what should be included in a business plan for a restaurant

How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

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Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology, such as restaurant POS systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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Restaurant Business Plan: What To Include, Plus 8 Examples

• Business Growth & Management , Templates & Guides

Do you want to ensure the success of your new foodservice endeavor? Write a restaurant business plan.

In this article, the experts at Sling tell you why a business plan is vital for both new and existing businesses and give you tips on what to include.

Table Of Contents

What Is A Restaurant Business Plan?

Why is a restaurant business plan important, questions to ask first, what to include in an effective restaurant business plan, how to format a restaurant business plan, efficient workforce management is essential for success.

At its most basic, a restaurant business plan is a written document that describes your restaurant’s goals and the steps you will take to make those goals a reality.

This business plan also describes the nature of the business itself, financial projections, background information, and organizational strategies  that govern the day-to-day activity of your restaurant.

A restaurant business plan is vital for the success of your endeavor because, without one, it is very difficult — sometimes even impossible — to obtain funding from an investor or a bank.

Without that all-important starting or operational capital, you may not be able to keep your doors open for long, if at all.

Even if funding isn’t a primary concern, a business plan provides you — the business owner or manager — with clear direction on how to translate general strategies into actionable plans  for reaching your goals.

The plan can help solidify everything from the boots-on-the-ground functional strategy  to the mid-level business strategy  all the way up to the driving-force corporate strategy .

Think of this plan as a roadmap that guides your way when things are going smoothly and, more importantly, when they aren’t.

If you want to give your restaurant the best chance for success, start by writing a business plan.

Sitting down to write a restaurant business plan can be a daunting task.

As you’ll see in the What To Include In An Effective Restaurant Business Plan section below, you’ll need a lot of information and detail to ensure that the final document is both complete and effective.

Instead of starting with word one, it is hugely beneficial to answer a number of general questions first.

These questions will help you narrow down the information to include in your plan so the composition process feels less difficult.

The questions are:

• What problem does the business’s product or service solve?
• What niche will the business fill?
• What is the business’s solution to the problem?
• Who are the business’s customers?
• How will the business market and sell its products to them?
• What is the size of the market for this solution?
• What is the business model for the business?
• How will the business make money?
• Who are the competitors?
• How will the business maintain a competitive advantage?
• How does the business plan to manage growth?
• Who will run the business?
• What makes those individuals qualified to do so?
• What are the risks and threats confronting the business?
• What can you do to mitigate those risks and threats?
• What are the business’s capital and resource requirements?
• What are the business’s historical and projected financial statements?

Depending on your business, some of these questions may not apply or you may not have applicable answers.

Nevertheless, it helps to think about, and try to provide details for, the whole list so your finished restaurant business plan is as complete as possible.

Once you’ve answered the questions for your business, you can transfer a large portion of that information to the business plan itself.

We’ll discuss exactly what to include in the next section.

In this section, we’ll show you what to include in an effective restaurant business plan and provide a brief example of each component.

1) Executive Summary

You should always start any business plan with an executive summary. This gives the reader a brief introduction into common elements, such as:

• Mission statement
• Overhead costs
• Labor costs
• Return on investment (ROI)

This portion of your plan should pique the reader’s interest and make them want to read more.

Fanty & Mingo’s is a 50-seat fine-dining restaurant that will focus on Sweruvian (Swedish/Peruvian) fusion fare.

We will keep overhead and labor costs low thanks to simple but elegant decor , highly skilled food-prep staff, and well-trained servers.

Because of the location and surrounding booming economy, we estimate ROI at 20 percent per annum.

2) Mission Statement

A mission statement is a short description of what your business does for its customers, employees, and owners.

This is in contrast to your business’s vision statement which is a declaration of objectives that guide internal decision-making.

While the two are closely related and can be hard to distinguish, it often helps to think in terms of who, what, why, and where.

The vision statement is the where of your business — where you want your business to be and where you want your customers and community to be as a result.

The mission statement is the who , what , and why of your business — it’s an action plan that makes the vision statement a reality

Here’s an example of a mission statement for our fictional company:

Fanty and Mingo’s takes pride in making the best Sweruvian food, providing fast, friendly, and accurate service. It is our goal to be the employer of choice and offer team members opportunities for growth, advancement, and a rewarding career in a fun and safe working environment.

