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How to Write a Restaurant Business Plan
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When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .
While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.
We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.
Why you shouldn’t skip a restaurant business plan
First-time restaurateurs and industry veterans alike all need to create a business plan when opening a new restaurant . That’s because, even if you deeply understand your business and its nuances (say, seasonal menu planning or how to order correct quantities), a restaurant is more than its operations. There’s marketing, financing, the competitive landscape, and more—and each of these things is unique to each door you open.
That’s why it’s so crucial to understand how to create a business plan for a restaurant. All of these things and more will be addressed in the document—which should run about 20 or 30 pages—so you’ll not only have a go-to-market strategy, but you’ll also likely figure out some things about your business that you haven’t even thought of yet.
Additionally, if you’re planning to apply for business funding down the line, some loans—including the highly desirable SBA loan —actually require you to submit your business plan to gain approval. In other words: Don’t skip this step!
How to write a restaurant business plan: Step by step
There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than others, for example, or you might find that there’s a logical order that makes more sense than the one in the restaurant business plan example below. However, this business plan outline will serve as a good foundation, and you can use it as a restaurant business plan template for when you write your own.
Executive summary
Your executive summary is one to two pages that kick off your business plan and explain your vision. Even though this might seem like an introduction that no one will read, that isn’t the case. In fact, some investors only ask for the executive summary. So, you’ll want to spend a lot of time perfecting it.
Your restaurant business plan executive summary should include information on:
Mission statement: Your goals and objectives
General company information: Include your founding date, team roles (i.e. executive chef, sous chefs, sommeliers), and locations
Category and offerings: What category your restaurant fits into, what you’re planning to serve (i.e. farm-to-table or Korean), and why
Context for success: Any past success you’ve had, or any current financial data that’ll support that you are on the path to success
Financial requests: If you’re searching for investment or financing, include your plans and goals here and any financing you’ve raised or borrowed thus far
Future plans: Your vision for where you’re going in the next year, three years, and five years
When you’re done with your executive summary, you should feel like you’ve provided a bird’s eye view of your entire business plan. In fact, even though this section is first, you will likely write it last so you can take the highlights from each of the subsequent sections.
And once you’re done, read it on its own: Does it give a comprehensive, high-level overview of your restaurant, its current state, and your vision for the future? Remember, this may be the only part of your business plan potential investors or partners will read, so it should be able to stand on its own and be interesting enough to make them want to read the rest of your plan.
Company overview
This is where you’ll dive into the specifics of your company, detailing the kind of restaurant you’re looking to create, who’s helping you do it, and how you’re prepared to accomplish it.
Your restaurant business plan company overview should include:
Purpose: The type of restaurant you’re opening (fine dining, fast-casual, pop-up, etc.), type of food you’re serving, goals you have, and the niche you hope to fill in the market
Area: Information on the area in which you’re opening
Customers: Whom you’re hoping to target, their demographic information
Legal structure: Your business entity (i.e. LLC, LLP, etc.) and how many owners you have
Similar to your executive summary, you won’t be going into major detail here as the sections below will get into the nitty-gritty. You’ll want to look at this as an extended tear sheet that gives someone a good grip on your restaurant or concept, where it fits into the market, and why you’re starting it.
Team and management
Barely anything is as important for a restaurant as the team that runs it. You’ll want to create a section dedicated to the members of your staff—even the ones that aren’t yet hired. This will provide a sense of who is taking care of what, and how you need to structure and build out the team to get your restaurant operating at full steam.
Your restaurant business plan team and management section should have:
Management overview: Who is running the restaurant, what their experience and qualifications are, and what duties they’ll be responsible for
Staff: Other employees you’ve brought on and their bios, as well as other spots you anticipate needing to hire for
Ownership percentage: Which individuals own what percentage of the restaurant, or if you are an employee-owned establishment
Be sure to update this section with more information as your business changes and you continue to share this business plan—especially because who is on your team will change both your business and the way people look at it.
Sample menu
You’ll also want to include a sample menu in your restaurant business plan so readers have a sense of what they can expect from your operations, as well as what your diners can expect from you when they sit down. This will also force you to consider exactly what you want to serve your diners and how your menu will stand out from similar restaurants in the area. Although a sample menu is in some ways self-explanatory, consider the following:
Service : If your brunch is as important as your dinner, provide both menus; you also might want to consider including both a-la-carte and prix fixe menus if you plan to offer them.
