business plan for quick service restaurant

Quick Service Restaurant Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector » Restaurant & Bar

Are you about starting a quick service restaurant? If YES, here is a complete sample quick service restaurant business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a quick service restaurant. We also took it further by analyzing and drafting a sample quick service restaurant marketing plan template backed up by actionable guerrilla marketing ideas for quick service restaurants. So let’s proceed to the business planning section.

Why Start a Quick Service Restaurant?

A Quick Service Restaurant (QSR) is not to be confused with a fast food business even though they are quite similar as both have different functions. A quick service restaurant also referred to as a limited service establishment is one where cheap but quality and hygienic food are prepared and served to customers.

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To start this kind of business, you would require enough capital, a good location and enough capital in order to ensure that the important aspects of the business have been attended to.

Before starting this business, it is best to hire a business consultant who has the right knowledge requiring the industry and who would look through your business concept to determine if it is worthwhile going into the business while also proffering strategies that would help make your business thrive and favorably compete against its competitors.

Having a business plan for your business is a must as it helps give an outline of what you intend to achieve with the business as a whole. Also, if you intend approaching investors, this would show them how serious you are. Below is a sample quick service restaurant business;

A Sample Quick Service Restaurant Business Plan Template

1. industry overview.

Even though quick service restaurants initially focused on easy meals such as burgers and chicken, this has changed as many of these restaurants have started incorporating regional flavors and ethnic meals into their menus.

Most quick service restaurants specialize in serving a particular type of cuisine, as hamburgers account for 40% of sales among the quick service restaurants. Other foods that are usually ordered by customers are pizza, sandwiches, and chicken.

Demand in this industry is usually driven by the income of the consumer as well as his tastes and preferences. Customers ordering from these restaurants have to order and pay at a counter, which is how the industry usually operates.

The profitability of quick service restaurants in this industry is highly dependent on how effective the marketing is and how efficient the restaurant’s operations are. Larger quick service restaurants usually have more of an advantage especially when it comes to marketing, purchasing and getting the necessary finance needed to run their company successfully than small quick service restaurants.

To be able to effectively compete against large quick service restaurants, smaller quick service restaurants have to offer superior service as well as food. The fifty largest companies in this industry account for only 20% of the industry’s revenue which means the industry is highly fragmented.

There has been an increasing competition amongst quick service restaurants as well as adoption of new technological solutions in driving the growth of the IT market of these restaurants. This has led to quick service restaurants to invest heavily in software based solution so as to increase revenue.

According to statistics, Americans spend more than $117 billion annually on fast food and quick service restaurants. The industry which was once dominated by quick service restaurants which accounted for more than 50% of sales has revenue of more than $570 billion. As at 2015, the industry generated revenue of more than $200 billion.

The industry has been projected to have an annual growth of 2.5% for the years up to 2022. This growth is below the general long term average but this is because the industry is solely recovering from the downturn of the economy. It is estimated that more than 50 million Americans patronize this industry daily.

2. Executive Summary

Chop Chop Quick Service Restaurant is a standard QSR that will be based in Milwaukee – Wisconsin to provide fast, quality and affordably priced meals to our various domestic and corporate clients.

Our strategic location in Milwaukee is very accessible for our customers and clients. Our facility is of a first class standard with good infrastructure and is large enough to be able to fit all our customers from children, teens to adults.

The foods and beverages we serve are of the highest quality, and we pair this with a great service and an ambient and aesthetic atmosphere. All our menus are drawn to appeal to all ages from children, teenagers to adults. Our intention is to earn a huge share of the market and so we have laid down strategies that will allow us do this while allowing us to intensely compete with our customers.

Our marketing strategy is the penetration style intended to allow us become the industry leaders in no time. Our promotion strategy largely depends on discounts and coupons which allow us retain a huge part of our customers whilst attracting new ones.

We intend to build a solid business structure by ensuring that we hire competent employees who have the necessary experience and are committed to ensuring that we attain our desired goals and objectives. We intend to ensure that our employees are well paid and have several incentives in place to motivate them and ensure that they give in their best to the restaurant.

Finally, the quick service restaurant is owned 100% by Ms. Linda Barrow who also runs the business as the Chief Executive Officer and makes the needed decisions intended to move the company forward. Ms. Barrow has over 30 years experience and is a certified food technologist.

3. Our Products and Services

Chop Chop Quick Service Restaurant is a restaurant that has been established to provide cheap but hygienic and quality foods and beverages to all its customers here in Milwaukee – Wisconsin. However, because we hope to generate a steady stream of revenue that will not only sustain our business but boost its bottom line, we will create multiple sources of income in addition to our core products and service offerings.

Some of the products and services that we intend to offer are;

• Sale of breakfast meals (eggs, toast, bacon, ham, yoghurt, and fruits)
• Sale of beverages (soft drinks, coffee, tea, and orange juice)
• Sale of regular meals (salads, sandwiches, burgers, rolls, nuggets, chips, cake, and soup)
• Corporate delivery orders
• Event delivery orders

4. Our Mission and Vision Statement

• Our vision is to ensure that we give our customers quality meals that will be delivered to all our customers on time. We also intend to be the most preferred Quick Service Restaurant here in Milwaukee – Wisconsin.
• In order to achieve our intended vision, we will ensure that we build the best business structure by employing the right employees that have the right experience and professional competence, and also getting the right equipment that will allow us achieve our intended goals.

Our Business Structure

Having the best business structure is very important for us as we know that this will ensure that we are able to build a standard business that will allow us attain our goals and objectives. Our goal of ensuring that our business are up to standard is what is making us take our business structure very seriously and we will go the extra mile by putting in place plans and processes that will ensure that we get it right from the beginning.

Hiring the right and competent employees is very vital and so we will source for those that are not only experienced but have the right knowledge of the food industry and also our kind of business so as that they would be willing and committed to ensuring that our desired goals and objectives are attained.

Our management team members are those that understand the policies of the company and will ensure that these policies are communicated to the junior staff and also implemented.

Due to the fact that we will be offering more services than the conventional quick service restaurant, we will employ more employees than the conventional quick service restaurant to help us handle all our different services and responsibilities that would be attached to these different services. This act of employing more hands to handle the services we would be offering is so that our business can run smoothly.

Below therefore, is the business structure we intend to build at Chop Chop Quick Restaurant here in Milwaukee – Wisconsin;

Chief Executive Officer

Food Manager

Quality Inspection Manager

Purchasing Manager

Inventory Manager

Human Resources and Admin Manager

Accountants

Marketing Team

Customer Service Executives

Truck Driver

5. Job Roles and Responsibilities

• Creates guiding policies and principles for the organization
• Ensures that the organizational policies are duly communicated to all the staff and also implemented
• Meets and negotiate deals with high level clients on behalf of the organization
• Plans the menu that would be displayed by the quick service restaurant
• Researches on likely food that the customer expects to get and ensures that the restaurant incorporates those likely to become a huge hit into the menu
• Ensures that the food and beverages are prepared right
• Carries out inspection on each batch produced and ensures that it is up to industry and company standard
• Ensures that only fresh ingredients are used in preparing meals for customers
• Ensures that the kitchen area is hygienic and up to industry standard
• Responsible for sourcing for the right and reliable vendors and suppliers on behalf of the restaurant
• Ensures that supplies are gotten at the best prices
• Drafts and reviews purchasing contracts with vendors and suppliers on behalf of the restaurant
• In charge of all the restaurant’s stock and inventory
• Records outgoing items and incoming items and reconciles at the end of the work day
• Ensures that items that have been depleted are re-stocked promptly
• Ensures that all the administrative functions of the organization runs smoothly
• Hires competent and qualified personnel on behalf of the company
• Ensures that new personnel are correctly oriented and inducted into the work environment
• In charge of preparing all financial statement and information on behalf of the restaurant
• Ensures that the budget for the restaurant is duly implemented and that the restaurant duly repays its loan
• Prepares tax documents on behalf of the restaurant and ensures that they are submitted to the right authorities
• Carries out an intense market research in order to discover new target markets on behalf of the organization
• Drafts effective marketing strategies on behalf of the company
• Meets with and negotiates with corporate clients on behalf of the company
• In charge of attending to clients by answering enquiries, taking orders and resolving complaints on behalf of the organization
• Keeps and updates an accurate customer database on behalf of the restaurant
• Carries out any other duties as required by the human resources and admin manager
• Drives the van to and from designated locations  on behalf of the restaurant
• Ensures that traffic rules and regulations are obeyed at all times
• Carries out light maintenance on the van when necessary
• Keeps the restaurant clean at all times
• Ensures that the convenience is kept clean for both employees and customers
• Ensure that cleaning supplies are stocked up as at when due

6. SWOT Analysis

Due to our desire to ensure that we run a standard business that is excellent and reputable in all regards, we have decided to look into the potential and critical issues that is likely to affect our quick service restaurant here in Milwaukee – Wisconsin and due to this, we have sought the services of a reputable business consultant here in Wisconsin to look through our business concept and carry out an analysis that would help us determine if we are likely to succeed in this industry.

Also, the analysis would help us not only know how well we would thrive but also how we would fare against our competitors in the marketplace.

The business consultant will help us in carrying out the analysis on our business by assessing the strengths, weaknesses, opportunities and threats that would likely affect us positively or negatively in the industry. The result of the SWOT analysis that was conducted on behalf of Chop Chop Quick Service Restaurant are;

Our strengths lies in the fact that we strategically located in an urban environment that is not only easily accessible for our customers and even employees but is conspicuous as well. We also have an innovative range of food that allows all our customers have different choices when they visit our restaurants.

Our foods are not only served quickly but they are also of the highest quality as they are prepared in a hygienic environment. Our foods and beverages are also very affordable. We have an excellent customer service due to the fact that we pay attention to all the needs and wants of our customers and try to surpass their expectations.

Regardless of the fact that we are a quick service restaurant, we have a well structured production that will allow us meet all the demands that we are likely to encounter no matter the number. Finally, we have hired competent and highly qualified employees that have the necessary experience working in this industry and know what it means to ensure that our restaurant attains its desired goals and objectives. Our employees remain motivated through our great welfare packages.

As a new start-up, we have several weaknesses that we hope to be able to overcome. This includes the fact that we are operating on a low marketing budget which means that we might not be able to market our quick service restaurant  to all our target market. Also, even though we intend to offer various services, we do not have the necessary funds to employ all the employees we would need to run all the services we intend to offer.

• Opportunities

There are several opportunities that are open to us in this business and they include the fact that we are open to improving on our food menu as well as product line. We are also thinking of venturing into home deliveries which will help us penetrate the market better.

Every business faces threats at one time or the other, therefore the threats that we are likely to face are from other competitors – new or existing – who might be offering the same services that we are offering. Also, we are faced with rising ingredients for certain foods. Asides, that there is the threat of an economic downturn, which would mean more people preferring to cook at home.

7. MARKET ANALYSIS

• Market Trends

Quick service restaurants have become very popular for almost everyone and this is due to the fact that they are convenient and affordable for most diners. The four attributes of a quick service restaurant are that the food is easy to make, delicious, quick to serve and ready to take away.

Most quick service restaurants that have become popular have had to set up in a location that is conspicuous and easily accessible, which is why anyone starting this business would need to careful about where the business would be located.

The kind of food that is served in a quick service business is very important and this is why it is important to carry out a survey on what customers expect to get when they visit a quick service restaurant, because while some food may be appreciated; it might not be liked by everyone and so would result in loss of revenue.

Quick service restaurants usually have low operations as well as investment costs . This however, also leads to low margins as well due to fluctuating price of raw materials, high labor costs as well as high facility rental costs, which usually requires the quick service restaurant to require scalability in order to succeed.

8. Our Target Market

Even though most of Americans eat out, they have come to appreciate the quick service restaurants due to the fact that they can get quality meals cheaper and healthier than they would get in a traditional fast food. However, every business requires a thorough market research to enable it properly determine its target market.

We would be conducting a thorough market research in order to determine what market we would be serving and what they would expect from us. From our result, we are in business to start a quick service restaurant to cater to the following group of people;

• Business people
• Corporate executives

Our competitive advantage

Our intention of starting a quick service restaurant is so that we can give our customers quality food in a timely and orderly manner so as to be able to favorably compete with our competitors here in Milwaukee – Wisconsin as well as all over the united states of America.

However to achieve this, we have set forth competitive strategies that will allow us stand out from our competitors. We will ensure that we promote our local flavor and cuisines so as to attract the crowd who see restaurants such as ours as unappealing.

Our first competitive advantage is that we are located in a very strategic location which attracts more customers to our quick service restaurant and allows us have the desired edge over our competitors.

We know how important building a business structure is and so we have sourced for and hired highly experienced, qualified, and competent employees that not only understand the industry but also the business as well and knows what it takes to ensure that we achieve our intended goals and objectives.

Our employees are strictly aligned to our core policies and are committed to our vision of being the preferred and leading quick service restaurant here in Milwaukee – Wisconsin.

Our employees know the value of ensuring customer satisfaction and so all our employees are adequately trained in ensuring that all the customers that come to our restaurant have their expectations not only met but also exceeded. This way we seek to retain a high number of our clients and attract new ones which will allow us gain a huge share of the market.

Finally, knowing that our employees need to remain motivated we have in place a great welfare package that ensures that all our employees are paid as at when due and also that our pay structure is better than what can be found in similar start-ups such as ours here in Milwaukee – Wisconsin and even round the United States of America.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Chop Chop Quick Service Restaurant is a business that has been established to play its own part in the economy by generating revenue and making the needed profit here in the food and beverages industry cum fast food industry. We intend to offer several services that will boost our bottom line while also attracting different customers to our business.

In order to generate the needed revenue that will sustain Chop Chop Quick Service restaurant business, we intend to offer the following services;

10. Sales Forecast

Chop Chop Quick Service Restaurant is established with the intention of ensuring that customers get their meals faster and cheaper than they would in a traditional restaurant, whilst also maintaining a high quality. This is as customers no longer want to wait for a very long time before they get their meals and yet still want healthy meals.

Due to this trend we are optimistic that we would not only achieve our revenue milestone within eight months of operations but that we would surpass it as well. This means that the revenue generated will not only sustain our business but allow for re-investment purposes as well as expansion.

We have therefore conducted a quick survey of the restaurant industry cum the quick service industry in order to analyze what chances we have in the industry and in order that we might come up with an accurate sales forecast. We hired the services of a reputable sales analyst to help us carry out this survey using certain information and assumptions that were gathered from similar start-ups both here in Milwaukee – Wisconsin as well as round the whole United States of America.

Below are the results of the survey carried out on behalf of Chop Chop Quick Service Restaurant based on certain assumptions, factors and data here in Milwaukee – Wisconsin;

• First Fiscal Year-: $350,000
• Second Fiscal Year-: $700,000
• Third Fiscal Year-: $1,350,000

N.B : The above sales projections were conducted based on certain assumptions and factors that were available in the industry and for the defined period of three years. Some of the factors that were used were that there won’t be a downturn of the economy and that no competitor would arrive during the above defined period. However, should any of these factors change, there is likely to be an increase or decrease in the stated sales projection.

• Marketing Strategy and Sales Strategy

Marketing is a very important aspect of any business because if a business does not apply the right marketing strategy or market itself at all, it is likely to fail. The intention of marketing is two-fold, because not only is business generated on behalf of the business thereby helping to sustain the business, publicity is also created about the business as people gain awareness of the business and its products, which then allows the business to be able to compete favorably against its competitors in the marketplace.

In order for us to be able to penetrate the market, we have conducted a thorough marketing research that would not only allow us identify our target market and understand what it is they expect from us, it is also to enable us lay the best marketing strategies that would allow us gain and have a fair share of the intended target market.

To help us draft effective marketing strategies that would allow us penetrate the market, we have hired a reputable and knowledgeable marketing consultant here in Milwaukee – Wisconsin who has a deep understanding of the market and knows what marketing strategies would help us not only excel and stand out but effectively compete against our competitors and thrive as well.

We will also ensure that our marketing and sales team are empowered to draft strategies that would align with our core principles and ideologies as a company. Our marketing and sales team will monitor all strategies and remove or modify the ones that are thought to be ineffective in respect to delivering the organization’s corporate marketing and sales goals.

Also, the marketing team will ensure that all strategies are ones that will positively communicate our brand to our customers. The marketing and sales strategies we therefore intend to adopt for Chop Chop Quick Service Restaurant are;

• Throw a grand opening party in order to create awareness and generate interest for Chop Chop Quick Service Restaurant Business
• Massively place adverts on local newspapers and food and lifestyle magazines as well as on local radio and television stations
• Place our restaurant’s name in online and offline (Yellow pages) directories
• Engage in direct marketing and sales to our customers
• Use social media platforms such as Facebook, Twitter and Instagram to promote and market our products and services
• Position bill boards in strategic locations all around Milwaukee – Wisconsin

11. Publicity and Advertising Strategy

Having the right publicity of our business is important to us especially as the food industry is not one where bad publicity is condoned unlike some other industries. Our publicity and advertising strategies are developed with the intention of not only attracting the right customers to our business, or achieve our intended goals and objectives but also to boost the needed revenue that will sustain and grow our business here in Milwaukee –Wisconsin.