3) Company Description

In this section of your restaurant business plan, you fully introduce your company to the reader. Every business’s company description will be different and include its own pertinent information.

Useful details to include are:

• Owner’s details
• Brief description of their experience
• Legal standing
• Short-term goals
• Long-term goals
• Brief market study
• An understanding of the trends in your niche
• Why your business will succeed in these market conditions

Again, you don’t have to include all of this information in your company description. Choose the ones that are most relevant to your business and make the most sense to communicate to your readers.

Fanty & Mingo’s will start out as an LLC, owned and operated by founders Malcolm Reynolds and Zoe Washburne. Mr. Reynolds will serve as managing partner and Ms. Washburne as general manager.

We will combine atmosphere, friendly and knowledgeable staff, and menu variety to create a unique experience for our diners and to reach our goal of high value in the fusion food niche.

Our gross margin is higher than industry average, but we plan to spend more on payroll to attract the best team.

We estimate moderate growth for the first two years while word-of-mouth about our restaurant spreads through the area.

4) Market Analysis

A market analysis is a combination of three different views of the niche you want to enter:

• The industry  as a whole
• The competition your restaurant will face
• The marketing  you’ll execute to bring in customers

This section should be a brief introduction to these concepts. You can expand on them in other sections of your restaurant business plan.

The restaurant industry in our chosen location is wide open thanks in large part to the revitalization of the city’s center.

A few restaurants have already staked their claim there, but most are bars and non-family-friendly offerings.

Fanty & Mingo’s will focus on both tourist and local restaurant clientele. We want to bring in people that have a desire for delicious food and an exotic atmosphere.

We break down our market into five distinct categories:

• High-end singles
• Businessmen and businesswomen

We will target those markets to grow our restaurant  by up to 17 percent per year.

Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you’ll serve in as much detail as possible.

You may not have your menu design complete, but you’ll likely have at least a handful of dishes that serve as the foundation of your offerings.

It’s also essential to discuss pricing and how it reflects your overall goals and operating model. This will give potential investors and partners a better understanding of your business’s target price point and profit strategy.

We don’t have room to describe a sample menu in this article, but for more information on menu engineering, menu pricing, and even a menu template, check out these helpful articles from the Sling blog:

• Menu Engineering: What It Is And How It Can Increase Profits
• Restaurant Menu Pricing: 7 Tips To Maximize Profitability
• How To Design Your Menu | Free Restaurant Menu Template

6) Location

In this section, describe your potential location (or locations) so that you and your investors have a clear image of what the restaurant will look like.

Include plenty of information about the location — square footage, floor plan , design , demographics of the area, parking, etc. — to make it feel as real as possible.

We will locate Fanty & Mingo’s in the booming and rapidly expanding downtown sector of Fort Wayne, Indiana.

Ideally, we will secure at least 2,000 square feet of space with a large, open-plan dining room and rich color scheme near the newly built baseball stadium to capitalize on the pre- and post-game traffic and to appeal to the young urban professionals that live in the area.

Parking will be available along side streets and in the 1,000-vehicle parking garage two blocks away.

7) Marketing

The marketing section of your restaurant business plan is where you should elaborate on the information you introduced in the Market Analysis section.

Go into detail about the plans you have to introduce your restaurant to the public and keep it at the top of their mind.

Fanty & Mingo’s will employ three distinct marketing tactics to increase and maintain customer awareness:

• Word-of-mouth/in-restaurant marketing
• Partnering with other local businesses
• Media exposure

We will direct each tactic at a different segment of our potential clientele in order to maximize coverage.

In the process of marketing to our target audience, we will endeavor to harness the reach of direct mail and broadcast media, the exclusivity of the VIP party, and the elegance of a highly trained sommelier and wait staff.

8) Financials

Even though the Financials section is further down in your restaurant business plan, it is one of the most important components for securing investors and bank funding.

We recommend hiring a trained accountant  to help you prepare this section so that it will be as accurate and informative as possible.