Beverage/wine service: If you’ll have an emphasis on specialty beverages or wine, a separate drinks list could be important.
Seasonality: If you’re a highly seasonal restaurant, you might want to consider providing menus for multiple seasons to demonstrate how your dishes (and subsequent purchasing) will change.
Market analysis
This is where you’ll begin to dive deeper. Although you’ve likely mentioned your market and the whitespace you hope to address, the market analysis section will enable you to prove your hypotheses.
Your restaurant business plan market analysis should include:
Industry information: Include a description of the restaurant industry, its size, growth trends, and other trends regarding things such as tastes, trends, demographics, structures, etc.
Target market: Zoom in on the area and neighborhood in which you’re opening your restaurant as well as the type of cuisine you’re serving.
Target market characteristics: Describe your customers and their needs, how/if their needs are currently being served, other important pieces about your specific location and customers.
Target market size and growth: Include a data-driven section on the size of your market, trends in its growth, how your target market fits into the industry as a whole, projected growth of your market, etc.
Market share potential: Share how much potential there is in the market, how much your presence will change the market, and how much your specific restaurant or restaurant locations can own of the open market; also touch on any barriers to growth or entry you might see.
Market pricing: Explain how you’ll be pricing your menu and where you’ll fall relative to your competitors or other restaurants in the market.
Competitive research: Include research on your closest competitors, how they are both succeeding and failing, how customers view them, etc.
If this section seems like it might be long, it should—it’s going to outline one of the most important parts of your strategy, and should feel comprehensive. Lack of demand is the number one reason why new businesses fail, so the goal of this section should be to prove that there is demand for your restaurant and show how you’ll capitalize on it.
Additionally, if market research isn’t your forte, don’t be shy to reach out to market research experts to help you compile the data, or at least read deeply on how to conduct effective research.
Marketing and sales
Your marketing and sales section should feel like a logical extension of your market analysis section, since all of the decisions you’ll make in this section should follow the data of the prior section.
The marketing and sales sections of your restaurant business plan should include:
Positioning: How you’ll describe your restaurant to potential customers, the brand identity and visuals you’ll use to do it, and how you’ll stand out in the market based on the brand you’re building
Promotion: The tools, tactics, and platforms you’ll use to market your business
Sales: How you’ll convert on certain items, and who/how you will facilitate any additional revenue streams (i.e. catering)
It’s likely that you’ll only have concepts for some of these elements, especially if you’re not yet open. Still, get to paper all of the ideas you have, and you can (and should) always update them later as your restaurant business becomes more fully formed.
Business operations
The business operations section should get to the heart of how you plan to run your business. It will highlight both internal factors as well as external forces that will dictate how you run the ship.
The business operations section should include:
Management team: Your management structure and hierarchy, and who is responsible for what
Hours: Your hours and days of operation
Location: What’s special about your location that will get people through the door
Relationships: Any advantageous relationships you have with fellow restaurateurs, places for sourcing and buying, business organizations, or consultants on your team
Add here anything you think could be helpful for illustrating how you’re going to do business and what will affect it.
Here, you’ll detail the current state of your business finances and project where you hope to be in a year, three years, and five years. You’ll want to detail what you’ve spent, what you will spend, where you’ll get the money, costs you might incur, and returns you’ll hope to see—including when you can expect to break even and turn a profit.
Financial statements: If you’ve been in business for any amount of time, include existing financial statements (i.e. profit and loss, balance sheet, cash flow, etc.)
Budget: Your current budget or a general startup budget
Projections: Include revenue, cash flow, projected profit and loss, and other costs
Debt: Include liabilities if the business has any outstanding debt or loans
Funding request: If you’re requesting a loan or an investment, lay out how much capital you’re looking for, your company’s valuation (if applicable), and the purpose of the funding
Above all, as you’re putting your financials together, be realistic—even conservative. You want to give any potential investors a realistic picture of your business.
Feel like there are other important components but they don't quite fit in any of the other categories (or make them run too long)? That’s what the restaurant business plan appendix section is for. And although in, say, a book, an appendix can feel like an afterthought, don’t ignore it—this is another opportunity for you to include crucial information that can give anyone reading your plan some context. You may include additional data, graphs, marketing collateral (like logo mockups), and more.
