Address the micro and macro market conditions in your area. At a macro level, what are the local and regional economic conditions? At a micro level, discuss who your direct competitors are. The restaurant landscape is only getting more competitive. If not, convey that you have a solid plan in place to generate attention on your own through social media, your website, and media connections. This section should be short and sweet.
What type of business structure have you set up and why did you make that specific decision? You will need to work with an attorney to help you determine what business structure is best for you more tips in the full guide.
She was a very helpful, experienced outside perspective for more than just legal matters. Let your accountant guide you through this portion of your business plan. Being conservative in these estimations is key as these three data points will be used as the basis for figuring out whether your concept is financially feasible. The key projections you can expect to work on are:. Alison Arth is a hospitality consulting professional who partners with businesses to build long-term success through establishing culture, cohesive brand identity, team training, and internal systems.
To date, she has been involved in 13 restaurant openings. Learn more at www. Concept Describe your restaurant concept and get the reader excited about your idea. Service This section is most relevant for fine-dining concepts, concepts that have a unique service style, or if you have particularly strong feelings about what role service will play in your restaurant. Management Team Write a brief overview of yourself and the team you have established so far.
Design Incorporate some visuals. Target Market Who is going to eat at your restaurant? Market Overview Address the micro and macro market conditions in your area. Without it, you are unlikely to receive financing from banks, investors, and other sources. Unfortunately, so many restaurateurs skip the step of writing down their restaurant business plan, especially when opening their second or third location.
Putting pen to paper is too daunting, and instead of thinking out possible scenarios for their new restaurant, they rush to open the doors as fast as possible and bring in new patrons. Investors need to know that you have thought this business idea through and have the answers to potential problems you will face. Only then will wise investors consider funding your venture. Use mind mapping software to visualize your ideas, create an outline, and if possible, start with a business plan template to save time.
The executive summary acts as both the introduction to and the summary of your entire idea for this new restaurant. This section should present a complete and concise summary designed to catch the reader's attention and entice him or her to explore the rest of the plan. An executive summary includes things like the mission statement, proposed concept, execution, overview of potential costs, and anticipated return on investment.
A clear, convincing, and catchy executive summary is crucial to securing investors. Be sure to cite reasons for success and attractive numbers, but save the full explanation for the body of the business plan. Leave investors wanting to know more about your company by assuring them that reading about your restaurant is worth their time and ultimately their money. The company overview introduces information about the ownership and management structure, location, and business concept.
Outline the vision for the customer's experience. Identify the service style, design, layout, general theme, and unique aspects of the overall concept. The industry analysis section should describe the existing market in the specific location or area in which you plan to open the new restaurant. This section could cover things like the growth of the local economy and restaurant industry, infrastructure projects, nearby business and residential areas, and average traffic counts in the area.
The competitive analysis section should explain the existing landscape of restaurants in the area, especially restaurants with similar concepts. Investors will want to understand what about your new restaurant will give it a competitive advantage. In this section, include a competitive matrix comparing your restaurant to others with pricing, hours, meal ideas, and seating. The marketing plan explains your marketing strategy, including tactics, such as public relations, advertising, social media, loyalty programs, and more.
It delves into how you will promote the restaurant before opening, and how you will build an engaged customer once the business is operational. The business operation section should paint a picture of how the restaurant will operate day-to-day once it is operational.
“The point of a business plan is to show that you’ve done your homework,” says Charles Bililies, owner of Souvla, a fine casual Greek restaurant in San Francisco that has received national acclaim since opening in the spring of
One way to prevent these types of problems is to develop a well-written business plan. By writing a restaurant business plan, you do two things: you show the bank you have a clear plan for getting your restaurant up and running—and you have a contingency plan to handle problems.
Every restaurant can benefit from a high-quality business plan. Use our professional business plan templates to improve your restaurant's business plan. These, and hundreds more sample business plans, are included in LivePlan. Article How to Create a Winning Restaurant Business Plan Joe Erickson. Hard work, great food, and the will to succeed are not enough. You need proper training, established operational procedures, and a creative marketing plan, before you open.
Start with a Restaurant Business Plan Template. A restaurant business plan template can save you time and money when starting your next restaurant. The template will act as a guideline when writing, giving tips and tricks to make sure your plan will wow someone into investing in your restaurant. A simple online search of “business plans restaurants” will return sample business plans for restaurants, bars, cafes and coffee shops. Make sure to view some plans in your specialty area, but also look at plans for other types of businesses. This will help you think about your potential customers in a new way.