering the volumes you require cost-effectively.
Daily Operations Plan
Map out how the customer moves through your restaurant upon arrival. Describe processes for serving guests quickly during peak periods.
Set cleaning checklists for closing down the kitchen and dining areas. Share sample weekly schedules for staff shifts and duties.
Projecting Startup & Operating Expenses
Financial modelling is critical for attracting investors and managing ongoing costs.
Estimated Startup Budget
Provide expected capital needed to start, including permits, kitchen equipment, small wares, IT systems, first few months of rent and payroll until revenue ramps up.
Project monthly and annual sales based on the following:
- Anticipated guest traffic and spending rates
- Breakeven analysis
Ongoing Operating Cost Estimates
Factor in recurring overhead like:
- Cost of goods sold
Continually refine projections with updated data over time. Also, outline key cash flow milestones.
Describing Ownership Structure
Provide specifics on founding team members and financial partners with a stake in the restaurant:
Bios on Owners & Investors
Include background credentials, experience, and contributions provided by each individual.
Equity Percentage Breakdown
Document the per cent ownership stake and voting control held by each investor or co-owner. Provide detailed specifics on the exact percentage of equity that each founder, investor, or partner owns in the restaurant business plan example. Outline whether individuals have a controlling share or veto rights over critical business decisions.
Clearly state in this section whether your current capitalisation is sufficient or if you need to raise additional funds through taking out small business loans, bringing on more investors, crowdfunding efforts, or other financing means. If more money still needs to be raised, detail how much is required, in what timeframe, and how exactly you plan to target those funds. Factoring this vital information into your ownership structure breakdown demonstrates to potential new investors that you have carefully considered all aspects of current and future funding sources for supporting your restaurant.
Address whether more capital or loans need to be raised.
A strong business plan communicates your excellent restaurant concept and shows you will execute it profitably. Use the blueprint provided to craft a plan tailored to your vision!