The bottom line
Whether you’re writing a restaurant business plan for investors, lenders, or simply for yourself and your team, the most important thing to do is make sure your document is comprehensive. A good business plan for a restaurant will take time—and maybe a little sweat—to complete fully and correctly.
One other crucial thing to remember: a business plan is not a document set in stone. You should often look to it to make sure you’re keeping your vision and mission on track, but you should also feel prepared to update its components as you learn more about your business and individual restaurant.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
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How to write a restaurant business plan [with sample].
By D. J. Costantino
Spend 80% less time on restaurant scheduling.
You can't start a restaurant without a plan. A restaurant business plan is one of the most (if not the most) essential elements in getting a new restaurant off the ground. There are a few reasons for this:
- A business plan is typically the first thing any lender or investor will want to look at
- Taking the time and energy to create one proves to others (and yourself) that you're serious about the venture
- You'll have a document to reference during the planning or opening of your restaurant.
Although it's an essential step in starting a restaurant , creating a business plan can be challenging for an aspiring restaurateur. But it doesn't have to be overwhelming. There are a few key sections that should be included...
Table of Contents
- What is a Restaurant Business Plan?
- Restaurant Business Plan Sample Outline
- Section 1: Executive Summary
- Section 2: Company Description
- Section 3: Market Analysis
- Section 4: Marketing Plan
- Section 5: Operations Plan
- Section 6: Financials
Section 7: Appendix
- Other Resources
What is a restaurant business plan, and why do you need one?
A restaurant business plan is a document that outlines the various aspects of your restaurant business. It can be used to secure funding from investors or keep track of your progress as you develop your business. A business plan should include information on your target market, competition, business model, marketing strategy, and financial projections.
A business plan is commonly associated with investors—it's what they will look to for a better understanding of a business, its concept, and its competitive advantage. It will also show how you plan to create a successful restaurant.
Restaurant investor Lauren Fernandez at Full Course keeps it simple: “It's to convince someone to give you money.”
“If you seek investment, it tells the story of the venture to potential investors and/or banks. For the business owner, it sets parameters as well as goals for both the pre and post-opening period. A good operator looks back on their Business Plan on a monthly or quarterly basis to gauge where they are in terms,” says Mark Moeller, president, and owner of The Recipe of Success , a national restaurant consulting firm.
That being said, a business plan doesn't have to be extensive. “Be detailed but not overly so,” says Moeller. “When a plan is too wordy, it tends to turn off the reader and can actually prevent them from finishing,” Lauren Fernandez adds that the business plan should be more akin to a sales document, not an A-to-Z tactical roadmap. At the end of the day, the main goal is to convince a lender or investor to give you money.
Restaurant Business Plan Template
Start creating you restaurant business plan with our free PDF template
The key ingredients of a great restaurant business plan
Section 1: cover page and executive summary.
This is the “elevator pitch.” An effective executive summary quickly tells the reader who you are and leaves them wanting more. Include items like:
- Your restaurant's name, concept, and cuisine—if you have a logo, use it!
- The management team
- Your market position and competitive advantage
- Your financial projections and the break-even point in sales and days
Section 2: Company description
This section gives a high-level overview of the business you're looking to start: tell investors what your restaurant is all about, who your team is, and how you're going to serve the market.
Restaurant concept
What type of restaurant are you looking to open? Here is where you'll want to give investors an overview of your business. Speak to what sets you apart from the pack, what food you'll serve, the service style (fast-food, fast casual, fine dining, etc.) you'll use, and what makes your new business special. Check out these successful restaurant ideas .
Mission Statement
Your restaurant's mission statement should boil down the essence of why you're starting this new venture in just a few words.
Some mission statements are short and to the point, like Ninety Nine's (“A Passion to Serve”). If you can't simplify your mission in just four words, there's no harm in elaborating. Here is Union Square Hospitality Group 's mission statement: At Union Square Hospitality Group, our mission is to enrich lives through the power of Enlightened Hospitality. This unique approach puts our employees first because we believe that attracting, hiring, and nurturing the right people is what sets our businesses apart. We aim to find “51%ers”, individuals who embody our Family Values of Excellence, Hospitality, Entrepreneurial Spirit, and Integrity. While much longer, it clearly speaks to the company's unique position and goals for the industry.