We intend to hire a brand consultant who understands the food industry thoroughly and who knows what strategies would project our quick service restaurant in the right light. The publicity strategies we intend to adopt are those that will communicate our company’s policies positively to all our existing and intending clients.

Some of the platforms that we would therefore use to promote and advertise Chop Chop Quick Service Restaurants are;

• Ensure that we give our loyal customers discounts at certain periods of time
• Participate in and sponsor relevant programs in the local community where our restaurant is located
• Use social media platforms like our Instagram page, Facebook page and Twitter account to promote our foods and beverages and restaurant as a whole.
• Place adverts in local newspapers, food and lifestyle magazines as well as on local radio stations here in Milwaukee – Wisconsin
• Ensure that we paste our fliers and distribute our handbills in strategic locations
• Attend events, fairs and carnivals in order to increase awareness about our quick service business

12. Our Pricing Strategy

Ensuring that we set the right prices for our different food products and services is very vital as we do not want to set prices that will chase away customers or allow us operate at a loss. The prices set will be one that is fair to us and our customers.

Due to this, we intend to look critically at factors that would allow us set the right prices for our customers. The factors that we would consider are; ensuring that we control our overhead and operating costs, buy our ingredients in bulk, as well as check out what our nearby competitors in same environment are offering their customers.

Due to the fact that we are relatively new in the market and haven’t achieved our intended publicity just yet, we intend to for the first three months of operations offer our customers food and other services that we offer at a discount in an aim to create awareness about our business and attract more customers to our restaurant.

This will allow us gain a huge share of the market as well. Even though we will be offering discounts during the first three months of business, a quick evaluation has shown that we will even make more during these periods than if we were offering regular prices.

• Payment Options

Due to the fact that we would be offering various services we intend to have different payment options that will ensure that customers find it easy to pay for services in our quick service restaurant depending on their preferences. Therefore, the payment options that we will offer to all our various customers;

• Payment via cash
• Payment via Point of Sale (POS) Machine
• Payment via payment online portal
• Payment via credit card
• Payment via check

It should be noted that the above payment options were carefully chosen to be convenient for us and our business as well. The payment platforms we have therefore chosen are ones that will work without any form of hitches whatsoever.

13. Startup Expenditure (Budget)

Starting this kind of business can be capital intensive and so in order for us to ensure we offer a standard service, we intend to ensure that we spend the generated capital on certain items. The bulk of our capital therefore will be used to acquire certain equipment as well as a delivery van. We will also use part of our capital in paying the salaries of our employees and utility for at least 6 months.

Therefore, the key areas that we will spend the bulk of our generated capital on are;

• Business registration of our quick service restaurant in the United States of America – $750
• Obtaining licenses and permits (zonal and local) to run a food business as well as accounting software and other legal expenses – $1,250
• Cost of hiring reputable business consultants – $2,000
• Insurance coverage (general liability, property insurance , health insurance and workers’ compensation) – $2,500
• Marketing promotion expenses (business launching grand promotion expenses and general business promotion expenses) – $5,000
• Cost of leasing a facility for the period of two years and carrying out the needed renovating as well – $50,000
• Operational cost payment of employees salaries and utility bills for at most 6 months – $150,000
• Cost of purchasing equipment to be used in making food (stoves, pans, pots and ovens) – $15,000
• Other start-up expenses (furniture, stationery, computers, phones, and printers) – $2,000
• Cost of purchasing raw ingredients and materials to make the food we intend to serve our customers – $20,000
• Cost of storing cooking and packaging equipment (shelves, racks, and bins) – $10,000
• Cost of purchasing a fairly used van – $30,000
• Cost of launching a website – $500
• Cost of throwing an opening party for our quick service restaurant – $5,000
• Miscellaneous – $5,000

From the above analysis, we would need the sum of $300,000 to be able to set up and run a standard quick service restaurant here in Milwaukee – Wisconsin successfully. Our intended start-up capital covers the salaries of our employees and payment of utility bills for at most six months. It also covers the purchase of necessary cooking equipment, leasing a facility for at least two years, as well as the purchase of a fairly used van to be able to get the intended supplies we need.

Generating Funding / Startup Capital for Chop Chop Quick Restaurant Business

Chop Chop Quick Service Restaurant is a business that is owned 100% by Ms. Linda Barrow. She also runs the business as the Chief Executive Officer and makes the needed decisions intended to move the company forward. Running a quick service restaurant business has always been a dream of hers and due to this, she is not seeking for external partners to run her business with.

This has therefore limited the sources she intends to generate capital from and they are;

• Generate 40% of the capital from personal savings and sale of stock
• Generate 60% of the capital from commercial bank

N.B: Ms. Linda Barrow was able to generate the sum of $120,000 from her personal savings and sale of stocks. She applied for the sum of $180,000 from her commercial bank repayable within 10 years at an annual rate of 3% interest. All the necessary documents have been signed and approved and the money will be credited to the restaurant’s account by the end of the week.

14. Sustainability and Expansion Strategy

In order to ensure that our business is suitably sustained for a long time, we have several strategies in place that will ensure that we remain and grow in this business for a long time. Some of the strategies that we intend to deploy is in building a solid business structure, offering quality customer service as well as re-investing in our business.

Building a solid business structure is very important to our business as this will allow us start and run our business smoothly with as less hitches as possible. We intend to hire qualified, professional and competent employees to hire the various services that we intend to run.

Our employees understand the industry that we are in and the strict regulations that abound in this industry and are therefore committed to ensuring that we offer quality service always in order for us to achieve our intended goals and objectives. We will ensure that our employees work in an environment that is hygienic and conducive.

We will also ensure that our employees are well paid and receive the salaries and stipends that are commensurate with the efforts they put in. we will also ensure that our employees undergo continuous training in order to ensure that their skills are enhanced and productivity output for the restaurant.

Our customers are very important to us and due to this we intend to ensure that they are always offered quality service in such a way that will make them always come back to our restaurants and also refer new customers as well. We will offer our customers especially the loyal ones discounts from time to time in order to show our appreciation for their patronage. We will keep an accurate database in order to ensure that we keep in touch with our customers all the time.

Finally, in order to ensure that our restaurant starts to pay for itself, we intend to re-invest our earnings back into the business as this is one of the surest ways of ensuring that the business remains alive for a long time and is able to pay for the loan it took within time and with the accompanying interest rates.

Our re-investment plan is carefully crafted and will be handled by our accountant. We believe that applying the above measures will allow us to suitably sustain and expand our quick service restaurant here in Milwaukee – Wisconsin.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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How to Start an Unforgettable Quick-Service Restaurant

• by Lightspeed

minute read

When you’re planning the launch of a new quick-service restaurant, there are more than a few boxes you need to check to ensure your venture has the best shot at success.

Despite the ever-increasing popularity of quick-service restaurants, sometimes referred to as fast food restaurants or fast casual restaurants, making it big isn’t a sure thing. At a minimum, you need a great restaurant concept and an undaunted passion to guarantee even a taste of success.

While that might seem intimidating, this guide will give you a head start so that you can get into the world of running a restaurant as efficiently as possible. It’s not as simple as the dream makes it seem, but with our guide, and your hard work, you can approach opening your quick-service restaurant with newfound confidence. 

In this post, we’ll cover:

Writing a business plan

• Developing your menu
• Finding suppliers
• Hiring and training
• Financing your business
• Marketing your business

Get off to a great start in 2021

Make your first year a launchpad for long-term success by using the right technology and tactics to start your quick-service restaurant. Learn more in this guide.

Getting your business up and running successfully

Launching any kind of business requires you to put a few foundational pieces in place. Some of them might seem incredibly obvious, but that doesn’t mean they’re easy or something you should take lightly. The more work you put in up front, the easier launching and managing your business will be when you’re ready to open your doors. With that said, let’s take a look at your to-do list for the next few months to a year. 

So many new restaurateurs don’t bother writing down their business plan . Instead of methodically planning out their new restaurant venture, they march ahead, fueled more by passion than common sense, and then wonder why their business is failing. You don’t want to find yourself in a situation where you’re struggling to keep up with the day-to-day of running your restaurant, while also trying to solve problems that could have been easily addressed if you had just written a business plan. For example:

• Trouble finding high-quality ingredients and reliable suppliers
• Needing funding without any idea how to find a source
• An inability to attract diners to your restaurant

Even if you do know where to find funding, without a viable business plan, you’ll struggle to find capital, whether it’s from banks, venture capitalists or even family and friends. Nobody will want to invest in your restaurant if you can’t answer the most basic questions about your target market, your strategy for the business’s future or the brand you’re hoping to craft.

It’s outside of the scope of this post to take you through all of the ins and outs of writing a business plan. However, we will cover some of the bigger questions you’ll want to address, starting with understanding your target market. 

Know your target market

First things first, to give yourself the best shot at success, you need to know your target market. Why? To maximize your sales, you must provide your customers what they want. And the only way to do that is by understanding who they are and what they expect in a quick-service restaurant. If you can’t provide the type of experience that your potential customers expect and love, your business won’t be around for long. To help you get started, let’s look at a few common characteristics of your typical quick-service restaurant customer.

The overarching point you need to know is that customers of quick-service restaurants aren’t there for the ritzy, fine-dining experience that you get at exclusive full-service restaurants. They’re there because they’re hungry and they want food fast. Everyone takes advantage of the convenience that a quick-service restaurant offers from time to time. They’re perfect for when you’re in a rush or are trying to cram in some errands on your lunch break. That tells you one very important thing, in order to be successful, you’ll need to get customers the food they want as quickly as possible.

While quick service restaurants appeal to a variety of target markets due to their fast, convenient nature, two demographic groups are generally the most valuable to quick-service restaurants: Millenials and parents. Take Millenials for instance, QSR Magazine estimates that the average Millennial will visit a fast food business at least 12 times a month and that they spend more of their income on food than any other generation previously.

The other big target market, parents, is looking for value, convenience and health. In traditional families, the mother is often the primary decision maker when it comes to food, and they’re a large group. There are 32 million of them in the U.S. alone. So, in order to effectively serve this audience, you will want to emphasize health in addition to convenience.

If your quick-service restaurant can account for these two groups from the outset, you’ll be off to a strong start. But that’s only the beginning. You can get extremely granular when defining your target audience, and we recommend that you do so. Any extra work you put in here will pay dividends when the time comes to create your menu, decorate your restaurant, define your menu and more.

If you’re looking for further guidance or inspiration, this guide from Inc.com will tell you everything you need to know about identifying your target market. 

How do I market to my target audience?

While we’ll get into the tactical side of executing a marketing plan later on the post, we do want to touch on marketing to your audience at a high level. Once you define who your audience is, and understand their key characteristics, you can take a very important step, creating your brand .

Generally speaking, your brand is the identity of your restaurant. Typically it includes assets like a name , logo, tagline and color scheme, but it’s actually much more than that. A well-rounded brand identity is going to go beyond aesthetics and include concepts like a positioning statement, brand values and an overarching narrative. Essentially, when creating a brand, you’re trying to define the ideas and emotions that you want your customers to feel when they think about your business.

You might be wondering how all of this relates to your target audience. Well, you don’t want to create a brand that isn’t going to resonate with your prospective customers, and defining your target audience is the key to ensuring that doesn’t happen. Think about it for a minute, the type of brand that appeals to single adults aged 25–35 in an urban area is going to be far different than the brand that resonates with married adults in their 40s who have at least one child.

So, once you have a target audience, define your brand and ensure that the name, logo, values and overall identity that you assign to it align with the values and expectations of your target audience. 

How to develop your restaurant menu

With your brand defined, one of the next big items to check off your list is your menu. Like most aspects of setting up your restaurant, your menu should be a product of your brand. If your brand is all about fast and healthy food, then a menu that’s made up of fried food and desserts isn’t going to make sense. Even if the food is excellent, the discrepancy will confuse diners, making it difficult to build a loyal customer base.

In addition to aligning with your brand, there are a few tried and true rules to follow when creating your menu :

• Pick a focal point. A menu that tries to do everything likely does nothing well.
• Choose your core ingredients. This will help you prepare foods faster and eliminate waste.
• Understand costs. Dishes should be priced at a rate your customers expect and can afford. To do that you need a firm grasp on your projected food costs .

It goes without saying that other factors will also influence your menu. For example, you will want to understand the competitive landscape and ensure that your menu has a unique position within it. In short, don’t open up a salad shop if the surrounding area already has several options under that umbrella. You’ll also need to account for suppliers and the ingredients that they can reasonably provide you with. It makes no sense to put a dish on your menu that requires an ingredient you know you’ll have trouble getting. 

Finding restaurant equipment and food suppliers

With your menu in place, it’s time to start stocking your restaurant with the food preparation equipment and other supplies you’ll need to operate on a day-to-day basis. The specific equipment that you need will depend upon the type of dishes you want to serve and your budget for buying equipment.

Restaurant equipment isn’t cheap and it’s likely that you’ll need a lot of it. Fortunately, this is one area where the high bankruptcy rate of the industry can work to your benefit. Look for going-out-of-business sales, as you might find equipment at greatly reduced prices. This will come in handy when you’re looking to stretch your startup capital as much as possible. Many vendors also sell used equipment in addition to new appliances, so be sure to ask about that instead of assuming that they only sell new stock.

In addition to equipment, you’ll also need to identify and secure relationships with restaurant suppliers that can sell you your ingredients. In many areas, there’s a growing trend of preferring to eat locally grown fruit and vegetables. This is happening for a number of reasons , including environmental benefits, supporting local farmers and the perception that it results in fresher, higher-quality food. If this makes sense for your brand, customers and bottom line, try to source as much as possible from local growers and farmers. It can help your business stand out from the typical fast food joint, and it shows your commitment to the local community.

With your food forming the backbone of your restaurant, we recommend that you do your best to provide customers with the best quality that you can. However, at the end of the day, picking suppliers is about balancing cost, quality and reliability to deliver the end product that best meets the needs of both you and your customers. 

Hiring and training your team

A restaurant is only as good as the food it serves and the customer service it provides. To a degree, both of those things are a direct result of the team of employees that you hire to run your quick-service restaurant.

Regardless of the type of food that you serve, your restaurant is going to need at least a few different types of employees:

• Head chef. This individual will develop your dishes, oversee food production and design the training curriculum for new kitchen staff.
• Line cooks . These will be the team members that prepare your dishes on a day-to-day basis.
• Waitstaff and food runners. Depending on your order flow, you may have traditional waitstaff or food runners that bring orders out to diners.
• Counter staff. These employees will perform some combination of taking orders and accepting payments from customers with your cash register or point of sale (POS) system .

You will likely also need to work with a variety of other professionals like a janitorial service, legal professionals and financial (tax and accounting) professionals to ensure your business runs smoothly and complies with all legal requirements for your industry and locality.

As far as training your team, there are almost too many methods to count . However, most quick-service restaurants hire a combination of experienced and inexperienced staff. The experienced staff typically oversee the training of the junior staff, and most of the time, training is “on-the-job.” This means that the employees will learn as they go. Typically this allows a restaurant to train a new employee much faster and with fewer interruptions than a more traditional training method like classroom-based training. 

Financing the business

Up until this point, we’ve spent time discussing the major things you’ll need to put in place to open up a quick-service restaurant. But we’ve left one important thing out, money. There are typically three major ways that an entrepreneur funds a quick-service restaurant.

• Self-funding. In this approach, the business owner(s) fund the restaurant with their own savings.
• Investment funding. In this approach, the business is funded with a combination of the owners’ money and outside funds from a group of investors or a bank.
• Franchising. In this approach, the business owner runs a franchise of a larger business. As an example, this is how McDonald’s operates. Because this approach is so different from the others, we aren’t going to go into detail in this post, but it’s something you should know is an option.

Self-funding

This approach to funding your quick-service restaurant can be a real challenge if you lack financial discipline. Not only will you need to save enough to pay rent, buy equipment and supplies, pay staff and take care of any licenses or legal fees needed to incorporate, but it’s likely that you’ll need to live on minimal or no income for at least a year after opening. Most small businesses don’t earn a profit for at least a year, so during that time it’s highly likely that you won’t be able to pay yourself.

The positive side of this approach is that you truly are your own boss. Unlike businesses that have investors, there’s no one to answer to but yourself. This can be a freeing experience that allows you to take the significant risks that can deliver big payoffs down the line. 

Investment funding

This way of funding your business means that you go out to a group of investors, a bank or a combination of both to get the capital needed to open and run your restaurant until your profits start to kick in. The benefit to this approach is that if you have a solid business plan, you can often raise more money than you could realistically save. This gives you a longer runway for hitting profitability as a business. Plus you personally will not be as cash-strapped.

The negative is that you now have investors that you need to answer to. They can influence your decisions and have some control over how you run your business. For many entrepreneurs, this defeats the purpose of “being your own boss.” With that being said, if you do it right, your investors will be successful industry professionals with years of experience that you can leverage to avoid making mistakes and increase the likelihood that you end up succeeding in the long run. 