Fanty & Mingo’s needs $250,000 of capital investment over the next year and a half for the following:

• Renovations to leased space
• Dining room furniture
• Kitchen and food-prep equipment
• Liquor license

Projected profit and loss won’t jump drastically in the first year, but, over time, Fanty & Mingo’s will develop its reputation and client base. This will lead to more rapid growth toward the third and fourth years of business.

Most entrepreneurs starting a new business find it valuable to have multiple formats of their business plan.

The information, data, and details remain the same, but the length and how you present them will change to fit a specific set of circumstances.

Below we discuss the four most common business plan formats to cover a multitude of potential situations.

Elevator Pitch

An elevator pitch is a short summary of your restaurant business plan’s executive summary.

Rather than being packed full of details, the elevator pitch is a quick teaser of sorts that you use on a short elevator ride (hence the name) to stimulate interest in potential customers, partners, and investors

As such, an effective elevator pitch is between 30 and 60 seconds and hits the high points of your restaurant business plan.

A pitch deck is a slide show and oral presentation that is designed to stimulate discussion and motivate interested parties to investigate deeper into your stakeholder plan (more on that below).

Most pitch decks are designed to cover the executive summary and include key graphs that illustrate market trends and benchmarks you used (and will use) to make decisions about your business.

Some entrepreneurs even include time and space in their pitch deck to demonstrate new products coming down the pipeline.

This won’t necessarily apply to a restaurant business plan, but, if logistics permit, you could distribute small samples of your current fare or tasting portions of new dishes you’re developing.

Stakeholder Plan (External)

A stakeholder plan is the standard written presentation that business owners use to describe the details of their business model to customers, partners, and potential investors.

The stakeholder plan can be as long as is necessary to communicate the current and future state of your business, but it must be well-written, well-formatted, and targeted at those looking at your business from the outside in.

Think of your stakeholder plan as a tool to convince others that they should get involved in making your business a reality. Write it in such a way that readers will want to partner with you to help your business grow.

Management Plan (Internal)

A management plan is a form of your restaurant business plan that describes the details that the owners and managers need to make the business run smoothly.

While the stakeholder plan is an external document, the management plan is an internal document.

Most of the details in the management plan will be of little or no interest to external stakeholders so you can write it with a higher degree of candor and informality.

After you’ve created your restaurant business plan, it’s time to take steps to make it a reality.

One of the biggest challenges in ensuring that your business runs smoothly and successfully is managing  and optimizing  your team. The Sling  app can help.

Sling not only includes powerful and intuitive artificial-intelligence-based scheduling tools but also many other features to help make your workforce management more efficient, including:

• Time and attendance tracking
• Built-in time clock
• Labor cost  optimization
• Data analysis and reporting
• Messaging and communication
• And much more…

With Sling, you can schedule faster, communicate better, and organize and manage your work from a single, integrated platform. And when you use Sling for all of your scheduling  needs, you’ll have more time to focus on bringing your restaurant business plan to life.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com  today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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The restaurant industry is as dynamic as it is diverse, with various types of restaurants catering to different culinary preferences. For those aspiring to open a new restaurant, understanding this vast landscape is crucial. One of the pivotal steps before diving into this venture is to create a business plan. It not only defines the unique essence of your eatery but also lays out a roadmap for its successful operation. Familiarizing oneself with the different types of restaurants is essential to pinpoint your niche and stand out in a bustling market.

What is A Restaurant Business Plan?

When you’re planning to open a restaurant, a comprehensive restaurant business plan is your blueprint to success. It serves as a strategic guide, outlining your restaurant’s vision, objectives, and operational procedures. But beyond its functional use for the business owner, a well-crafted plan becomes a tool to attract potential investors.

Writing a business plan requires detailing every aspect of your restaurant dream, from the concept and target demographic to the financial projections and marketing strategies. For restaurant owners, this document encapsulates the essence of their establishment, ensuring they remain on the right track. Moreover, presenting this plan to potential investors offers a clear, organized view of your vision, increasing their confidence in the venture.

Ff you want to get your restaurant off the ground and appeal to both patrons and investors, a restaurant business plan is not just a recommendation—it’s a necessity.