Management team
Tell potential investors who you already have on your team. It works in your favor to show strong connections to the restaurant industry. “Are they an island, or do they have good connections? The more people they have around them, there's something about that; there's an indicator of success that I can't put my finger on.” says Lauren Fernandez. Investors want to see that you have good people around you. If you have a great GM on board, introduce them here. An award-winning chef in the kitchen? Tell investors about them. Include a headshot, quick bio, and list of relevant experience.
Sample Menu
You don't, by any means, have to have a menu ready to go. But give an idea of some dishes or drinks with projected price points. A sample menu can go a long way in helping a potential investor imagine themselves eating at your restaurant. It also shows that you've done your research given the market, suppliers, and have an idea on menu design.
Section 3: Conduct a market analysis
This covers the customer base you're hoping to appeal to, your position in said market, and what you'll do to catch people's eyes. Describe the current restaurant market where you want to open:
Target market and demographics
Who is your target customer? Here's where you'll explain the tactics you took in conducting your market research and the results of those findings.
You'll want to highlight the most relevant statistics you found about your restaurant business. For example, if you're starting a coffee shop , you may cover that your primary research concluded that 24-36 year-olds make up 40% of your area's population. Research from other outlets suggested that coffee consumption for millennials continues to rise.
This would lead to a convincing, research-based conclusion that the coffee shop could be a realistic and profitable endeavor for the area.
Location analysis
You don't have to have a specific restaurant location or address in mind when you create a business plan. Set your focus on the city or the general neighborhood you want open in, and why you're looking at that area.
Give an overview of the market conditions in your area. Talk about things like foot traffic, day-parts, local events, and what that part of the city looks like in the future. Is there a new stadium or highrise on the way? Outline it in this section.
Your location choice should align well with the market you intend to target. For example, if you're hoping that young professionals will make up a large portion of your business, ensure your chosen location has that density of people.
Competitive analysis
Explain how your restaurant will stand out in a sea of competition. A good idea is to include SWOT analysis for your restaurant, outlining the internal strengths and weaknesses you believe your new business would have, as well as any external opportunities and threats you'd face as an entrepreneur.
Here are examples of each:
- Strengths : Combined 30+ years of restaurant experience from the leadership team.
- Weaknesses : Needed ramp-up time for staff could set our financial projections back.
- Opportunities : Our location is near several office buildings, suggesting we would have a steady flow of white-collar lunch customers and after-work dinner guests.
- Threats : An established restaurant of a similar concept is close in proximity, posing a direct threat to our potential market share.
In your SWOT analysis, you should identify how you intend to overcome the weaknesses and threats your restaurant will face to reassure investors they won't be the downfalls of your business.
Section 4: Marketing strategy
How will you reach your target audience? Sticking with the above example of a coffee shop, you may want to talk about your restaurant advertising ideas for millennials, like using TikTok marketing to promote your menu items and an app-based loyalty program.
Marketing plan and channels
Talk about what marketing channels you plan to use to get butts in seats. Detail your plans for using social media, local advertising, promotions, and how you're going to reach your target audience.
Positioning
You'll also want to take a stance on how you'd like to position your restaurant's brand and how you'd like it to be perceived. 65% of consumers feel an emotional connection to brands, so the stronger your emphasis on yours, the more likely your target market will notice and identify with it.
Grand opening plan
You can't have a restaurant without a grand opening .
“Budget at least 2-3% build cost for Grand Opening marketing. You have ONE shot at making a splash in the market, and you must get the grand opening right,” says Lauren Fernandez.“Grand opening should be a week-long celebration, not just one day. Give loyal fans a reason to come back daily. The grand opening ramp-up should begin ~90 days to open, working the market and creating excitement,”
Recommended Reading: Simple Restaurant Marketing Plan + PDF Template
Section 5: An overview of operations
Some investors want to see how all the moving pieces will mesh daily with a detailed operations plan. This section should encompass your staffing strategies, what tech you'll use, and what your restaurant layout may be.
Hiring is routinely one of the most difficult tasks in food service. Recent statistics showed that the number of people working in restaurants is declining. Add to that rising restaurant labor cost and high staff turnover . Investors want to know your hiring and retention tactics, such as retention and engagement strategies.
Back of the house
Talk about the details of the back-of-house in your restaurant, such as the commercial kitchen equipment your cooks and chefs will be wielding during their shifts and what the kitchen layout and workflow will be. If you have mock-ups - such as a kitchen floor plan - you can include them here.
Here is also a good time to discuss processes you plan to adhere to in the back of the house, such as food cost control methods and who your inventory suppliers are.