How much money do I need to start a quick-service restaurant?

Now that you know your funding options, you might be wondering how much it actually costs to start a restaurant. It isn’t cheap. Depending on your market and the size of the venture, startup costs can range from the tens of thousands of dollars all the way to over one million dollars.

A survey from RestaurantOwner.com found that the median cost to open a restaurant is $275,000. The price, of course, varies depending on a number of factors, including what city you’re in and the location in your city. Opening a restaurant is even more expensive if you plan on buying the building as well—that median cost rises to around $425,000. A business loan from a bank is often your best bet for acquiring the appropriate funding. 

Executing your marketing strategy

With most of the foundational pieces in place and your restaurant about to open, it’s time to turn your thoughts to marketing. Again, the tactics you use are going to be a product of your target audience. You will want to market to them through the channels they’re most comfortable with. With that said, there are some common channels that most customers will be receptive towards. 

Social media

Because of its visual nature, social media platforms like Instagram are a natural fit for restaurant marketing . Depending on the preferences of your target audience, you may see success with platforms like Facebook, Instagram, Twitter and TikTok as well. It’s also important to consider whether you will use the paid advertising options that these platforms provide. For a new business that needs to generate awareness and grow its customer base in an affordable way, social media advertising is hard to beat due to its combination of affordability and precise targeting. 

Email marketing

Despite its age, email is an exceptionally effective marketing channel . However, it isn’t a great tool for reaching new customers. Instead, we recommend using email as a way to build loyalty with your existing customers. The general approach for doing this is to collect your customer’s email address (your POS is a great tool for doing this) and then periodically sending them promotional emails with coupons and other offers designed to get them to eat at your restaurant again. You can also pair these promos with informational content like new menu items or events you’re hosting as another way to keep them excited about your restaurant. Having a loyalty program for your restaurant is another great way of putting collected emails and customer contact information to good use. With a loyalty program customers will also get access to promotions and unique offers, but you get to benefit from a wealth of data and insights that you can use to incentivize purchases in the future. 

Customer review sites

In this digital age, customer review sites are the new word of mouth marketing . Your customers are leaving reviews about your business whether you ask them to or not, so why not be proactive about it? Set up a presence on platforms like Yelp and Google My Business. Encourage customers to leave you positive reviews through in-store signage, social media posts and in marketing emails. Promptly respond to all negative reviews and put your best foot forward to resolve any issues that customers have as quickly as possible. By showing that you care about resolving customer complaints rapidly, you’ll demonstrate your commitment to serving your customers, which is an incredibly powerful marketing tool on its own. 

What tools and technologies do I need to accept payments in my business?

The last thing you’ll need to set up when opening up a quick-service restaurant is a way to accept payments from your customers. For most restaurants, the only logical choice is a quick-service point of sale system . Not only does a POS system allow you to accept all manner of payment methods like cash, credit and smartphone payments, but it comes with a variety of other tools that will help you run a more efficient and productive restaurant.

For example, almost all POS systems will include inventory management capabilities that give you detailed insight into your stock levels, the performance of your inventory and your margins. With this info in hand, you can avoid out of stock issues, know which dishes need extra promotion and know where you need to negotiate with distributors.

Outside of inventory management, most POS systems are going to help you with some other common tasks.

• Better manage your staff and track hours with built-in staff management tools
• Execute marketing campaigns with email marketing and social media integrations
• Stay on top of all aspects of your business with detailed analytics and reports
• Improve customer service with tools that make it easier to accept custom orders and automatically split checks

By putting the right POS system in place, you’re giving your quick-service restaurant the secret weapon it needs to run efficiently and beat your competition. 

Succeeding as a quick-service restaurant

As you can see, starting a quick-service restaurant is anything but easy. However, with the right plan in place, a strong work ethic and a willingness to adapt to changing market conditions, you’ll be poised to launch what is hopefully the first of many restaurant ventures.

Ready to put your plans into action? Talk to a quick-service restaurant expert to learn how Lightspeed can help. 

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Lightspeed is a cloud-based commerce platform powering small and medium-sized businesses in over 100 countries around the world. With smart, scalable and dependable point of sale systems, it's an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with consumers, accept payments and grow their business.

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Guide to Starting a Quick-Service Restaurant

Home Blog Restaurant Play Areas Guide to Starting a Quick-Service Restaurant

Do you have the perfect business idea for a quick-service restaurant (QSR)? Now may be the time to finally bring your restaurant dreams to life. Although breaking into the restaurant industry takes some effort, a unique QSR concept with a solid business plan can win you a loyal customer base.

This ultimate QSR guide will tell you everything you need to know about starting a QSR. Discover the differences in fast food versus fast-casual, how to write a business plan, key financial considerations, effective marketing strategies and more. Learn how to start a quick-service restaurant and ensure its success below!

Table of Contents

Create a Business Plan

Evaluate your finances, decide what makes your qsr special.

• Finalize Your Choice

Design a Marketing Strategy

• Partner with Soft Play to Create an Unforgettable QSR Experience

A business plan is an essential first step toward opening up your restaurant. Coming up with a solid business plan will serve as the foundation of your restaurant’s operations and set you up for success.

Choose Your Restaurant Style

Before you can develop a sound business plan, you need to decide what kind of restaurant you’re trying to construct. Figuring out your overarching concept first will give you a sense of direction for mapping out the details of your restaurant experience. To choose the restaurant style that’s best for you, you’ll need to understand the difference between quick-service and fast-casual.

A quick-service restaurant or QSR is the official industry term for a fast-food establishment. QSRs generally have limited menus and hardly ever provide table service. The food they offer tends to consists of convenient options like handheld sandwiches, wraps, burritos and some types of salad.

The ambiance of a QSR is largely functional and provides some seating, although many customers choose to order their food to go. While fast food is popular for its rapid service and convenience, many fast-food restaurant chains have copied each other and saturated the market with look-alike QSRs. Nowadays, more and more consumers have been turning to fast-casual restaurants for a bit more variety.

A fast-casual restaurant also focuses on creating a more upscale setting with more sophisticated or trendy interior designs. Choosing whether your restaurant will be more focused on ambiance and menu variety or convenience and value will help you decide between starting a fast-casual or quick-service restaurant.

Pick a Business Plan Format

When it comes to crafting a business plan for your restaurant, there’s no one way to do it. Instead, your plan should suit your business and your needs. Most business plans can be categorized as traditional — the more common option with more details and a standardized structure — or lean startup.

The traditional business plan format might be the best fit for you if you’re highly detail-oriented.

When you start to write your business plan, feel free to use relevant parts for your restaurant and its specific needs instead of sticking with a strict business plan outline. In general, here’s what to include with your traditional business plan format:

• Executive summary:  This portion briefly summarizes what your restaurant idea is and explains how it will succeed. Here, you’ll put your mission statement and information about your restaurant’s location, leadership team and employees. If you plan on asking for financing, put your financial details and growth plans here, too.
• Business description:  This section is where you can go into a bit more detail about what your restaurant is and how it will operate.
• Industry analysis:  Demonstrate that you’ve done your research and understand the market you’re getting into, along with how your restaurant will stand out from its competitors.
• Management structure:  Explain the structure of your restaurant and who will lead it, including the roles of its owners, investors and managers.
• Service offerings:  Describe what kind of food your restaurant will serve and specific menu options. Include how the experience at your restaurant will benefit the average consumer.
• Marketing plans:  This portion describes how you plan on attracting and retaining customers.
• Funding needs:  If you need to ask for funding, use this section to outline your restaurant’s funding requirements. Be clear about how much funding you need and what you’ll use the money for, such as salaries, bills, equipment and materials. Include specifics about whether you want a loan or will give shareholders stock, the terms you’d like and how many years your request covers.
• Financial projections:  This additional information can add to your funding request with more precise financial projections and how successful you estimate your restaurant will be.
• Appendix:  Put any other supplemental documents here, such as product pictures, resumes, letters of reference, credit histories, permits and licenses.

On the other hand, a lean startup plan allows you to explain and start your restaurant a bit more quickly. If your restaurant concept is relatively simple or you plan on regularly changing and refining your business plan, a lean startup format may be the right choice for you.

Essentially, a lean startup format is a chart that uses only a few elements to describe your restaurant’s value proposition, customers, finances and infrastructure. This format helps you effectively and efficiently convey the fundamental facts about your proposed restaurant.

A lean startup format will require the following components:

• Partnerships:  Make a note of any key suppliers, manufacturers or other strategic partners you’ll work with to run your restaurant.
• Activities:  Show how your restaurant will separate itself from other restaurants by highlighting what makes it special.
• Resources:  Outline any resources you’ll use to create a valuable customer experience. This section should include details like your staff, capital and menu items.
• Value proposition:  Here is where you’ll make a clear and compelling case about why your restaurant brings something unique to the market.
• Customer engagement and relationships:  Explain how consumers will interact with your restaurant. Talk about the customer experience from the time they place their order to exiting the restaurant.
• Customer demographics:  Discuss the details of your target market and who your restaurant will cater to.
• Customer communication:  Make a list of the top ways you’ll communicate with your customers. Include a mix of channels that you can optimize over time.
• Cost structure:  Define your restaurant’s strategies for maximizing its value and reducing costs.
• Revenue streams:  Clearly explain how your restaurant will make money, draw customers and survive in the food service market.

Evaluating your finances is a huge component of starting a restaurant and figuring out your business plan. Once you have the basic financial section of your business plan worked out, you can dive into the specifics of your profit, expenses, funding, liquid capital and budgeting. Calculating the specifics of these costs and incomes will help you manage your money well and keep your restaurant in business.

Secure Your Funding

Funding is one of the most important aspects of starting a restaurant. Where the majority of your funding comes from can also shape the way you structure and run your QSR. Here are your main three options for funding your dream restaurant:

• Getting investors:  If you can’t fund your QSR on your own, you can get venture capital from investors. To obtain an investor, you’ll need to find a viable candidate, share your business plan with them and work out the terms of your partnership. Then you’ll be ready to receive your investment.
• Applying for loans:  Many small businesses, such as local restaurants, apply for a loan to get started. To acquire a loan, you’ll have to present your business plan and financial projections to the bank or credit union. Once you make your convincing case, you’ll receive the loan and be ready to start your QSR.

Consider Your Costs

Whether you’re preparing to pitch your restaurant’s business plan to potential investors or have already secured your funding, you need to think through what the money your restaurant makes will go toward. Listing out your expenses will give you a clearer picture of how much revenue your restaurant needs to generate to break even and how much profit you’re likely to end up with.

Here are five key expenses to consider:

• Upfront costs:  Of course, you’ll need to take your restaurant’s food and supply chain costs into account. How much will ingredients and serving supplies cost you on a weekly basis?
• Licenses and permits:  You’ll need to factor in the cost of a business license and potentially a liquor license if you plan on serving any alcohol at your restaurant.
• The space:  Will you be leasing your restaurant space or buying it outright? If you’re a new restaurant owner, you may want to consider leasing, which grants you more leeway for other major investments.
• Your staff:  Think about how many staff members your restaurant will need and how much you can afford to pay each of them.
• Technology and appliances:  A successful restaurant needs a variety of kitchen appliances, such as walk-in freezers, industrial ovens and refrigerators, along with technology like restaurant management software. With a high-quality point of sale (POS) system, you’ll be able to improve your restaurant’s profitability by saving time, cutting costs, organizing online ordering and evaluating menu item analytics.

Estimate Your Sales

Once you have a better grasp of how much your restaurant will need to spend each month to stay open, you can factor in your available funding to come up with a sound budget. List out how many investors you have and how much financial support you can rely on each of them to provide. You’ll also want to calculate your restaurant’s liquid capital, which includes any assets held as money, such as bank deposits, cash balances and money market investments.

While investors can help get your restaurant off the ground, you will mainly be relying on sales to keep your restaurant in business. Come up with a realistic projection of how much money your restaurant will bring in each month for an accurate depiction of your profit margin. Be as precise as possible by factoring in variables like holidays, local festivals, changing seasons and other factors.

Set a Budget

After thinking through all of your restaurant’s expenses, financial backing and revenue streams, you’ll be ready to create a budget.

If you can’t get your budget to balance, make adjustments to decrease your costs, increase your sales or both. For example, you may need to find a different supplier to get less expensive ingredients or up your marketing campaign to convert more customers. Ultimately, you will want to create a budget with static costs that allows your profit to steadily grow.

Consistently making a large profit depends on retaining repeat customers and building a client base. To earn customer loyalty and secure their business, you will need to make your QSR stand out from other restaurants on the market. You will need to figure out a trademark feature that differentiates your restaurant from its hundreds of thousands of competitors by giving you a unique edge.

Your QSR will be most successful if you focus on doing one thing extremely well as opposed to doing several things relatively well. Although many people think expanding their menu is the solution to bringing in more customers, choosing a particular aspect of your restaurant to concentrate on will help you maintain a standard of excellence and separate your restaurant from other dining establishments.

Keep in mind, you can’t please everyone, so it’s best to zero in on your target market and cater to them.

A modern indoor playground  will make dining at your QSR an unforgettable experience for families and keep drawing them back time and time again. You can make your restaurant’s play area extra memorable by sticking with a  fun theme  or bright color scheme. Getting indoor playground equipment with customized branding will also help your QSR stand out.

Whatever you choose as your QSR specialty, make sure it’s family-friendly and a dining experience customers can’t get anywhere else.

Finalize Your Choices

Once you’ve figured out the business plan, financial backing and special draw of your QSR, you’ll be ready to nail down the details of your restaurant. Before you can open your doors for business, you need to finalize these five decisions:

1. Target Market

Knowing your target market will allow your restaurant to have more focus and be more efficient with its resources.

Due to the fast and convenient nature of QSRs, the two demographic groups that generally bring the most revenue are parents and millennials. Both of these groups have a lot of responsibilities on their plate and just want quick, easy and delicious dinners. Concentrating on winning these two groups will set your QSR on the right track.

2. Location

Location is critical when it comes to starting a restaurant. Try to position your QSR in a densely populated area that’s close to members of your target market. Ensuring your restaurant is highly visible and accessible for your target demographics will attract more customers and generate more business.

3. Menu Items

Developing a tight list of delicious menu items is the foundation of your QSR’s success. Pick a focal point of foods that make sense together, appeal to your target market and align with your restaurant’s brand. Simplify your core ingredients to maximize your menu expertise, save time, eliminate waste and cut costs.

4. Equipment and Raw Materials

Once you know what you’ll be cooking, you can make decisions regarding the kitchen equipment and raw materials your QSR will need. Your restaurant’s kitchen will need to have the right industrial-sized equipment and appliances to support putting out mass quantities of your menu items along with space to store ingredients.

Figure out the best provider for your ingredients and other materials that you can depend on to complete deliveries on time.

Finally, you’ll need people to help you run your QSR. You will need a couple of chefs to help produce your restaurant’s delicious food and a few managers to oversee your restaurant’s daily operations. Additional staff members can help prep ingredients, serve customers and keep the dining areas clean. Along with these essential staff members, consider whether you’ll need a delivery team or a third-party delivery partner.

Once you’ve settled on who your target audience is and the details of what your QSR will offer, you can come up with the most effective marketing strategy. Designing a marketing strategy involves shaping the identity of your restaurant and creating a recognizable brand.

Your QSR’s brand includes its name, logo, color scheme, aesthetics, tagline, mission statement, values and overarching narrative. You will want to mold your restaurant’s brand to suit your target audience’s tastes. Meeting the expectations and values of your target market will make consumers more inclined to choose your QSR over others.

To get customers familiar with your QSR’s brand, you will need an excellent marketing campaign. Your marketing efforts must clearly communicate your brand message to your target market if you want to convince them your QSR is worth checking out. The following three marketing tactics are effective ways of reaching members of your target audience and converting them into loyal customers.

1. Social Media Campaigns

Social media platforms are perfect for advertising your QSR because they are visually driven and reach a broad audience. Depending on your target demographic groups, your QSR might be better suited for Instagram, Facebook, Twitter or TikTok. The best part about social media marketing is that creating an account is free, making advertising your brand online effective and affordable.

2. Email Marketing

3. Customer Review Sites

In the digital world, customer review sites are equivalent to word-of-mouth marketing. Encouraging your regular customers to leave positive reviews about your QSR online will boost your brand’s reputation. Do your best to respond to any negative comments quickly to demonstrate how much you care about resolving customer complaints and your commitment to serving customers well.

Partner With Soft Play ®  to Create an Unforgettable QSR Experience

If you’re ready to open a memorable QSR that appeals to parents, partner with Soft Play to choose the best indoor play pieces for your restaurant. Soft Play offers a  wide variety of restaurant play area equipment  that can be customized to fit within any space and budget. We also provide a free design consultation so you can get a clear picture of what your QSR’s play area will look like.

Separate your QSR from the competition and draw more families to your restaurant by  requesting a quote from Soft Play  today!