Why A Business Plan Is Important For A Successful Restaurant Business?

Making a restaurant a reality isn’t just about great food or an attractive interior; it’s about laying the groundwork for success with a good business plan. A well-crafted restaurant business plan comes with a slew of benefits, not least of which are:

Clear Vision and Objectives: One of the foremost reasons to plan for your restaurant is to articulate a clear vision and set definitive objectives. This process helps you refine your restaurant ideas, making them more viable in the real world. With a concrete vision, you can maintain a consistent direction and avoid being swayed by fleeting trends that don’t align with your brand.

Financial Planning: Money is the lifeline of any venture. A restaurant business plan provides a detailed financial blueprint, determining startup costs, projecting revenues, and outlining budgetary constraints. It anticipates potential financial hurdles, allowing restaurant owners to make informed decisions. By meticulously charting out every financial detail, restaurant owners can ensure they have the necessary funds to sustain the business, even during lean periods.

Operational Efficiency: Operational hiccups can turn even the most promising restaurant ideas into failures. With a comprehensive business plan, you can optimize staffing, inventory management, customer service, and daily operations. A good plan streamlines the restaurant’s workflow, enhancing efficiency and customer satisfaction.

In a world teeming with culinary ventures, a business plan is essential to stand out. It gives clarity to your vision, ensures sound financial footing, and optimizes operations, paving the way for the restaurant needs to thrive.

Step-by-step Guide To Write A Restaurant Business Plan

Starting a restaurant is a dream for many, but to make that restaurant dream into a reality, one needs a structured approach. A winning restaurant business plan provides a comprehensive roadmap to bring your vision to life. Here’s how to craft that perfect plan:

1. Executive Summary

The executive summary is a snapshot of your entire restaurant business plan. Typically, it should be concise, about one to two pages long, capturing the essence of what your restaurant is about and what it aims to achieve.

What should you cover in an Executive Summary?

• Introduce your bakery business : Begin by describing the kind of restaurant you’re opening.
• State your mission and vision : Your mission statement reflects your restaurant’s core purpose, while the vision paints a picture of its future.
• Outline your objective : Define the goals for your new business.
• Provide a financial overview : Offer a brief insight into the financial state of your business.

2. Restaurant Business Description

This section provides an in-depth look into what your restaurant is and what it aims to offer to the diner.

What should you cover in the restaurant description section?

• Talk about your bakery concept : Describe your restaurant, its theme, and its unique approach to serving patrons.
• Explain your unique selling proposition (USP) : What sets your restaurant apart?
• Operational model : Explain how you’ll operate your restaurant before and after opening.

3. Market Analysis

Market analysis provides data-driven insights derived from thorough market research. It helps restaurant owners understand their audience and the market landscape.

• Target market : Delve into the demographics of your potential clientele.
• Location : Describe where your restaurant fits geographically and why it’s an ideal spot.
• Competition : Analyze other restaurants in the area and their offerings.

4. Organization and Management

This section presents the business structure and the key players driving your restaurant’s operations.

What should you cover in the organization and management plan?

• Restaurant ownership information : Detail the type of business entity (e.g., LLC, Partnership) and ownership distribution.
• Profiles of your Restaurant management team : Introduce your core team members, their roles, and their experience in the restaurant industry.

5. Sample Menu

This section is a sneak peek into what diners can expect when they visit.

What should you consider when creating a sample menu?

• Menu items : List down dishes and beverages you’ll offer.
• Unique Selling Proposition (USP) : What makes your menu stand out?
• Menu Pricing : Provide a range or specific prices for your offerings.

6. Marketing Strategy

The restaurant marketing strategy outlines how you plan to market your restaurant and drive sales.

What should you cover in the marketing strategy for your restaurant business?

• Define your brand : Discuss the brand identity – from logo to restaurant design.
• Plan how you’ll attract diners, from online promotions to loyalty programs,  SEO for website, and partnerships with local local businesses
• Considering using an  online food ordering system  in your food truck
• Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Business Operations

This section delves into the day-to-day operations of running your restaurant.

What operational issues should you address in your business plan?