Restaurant technology
Tell investors what technology you plan on using to run your business—and not just the POS (point of sale). Restaurants have access to a bevy of software to run their business efficiently, and investors want to see that you are a savvy operator. You may want to list out:
- Team Management
- Point of Sale Systems
- Scheduling software
- Inventory management systems
- Task management tools
- Time Clocking
- Manager Log Books
Section 6: The financials
Don't be offended if you see investors skip straight to this section. After all, a business comes down to making money.
So before you finalize this plan, quadruple check these projections, look over your graphs and tables, and consider running them by a hired financial professional in your area.
Startup costs
Any good investor will want to know what his or her money will be going to. Disclose how much money you'll need to get this project off the ground, identify the biggest expenses, and don't be afraid to put a line item in for working capital - which is a reserve fund for your first few (likely slower) months of operation. Also, disclose if there are any planned restaurant business loans .
Sales forecast
It can be hard to create an accurate forecast without a business. But a conservative yet confident restaurant sales forecast can show investors that you're doing the research and considering the right things. You should base this forecast on a few criteria: capacity, target market, delivery/takeout options, month-over-month growth expectations, hours of operation, and menu prices.
Projected Profit & Loss Statement
Use a projected (or pro forma) P&L statement to show investors how much money you expect to have made - or lost - by the end of your first year. This should be based on your sales forecast and your projected restaurant costs (both for opening the restaurant and operating it throughout the year).
Recommended Reading: Free Restaurant Profit and Loss Statement Template
Break-Even Analysis
It's an unforgettable day for a restaurant owner when the business becomes profitable - and you can determine that point in time with a break-even analysis . Calculating break-even will project the threshold to reach in time and sales to pay back investments and startup costs, thus reaching profitability.
Show investors how you reached your break-even point with a break-even calculation. You can reach this number by dividing total fixed costs by the difference between average revenue per guest and average variable cost per guest.
Alternatively, plug those projections in this formula to produce break-even dollars:
Break Even Point = Total Fixed Costs ÷ (Avg. revenue per guest - Avg. variable cost per guest)
You can then compare this number to your sales forecast to determine a timeline for the break-even point in days to let investors know what day they'll start seeing an ROI.
Recommended Reading: 15 Restaurant Metrics to Know and How To Use Them
The appendix and its contents are all optional, but this section could contain charts, plans, graphics, imagery, or any other material investors may find useful.
Floor Plans
As mentioned earlier, the appendix is the perfect place to include any mockups of your restaurant floor plans. These plans give readers an idea of how guests and employees will be able to maneuver through and interact with each other in the space.
Additional Financial Charts
Got supporting financial documents, like projected cash flow and a projected income statement? Awesome. Place them in here to show investors you really know your numbers.
Design Mockups
If you’ve worked with a building renovator and/or interior designer, include any graphic mockups of what the space would look like. Again, this section is completely optional, but it helps investors visualize the project you’re so passionate about and proves to them that you’ve gone the extra mile in your business research and preparation.
Use this sample template to help you build your restaurant business plan. Feel free to copy and paste this entire section into a Microsoft Word file or download the outline sample in Google Docs . Then replace the explanations for each section with information about your restaurant business.
Other Resources for Your Restaurant Business Plan
No great business plan is written in a vacuum. Use whatever you have at your disposal, from industry contacts to other entrepreneurs, and read up on more best practices. Here are a few resources that you can use to help you write a successful restaurant business plan.
- Writing a Business Plan
- US Gov - Start Your Own Business
- US Chamber: 64 Grants, Loans and Programs to Benefit Your Small Business
- SCORE Business mentors: About Score
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How to Write a Restaurant Business Plan in 2023 (Step by Step Guide with Templates)
Jan 31, 2023 6:30:00 AM
Have you decided to open a restaurant? Has it been something you've thought of doing for years and are finally in a position to make it happen?
Regardless of how much time you've spent conceptualizing your idea and researching the industry, without proper planning, your restaurant is doomed for failure.
That's where a restaurant business plan comes in. A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations; from menu design, location, financials, employee training, and a lot more, and helps develop your restaurant ideas into a reality.
Read on for everything you need to know about writing a restaurant business plan along with samples and tips.
Why is a Restaurant Business Plan Important?