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Step-by-Step Guide: How to Create a Business Plan for a Quick Service Restaurant

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Thinking of starting a quick service restaurant? That's a great business idea, considering the growth and demand in the industry. According to recent statistics, the fast-casual restaurant market in the US has been steadily growing, with a projected revenue of $66.87 billion in 2020. With the increasing popularity of fresh, customizable menu options and a contemporary dining experience, now is the perfect time to jump into this lucrative market.

Conduct Market Research

Before starting a Quick Service Restaurant (QSR), it is essential to conduct thorough market research. This step will provide valuable insights into the industry, identify potential opportunities, and help you make informed decisions. Here are some key aspects to consider when conducting market research for your QSR:

• Demographics: Understand the demographics of your target market, including age, income level, and location. This data will help you tailor your menu, pricing, and marketing strategies to meet their specific needs.
• Competition: Analyze the existing QSRs in your area to evaluate their offerings, pricing, and customer base. Identify gaps in the market that your QSR can fill or differentiate yourself from competitors.
• Trends and Consumer Preferences: Stay up-to-date with the latest trends and consumer preferences in the QSR industry. This could include dietary preferences (e.g., vegetarian, vegan, gluten-free), demand for healthier options, or a focus on sustainability.
• Location: Determine the ideal location for your QSR based on factors such as foot traffic, proximity to target customers, and accessibility. Consider conducting a feasibility study to assess the potential success of your chosen location.

Tips for Market Research:

• Utilize surveys and focus groups to gather direct feedback from your target market.
• Visit and analyze similar QSRs in different locations to gain insights and ideas.
• Use online resources, industry publications, and social media to stay informed about the latest trends and consumer preferences.
• Engage with local business associations or chambers of commerce for demographic data and industry insights.

By conducting thorough market research, you can gain a comprehensive understanding of your target market, competitive landscape, and industry trends. This knowledge will lay a strong foundation for developing an effective business plan and setting achievable goals for your Quick Service Restaurant.

Identify Target Market

Identifying your target market is a crucial step in developing a successful business plan for your quick service restaurant. Understanding who your customers are and what they want is essential for tailoring your menu, marketing strategies, and overall business approach. Here are some key considerations to help you identify your target market:

• Demographics: Start by analyzing the demographics of your area, such as age, income level, and gender. This will give you a better understanding of who your potential customers are and what their needs and preferences might be.
• Customer Preferences: Take the time to gather feedback through surveys, focus groups, or online reviews to learn more about what your potential customers expect from a quick service restaurant. Pay attention to their favorite menu items, dietary restrictions, and overall dining preferences. This information will help you create a menu and dining experience that caters to their needs.
• Competitor Analysis: Analyze your competitors' target markets to identify gaps or opportunities that you can capitalize on. Determine what sets your quick service restaurant apart from others in the area and how you can position yourself to attract a specific segment of customers.

Tips for Identifying Your Target Market:

• Research local community events and organizations to understand potential target markets that may be interested in supporting local businesses.
• Stay updated on current food trends and preferences in the fast-casual dining industry to identify emerging markets and opportunities.
• Consider conducting market research through online surveys or focus groups to gain valuable insights into customer preferences and habits.
• Segment your target market based on different criteria, such as meal preferences, lifestyle choices, or dining occasions, to create tailored marketing strategies for each segment.

By identifying your target market, you can better tailor your business plan to meet the needs and preferences of your potential customers. This will ultimately increase your chances of success in the competitive quick service restaurant industry.

Analyze Competitors

One essential step in developing a business plan for a quick service restaurant is to thoroughly analyze your competitors. Understanding the current market landscape and the strengths and weaknesses of your competitors can provide valuable insights into how to differentiate your restaurant and attract customers.

1. Identify your direct competitors: Start by identifying the quick service restaurants in your local area that offer similar menu options or target a similar customer base. Visit their establishments and note key details such as pricing, menu variety, service speed, and overall customer experience.

2. Study their menu: Analyze your competitors' menus to identify their popular dishes, pricing strategies, and any unique or innovative offerings. This will help you determine how to position your own menu and find opportunities to stand out.

3. Evaluate their branding and marketing: Research how your competitors present themselves through branding, marketing campaigns, and online presence. Look at their website and social media channels, and consider how you can differentiate your restaurant through compelling branding and marketing strategies.

4. Assess customer reviews: Read customer reviews and ratings for your competitors to gain insights into their strengths and weaknesses. Pay attention to common complaints or areas where customers express dissatisfaction. This can help you identify areas where you can excel and provide a better overall experience.

• Visit your competitors during different times of the day to observe their customer traffic and service efficiency.
• Consider conducting anonymous surveys or interviews with customers of your competitors to gather more targeted feedback on their experiences.
• Look for gaps or unmet needs in the market that your competitors have not addressed, which you can capitalize on with your own restaurant.

By carefully analyzing your competitors, you can gain a deeper understanding of the market landscape and make informed decisions about how to position and differentiate your quick service restaurant. This research will also help you identify areas of opportunity and develop strategies to attract and retain customers.

Determine Unique Selling Proposition

One of the key factors in the success of a quick service restaurant is having a unique selling proposition (USP) that sets your establishment apart from the competition. Your USP is what differentiates your restaurant from others in the market and gives customers a reason to choose your restaurant over others.

When determining your USP, consider the following:

• Identify your target market: Understand the specific needs and preferences of your target customers. What do they value in a dining experience?
• Analyze your competitors: Research other quick service restaurants in your area and identify what they offer. Look for gaps or unmet needs that you can fill.
• Unique menu items: Develop a menu that features signature dishes or innovative flavor combinations that are not readily available elsewhere.
• Operational approach: Consider implementing technology-driven systems or unique service processes that enhance customer experience and efficiency.
• Emphasize sustainability or health: In a market where customers are increasingly conscious of their health and environmental impact, consider having a USP that emphasizes sustainable sourcing, organic ingredients, or healthy menu options.
• Focus on what you do best: Identify the aspects of your restaurant that you excel at and make them a core part of your USP.
• Stay true to your brand: Ensure that your USP aligns with your overall brand image and values.
• Continuously assess and adapt: Keep an eye on the market and adapt your USP as needed to stay ahead of the competition and meet changing customer preferences.

By determining a clear and compelling unique selling proposition for your quick service restaurant, you can effectively communicate your value to customers and create a strong competitive advantage in the market.

Develop A Comprehensive Menu

When it comes to running a quick service restaurant, the menu is the heart and soul of your business. It is important to develop a comprehensive menu that not only appeals to your target market but also aligns with your unique selling proposition . Here are some essential tips to consider when creating your menu:

Tips for Developing a Comprehensive Menu:

• Focus on quality ingredients: Choose fresh and flavorful ingredients that will make your dishes stand out from the competition.
• Variety is key: Offer a diverse selection of appetizers, entrees, sides, and desserts to cater to different tastes and dietary preferences.
• Consider customization: Provide options for customers to personalize their orders, allowing them to create a meal that suits their individual preferences.
• Offer healthier choices: In today's health-conscious society, include nutritious options such as salads, grilled items, and gluten-free alternatives.
• Ensure affordability: Price your menu items competitively without compromising on quality, keeping in mind the quick service aspect of your restaurant.
• Promote seasonal specials: Introduce limited-time offerings that capitalize on the flavors of the season, enticing customers to try something new.

Remember that your menu should reflect your restaurant's concept and target market. Take the time to carefully craft each dish, considering flavor profiles, presentation, and how it aligns with your brand image. By developing a comprehensive menu, you will attract customers and keep them coming back for more.

Create A Branding And Marketing Strategy

Developing a strong branding and marketing strategy is essential for the success of your quick service restaurant. It not only helps to differentiate your business from competitors but also helps to attract and retain customers. Here are some important steps to consider when creating your branding and marketing strategy:

• Define your brand: Start by clearly defining your brand identity, including your mission, values, and unique selling proposition. This will serve as the foundation for all your marketing efforts.
• Identify your target audience: Determine who your ideal customers are and tailor your messaging and marketing efforts to resonate with them. Consider demographics, preferences, and behaviors.
• Create a compelling brand story: Craft a narrative that communicates your brand's story and values. This will help customers connect with your restaurant on a deeper level and build loyalty.
• Design a visually appealing brand identity: Develop a visually cohesive and compelling brand identity that includes your logo, colors, typography, and overall visual style. Ensure that it aligns with your brand personality and resonates with your target audience.
• Develop a comprehensive marketing plan: Outline the channels and tactics you will use to promote your quick service restaurant. This may include online advertising, social media marketing, email marketing, content marketing, and traditional advertising methods.
• Engage with customers on social media: Leverage social media platforms to engage with your customers, share updates, and promote your offerings. Encourage user-generated content and actively respond to customer feedback and inquiries.
• Offer promotions and loyalty programs: Consider implementing promotions, discounts, and loyalty programs to attract new customers and incentivize repeat visits.
• Stay consistent with your branding across all touchpoints, including your website, menu, signage, packaging, and marketing materials.
• Utilize local partnerships and community initiatives to build brand awareness and connect with the local audience.
• Monitor and analyze the effectiveness of your marketing efforts regularly, and make adjustments as needed to optimize your strategy.

Evaluate Financial Feasibility

One of the most crucial steps in creating a business plan for a quick service restaurant is evaluating its financial feasibility. This involves assessing the costs involved in setting up and operating the restaurant, as well as estimating the potential revenue and profits.

Firstly, you need to determine the startup costs, which include expenses like leasing or purchasing a property, renovating the space, purchasing equipment and furnishings, obtaining licenses and permits, and any other initial expenses. Researching and obtaining quotes from suppliers and contractors will help in accurately estimating these costs.

Next, it is important to project the operating costs of the restaurant. This includes expenses like rent, utilities, staffing costs, inventory and ingredient costs, marketing and advertising expenses, and any other ongoing expenses. It is important to consider both fixed costs (such as rent) and variable costs (such as ingredient costs, which may vary based on sales).

Once you have estimated the costs, you can move on to projecting the potential revenue and profits of the quick service restaurant. This can be done by analyzing the market demand and potential customer base, as well as estimating the average ticket size and the number of customers served per day. Taking into account factors like seasonality and competition will also help in making realistic revenue projections.

• Ensure that your revenue forecast is based on realistic assumptions and market research data.
• Consider conducting a sensitivity analysis to assess the impact of different scenarios on your financial projections.
• Include information about potential funding sources, such as loans or investments, and their terms and conditions.

A comprehensive financial feasibility analysis will help you determine whether your quick service restaurant idea is financially viable and whether it has the potential to generate sustainable profits. This information is vital for securing funding, attracting investors, and making informed decisions about the future of your business.

Secure Necessary Permits And Licenses

Obtaining the necessary permits and licenses is a critical step in starting a quick service restaurant. These documents not only ensure that you operate legally but also demonstrate your commitment to following health and safety regulations. Here are some important points to consider:

• Research Local Regulations: Begin by researching the specific permits and licenses required by your local government. Each jurisdiction may have different requirements, so it is essential to familiarize yourself with the regulations in your area.
• Contact the Relevant Authorities: Once you have identified the necessary permits and licenses, reach out to the appropriate authorities to inquire about the application process. This is typically your local health department and business licensing department.
• Complete the Application: Obtain the necessary application forms and carefully fill them out, providing all the required information. Make sure to include any supporting documentation, such as floor plans, menu descriptions, and insurance certificates.
• Submit the Application: Submit your completed application along with any required fees to the appropriate authorities. Double-check that you have included all the necessary documents and that the application is filled out correctly.
• Undergo Inspections: Expect to undergo inspections from health and safety officials before receiving your permits and licenses. These inspections ensure that your restaurant meets the necessary standards for food handling and cleanliness.
• Stay Updated: Keep in mind that permits and licenses may have expiration dates and require renewals. Stay organized and make a note of when these documents need to be renewed to avoid any disruptions in your operations.
• Consult with a legal professional or business advisor to ensure that you are aware of all the necessary permits and licenses specific to your quick service restaurant.
• Start the application process well in advance to allow for any potential delays or unexpected requirements.
• Keep copies of all the permits and licenses in a safe and easily accessible place.

Set Achievable Goals and Milestones

Setting achievable goals and milestones is essential in ensuring the success of your quick service restaurant. These goals will serve as benchmarks for your progress and keep you focused on your objectives. Here are some important points to consider when setting your goals:

• Be specific: Clearly define what you want to achieve with your restaurant. Whether it's increasing sales, expanding to new locations, or improving customer satisfaction, specificity will help you stay on track.
• Make them measurable: Set quantifiable targets that can be objectively measured. For example, aim to increase monthly sales by 10% or achieve a customer satisfaction rating of 90%.
• Set realistic goals: While it's essential to be ambitious, it's equally important to set goals that are attainable given your resources, market conditions, and timeframe.
• Create a timeline: Break down your goals into smaller milestones and set deadlines for each. This will help you stay organized and track your progress more effectively.
• Consider your financials: Ensure that your goals align with your financial projections. Set objectives that are financially feasible and align with your resources and budget.
• Review and revise: Regularly review your goals and milestones to assess your progress. If necessary, make adjustments or revisions to keep them relevant and achievable.

Tips for Setting Achievable Goals and Milestones:

• Focus on both short-term and long-term objectives.
• Involve your team in the goal-setting process to promote engagement and ownership.
• Break down larger goals into smaller, manageable tasks.
• Track your progress and celebrate achievements along the way.
• Stay flexible and adapt your goals as needed to respond to market changes.

By setting achievable goals and milestones, you can chart a clear path towards success for your quick service restaurant. Regularly monitoring and adjusting your objectives will help keep you on track and continually improve your business.

Writing a business plan for a quick service restaurant is essential for success in this competitive industry. By following the nine steps outlined in this checklist, you can ensure that your business is well-prepared and positioned for growth. From conducting market research and identifying your target market to securing necessary permits and licenses, each step plays a crucial role in building a strong foundation for your restaurant. Remember to set achievable goals and milestones to track your progress and make adjustments as needed. With a comprehensive plan in place, you can confidently launch and operate your fast-casual restaurant, catering to the needs of convenience-focused customers and providing a higher-quality dining experience.

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What is a QSR? Your Guide to Quick Service Restaurants

Table of contents.

A quick service restaurant (QSR) is a type of eating establishment that focuses on efficient and speedy service. These establishments typically offer a limited menu of prepared food and beverages, which is ready for immediate consumption. QSRs are designed to provide fast and convenient dining options for customers who are looking for a quick meal on the go.

What is a Quick Service Restaurant?

A quick service restaurant, often abbreviated as QSR, is a type of eatery that prioritizes fast and efficient service. QSRs are known for their speedy operations and streamlined processes, allowing customers to order and receive their food quickly. Unlike full-service restaurants, where customers are typically seated and served by waitstaff, QSRs focus on self-service and short wait times.

Quick service restaurants offer a limited menu of prepared food and beverages that are ready for immediate consumption. These establishments cater to customers who are looking for a quick meal without sacrificing quality or taste.

One of the key advantages of quick service restaurants is their ability to serve a large number of customers in a short period of time. This is made possible by their efficient operational systems, which are designed to minimize wait times and maximize customer satisfaction. From the moment a customer enters a QSR, they are greeted with a sense of urgency and efficiency. The menu boards are strategically placed to allow customers to quickly make their selections, and the ordering process is often streamlined to ensure a smooth and seamless experience.

Another distinguishing feature of quick service restaurants is their emphasis on convenience. Many QSRs offer drive-thru services, allowing customers to place their orders without even leaving their vehicles. This is particularly appealing to busy individuals who are looking for a quick and hassle-free meal on the go. In addition to drive-thru services, QSRs often have mobile ordering apps, allowing customers to place their orders in advance and pick them up at a designated time. This level of convenience has made quick service restaurants a popular choice for people with busy lifestyles.

When it comes to the menu, quick service restaurants typically offer a range of options to cater to different tastes and dietary preferences. From classic fast food items like burgers and fries to healthier alternatives like salads and wraps, QSRs aim to provide something for everyone. Many quick service restaurants also offer customizable options, allowing customers to personalize their meals according to their preferences. This flexibility ensures that customers can find something that suits their individual tastes and dietary needs.

In conclusion, quick service restaurants are a popular dining option for those who are looking for a fast and convenient meal without compromising on taste or quality. With their efficient operations, convenient services, diverse menu options, and commitment to excellence, QSRs continue to be a go-to choice for people on the go.

Quick Service Restaurant Examples

When it comes to quick service restaurants (QSRs), there is no shortage of options to choose from. These establishments have become an integral part of our fast-paced modern lifestyle, offering convenient and accessible food options to customers on the go.

These are the top 20 quick service restaurants in the US according to QSR Magazine’s The 2023 QSR 50: Fast Food’s Leading Annual Report.

• Chick-fil-A
• Dunkin’ Donuts
• Burger King
• Panera Bread
• Sonic Drive-In
• Panda Express 
• Popeye’s Louisiana Chicken 
• Dairy Queen
• Jack in the Box

While global QSR chains dominate the market, there are also smaller regional or local QSRs that offer a different dining experience. These establishments often pride themselves on their unique and specialized food items, catering to specific tastes or preferences. From gourmet burger joints to artisanal pizza parlors, these local QSRs contribute to the diverse and ever-evolving landscape of quick service restaurants.

