The elaboration of the business plan of a restaurant is a fundamental step to creating something solid and viable. When you take the first steps to open a restaurant, you should ask yourself what the best strategy to start it up and make it profitable is. Investors, co-founders, and partners will be an important part of the journey. You need a business plan to show them your approach and make sure you stick with it.
Below, we describe what your restaurant business plan should include.
What is a restaurant business plan?
Your restaurant business plan is where you describe exactly what you are going to create, how it will turn out, and how you will make it profitable.
Business plans often include many common elements. It is a document that most banks or investors want to see before giving you money, so it must be well written.
The plan is the document where you capture all your ideas and explore how to identify and exploit business opportunities in writing.
Creating a business plan helps entrepreneurs ensure they’ve thought of everything, gathered all the information they need, and know the steps they need to take to achieve their goals.
Executive Summary
The executive summary is an overview of the restaurant’s business plan. It should be presented as a clear and brief introduction, with enough flexibility to adapt the plan as the company grows.
The executive summary briefly describes the topics that will be developed in depth in the plan. It also includes the goals of the restaurant owner(s), the restaurant’s value proposition, and the key factors that will make it successful and stand out from the competition. The fundamental question to ask is: why do people need my restaurant?
What to include:
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- A concise but compelling introduction to the business plan
- A brief introduction to the topics to be covered later
- The value proposition
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Company description
The company description presents the vision for the restaurant and the form it will take. This is where readers get a more concrete idea of what the restaurant will look like, its goals, what the experience will be like, what audience it will target, and who will be in charge.
An easy way to start this section is by talking about the original idea: what made you want to open a restaurant and create this particular restaurant?
What to include:
- company name
- Location
- Explanation of the concept and gastronomic offer
- Summary of why you are doing it
- Objectives
Market study
The market study is an analysis of the sector, the competition, and the geographical area, which serves so that both you and the reader get an idea of the position of the restaurant in the market:
Competitor Analysis
In this analysis, you will have to observe the competitors throughout the market, especially those in your area. First, find out who has the largest market share and how far your competitors’ restaurants are from you. Once you have all the necessary information, clearly explain the advantages of these businesses and how you will convert your disadvantages into points in your favor.
Geographic analysis
Include an analysis of the restaurant’s location or possible options. Many factors determine the success of a restaurant. One of them is to analyze the locations of other restaurants in the area. In addition, that the neighborhood becomes fashionable, that it is easy to get there by public transport, and that it is possible to park are factors that contribute to a place being more or less liked by the public.
SWOT Analysis
With a SWOT analysis, you study the strengths (competitive advantages), the opportunities (from which the restaurant can benefit), the weaknesses (deficiencies or lack of experience), and the threats (which you must overcome). By differentiating these areas, it will be easier for you to make the most of the positive and plan to deal with the negative. In addition, it is a realistic vision of all the possible problems and achievements.
In a SWOT analysis, be honest with yourself about the strengths and weaknesses of your business. No restaurant will be better than the competition in all categories, so think about what will make yours unique and unrepeatable. You will identify your niche if you are aware of what you do best and highlight it, and also by being aware of the areas in which you are not number one.
Menu and catering
Everyone, including investors, wants to know what your restaurant will serve, so describe the menu in as much detail as possible in your business plan.
This section is specifically designed for you to enter the menu items, descriptions, and ingredient lists needed to prepare the dishes and drinks. Descriptions greatly influence the perception of the menu, so they can be used as a marketing tactic. Let’s say that they are a way of “feeding the imagination” because they help the customer understand what the food will look and taste like.
If you can test the menu and add the information to the business plan, all the better. Testing the recipes and ensuring they work and that there is an audience for what you offer can save you a lot of money and headaches and help your business survive in the long run.
List the places where you will source products, as well as vendors and suppliers. Also, think about your customers’ tastes and attitudes and determine whether you will use local, environmentally friendly products to reinforce a green business approach.
Marketing strategy
In the marketing strategy section of the restaurant business plan, you should explain how you will promote and increase the restaurant’s sales.
- A positioning statement.
- An explanation of how you will reach your target market.
- An overview of the brand.
The positioning statement
In the positioning statement, you expose the proposal of the restaurant: the fundamental text message you want to get across to the public.
What to include:
- A description of everything that differentiates your restaurant from others and what will make it enjoy itself differently from others
- The key point about the business that you want everyone to know
- The segment or category in which your company competes
Definition of the target market
You have already defined the target audience in the description of the company, and the market research will also reveal the characteristics of the people who might be interested in your restaurant. This subsection allows you to analyze their profiles in more detail and think about the marketing messages that will reach them the most.