Many new restauranteurs fail to put together a well-thought-out restaurant business plan because the process can be a bit difficult and time-consuming. But without a proper restaurant business plan, you're shooting in the dark without an aim. It's unlikely that you would be able to secure an investor to help fund your restaurant dream without a proper plan. And even if you do, the lack of proper planning, regulations, and forecasts will set your restaurant up for failure.
Your restaurant business plan is what is going to map out how you plan on turning a profit from your business as well as where your restaurant fits into the saturated market and how you plan on standing out.
A little time and pain early on are worth the reward of a successful restaurant in the long run.
11 key steps a restaurant business plan should include
A good business plan varies from restaurant to restaurant and takes into account factors like style of restaurant, target market, location, etc. If you're new to the restaurant game, the idea of creating a business plan can be daunting. To help you get started, we have highlighted the key elements you need to include when writing a restaurant business plan.
Depending on who you are presenting your business plan to, you can change the order of the sections to reflect priority.
Here are the main components of a restaurant business plan
- Executive Summary
- Company Description
- Market Analysis
- Restaurant Design
- Market Overview
- External help
- Financial Analysis
1. Executive Summary
A restaurant business plan should always begin with an executive summary. An executive summary not only acts as the introduction to your business plan but also 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.
Common elements of an executive summary include:
- Mission statement (learn more about how to write a good mission statement here )
- Proposed concept
- A brief look at potential costs
- Expected return on investments
An executive summary is imperative for those looking to get investors to fund their projects. Instead of having to comb through the entire restaurant business plan to get all the information, they can instead just look through the executive summary.
2. Company Description
This is the part of the restaurant business plan where you fully introduce the company. Start this section with the name of the restaurant you are opening along with the location, contacts, and other relevant information. Also include the owner’s details and a brief description of their experience.
The second part of the company description should highlight the legal standing of the restaurant and outline the restaurant’s short and long-term goals. Provide a brief market study showing that you understand the trends in the regional food industry and why the restaurant will succeed in this market.
3. Market Analysis
The market analysis portion of the restaurant business plan is typically divided into three parts.
3.1 Industry Analysis
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.
3.2 Competition Analysis
It's easy to assume that everyone will visit your restaurant, 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 menu design to the restaurant interior. Then explain to your investors how your restaurant will be different.
3.3 Marketing Analysis
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? How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.
The most important element to launching your restaurant is the menu . Without it, your restaurant has nothing to serve. At this point, you probably don’t have a final version, but for a restaurant business plan, you should at least try to have a mock-up.
Add your logo to the mock-up and choose a design that you can see yourself actually using. If you are having trouble coming up with a menu design or don’t want to pay a designer, there are plenty of resources online to help.
The key element of your sample menu though should be pricing. Your prices should reflect the cost analysis you’ve done for investors. This will give them a better understanding of your restaurant’s target price point. You'll quickly see how important menu engineering can be, even early on.
5. Employees
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 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.
6. Restaurant Design
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.
7. Location
The location you end up choosing for your restaurant should definitely be in line with your target market. At this point, you might not have a precise location set aside, but you should have a few to choose from.
When describing potential locations to your investors, you want to include as much information as possible about each one and why it would be perfect for your restaurant. Mention everything from square footage to typical demographics.
8. Market Overview
The market overview section is heavily related to the market 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 restaurants that could prove to be competition and what your strategy is to set yourself apart.
9. Marketing
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 marketing 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.
Read more: How to write a restaurant marketing plan from scratch
10. External Help
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 investors the importance of each and what they will be doing for your restaurant.
11. Financial Analysis
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 financial 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 on 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.
Restaurant Business Plan Template
Ready to get started? Download our free restaurant business plan template to guide you through the process.
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How to write a restaurant business plan: Step by step There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than...
[Explain how you will make money with the business.] The restaurant will make money from _____. (Example: The restaurant will make money from the sale of food, beverages, alcohol, desserts, catering, and take-out. Prices will be competitive with other upscale restaurants in the area.) Pricing
business plan. Avoid too many details in this section. Details will be addressed later. Discuss only the key aspects about your restaurant concept. Remember, some readers never make it past this part of the business plan. A well-written summary can convince the reader to thoroughly explore the rest of the plan.
This article will outline how to start the restaurant business, and the restaurant business plan – PDF, Word and Excel. Business Model Making money from a restaurant business depends on the nature of your restaurant. There are many options to choose from and options can be blended too.