What is the Difference Between QSRs and Fast Casual Restaurants?

While both QSRs (Quick Service Restaurants) and fast casual restaurants focus on providing customers with quick service, there are some key differences between the two. 

Fast casual restaurants offer a slightly higher level of service and quality compared to traditional QSRs. They often provide healthier and fresher food options, with more attention to ingredients and preparation methods. This means that you can enjoy a meal that is not only quick but also made with care and consideration for your well-being.

Furthermore, fast casual restaurants usually have a more relaxed and casual atmosphere compared to QSRs. The ambiance is designed to make you feel comfortable and at ease, allowing you to enjoy your meal at a leisurely pace. Unlike QSRs, where the focus is primarily on speed and efficiency, fast casual restaurants prioritize creating a pleasant and enjoyable dining experience.

When dining at a fast casual restaurant, you will often find an emphasis on dine-in experiences rather than strictly take-out or drive-thru options. This means that you have the opportunity to sit down and enjoy your meal in a designated seating area. The seating areas in fast casual restaurants are typically designed to be inviting and cozy, encouraging you to relax and enjoy your food in a more leisurely manner.

Overall, while both QSRs and fast casual restaurants offer quick service, fast casual restaurants provide a more elevated dining experience. Fast casual restaurants offer a unique combination of convenience and culinary excellence. 

The Evolution of Quick Service Restaurants

Quick service restaurants have a long and rich history that has evolved over time. The concept of fast food first emerged in the early 20th century when the automobile became more prevalent, and people sought convenient dining options while on the go.

Over the years, the QSR industry has witnessed significant advancements in technology, operations, and menu offerings. Drive-thru and delivery services have become standard practices for many QSRs, allowing customers to enjoy their favorite meals without leaving the comfort of their vehicles or homes.

Furthermore, quick service restaurants have adapted to changing consumer demands and preferences, incorporating healthier menu options and embracing sustainability initiatives to cater to a more health-conscious and environmentally aware customer base.

Benefits of Opening a QSR

Quick Service Restaurants (QSRs), commonly known as fast-food restaurants, have become an integral part of the modern culinary landscape. Opening a QSR can offer numerous advantages to business owners. Here are some key benefits:

• Reduced Initial Investment: Compared to full-service restaurants, QSRs typically require a lower initial investment. This is due to their simpler designs, smaller physical spaces, and the need for less specialized kitchen equipment.
• Streamlined Operations: QSRs are known for their efficiency. With a limited menu and a focus on speed, these restaurants can streamline their operations, leading to faster service and reduced labor costs.
• High Consumer Demand: There is a consistent demand for quick, convenient, and affordable meal options. QSRs cater to busy lifestyles, offering fast service and often extended hours, which can attract a wide range of customers.
• Ease of Scalability: Once a successful QSR model is established, it can be relatively easy to scale. This could be through opening new locations or even franchising, allowing for rapid expansion and increased brand recognition.
• Adaptability: QSRs are often quicker to adapt to changing market trends. They can easily introduce new items or modify their menu to reflect current consumer preferences, such as healthy eating trends or new culinary flavors.
• Potential for High Volume Sales: Due to the fast-paced nature of QSRs, they have the potential to serve a large number of customers in a short period. This high turnover can lead to significant sales volume, especially in high-traffic locations.
• Robust Supply Chain Networks: QSRs often benefit from established supply chain networks, ensuring consistent quality and availability of ingredients. This can simplify inventory management and reduce the risk of supply disruptions.

In summary, opening a QSR offers a blend of financial, operational, and strategic advantages, making it an attractive venture for entrepreneurs looking to enter the dynamic world of food service.

How to Open a Quick Service Restaurant (QSR)

Opening a Quick Service Restaurant (QSR) can be a rewarding venture, but it requires careful planning and execution. Here are some steps to help you navigate the process:

Market Research and Business Planning

Your journey begins with thorough market research. Understand local tastes, assess the competition, and identify consumer needs. Translate these insights into a robust restaurant business plan . This plan should include your QSR's concept, target market , financial projections, and operational strategy. Also, consider how you will fund your venture, exploring options like loans, investors, or personal savings.

Location Selection and Licensing

Choosing the right location is key. Opt for high-traffic areas that match your target customer profile. The location should balance visibility, accessibility, and affordability. Concurrently, navigate the process of obtaining necessary licenses and permits. Adhering to local food service regulations, including health and safety standards, is crucial for legal compliance and smooth operation.

Restaurant Design and Menu Creation

Design your restaurant to maximize efficiency and customer comfort. Consider kitchen layout, dining space, and potential areas for future tech integration. Simultaneously, develop your menu. Focus on items that align with your concept and customer preferences, balancing quality, cost, and preparation speed. Your menu should also have unique offerings that distinguish your QSR from competitors.

Supply Chain Setup and Staff Recruitment

Establish a reliable supply chain to ensure consistent ingredient quality and availability. Effective inventory management systems are vital for tracking stock and minimizing waste. Alongside this, start the process of hiring and training your staff. Look for individuals who can provide quick and friendly service. Training should encompass food safety, customer service, and operational efficiency.

Branding, Marketing, and Technology Integration

Build a strong brand identity, including logo, colors, and thematic elements. Utilize various marketing channels to create buzz and attract customers. Incorporate technology to streamline operations, including digital ordering systems and efficient payment processing. These technologies not only enhance customer experience but also improve operational accuracy and speed.

Soft Launch, Feedback, and Grand Opening

Before the official opening, conduct a soft launch . This phase allows you to test your operations in a real-world setting and gather customer feedback. Use this feedback to make final adjustments. Then, plan a grand opening that creates excitement and draws in a crowd. Continued success will depend on your ability to maintain high service standards, adapt to customer feedback, and manage the business effectively.

Quick Service Restaurant Frequently Asked Questions

What is the meaning of qsr.

QSR stands for "Quick Service Restaurant," a term commonly used in the foodservice industry to describe fast-food restaurants. These establishments are characterized by their fast food preparation and service. 

What is the Average Wait Time at a Quick Service Restaurant?

While wait times may vary depending on the establishment and specific circumstances, quick service restaurants are designed to provide fast and efficient service. On average, customers can typically expect to receive their order within a few minutes of placing it.

Are Quick Service Restaurants Only for Take-Out or Drive-Thru?

No, while take-out and drive-thru options are common in quick service restaurants, some establishments also offer dine-in options. However, the focus is on efficient service, regardless of the dining method chosen by the customer.

Are Quick Service Restaurants Sustainable?

Many quick service restaurants have taken steps to incorporate sustainability into their operations. This includes initiatives such as using eco-friendly packaging, sourcing local and organic ingredients, and implementing energy-efficient practices. However, sustainability practices may vary between QSRs.

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Quick Service Restaurants – How to Start a Quick-service Restaurant

Table of Contents

What is a Quick-Service Restaurant?

A quick-service restaurant is a fast-food eatery that delivers rapidly prepared meals with minimal table service. These restaurants are ideal for folks on the go. They are also great for students who wish to grab a sandwich between classes. These establishments are also ideal for folks with limited time for lunch. The size of quick-service restaurants varies. Small kiosks and major chain restaurants are examples. But their trademark is always speed and convenience.   

In the modern era, quick-service restaurants have become more common. Customers desire affordable, quick food options that can be picked up on the go. These restaurants often have a simple POS system and a limited menu, and ordering is done at the counter or through a drive-thru. Many fast-food restaurant chains can be found in cities and towns all over the world. These restaurants have become a staple of the fast-paced, busy lifestyles of many consumers. 

Types of Quick Service Restaurants

Quick-service Restaurants usually operate in chains or franchises, as they gain profit from the number of customers who visit them. Operating many stores allows businesses to capitalize on the footfall frequency from multiple locations and increase the worth of the company. For example, Starbucks caters to complimentary food items or a particular type of food. Starbucks serves beverages as well as small foods that match its flavor. Similarly, Pizza Hut and Domino's serve fast food and light beverages. A high degree of standardization is required at a QSR to deliver quick services to customers, which include 

1. Self-service restaurants   

Customers in this sort of QSR approach the ordering counter to place and collect orders. They retrieve the order from the counter once it is prepared and notified.

2. Assisted self-service restaurants   

These QSRs are locations where either the customer's order is collected at the table, or the food is delivered to the customer's table by a staff member.   

3. Full-service restaurants   

These are the locations where the staff at the table takes orders and delivers food.  

How Do QSRs Differ from Fast-Casual Restaurants?

QSRs and fast-food restaurants are often compared to fast-casual restaurants, and the two types of restaurants do have some similarities. However, certain key differences between the restaurant formats can help you distinguish between the two.  

Quality and speed  

Both QSRs and fast-casual restaurants emphasize fast service, although fast-casual restaurants usually prepare food to order. Quick-service restaurants, on the other hand, cook their menu items ahead of time to ensure almost instant food delivery. This means the service in QSRs is usually faster, food quality can be slightly lower.  

Takeout or dine-in?

QSRs and fast-casual restaurants typically provide both dine-in and takeaway food. Diners in fast-casual restaurants, on the other hand, are more likely to take their time dining in the restaurant. Keeping this in mind, fast-casual restaurants are more likely to invest in interior design to create a specific vibe.

Drive-Through  

A drive-through option is unusual in fast-casual restaurants, although it is common in QSRs. Drive-throughs help restaurants by freeing up tables for customers inside and reducing wait times. 

Fast-casual restaurants prepare food fresh to order, therefore service is typically slower than at QSRs. Drive-through models do not function in fast-casual restaurants since the food does not arrive instantly. 

Benefits of Opening a Quick-Service Restaurant

You should know what a quick-service restaurant is by now, but you might be asking why you should open one. Working in the fast-food industry has several benefits. 

Large market segment  

Customers love fast food. The US fast food and quick service restaurant (QSR) market size was estimated at USD 293.8 billion in 2023 and is expected to reach around USD 454.3 billion by 2030. It is a big market with enormous growth potential. 

Owning and operating a QSR might be an excellent way to enter the food service industry, given that the market is not diminishing. With the right marketing strategy, your fast-food restaurant can be the next big thing. 

High Customer Retention  

Because so many customers take food to go or utilize the drive-through, QSRs benefit from high customer turnover rates.  

Even if diners opt to eat at the restaurant, the quick service means they are unlikely to sit for a long period of time – tables in QSRs tend to free up quickly. This means that it is simple to serve a large number of consumers in a single service period – and more customers served means more revenue for your business.  

Franchising  

Many fast-food restaurants use a franchising system, so you can open a fast-food restaurant under a larger umbrella company. You will be in charge of day-to-day operations, but you will use existing branding and serve food that customers already know and enjoy. 

Because the general public is already familiar with the more popular brand, opening a franchise makes it easier to create a consumer base. You can keep your marketing costs minimal and get started right away. 

Low Operating Costs  

Most QSRs have lower operational costs than full-service restaurants.  

Because many diners take their food to go, renting or buying a smaller retail location, as well as hiring a smaller staff, is an option. Because you're likely to have a standardized menu that doesn't change from month to month, the cost of ingredients can be lower than at fine-dining restaurants. This means you can order food in bulk to save money. 

How to Start a Quick-Service Restaurant

While the top 20 QSR restaurants are all big fast-food chains, not every quick-service restaurant has to be – and in fact, most are not. You don't need a drive-thru, greasy fried chicken, or a broken ice cream machine to be a successful QSR business in 2023. Here's what you need to know if you want to start your own quick-service restaurant. 

1. Create a business plan 

Creating a business plan is the first step in launching any business, and the fast-food industry is no exception. A restaurant business plan is a roadmap for your entire project, explaining how you will fund, manage, promote, staff, and run the business once it is open. Understanding your business's unique model will make the rest of the process simpler. 

You'll discuss your company overview (what kind of quick-service restaurant are you? What could your menu items be?), your operations (who are your suppliers? What is your staffing model and service offering? Are you a franchisee or an independent?), your technology (would you use kiosks or provide full-service counters? Which quick service restaurant POS system are you intending to use?) and even more specifics to help you get started (what sets you apart from your competitors? What fast service restaurant trends are you leveraging?).  

Plan your quick-service restaurant business here. Also, be sure to check all of the boxes on our restaurant opening checklist. 

2. Secure Financing 

Even if you only consider franchise fees, the initial investment in opening a restaurant can be really expensive, and most people do not have that kind of cash on hand. Fortunately, restaurant financing is available, and there are various options to consider. 

3. Obtain Licenses and Permits and Establish a Business Structure 

To open and operate your QSR, you'll need several different licenses and permits, so check with your local and state rules for what a business must do to get out on the right foot. You should also speak with an accountant or a lawyer to assist you in setting up your tax documentation (such as a DBA and an EIN) and ensure that all of your permits and licenses are in order. 

4. Locate and Purchase Equipment  

Finding a perfect location can be tough, and it's often worthwhile to engage the assistance of a commercial real estate professional. If you have a lot of connections in the industry in your town, keep an ear to the ground and see if any recently closed restaurants need someone to take over their space.  

Once you've secured your location, the following step is to find new or used equipment to fill it up and get it ready for service.  

5. Create your menu   

Create your menu while considering food costs, supply chains, the labor required to make everything every shift, and the type of food you would like to highlight at your restaurant. Remember that many quick-service restaurants use a build-your-own approach, so consider whether your restaurant will too. 

6. Hire your Staff

Having a great staff is the key to a successful restaurant.

Right now, the restaurant industry is facing a tight labor market and low employment relative to available jobs. The key to success here is to give a restaurant workplace that offers high pay, solid benefits, a distinct culture, and opportunities for growth and development.

7. Create a marketing strategy

Set your grand opening up for success and get consumers in the door with effective marketing. The best way to start is by creating your restaurant marketing strategy, where you can set goals, learn best practices and tips, and plan out your marketing calendar and budget for that vital first year. 

Don't forget about social media – check out Restaurantify's new Restaurant Social Media Guide for a step-by-step walkthrough of social media marketing for restaurants, from managing your restaurant's brand on four popular social media platforms – Instagram, Facebook, Twitter, and TikTok – to growing and developing new content strategies.

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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

• Creating a solid business plan is important, as it helps:
• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% ( Harvard Business Study ).
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as 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.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on common elements of an executive summary, including:

• A mission statement 
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

1.1 Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

1.2 Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

1.3 Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content: How to Write a Restaurant Mission Statement 

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.

2. Company description

This is where you carefully introduce the company in the restaurant business plan.

Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information.

Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description.

To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

Further reading

• How to Write a Great Restaurant Description

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.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

 Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, 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 service style to 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 in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

• How to Identify Your Restaurant’s Target Market (Expert Tips Included)

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up menu for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result. 

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's business plan and 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 settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

7.1 Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

7.2 Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

• Why does restaurant location matter?

8. Market overview

The market overview section is heavily related to the market research and 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 other 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 next marketing strategy 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 other potential investors about 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 own financial projections and 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 for 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. 

• Your Complete Guide to Restaurant Financing and Loans

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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How to Write a Restaurant Business Plan: A Step-by-Step Guide

Discover how to craft a winning restaurant business plan that charts a path toward success.

Whether you're seeking investment, planning for growth, or simply looking to establish a clear operational blueprint, a comprehensive restaurant business plan is indispensable. A meticulously prepared restaurant business plan serves multiple functions: attracting investors, forecasting profits, and strategizing for sustainable growth. 

In today's food service sector, a detailed plan will help you navigate the complexities of the market confidently. This guide will walk you through creating a robust restaurant business plan and help define your path to success. 

How to develop a restaurant business plan

When creating a restaurant business plan, the goal is to outline profit generation strategies. In addition to the financial aspects, a well-structured business plan should encompass factors like branding, staffing, and marketing, so before you start drafting, take a moment to take these initial preparatory steps. 

Define your restaurant concept and priorities

During the startup phase, establish your priorities. If you're launching a fast food eatery, you might focus on quick service, a wide menu selection, and competitive prices — but if it's a food truck , you might prioritize mobility and affordability. If you're establishing a high-end restaurant, your priorities likely are exceptional customer care, a sophisticated ambiance, and top-quality ingredients. Here's the bottom line: Can you explain your restaurant idea quickly and concisely? What about your restaurant idea is unique and gets you excited? Develop a clear vision of your restaurant and list what's most important to you — your business strategy will reflect your concept. 

Review sample restaurant business plans 

Learning from others is key, so get networking or researching any connections in the industry so you can review established restaurant business plans. Look at how other plans showcase unique selling points, and undertake market analysis to identify areas for cost optimization and margin improvement. Ultimately, your plan should reflect your distinct vision, but understanding how others built out their vision and the structure they adhered to is valuable in helping you develop your restaurant business plan. 

Calculate startup and ongoing costs

Assess your financial needs as you plan your restaurant budget and consider the range of startup costs. Are you taking over an existing space or are you renovating and building from scratch? Calculate all associated expenses such as operations, leasing, renovations, equipment, initial inventory, and licensing fees — you'll want to consider every variable cost line by line, which varies widely based on your business model.