• Supply chain : Detail how you’ll procure ingredients and manage inventory.
• Operating hours : What days and hours will you operate? Consider peak meal times and special events.
• Staffing : Discuss hiring, training, and staff management plans.
• Equipment : List the equipment needed to run the restaurant.

8. Financial and Loans

Opening a restaurant is an exciting venture, but it comes with its own financial intricacies. Before embarking on this journey, understanding the fiscal requirements is essential.

How Much Does It Cost to Start a Restaurant?

Depending on the type of restaurant you’re opening, costs can vary significantly. Starting a bar business, for instance, can range anywhere from $95,000 to over $2 million. Several factors can influence these numbers. The size of the restaurant, its location, and the culinary offerings play crucial roles in the total investment. Want to delve deeper into the specifics? This comprehensive guide on how much it costs to open a small restaurant breaks down the various expenses you can expect.

How Many Ways to Fund Your Restaurant?

For every restaurant dream, funding is a pivotal aspect. From traditional bank loans to seeking angel investors or crowd-funding, there’s a multitude of avenues available for those considering opening a restaurant.

Important Questions to Consider When You Create Your Funding Request

Beyond just how much you plan to spend, you’ll want to include details on projected ROI, repayment strategies, and how the funds will directly help grow your business. Remember, lenders and investors are most interested in understanding how their contributions will help the restaurant flourish and ensure a return on their investment.

9. Financial Projections

Financial projections are a crucial aspect of the business plan, providing a roadmap for operating the restaurant and giving potential investors a clear picture of your business strategy.

Break-even analysis

This analysis tells you when your restaurant may start to turn a profit, balancing out initial investments and operational costs. It’s essential to understand this when you plan to gain traction and open the restaurant.

To calculate the break-even point, use this formula: Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement

This section should include estimations of your future revenues, costs, and profits over a specific period, helping you and investors visualize the financial health of your restaurant.

Cash flow analysis

A comprehensive cash flow analysis is part of your business plan, showing the movement of cash in and out of your business. This plan can help identify periods of potential cash shortages and allow for strategic preparations.

Restaurant Business Plan Template

As you embark on the journey to make your restaurant dream come true, using a free template for guidance can be invaluable. This example provides a glimpse into what a business plan can look like. However, always remember to choose your restaurant’s features that align with your vision and market demand. For more insights, consider consulting various restaurant business plan examples and business plan samples to get a holistic view.

• Mission : “To provide an unforgettable dining experience by blending authentic flavors with a modern twist.”
• Vision : “To be the leading global chain offering our signature fusion cuisine.”
• Restaurant Description : “DineFusion, an innovative blend of Italian and Japanese cuisines, located at the heart of downtown.”
• Costs : Initial investment of $150,000.
• Profits : Expected yearly net profit of $75,000 after operating costs.

2. Description of the Restaurant

• Restaurant Concept : A fusion of Italian and Japanese cuisines, bringing together the best of both worlds.
• Restaurant Name : “DineFusion”
• Restaurant Type : Casual dining
• Restaurant Location : 123 Downtown Street, Metropolis
• Order Fulfillment : Dine-in, takeaway, and online delivery through partnering platforms.
• Working Hours : 10 AM – 10 PM daily.
• Type of Cuisine : Italian-Japanese Fusion
• Offer : From sushi rolls with a twist of Italian herbs to pizzas topped with sashimi. Include a sample menu for a detailed look.
• Unique Selling Point : “Where East meets West on a Plate!”

4. Market and Competition Analysis

Market Analysis :

• Target Customer : Young professionals aged 25-40 and tourists.
• Size of the Target Customer : Approximately 150,000 individuals fit our target profile in Metropolis.

Competition Analysis :

• Size of the Competition : Collectively serve an estimated 500 customers daily.
• Competitors’ Offer : Traditional fusion dishes without the unique Italian-Japanese blend.
• Competitors’ Prices : Average meal price is $25.