An important element of understanding your target audience is figuring out which marketing channels they interact with the most. You’ll likely find that students, for example, are very active on social media, while older, wealthier professionals seek out new restaurants from well-known magazine reviews and through recommendations from friends.
The brand
Your brand is more than just a logo. It is your personality and the way people perceive you. So a simple exercise to start building your brand is to select a list of terms that best describe your restaurant. Next, consider the emotions you want to evoke in customers when they visit you or receive marketing communications.
When you’ve fully fleshed out these concepts, start thinking about color schemes, fonts, website designs, and a logo. All of this should align with what you have discovered about the company’s personality. Then, as you finalize your business plan design, give these visual assets some space to stand out on the page.
Marketing to generate traffic
Now that you have defined the central idea of your marketing approach, you can start planning activities such as the following:
- A pop-up restaurant event or pre-opening guest night
- Special discounts on certain nights of the week
- chef pairings
- take away options
- Beneficial events
- Text Message for daily offer
- offer update via Whatsapp msg
Organization and Management
It lists the roles and responsibilities of the management teams, room staff, and kitchen staff. Both the quality and quantity of employees will be crucial factors in the restaurant’s success. It is important that you hire people who believe in the restaurant’s value proposition and that the number is adequate to work efficiently.
This section should also include the type of legal form you choose for the restaurant: limited company, corporation, etc. The legal status determines the type of taxes that will be paid, so when opening a business, it is advisable to speak with a tax advisor before registering in the commercial register.
Technology also plays a big role in running the restaurant, so describe the systems you plan to use. For example, an integrated Hospitality POS will allow you to easily keep track of all sales, manage employees and stock/inventory, analyze business performance, update menus and room layouts, and collect customer feedback. All the tools a company needs to respond to demand.
Investment plan
Last but certainly not least is the big money question: how much will this cost? This section has three main components: restaurant start-up costs, financing options, and an analysis of the balance between benefits and expenses. This part is probably the most important part of the business plan and can be tricky if you’re not good with numbers. Do not hesitate to contact a tax advisor if you need professional help. Knowing that this section is well thought out will give you confidence when talking to potential investors. Before opening a restaurant, you must ensure that the numbers have been done well to stay afloat and be competitive.
What to include:
- Opening costs, such as tables and chairs, lighting, and kitchen equipment
- Fixed expenses, such as electricity, water, rent, and salaries
- The percentage of the cost of the food
- Financing Options
- Analysis of the balance between benefits and expenses
The presentation
Everything we’ve described is just an outline of the ideal restaurant business plan, but you don’t have to limit yourself to that. You can include other sections, add details within each section and rearrange them as you see fit.
The final restaurant business plan consideration is how you will present all of your notes, doodles, and lists. So here are some ideas on how to organize and present all that work you’ve done:
Create a digital presentation
A digital presentation consolidates all your ideas into a single document that can be easily shared and read. Choose a simple layout to avoid information overload, so your audience can focus on what’s important. Dnd 5e It’s best to keep the business plan private. If you upload it to the internet, make sure you use the proper privacy settings.
Make some paper copies
While most people read online, a paper business plan, which can be handed out and read without internet access, can earn you big points. So, get it done at a print shop and choose quality paper.
Prepare some notes
The opportunity to speak in person with potential partners will always be as stressful as exciting. You can make some paper cards or digital notes highlighting the key information to entertain your audience and make a professional presentation.
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Prepare your restaurant and your plans for the future
COVID-19 accelerated the business plans of many existing restaurants, which began to offer takeout, delivery, and online ordering and pick-up options, terrace seating, and contactless payments. As a result, restaurant websites have become more important than ever.
Those things are likely to be critical to making restaurants work. So, if you incorporate them into your business plan from the beginning, you will have a better chance of success.
Other areas becoming hot topics are meatless or meatless options and carbon-neutral meals.
It is advisable to be attentive to trends in the world of restoration and have a plan to follow those that take hold. Of course, it’s not necessary to follow trends, but you should at least consider why you don’t or what you can do instead.
Key points for your restaurant business plan
You don’t have to write or present a business plan specifically, and you don’t have to include everything we’ve mentioned here. But, of course, you can add other things if you want.
The important thing is that you create a compelling business plan to guide the development of the restaurant, that you make sure there is a strategy for the development, and that you can demonstrate how you will make a profit.
Having a plan helps you meet your goals as a business owner. In addition, it will help investors and banks understand and share your vision.
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