Estimate your daily operational costs, such as rent and utilities. How much will ingredients cost to make your menu and what does your payroll look like? What roles do you need to hire to get your operation running? Then think about your marketing budget — how much will it cost to design the website, the take-out menu, and additional promotional materials? These questions should help inform your financial plan, budget, and overall cost of launching and running your restaurant effectively.

Key sections of a restaurant business plan

For a successful restaurant concept, aim for a culinary experience that fills a gap for your target customers, even if they still need to be made aware of it. While drawing inspiration from various sources, remember that a well-crafted restaurant business plan typically includes elements like an executive summary, company overview, industry analysis, operations plan, marketing plan, financial analysis, and restaurant menu.

1. Executive summary

An executive summary describes the big picture for your restaurant. Offer a compelling overview of your restaurant concept. Introduce yourself, your vision, and the market you're addressing. Include items like your mission statement , core values, and key differentiators. Remember, this is the first thing potential investors will read. It needs to grab their attention, convince them that there is a strong potential for success, and get them excited about what you bring to the table.

2. Company overview

You've already provided an overview of your restaurant concept, so now dive into the details of your restaurant, including its legal structure. Here, you can describe your restaurant concept in more detail, including cuisine, service style, operating hours, and ambiance. What makes your restaurant different? Include the contacts, owner details, location, and other relevant information about the restaurant you're opening. 

3. Industry analysis

A thorough analysis demonstrates your understanding of the broader restaurant market, so identify current trends affecting the sector and analyze your local competitors and nearby businesses. Are you close enough to office buildings to expect daily lunch rushes? Are you in a shopping center where there's great foot traffic? Is there a movie theater nearby with more opportunities for dinner service? 

Describe the neighborhood's economy, demographic makeup, and projected growth. Are there other opportunities and challenges you anticipate and is there any additional information potential partners or investors find helpful? This section allows you to be specific while showcasing your initiative to prove what gaps your restaurant fills.

4. Operations plan

An operations plan details the day-to-day running of your restaurant, from the organizational structure and kitchen workflow to customer service protocols and employee play. Outline your restaurant's processes, plans, and procedures that will ensure efficiency and quality, making sure to include information on suppliers and equipment needs. Will you be bringing in a notable chef, mixologist, or sommelier? What restaurant technology will you invest in and will you pursue an exclusive partnership with a third-party delivery service ?

A majority of merchants say that without DoorDash, their overall revenue (58%), new customer growth (52%) and revenue growth (51%) would have been lower.

5. Marketing plan

Your marketing plan should articulate how to attract and retain customers through customer awareness and acquisition initiatives, advertising, public relations, community engagement, and events. Discuss branding, promotional tactics, and community engagement strategies . Detail your plans for digital marketing, traditional advertising, and any unique campaigns or events designed to build buzz and loyalty and keep your patrons active.

Will your team take on your marketing initiative, or will you hire a social media consultant or PR agency to help you with launch and post-launch activity? If you're using an external vendor, it's important to include their client list, successful case studies, and a brief write-up of the services they'll provide for you. How you communicate with your patrons outside the walls of your restaurant will inform your marketing strategy .

6. Financial analysis

Arguably the most scrutinized section, the financial analysis provides a detailed forecast of your revenue, costs, and profitability. When do you think your restaurant will break even? Calculate and project when you feel your restaurant's monthly expenses become less than the income it'll generate — remember, these timelines can take anywhere from six months to years. 

When you're pre-launch, your forecasts are essentially educated guesses, so anchor these guesses in thorough market research, actual expenses, and expected earnings. Use realistic assumptions to build credibility with potential investors to include a five-year outlook covering estimated revenue and capital expenditure budgets.

Once your business is operational, provide concrete financial data like cash flow and profit and loss statement , especially spanning the past five years. Utilize visually engaging charts and graphs to showcase financial achievements, enabling investors to quickly assess your company's financial well-being.

7. Restaurant menu 

Include a sample menu or a detailed description of your offerings, as this section will help readers visualize the dining experience and understand how your menu aligns with your restaurant concept. Highlight signature dishes or unique ingredients that make your menu stand out from your competitors. Consider this section an extension of your restaurant branding, so work closely with your chef to create an eye-catching menu with evocative menu descriptions that follow strong design principles. 

Get professional feedback on your restaurant business plan, review, and refine

Once your draft is complete, seek feedback from experienced restaurateurs, mentors, or business advisors ​​— their insights can help refine your plan, making it more compelling and effective. Be open to constructive criticism and use it to polish your plan before presenting it to potential investors. Remember that incorporating diverse perspectives can lead to a more robust and successful business strategy in the long run.

Download a free sample restaurant business plan

Breaking down the process of creating a restaurant business plan into segments can make the task more manageable, as you can develop a comprehensive and robust plan by addressing each part individually. Crafting a business plan may appear challenging, but it demonstrates to potential investors that you have a well-thought-out strategy for success. 

Ready to create your own winning restaurant business plan? Download the free Restaurant Business Plan template to get started.

Content Marketing, DoorDash

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These 10 Tips Will Make Your Quick-Service Restaurant Profitable

Ever since I have watched the movie ‘Chef’ , food trucks have started to fascinate me.

You can get a vintage van, convert it into a kitchen, and roam around the city selling meals that are quick, cheap, and delicious.

That’s a life to live. If I ever get a chance, I would definitely start my own food truck business; name it ‘Meals on Wheels’ and become the Jon Favreau of Assam.

But then, I started watching videos of Mr Beast where he would go to drive-thrus and tip workers. Now, I feel like starting a drive-thru.

Life is tough, you see.

Okay, I will talk about my dreams some other day. Let’s now focus on the topic at hand.

There is one thing that is common between both — they are, one way or the other, a type of Quick Service Restaurant (QSR).

Lately, I have witnessed a lot of QSRs struggling to scale and make a good profit. So, I have taken it upon myself to help you all with just that.

Whether you own a food truck, drive-thru, or even a fast-food stall, this blog is going to be of great help.

Table of Content

What is a quick service restaurant, casual dining and fast-casual, what is casual dining, what is fast-casual, tips to make your quick service restaurant successful.

• Write down your business plan
• Conduct research to define your target market
• Innovation and creativity are the keys
• Lift your marketing game
• Pull out all the stops for branding
• Use a loyalty program to increase sales
• Offer discount during lull hours
• Develop your QSR menu
• Invest in the right POS system
• Find the right suppliers for your QSR needs

A quick-service restaurant (QSR) is exactly what it sounds like. It serves customers with food as quickly and efficiently as possible.

Most of the QSRs are usually self-serviced. Meaning, customers are required to collect their food from the counter.

One of the best examples to explain the quick service restaurant characteristics is KFC.

In KFCs, you go straight to the counter, place your order, make the payment, and wait for it. The food gets ready in just a few minutes; now, you just have to collect it from the counter and have it. Also, while placing the order, you can let the person know whether you’re going to dine in or it’s a takeaway.

When we talk about the quick-service restaurant industry, two more terms tend to confuse people — casual dining and fast-casual.

Here in this section, I will try to help you understand both terms.

Casual dining is basically classified as our typical restaurant with a laid-back atmosphere and affordably priced menu.

These restaurants generally offer table service. Meaning, you don’t have to go to the counter and place your order. Instead, a server brings your meal to the table.

Fast-casual is a combination of both fast food and casual dining. Meaning, you might not get table service, but you can expect freshly prepared, higher-quality food and an inviting sit-down ambience.

Not to mention, many fast-casual restaurants allow you to create your own meal. You can choose the combination of ingredients you want in your food.

Now that you have learned about QSR along with casual dining and fast-casual, let’s take a deep dive into how you can increase profits at your quick-service restaurant.

In this section, I will share some of the top tips for quick-service restaurants to stay profitable.

1. Write down your business plan

This might sound generic, but it is THE most important point.

You need to have a quick-service restaurant business plan in place to give your QSR the right kickstart.

A plan helps you define the business and enable you to understand the various aspects of it. Furthermore, it also helps you set clear objectives and implement them in a much easier way.

One of the critical elements of a quick-service restaurant is its concept. And when you have a business plan in place, you can justify that concept.

2. Conduct research to define your target market

The idea of defining the target market is simple.

Like I said above, QSRs need to have a concept. But for that concept to work, the restaurants must determine the segment of customers. Focusing on the wrong market segment results in wastage of marketing budget and resources.

For example, you’re starting a new food truck in India that serves burgers. Do you think the baby boomers are going to be your target customers? Nope. Millennials and Gen Z are more likely to be your target market.

The more refined your target market is, the better the chances of attracting customers to your restaurant and boosting your bottom line.

3. Innovation and creativity are the keys

At present, there are numerous quick-service restaurants. The competition is really tough.

To stay ahead of the game, you need to strengthen USPs and tap into the psychological aspect of your customers . You have to explore different ideas in terms of everything — be it the design, ambience, or menu.

Many people might argue on this, but restaurants today are much more than just the food. People expect a lot of things. And for a QSR to succeed in this generation, it must give up on the old school tactics and take a sip from the fountain of youth.

There are gazillion restaurants that offer decent food but are supremely profitable because of their ambience and service.

4. Lift your marketing game

Your restaurant’s success is directly proportional to its marketing plan. And when I say a restaurant, I also mean QSR.

Setting up and running a QSR is one thing, but you also have to make sure that you’re spreading the word (that too in an intriguing way) to a wider audience. This is where marketing comes into the scenario.

We have done an in-depth blog on restaurant marketing. I suggest you give it a read. It will definitely bring in a lot of value.

5. Pull out all the stops for branding

Now, you have to understand branding is not the same as marketing. Branding is about defining who you are as a business.

Of course, there are marketing efforts involved in branding, but that’s a little different.

Marketing campaigns for branding must be curated in such a way that your quick-service restaurant’s characteristics, values, and mission are loud and clear.

Not to mention, you also have to spend time crafting content that shows the concept and ambience of your quick-service restaurant business.

Note: Branding is very sensitive. So make sure you’re careful about the message you’re trying to convey.

6. Use a loyalty program to increase sales

According to Bingage , 83% of people are more likely to purchase with a brand that has some sort of loyalty program.

Loyalty programs are about rewarding your customers for a certain action and encouraging them to keep engaging in the desired behaviours.

Again, we have covered this topic in detail along with the science behind it. Do give this article a read.

I am sure, you don’t need any other resources to master the art of rewarding your customers and increasing your sales.

7. Offer discount during lull hours

Every eatery faces lull hours. It is basically that hour/time of the day when the crowd is really low in a restaurant.

While many don’t give it a sincere thought, it is actually a lucrative time if you have a strong strategy in place.

Try offering discounts during lull hours to attract more customers and make more sales.

8. Develop your QSR menu

A well-engineered menu is the reflection of a restaurant’s concept and intended audience.

If you haven’t considered working on your menu, then you must.

Wondering, how? I got your back.

Some time back, in one of my blogs, I talked about creating an enticing menu.

Click here to read and learn.

9. Invest in the right POS system

Apart from all the strategic actions, there’s one more thing you need to focus on – how to manage a quick-service restaurant?

The answer to this burning question is a point of sale (POS) system .

A POS system has become a necessity for restaurants. And why not? It streamlines your restaurant’s complex operations. Be it about menu management, inventory management, tracking sales and cash flow, or staff management, it does everything.

If you haven’t thought about investing in a POS yet, then YOU MUST.

10. Find the right suppliers for your QSR needs

To run a successful restaurant, you must spend a good amount of money on outsourcing several things such as software, frozen food, raw materials, etc.

Therefore, to get quality products, you need to choose the right supplier.

However, that/it may not be simple. There are certain aspects you need to keep in mind.

• Identify the things you need to outsource
• Conduct research about different suppliers
• Check for suppliers with fair/reasonable/negotiable pricing
• Check whether the products of the suppliers are of good quality
• Make the best out of your existing relationships with vendors
• Find out whether the after-sales service of a supplier is good enough
• Check references before selecting a vendor

You can use the above points as a checklist and see which supplier/vendor fits into your criteria.

The best technology for a QSR or a restaurant, in general, is a POS system with payment gateway integration. It will help you streamline every operation in your eatery along with payments.

There is no fixed amount to start a QSR. It completely depends on what scale you want to start, in which part of the world you’re in, so on and so forth. Not just that. The concept of the restaurant also matters a lot. However, if you would still want to know a number, in India, you can get started with a 5 lakh capital.

Anyone with knowledge of the industry and decent capital can start a quick-service restaurant. Just make sure you have a robust business plan in place before cashing in all your hard-earned money.

A quick-service restaurant is usually the one that offers a quick dining experience such as food trucks, drive-thrus, etc. When it comes to casual dining, it is slower.

The restaurant industry is lucrative. But then, it is also one of the most competitive ones. With time, more and more eateries are entering the arena and to stay profitable restaurateurs have to come up with strong strategies.

The quick-service restaurant industry is no exception.

I hope the points mentioned above help you make the most of this form of dining. 

Lately, I have been covering a lot of non-generic topics and I want to keep doing this. Let me know if you have anything in mind that I should blog about.

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What Are Quick Service Restaurants (QSR) – Top 10 Of Those

Supti Nandi

Updated on: November 28, 2023

Ever wondered where to grab a quick and delicious meal? Dive into the world of Quick Service Restaurant (QSR) with me! Picture this: you’re in a rush, but you still want great food. That’s where these top 10 QSRs come in. 

From famous global spots to hidden local gems, we’ll explore places that serve up tasty meals without making you wait. 

So, if you’re up for a flavorful adventure where speed and satisfaction go hand in hand. Then, join me as we check out the exciting landscape of Quick Service Restaurants together!

(A) What is a Quick Service Restaurant (QSR)?

Let’s begin with the definition of Quick Service Restaurant (QSR).

Quick Service Restaurants (QSRs) are establishments designed for fast and efficient food service. These eateries prioritize prompt customer experience, offering a streamlined menu and rapid preparation of meals, making them ideal for individuals with limited time.

Now, let’s break it down. 

Quick Service Restaurants, or QSRs, are basically your go-to places when time is of the essence. They specialize in providing speedy and efficient food service. Think of them as the express lane of dining. In simple words, QSRs are specially designed for those who are in a hurry to grab a meal.

It is way too different from traditional diners where you go especially to enjoy your meal with plenty of time.

A classic example is Subway. You step in, choose your ingredients for a sandwich, and in no time, your customized sub is ready to enjoy. It’s all about getting a quality meal without the wait – perfect for those busy days when you need a quick, satisfying bite.

(B) Quick Service Restaurant vs Traditional Restaurant

Go through the following table to get an overall comparison between Quick Service Restaurant and Traditional Restaurant-

(C) How to open a quick service restaurant?

If you’re considering launching your own quick-service restaurant, it’s essential to grasp the key steps involved-

Step 1: Develop a Business Plan

Embark on your quick-service restaurant journey by developing a detailed business strategy encompassing your restaurant’s identity, menu composition, operational intricacies, and technological integration. This strategic blueprint will guide you through crucial elements such as financing, staffing, and marketing.

Step 2: Secure Adequate Financing

Launching a restaurant demands a significant initial investment. Explore diverse financing avenues to cover essential expenses, including franchise fees, ensuring a well-funded commencement.

Step 3: Navigate Regulatory Requirements and Establish Business Framework

Adhere to regulatory norms by obtaining the requisite licenses and permits. Collaborate with professionals such as accountants or legal experts to ensure compliance with tax obligations, including securing a DBA and an EIN.

Step 4: Identify an Optimal Location and Equip Your Establishment

Discover a suitable location, possibly with assistance from a commercial real estate professional. Once secured, furnish your establishment with necessary items, whether new or used, to prepare it for seamless service.

Step 5: Curate an Appealing Menu

Develop a menu considering elements such as food cost, supply chain logistics, and labor considerations. Assess the viability of a build-your-own model in alignment with your quick-service restaurant concept.

Step 6: Build a Competent Team

Forge a dedicated team understanding their pivotal role in your restaurant’s triumph. Address challenges posed by the current labor market by offering competitive pay, enticing benefits, a positive workplace culture, and avenues for professional development.

Step 7: Strategize a Comprehensive Marketing Approach

Establish a strong foundation for a successful grand opening through a meticulously planned marketing strategy. Define goals, implement best practices, and allocate resources effectively to attract customers during the critical first year.

Step 8: Inaugurate Your Establishment

Execute a successful grand opening to kickstart your quick-service restaurant venture. Given the expansive growth prospects in the industry, following these steps positions you for success in navigating the dynamic landscape.

(D) Top 10 Quick Service Restaurants in India

Here comes the most anticipated part of this write-up. The Top 10 Quick Service Restaurants in India. Well, I’m sure you have gone to the majority of the QSR given in the list. We have ranked them based on the number of outlets in India-

Now, let’s look into the details-

(D.1) Domino’s Pizza Restaurant

Established in 1960 by founders Tom Monaghan and James Monaghan, Domino’s, a global pizza giant, is currently led by CEO Russell Weiner. A pivotal moment occurred in 1996 with the opening of the inaugural store in New Delhi, India, showcasing the brand’s international expansion.