5. Investment Plan (Detailed Cost Analysis)

• Renovation: $50,000
• Kitchen Equipment: $40,000
• Initial Inventory: $10,000
• Licenses and Permits: $5,000
• Marketing and Promotion: $20,000
• Miscellaneous: $25,000
• Rent: $5,000
• Salaries: $15,000
• Utilities: $1,000
• Inventory Replenishment: $4,000
• Marketing: $2,000
• Miscellaneous: $3,000

Total Cost : Estimated monthly operating cost of $30,000.

6. Financial Forecast

Based on the expected customer footfall and average ticket size, we anticipate monthly revenues of $60,000, with a profit of $30,000 before taxes.

• Owner/Manager : Jane Smith, with 10 years of experience in the restaurant industry.
• Chef : Marco Tanaka, a specialist in both Italian and Japanese cuisines.
• Supporting Staff : 10 members, including servers, cleaners, and kitchen assistants.

8. Marketing Plan

Our marketing strategy involves an initial launch on social media platforms, collaborations with influencers, and partnerships with delivery platforms. Periodic offers, loyalty programs, and events like “fusion food fests” will help in consistent customer engagement.

Tips For Creating A Successful Restaurant Business Plan

Opening your restaurant is exhilarating, but to transform your culinary dreams into business a reality, a well-crafted business plan is paramount. Here are some tips to ensure success:

• Thorough Research : Before you put pen to paper, conduct in-depth research. Understand your target market, competition, and potential challenges. This will not only guide the rest of your plan but also demonstrate your commitment and seriousness to potential restaurant investors.
• Use a Template : If you’re unsure where to begin, use a business plan template to get started. It will offer structure and ensure you cover essential sections of your business plan.
• Clarity is Key : Your business plan should be concise yet comprehensive. Avoid jargon. Remember, you may be presenting this to individuals who might not be familiar with restaurant terminologies.
• Be Realistic with Projections : Overestimating your future success can be as detrimental as underselling it. Ensure your financial forecasts are realistic and achievable.
• Highlight What Sets You Apart : Whether it’s a unique theme, a special dish, or an innovative service model, pinpoint what makes your restaurant stand out.
• Seek Feedback : Before finalizing, seek feedback. Whether from industry peers, potential restaurant investors, or mentors, a fresh set of eyes can offer invaluable insights.

Remember, to make a restaurant business plan truly effective, it should be a living document, revised and updated as you gather more information, make decisions, and choose your restaurant’s path forward. Keep refining and adjusting to ensure the best path to make the business a thriving success.

Frequently Asked Questions

1. what should be included in a restaurant plan.

A comprehensive restaurant business plan should include an executive summary, a clear description of the restaurant’s concept, target market, and location, a detailed menu offer, a market and competition analysis, an organizational and management outline, a marketing strategy, and financial projections. When you choose your restaurant’s theme and style, consider aspects like the restaurant interior, which plays a pivotal role in attracting diners. Leveraging a free restaurant business plan template can streamline this process, ensuring that no critical section of the business plan is overlooked.

2. What is a strategy plan of a restaurant?

The strategy plan of a restaurant defines its path to success. It encompasses the restaurant’s mission, vision, and the tactics it will use to achieve its objectives. This might involve decisions on restaurant technology, like using a particular POS system, adopting a reservation tool, or incorporating a digital feedback system. It also details how the restaurant will stand out in the market, whether through unique culinary offerings, exceptional service, or a distinctive dining environment.

3.  How do I write a business proposal for a food business?

When writing a business proposal for a food business, begin by introducing your business concept and vision. Detail the products or services you intend to offer and your target market. Highlight the operational aspects, such as suppliers, equipment, and location. Delve into financial projections, including startup costs, expected revenue, and profitability. Your proposal should align with the specific needs and interests of the person or entity you’re pitching to.

4. How do you write a marketing plan for a restaurant?

A marketing plan for a restaurant should start with an understanding of your target customers. Identify where they spend their time online and offline and strategize accordingly. Outline your brand voice and how you’ll communicate your unique selling proposition. Factor in promotions, advertising campaigns, and loyalty programs. Also, consider modern restaurant technology tools that can aid in marketing, such as CRM systems or social media analytics tools. Ensure that each marketing initiative has clear objectives, a set budget, and methods to track effectiveness.