Overseeing operations in India, Domino’s Pizza Private Limited is directed by individuals such as Rohit Narendra Lohade and Sandeep Rajaram Reddy. This leadership team reflects the commitment to adapting the renowned pizza chain to diverse markets. 

• Total Number of Outlets in India: 1,758
• Operating Revenue: Rs.1-100 crore
• EBITDA: -14.63%
• Net Worth: 13.63%
• Debt/Equity Ratio: 0.06

Renowned for its commitment to quality and innovation, Domino’s remains a culinary powerhouse, consistently delighting pizza enthusiasts worldwide.

(D.2) KFC (Sapphire Foods India Limited)

KFC, globally renowned for its crispy and spicy chicken, operates under Sapphire Foods India Limited. As the world’s second-largest restaurant chain, it spans 150 countries, offering a delectable poultry experience. Colonel Sanders founded KFC in 1952 in North Corbin, Kentucky, USA, crafting an iconic legacy. 

• Number of Outlets in India: 819
• Operating Revenue: Over Rs.500 crore
• EBITDA: 163.36%
• Net Worth: 102.29%
• Debt/Equity Ratio: 0.05

Sapphire Foods India Limited, led by directors like Sanjay Purohit and Sunil Rewachand Chandiramani, oversees KFC’s operations in India. This leadership is instrumental in maintaining the brand’s global prominence, showcasing its commitment to delivering flavorful chicken delights to diverse corners of the world.

(D.3) Pizza Hut

Pizza Hut, a globally recognized quick-service restaurant, has been satisfying pizza cravings since its establishment in 1958. Renowned for its diverse menu and swift service, Pizza Hut has become a staple for pizza enthusiasts worldwide. 

Over the years, the chain has embraced innovation, introducing new flavors and crust styles to cater to evolving tastes. Whether dining in, opting for takeout, or enjoying doorstep delivery, Pizza Hut consistently delivers a quality pizza experience. 

• Number of Outlets: 800

Its rich history and commitment to excellence position Pizza Hut as a trusted and beloved quick-service restaurant. It became famous by offering a flavorful journey for pizza lovers across the globe including India.

(D.4) Subway

Subway, a celebrated sandwich brand known for its submarine specialties, originated in 1965, co-founded by Fred DeLuca and Peter Buck in Milford, Connecticut, USA. A prominent player among quick-service restaurants in India, Subway stands out for its customizable sandwich offerings. 

Subways Foods Private Limited, governed by directors Ajay Chopra and Sunil Chopra, oversees its operations. Famed for fresh and personalized sandwiches, Subway has garnered global acclaim for its quick and tailored dining experience. Number of Outlets in India: 579

• EBITDA: 5.67%
• Net Worth: 21.51%
• Debt/Equity Ratio: 0.86

The brand’s rich history and commitment to freshness continue to make Subway a preferred choice for those seeking a quick and customized culinary delight.

(D.5) Wow! Momo

Established in 2008 by a group of college friends, Wow! Momo Foods has emerged as a prominent player in the quick-service restaurant sector, specializing in momos. The company manages three distinct restaurant brands: Wow! Momo, Wow! China, and Wow! Chicken, with Wow! Chicken contributing significantly to its revenue. However, Wow! Momo takes the spotlight in India.

• Number of Outlets in India: 425

 With an extensive network of 425 outlets across the country, Wow! Momo Foods is transitioning to a unified retail approach, introducing Wow! Eats locations that house its three brands under one roof. The company aims to open an additional 250 outlets in the next two years and has recently launched the Wow! Eats app for streamlined online ordering.

(D.6) Burger King India Limited

Burger King India Limited, renowned for offering quality fare at affordable prices, traces its roots back to its founding in 1954 by James McLamore and David Edgerton in Miami-Dade County, Florida. As the world’s second-largest hamburger chain, Burger King has gained global acclaim for its flavorful offerings. 

Overseen by Restaurant Brands Asia Limited, the company is guided by a board of directors that includes prominent figures like Ajay Kaul and Shivakumar Dega. Number of Outlets in India: 391

• EBITDA: 501.67%
• Net Worth: 189.59%
• Debt/Equity Ratio: 0.00

Burger King’s dedication to quality and a diverse menu establishes it as a preferred choice for those seeking a satisfying and budget-friendly fast-food experience, particularly in the Indian market.

(D.7) McDonald’s

McDonald’s, the world’s largest fast-food chain, holds unrivaled appeal among burger enthusiasts. Operated by Hardcastle Restaurants Pvt. Ltd. (HRPL), the brand’s legacy dates back to Ray Kroc’s founding in 1940. Recognized for its swift and savory offerings, McDonald’s has become a global culinary icon. 

Hardcastle Restaurants Private Limited, steered by directors including Banwari Lal Jatia and Tarun Kataria, plays a pivotal role in upholding the brand’s prominence. 

• Number of outlets in India: 357
• EBITDA: -77.91%
• Net Worth: -19.07%
• Debt/Equity Ratio: 0.51

Embodying a commitment to quality and culinary innovation, McDonald’s remains a front-runner in the fast-food landscape, providing a diverse menu and an internationally renowned dining experience.

(D.8) Starbucks

Starbucks, a globally acclaimed coffeehouse chain, has established a vibrant presence in India as a quick-service restaurant. Known for its inviting ambiance and premium coffee offerings, Starbucks in India caters to a diverse palate. The brand seamlessly blends international coffee culture with local flavors, offering an extensive menu of handcrafted beverages and gourmet snacks. 

• Number of outlets in India: 349

With a commitment to sustainability and community engagement, Starbucks has become a preferred choice for those seeking a contemporary and enriching coffee experience in India. Whether it’s a quick caffeine fix or a leisurely coffee indulgence, Starbucks continues to redefine the coffee scene with its distinctive approach.

Note: Do you know, Starbucks is based on Horizontal Marketing System ? If not, then visit the article for detailed information.

(D.9) Bikano Chat Cafes (Bikanervala)

Bikanervala is a multi-cuisine restaurant and mithai (sweets) shop in India. It is known for its savory snacks, sweets, and traditional Indian dishes. Bikano Chat Cafes, a vibrant quick-service restaurant, introduces a fusion of culinary delights rooted in Indian flavors. 

Renowned for its delectable chaats and snacks, Bikano offers a contemporary dining experience with a touch of tradition. Each dish is a celebration of authentic Indian street food, prepared with quality ingredients and innovative twists. The menu showcases a diverse array of chaats, snacks, and beverages, creating a flavorful journey for patrons. 

• Number of outlets in India: 150 

With a commitment to preserving culinary heritage, Bikano Chat Cafes have carved a niche, providing a delightful space for quick, flavorful bites that capture the essence of India’s rich culinary tapestry.

(D.10) Taco Bell

Taco Bell, a dynamic quick-service restaurant, has made a flavorful mark in India with its innovative take on Mexican-inspired cuisine. Renowned for its bold and customizable menu, Taco Bell caters to diverse taste preferences, offering a fusion of spicy and savory delights. 

The vibrant atmosphere and creative culinary offerings redefine fast food in India. From customizable tacos to indulgent burritos, Taco Bell embraces the spirit of experimentation, making it a popular choice for those seeking a unique and lively dining experience. 

• Number of outlets in India: 127

With its zesty flavors and global appeal, Taco Bell continues to spice up the quick-service restaurant scene in India.

(E) Final Words: Quick Service Restaurant (QSR) in India

In wrapping up our exploration of Quick Service Restaurants (QSRs) in India, it’s clear that these culinary hubs have revolutionized how we dine. Here (in the top 10 QSRs) we’ve delved into cater to your need for swift, yet delightful, culinary experiences. 

Whether you’re savoring the iconic burgers at McDonald’s, crafting your own masterpiece at Subway, or embracing the bold flavors at Taco Bell, each QSR brings a unique touch to India’s fast-paced dining scene. 

These spots aren’t just places to eat; they’re a fusion of speed, convenience, and culinary satisfaction tailored to your on-the-go lifestyle, contributing to the diverse tapestry of Indian QSR experiences!

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Restaurant Business Plan: Step-by-Step Guide + examples

Dreaming of opening a 🍴 restaurant? Passion, creativity, and delicious food are key. But for long-term success, a business plan is essential too.

Maja Jankowska

Are you dreaming of owning your own restaurant? Picture the sizzle of a hot skillet, the laughter of satisfied guests, and the fulfillment of sharing your culinary creations with the world. But before you dive into this flavorful adventure, there’s a crucial ingredient you can’t overlook: a winning restaurant business plan.

What is a business plan for?

A business plan is a vital document for every restaurant owner. It provides a roadmap for success, helps secure funding, guides financial and operational decisions, mitigates risks, and facilitates effective communication. 

Just like any other business, a restaurant needs a well-crafted business plan to ensure its success and sustainability. Without a business plan, you risk operating in the dark, making decisions on a whim, and facing unexpected challenges that could have been avoided. 

Investing time and effort into creating a solid business plan sets your restaurant on the path to achieving your culinary dreams and exceeding customer expectations.

Create Restaurant’s Business Plan in these 9 steps:

✔️ 1. Start with an executive summary ✔️ 2. Describe your concept ✔️ 3. Conduct Market analysis ✔️ 4. Define your management and organization ✔️ 5. Give a sample “yummy”  Menu ✔️ 6. Create design and branding ✔️ 7. Provide a Location ✔️ 8. Establish Marketing plan ✔️ 9. Define Financial plan

1. Executive summary

The executive summary is like the appetizer of your restaurant business plan – it’s the first bite that leaves a lasting impression. Its purpose is to capture the essence of your entire plan and entice time-crunched reviewers, such as potential investors and lenders, to delve deeper into your vision. It’s worth noting that the executive summary should be the final section you write.

To craft a concise and captivating summary, it’s crucial to highlight key points, including your unique concept, target market, and financial projections. Additionally, bear in mind that the executive summary sets the tone for the rest of your plan, so it’s essential to make it irresistible and leave readers yearning for more.

When it comes to the executive summary of your restaurant business plan, brevity is key . You have only one page to capture the attention of readers, but don’t worry, it’s definitely doable. Here’s what your executive summary should include:

• Restaurant concept : What does your business do?
• Goals and vision : What does your business want to achieve?
• Restaurant differentiation : What makes your menu/concept different, and what sets you apart?
• Projected financial state : What revenue do you anticipate?
• The team : Who is involved in the business?

2. Describe your concept

In the world of restaurant business plans, there’s a section that holds immense importance. It’s the one that answers two fundamental questions: Who are you, and what do you plan to do?

This is the section where you fully introduce your company, and it deserves special attention. Share all the important details that paint a vivid picture of your unique business. Include the restaurant’s name, location, and contact information. Additionally, provide relevant details such as the chef’s background and what makes your restaurant stand out in the market.

Curious about concept creation? Watch our short video featuring a summary of an example restaurant concept below! 👇

Now is your opportunity to showcase your vision and establish a unique identity for your restaurant. Utilize this section to highlight what sets you apart and capture the reader’s imagination.

3. Market analysis

Market analysis helps you understand your potential customers, competition, and overall restaurant market trends. It’s like having a crystal ball to shape your restaurant’s success.

Target audience 

When it comes to your potential market, you want to know how many people are hungry for what you’re serving. Sounds exciting, right? To estimate this, you’ll gather data on your target customers, like their age group or preferences, and combine it with industry trends. It’s like finding the perfect recipe to satisfy their cravings.

Competition

Now, let’s tackle the competition. Every restaurant has rivals, even if they’re serving a unique dish. It’s crucial to identify direct or indirect competitors and understand what makes you stand out. Are you offering affordable prices, a one-of-a-kind experience, or catering to a specific niche? Highlight your “secret sauce” that sets you apart from the rest.

Market analysis for restaurant’s business plan

Market analysis also involves a SWOT analysis. Don’t let the jargon scare you. It simply means evaluating your strengths, weaknesses, opportunities, and threats. Think of it as a superhero assessment for your restaurant. Identify what you excel at, areas for improvement, potential market opportunities, and external factors that could impact your success.

Example of SWOT analysis for a restaurant

Remember, market analysis is like a compass guiding your restaurant’s journey. It helps you make informed decisions, attract investors, and stay ahead of the game. So, embrace the power of market analysis, and let it shape the destiny of your delicious dining destination.

4. Management and organization

Effective management and organization are critical for success in the restaurant sector. This section of your business plan introduces the talented individuals who will lead your restaurant to new heights.

Outline your legal structure, whether it’s an S corporation, limited partnership, or sole proprietorship, providing key information for stakeholders.

Showcase your management team using an organizational chart to highlight their roles, responsibilities, and contributions. Their expertise and guidance are crucial for seamless operations and exceptional customer experiences.

With a strong management team in place, your restaurant is poised for success. They are the driving force behind your journey to greatness. Let’s meet the key players who will make it happen!

Streamline your operations and optimize your financial performance With resOs , you can efficiently manage reservations, track inventory, analyze sales data, and streamline your overall workflow. Get your FREE plan

5. Sample “yummy” Menu 

In the restaurant industry, your menu plays a main role as the core product. Include a section in your business plan that highlights key details about your menu offerings to engage readers.

If you offer a diverse range of dishes, provide a brief overview of each category. Alternatively, if your menu focuses on specific specialties or signature dishes, provide more detailed descriptions for each item.

You can also mention any upcoming menu additions or unique culinary creations that will enhance profitability and attract customers.

6. Design and branding 

When it comes to starting a restaurant, don’t underestimate the power of design and branding. They’re the secret ingredients that can make your establishment truly stand out. Think about it – when customers walk through your front door, what do they see? The right design and branding can instantly captivate their attention and make them feel right at home.

So, take some time to envision the overall aesthetic and mood you want to create.

Do you imagine a cozy and rustic setting or a sleek and modern vibe?

Let your creativity shine through! Include captivating photos of similar restaurants that inspire you and give potential investors a glimpse of your vision.

And don’t forget about your logo! If you’ve already designed one, proudly showcase it in your business plan. It’s the visual representation of your restaurant’s personality and will help establish brand recognition.

resOS’ customizable interface for your booking system

Stand out in the competitive restaurant industry with resOS’ customizable booking management system . Personalize every aspect of the interface to reflect your restaurant’s unique brand identity. Seamlessly integrate your logo, colors, and visual elements, creating a cohesive and immersive experience for your guests. With resOS, you have the power to revolutionize your restaurant’s image and leave a lasting impression.

Details matter too! Share your plans for specific design elements , from the choice of furniture to the color palette that will adorn your space. The more you paint a vivid picture, the more investors and customers will be enticed by your unique ambiance.

7. Location

For a restaurant, location can make or break the business. Occasionally, a restaurant concept is so good that people go out of their way to find it. But, more realistically, your location needs to be convenient for your target market. If it’s hard for your customers to get to you, hard for them to park, and not something they notice as they drive by, they’re unlikely to check your restaurant out.

In your business plan, make sure to discuss the potential locations that you hope to occupy, assuming you haven’t already secured the location. Explain why the location is ideal for your target market and how the location will help attract customers.

Unlock the potential of your restaurant’s location and streamline reservations with resOS. Our platform offers seamless integration with Reserve With Google , allowing customers to easily discover and book tables directly from Google search results and maps. By enabling this feature, you’ll maximize your restaurant’s visibility and attract more diners with just a few clicks. Experience the power of location-based reservations with resOS .

Be sure to explain the complete costs of your location and what kinds of renovations will be necessary to open your restaurant.

8. Marketing plan

In today’s competitive restaurant industry, it’s important to showcase your marketing strategy to investors. They want to know how you’ll create buzz and keep it going before and after your grand opening.

Create a winning business plan with a strong marketing focus. Our Restaurant Business Plan Steps Graphic (👆 see above) is your visual guide, including key marketing strategies. Download or save for later and plan your path to success.

Whether you’ve enlisted a top-notch Marketing company or have a solid ready-to-go marketing plan, highlight your chosen path. Discuss the unique strengths of your selected agency and why they stand out, including their notable clients. Alternatively, showcase your in-house plan, leveraging social media, your website, and valuable media connections.

A well-crafted marketing plan holds the key to differentiating your restaurant and attracting customers. Prepare to tantalize taste buds and offer an exceptional dining experience. Stay in tune with the latest restaurant industry trends, leverage effective marketing tools, and optimize your online presence. 

Lastly, integrate a robust restaurant booking system to streamline reservations and enhance the overall customer experience. With these strategic elements in place, success is within your reach.

9. Financial Plan

Financial analysis is a crucial part of your restaurant’s business plan. It helps investors assess the profitability of your concept and whether it’s a worthwhile investment. In this section, you’ll outline how you plan to allocate your funds in the first year and provide projections for costs and revenues.

Here are the 🔑 key components to include:

Investment Plan: Explain the initial investment costs, such as kitchen equipment, furniture, employee wages, legal fees, marketing expenses, and working capital. This shows how you’ll use your funds effectively.