Related Restaurant Resources

• How to start a restaurant with no money
• How much do restaurant owners make
• Restaurant profit margin calculator
• Restaurant name ideas

Opening a restaurant is a thrilling yet intricate endeavor. Every section of the restaurant business plan serves as a roadmap, guiding entrepreneurs towards realizing their culinary dreams. As you choose your restaurant’s concept, location, and design, always revert to your business plan to ensure alignment with your vision. In essence, a meticulously crafted plan not only provides clarity and direction but also instills confidence in potential stakeholders. Remember, success in the restaurant industry goes beyond delectable dishes; it lies in foresight, strategy, and relentless execution.

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How to Write a Restaurant Business Plan in 2024 (Free Template)

So you want to open a restaurant? Then you need a business plan.

A restaurant business plan is your roadmap to success. It outlines and forecasts every aspect of your restaurant’s operation and management —from menu design and location to financial planning and staff training. A comprehensive restaurant business plan demonstrates professionalism and a clear understanding of goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

Why is a strong business plan important? Because it turns your restaurant idea into reality. According to the National Restaurant Association , having a business plan increases your chances of success by preparing you for problems before they arise and attracting investors and partners.

Planning is the key to restaurant success. Without a plan, you risk being part of the 30% of restaurants that fail in the first year​. To make sure your restaurant succeeds, you can start by creating a business plan. Financial projections are a crucial component, helping to secure funding and plan for the future. Here’s how to get started.

The importance of a restaurant business plan 

Think of your business plan as your ultimate guide, showing business owners, stakeholders, and investors how you’re going to turn your vision into reality. It ensures nothing is overlooked as you grow your restaurant . When you’re deep in the chaos of construction, licensing, staffing, and other challenges, your business plan will keep you on track and focused. Without one, navigating the complex world of opening a restaurant becomes much tougher.

A solid business plan is also key to attracting investors. Most new restaurants need some outside capital from hospitality investors or silent partners. Before they invest in your dream, they need to see that you’ve got a solid, thought-out plan for success. Your business plan shows investors that you’ve considered every expense and every possible scenario. It provides a complete description of your strategy, highlights the experience and skills of your management team, and explains why and how it will succeed.

Every business should have a business plan, whether new or existing. Business plans help you focus on your goals and can help get back on track if you stray from them.

• How to write a restaurant business plan

Whether this is your first business plan or your 10th, using a template specifically designed for the restaurant industry can be incredibly helpful. Our restaurant business plan template includes all the necessary sections you need. You can download a customizable copy of the business plan template here.

Conducting a thorough market analysis to understand customer demographics and competition is crucial for the success of your restaurant. Keep reading to learn about the key elements that make a restaurant business plan successful.

Further reading

• How to Write a Restaurant Business Plan Executive Summary
• Your Complete Guide to Restaurant Financing and Loans
• How To Conduct a Restaurant Market Analysis
• Essential elements of a restaurant business plan

Design a branded cover page

Start with a branded cover page that showcases your logo, brand fonts, and all relevant contact information. This sets a professional tone and makes your business plan easily identifiable.

Write the executive summary

Begin your restaurant business plan with an executive summary . This section introduces and sums up your entire vision, making sure to grab the reader’s attention. It should make investors feel invested in your idea and eager to read more.

Key elements to include are your restaurant’s mission statement , proposed concept, how you’ll execute the plan, an overview of potential costs, anticipated return on investment, as well as a business succession plan. Describe your restaurant concept, detailing the type of food being served, service style, design elements, and unique features. This is also a great spot to highlight your business’s core values. A strong executive summary sets the tone for your business plan and helps attract investor interest.

Additionally, include a management team write-up to highlight the credentials and past experiences of your management team, demonstrating their ability to run a successful establishment.

A well-conceived mission statement can provide a guiding light to keep your restaurant moving in the right direction. It helps ensure that every decision you make and every interaction you have is in line with your core values and goals.

Create the company overview

In this section, you’ll lay out the foundational details of your restaurant. Start by introducing the basic information: the restaurant’s name, address, and contact details. Include information about the owner and their background, showcasing their experience and passion for the industry. This sets the stage for your business’s credibility.