Profit and Loss Projection: Estimate your restaurant’s costs and sales figures in the profit and loss statement. Consider factors like the size of your establishment, your target market, and the existing competition in your chosen location.

Break-Even Analysis: Show investors the monthly revenue you need to achieve to cover all your expenses and reach profitability. This analysis considers overhead costs, operational expenses, and factors that may affect revenue fluctuations throughout the year.

Claim your FREE plan on resOS today! Ready to revolutionize your business management? Join resos.com for FREE and take control of your operations. ✅ Seamless calendar integration ✅ Customizable booking forms ✅ Automated reminders ✅ Real-time availability updates Don’t miss out! Sign up now at resos.com and experience stress-free scheduling. Your time is valuable, so claim your FREE plan today!

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Business Plan Financials Model - Quick Service Restaurant

To most potential lenders and investors, the financial section will be the most important part of your business plan. Even if the other sections of your plan are impeccable, the financials will still make or break your presentation. Use this series of Excel worksheets to prepare a comprehensive, professional and convincing financial section for your business plan.

The Restaurant Business Plan Financial Model has been refined over several years on a wide variety and number of actual restaurant ventures.

This financial model, designed specifically for Quick Service (QSR) restaurants, will not only help you evaluate the financial feasibility of your proposed venture, but will also be a valuable tool in selling your project to potential partners, lenders and investors when included in your business plan.

You'll also be able to download an accompanying instructional workbook for preparing the financial section of a business plan.

Summary of Features & Benefits:

• Projected Sources & Uses of Cash
• Capital Budget (Startup & Pre-Opening Costs)
• Sales Projection Worksheet
• Hourly Labor Cost Projection
• Assumptions to the Financial Projections
• Annual Operating Projection - Detail
• Annual Operating Projection - Summary
• 5 Year Operating & Investment Projections
• Break-Even Analysis & Worksheet

Download the QSR Business Plan Financial Blank

This form is available in the following formats. You must have a compatible program installed on your computer to use them.

Download the QSR Business Plan Financial Sample

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Franchisees are still struggling with inflation, hostmore calls off its purchase of tgi fridays, breakwater management may acquire tender greens and tocaya, tgi fridays loses control of most of its assets, some subway franchisees push back on the beverage contract.

An attorney for an association of Subway franchisees has told the company to stop threatening operators with termination for refusing to sign a contract with the chain’s new beverage supplier.

The dispute centers on Subway’s recent agreement to switch its beverage contract to Pepsi from Coke.

In a letter to the sandwich giant’s attorney, seen by Restaurant Business, attorney Robert Zarco said operators want to review the agreement between Pepsi and Subway before signing their portion of the agreement with the beverage company.

But he said the company is “harassing” operators who have yet to sign the deal. These operators face threats of termination if they do not sign.

“Subway’s conduct in this regard is reprehensible and borderline illegal as it seeks to force franchisees to execute an agreement which is incomplete in the absence of the beverage supply agreement being made available for review first,” Zarco said in his letter. Zarco represents the North American Association of Subway Franchisees, or NAASF.

Subway would not comment on the letter.

It’s not certain what the potential outcome of the dispute could be. Subway in March announced plans to switch from Coke to Pepsi.

Franchisees then sign a participation agreement that includes the equipment Pepsi is paying to install, the ability to serve Pepsi products and the prices Subway negotiated for the franchisees. A source told Restaurant Business that more than 95% of operators have signed the participation agreement.

Those who don’t sign the agreement face the potential that they could be without beverages come Jan. 1, once Pepsi is to begin providing beverages to the company’s 20,000 U.S. locations.

But some franchisees are concerned about the contract between Subway and Pepsi and the potential fees operators could face over the 10 years it is to be in place.

Zarco argues that the beverage supply agreement between Subway and Pepsi supersedes the participation agreement that franchisees sign with the beverage company. As such, he believes franchisees should be able to review the beverage supply contract before they sign any individual agreement.

Zarco in July recommended that operators not sign the beverage contract until he could review the agreement between Subway and Pepsi, according to a document seen by Restaurant Business.

In his letter to Subway’s attorney, Zarco said many NAASF members have notified Subway about their concerns with undisclosed terms in the agreement.

“Subway’s efforts to respond to NAASF members’ inquiries on this point have fallen woefully short of satisfying those members’ concerns and, as such, those members will continue to withhold their assent toward entering into the participation agreement until all of their concerns are sufficiently resolved,” Zarco wrote.

He added that “it certainly is not” in franchisees’ best interest to sign the agreement, Zarco wrote.

But, he added, Subway has been telling members they risk termination under the franchise agreement if they do not sign the deal. Subway’s own objectives “are causing it to unjustifiably compel franchisees into entering a completely lopsided agreement with Pepsi that will be disastrous for their franchised businesses for at least the next 10 years,” Zarco wrote.

The dispute continues a tense relationship between the sandwich giant and some of the operators who run the company’s 20,000 restaurants.

The beverage contract is considered a key change at the Miami-based Subway, which has made significant changes to the menu in recent years in a bid to generate sales.

But the dispute also comes as tension between the company and some of its operators has intensified over issues such as heavy promotion of steep discounts on the company’s mobile app .

Sales have slowed this year at the sandwich giant, as consumers have cut back on fast food amid concern about menu price inflation.

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Two companies learn the hard way that running restaurants is difficult

The Bottom Line: Red Lobster and Topgolf were both acquired by companies outside the restaurant industry. Those companies have learned just how competitive the business is.

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The Bottom Line: There is a clear line in what restaurant chain buyers want right now. They want franchisors, not the restaurants themselves.

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Long-predicted consumer pullback finally hits restaurants like Starbucks, KFC and McDonald's

It’s finally here: the long-predicted consumer pullback.

Starbucks  announced  a surprise drop in same-store sales  for its latest quarter, sending its shares down 17% on Wednesday. Pizza Hut and KFC  also reported shrinking same-store sales . And even stalwart  McDonald’s  said it has  adopted a “street-fighting mentality”  to compete for value-minded diners.

For months, economists have been predicting that consumers would cut back on their spending in response to higher prices and interest rates. But it’s taken a while for fast-food chains to see their sales actually shrink, despite several quarters of warnings to investors that low-income consumers were weakening and other diners were trading down from pricier options.

Many restaurant companies also offered other reasons for their weak results this quarter. Starbucks said bad weather dragged its same-store sales lower.  Yum Brands , the parent company of Pizza Hut, KFC and Taco Bell, blamed January’s snowstorms and tough comparisons to a strong first quarter last year for its brands’ poor performance.

But those excuses don’t fully explain the weak quarterly results. Instead, it looks like the competition for a smaller pool of customers has grown fiercer as the diners still looking to buy a burger or cold brew become pickier with their cash.

The cost of eating out at quick-service restaurants has climbed faster than that of eating at home.   Prices for limited-service restaurants rose 5% in March compared with the year-ago period, while prices for groceries have been increasing more slowly, according to the  Bureau of Labor Statistics .

“Clearly everybody’s fighting for fewer consumers or consumers that are certainly visiting less frequently, and we’ve got to make sure we’ve got that street-fighting mentality to win, irregardless of the context around us,” McDonald’s CFO Ian Borden said on the company’s conference call on  Tuesday .

Outliers show that customers will still order their favorite foods, even if they’re more expensive than they were a year ago.  Wingstop , Wall Street’s favorite restaurant chain, reported its U.S. same-store sales soared 21.6% in the first quarter.  Chipotle Mexican Grill  saw traffic rise 5.4% in its  first quarter . And  Restaurant Brands International’s  Popeyes reported same-store sales growth of 5.7%.

Even so, many companies in the restaurant sector and beyond it have warned consumer pressures could persist. McDonald’s CEO Chris Kempczinski told analysts the spending caution extends worldwide.

“It’s worth noting that in [the first quarter], industry traffic was flat-to-declining in the U.S., Australia, Canada, Germany, Japan and the U.K.,” he said.

Two of the chains that struggled in the first quarter cited value as a factor.   Starbucks CEO Laxman Narasimhan  said  occasional customers weren’t buying the chain’s coffee because they wanted more variety and value.

“In this environment, many customers have been more exacting   about where and how they choose to spend their money, particularly with stimulus savings mostly spent,” Narasimhan said on the company’s Tuesday call.

Yum CEO David Gibbs noted that rivals’ value deals for chicken menu items hurt  KFC’s  U.S. sales. But he said the shift to value should benefit Taco Bell, which accounts for three-quarters of Yum’s domestic operating profit.

“We know from the industry data that value is more important and that others are struggling with value, and Taco Bell is a value leader. You’re seeing some low-income consumers fall off in the industry. We’re not seeing that at Taco Bell,” he said on Wednesday.

It’s unclear how long it will take fast-food chains’ sales to bounce back, although executives provided optimistic timelines and plans to get sales back on track. For example, Yum said its first quarter will be the weakest of the year.

For its part, McDonald’s plans to create a nationwide value menu that will appeal to thrifty customers. But the burger giant could face pushback from its franchisees, who have become more outspoken in recent years. While deals drive sales, they pressure operators’ profits, particularly in markets where it is already expensive to operate.

Still, losing ground to the competition could motivate McDonald’s franchisees. This marks the second consecutive quarter that Burger King reported stronger U.S. same-store sales growth than McDonald’s. The Restaurant Brands chain has been in turnaround mode over the last two years and spending heavily on advertising.

Starbucks is also betting on deals. The coffee chain is gearing up to release an upgrade of its app that allows all customers — not just loyalty members — to order, pay and get discounts. Narasimhan also touted the success of its new lavender drink line that launched in March, although business was still sluggish in April.

More from CNBC:

• Johnson & Johnson to pay $6.5 billion to resolve nearly all talc ovarian cancer lawsuits in U.S.
• Yum Brands earnings miss estimates as Pizza Hut, KFC sales disappoint
• To train car dealers on EVs and other topics, Ford turns to gamification and AI

THE 10 BEST Restaurants in Moscow

Restaurants in moscow, establishment type, traveler rating, michelin guide, dietary restrictions, restaurant features, neighborhood.

• Lyubov Pirogova
• Pasta Na Solyanke
• Sabor de la Vida Restaurant
• LEPIM i VARIM
• Lao Lee Tsvetnoy

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• Guide to Russia
• Travel Tips

Food and Drink in Russia

Photo by Sam Moqadam on Unsplash

Is food expensive in Russia? 

• Prices: At a modest restaurant, you can expect to pay about 500 roubles ($8) for a meal; at a mid-range restaurant, a three-course meal will cost around 2000 roubles ($35). A Business lunch option which includes a multi-course meal and a drink is offered at many restaurants – usually between 300-500 roubles.
• Russian cuisine: Typical dishes include soups, salads and dumplings, and you can eat well on a budget at the stolovoya (cafeteria) or at one of Russia’s fast-food outlets.
• Vegetarian and vegan food: Vegetarian cuisine is becoming increasingly popular in St. Petersburg and Moscow and there are a number of restaurants and shops where food can be purchased at reasonable prices.
• Allergies: Allergy sufferers should be aware of the language barrier. Avoid cuisines which commonly contain allergens, eat at more upmarket establishments or tourist-friendly restaurants.
• Cooking for yourself: There are a number of supermarket chains, ranging from cheaper express stores where simple products can be purchased, to upmarket grocers which sell foreign and specialty food.
• Water: Drinking tap water in Russia is not advised, but hotels generally provide free bottled water, and Airbnbs usually have filter jugs or special taps.
• Alcohol: Alcohol is relatively cheap in Russia - a pint of beer can be purchased for around 250 roubles ($4) and a glass of decent wine for 300 roubles ($5). Avoid the cheapest alcohol at shops, as counterfeit alcohol is not unheard of.

Russia is a multinational, multicultural state with many different cuisines that visitors can sample. Since the end of the Soviet Union many other cuisines have become available throughout the country, and international food trends are increasingly incorporated into the Russian food scene. There is also a huge variety available in Russia’s supermarkets, and with a little effort you will be able to cook your favourite meal. Read on to discover more information about what food is available on a trip to Russia and what prices you can expect.

Eating Out: Average prices

Photo by Ibrahim Boran on Unsplash

An average meal at a modest restaurant should cost around 500 roubles (just over $8), with a three-course meal at a mid-range establishment costing 2,000 roubles ($30). But of course, this varies enormously depending on the city, cuisine, and even the time of day.

It’s worth noting that many restaurants serve a ‘business lunch’, generally between the hours of 12 - 4pm. These two or three course set menus are extremely good value; sometimes the entire business lunch is cheaper than just one of the items on the regular menu! The average price of a business lunch in St Petersburg or Moscow is 300-500 roubles (around $5 - $9).

International cuisine

Photo by Jay Wennington on Unsplash

Italian food is extremely popular in Russia, and is sold anywhere from street-food stalls to upmarket restaurants. Italian food can be of the traditional variety, but restaurants offering Italian cuisine as part of a more varied menu often serve Italian dishes with a Russian twist. A pepperoni pizza in a mid-range restaurant will cost you between 400-600 roubles (around $6 - $10).

Russians also love sushi - in 2018 it was the most popular takeaway dish in Russia. Those accustomed to traditional sushi may be slightly taken aback, as the Russian take on sushi frequently includes sour cream, mayonnaise or chicken. A set of 6/8 rolls at an average sushi restaurant will cost between 250-450 roubles (around $4 - $8).

Georgian food is also one of the most beloved cuisines to be found in Russia, built around food sharing and a warm atmosphere. Rich stews, cheese-filled bread and juicy dumplings are hearty and delicious. Establishments range from cafes where you can grab a filling business lunch, to high-class restaurants where many courses are enjoyed in opulence to a background of live music.

Russian cuisine

Photo by Victoria Shes on Unsplash

You will of course find a huge number of Russian restaurants in every town and city, commonly serving traditional dishes such as borsch , salads, dumplings, and meat and fish dishes. For those on a budget looking for nutritious and filling meals, the ‘stolovaya’ (cafeteria) is highly recommended. At these self-service canteens, two courses and a drink can be purchased for 200 roubles (around $3). At Russian fast-food restaurants such as Teremok, expect to pay around 300-400 roubles for a pancake and a drink ($4 - $6), and at bakeries you can find slabs of sweet or savoury pies for around $1.

Vegetarian and vegan food

Photo by Louis Hansel on Unsplash

In Russia, vegetarianism hasn’t really caught on - a recent survey found that only 1% of Russian people are vegetarians. However, St Petersburg and Moscow have welcomed the vegetarian food trend with open arms and it is not difficult for vegetarians (or even vegans) to find suitable restaurants offering different cuisines - there are even vegetarian stolovayas. There are also many shops which stock vegetarian and vegan food and products for people with intolerances or allergies, at very reasonable prices. Vegan and veggie restaurants and shops can be found on www.happycow.net 

People with allergies must be careful when eating out in Russia. Many allergies which are commonplace in other countries are not so in Russia, allergen menus are uncommon even in large cities, and there is always the risk of miscommunication due to the language barrier. If in doubt, avoid cuisines in which allergens are commonly found, and dine in more upmarket establishments or tourist-friendly restaurants where foreign languages are better understood.

Cooking for yourself

Photo by gemma on Unsplash

There are a large number of supermarket brands in Russia, ranging from express stores to hypermarkets. Simple products such as meat, cheese, fresh fruit and vegetables can be found at all stores. Larger and more upmarket shops sell a much wider range of products, including foreign foods.

Discount supermarkets found throughout Russia are Diksi, Magnit and Pyaterochka. Hypermarkets include Ashan, Lenta, and Karusel. Upmarket supermarkets where you can also find international products include Perekrestok and Prisma. Stores for expats or travellers who need a taste of home are Azbuka Vkusa and Globus Gourmet, although their products can be extremely expensive. Specialist grocers for making international dishes such as Chinese, Italian or Mexican food can be found in Moscow and St Petersburg, albeit at high prices. Alternatively, for a great range of very cheap fruit, vegetables, and local products head to a local market!

Can you drink tap water in Russia?

Avoid drinking tap water in Russia as you may experience unpleasant side effects. Luckily, it is extremely easy to acquire potable water. Hotels offer free drinking water and AirBnbs nearly always have a filter jug or special drinking-water tap. Alternatively, multi-litre bottles of water can be purchased at any shop for a very low price - it’s not worth risking your trip merely to save 50 roubles.

Photo by Scott Warman on Unsplash

Alcohol in Russia is cheap depending on where you drink. A pint of local beer in a simple bar can be purchased for around 250 roubles  ($4) and wine for 300 ($5). Of course, this can vary hugely. The craft beer scene has taken off in Russia, so expect to pay $6 - $7 for an unusual brew in a stylish city-centre bar. Wines from Russia or the Caucasus are cheaper than other international wines, and also delicious. But when purchasing alcohol in shops, avoid the very cheapest brands as counterfeit alcohol is not unheard of. 

As you can see, there are a wealth of food and drink options available in Russia. Prices vary accordingly but there’s something to suit every taste, whether you want to dine at a restaurant, eat on the go, or cook at home. You won’t be disappointed!

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The 11 best regional fast-food chains and restaurants in Moscow

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

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