Next, describe the restaurant’s legal standing and its short- and long-term objectives. This helps potential investors understand the structure and vision of your business.

Highlight your understanding of the local food industry with a brief market research summary. Explain why your restaurant will succeed in this market by demonstrating awareness of local dining trends and consumer preferences. Crafting your own restaurant business plan is crucial to showcase your dedication and strategic planning, learning from others' mistakes to ensure success.

Here’s a sample layout for this section:

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].

• How to Write a Great Restaurant Description

Include an industry analysis

First describe the current state of the market sector your restaurant will be in and the specific area you will be in. This should include local economic growth, existing restaurants, infrastructure projects, nearby businesses, residential areas and foot and car traffic counts.

To create an effective and professional business plan, it is important to study restaurant business plan samples.

1. Review your target market

The restaurant industry is competitive so you need to find your niche. What will make your restaurant different? Who will your restaurant attract and who will be your repeat customers? Describe your target market and compare it to the overall restaurant industry in terms of diner demographics, characteristics and behaviour.

2. Location analysis

Even if you don’t have a specific location yet, focus on the general area or city where you will be opening your restaurant and explain why. Include local economic growth, major events and nearby infrastructure projects. Compare the current market conditions to your target market to show the proposed location fits your ideal customer profile. Investors will be looking closely at this section to make sure the location is right for your concept.

3. Competitive analysis

Get into the competitive landscape around your proposed location. Detail the number of other restaurants in the area, especially those with similar concepts. Investors want to know what will make customers choose your restaurant over the competition. What will make your food and service stand out and what other advantages do you have, like longer hours? Use a competitive matrix to show you understand your niche in the market.

Put together a restaurant marketing plan 

The marketing section outlines how you’ll promote your restaurant before and after opening. Not sure where to start? Check out our guide here. A well-thought-out marketing plan is crucial to grow a successful restaurant and distinguish it from competitors.

Start by listing out specific tactics you’ll use pre and post-launch. Will you work with a PR manager? Launch a social media account to document the build-out and generate buzz. Share those details. If you already have a large social media following , make sure to mention it.

Once the restaurant is open , which channels will you use to keep the momentum going? Email marketing? Regular social media posts? Charity partnerships? Local TV and radio ads? Will you invest in customer relationship management software to keep in touch with regulars or implement a loyalty program?

This section should give a clear picture of your promotional strategy and how you plan to engage with potential customers from the start.

Outline your operation plan

Here’s how to outline your restaurant’s day-to-day operations once the doors open. Cover these key areas:

Clearly defining the service style of your restaurant, whether it is fine dining , quick-service, self-service, or another type, is important to ensure a consistent customer experience.

1. Staffing

Think about the positions you'll need and how many people you'll need for each role. What will make your place a fantastic workplace? Outline the pay for each position, how you'll recruit the right people, and what the hiring criteria will be.

2. Customer service policies and procedures

How will you ensure an exceptional and consistent guest experience every time? Detail your service values, policies, and procedures, and explain how you'll enforce or encourage them.

3. Restaurant point of sale and other systems

How will you keep track of sales and inventory, manage takeout and delivery, control labor, handle cash, process payroll, and accept various payment types? Cover the systems you'll use for all these tasks.

4. Suppliers

Where will you get your ingredients? Think about both one-time equipment purchases and items that need regular replenishment. Detail your plans for sourcing these essentials.

Nail down your financial game plan with first-year projections

The financial analysis usually wraps up your business plan, and it’s where investors really focus in. They want to see exactly how you’ll spend their money in the first year and how you expect costs and revenue to stack up. Make sure to hit these key points in this section.

1. Your investment plan

Here’s where you put in the initial investment and how you’ll use it in the first year. Think kitchen equipment, furniture, decor, payroll, legal fees, marketing, and a bit of working capital.

2. The projected profit and loss (P&L) statement

Since the business plan is done way before you open your restaurant you’ll need to make some educated guesses for your P&L statement. Estimate costs and sales based on your restaurant’s size, target market and the local competition. Use this P&L template and guide to dive deeper into P&L statements and create one for your future restaurant.

3. The break-even strategy

This is where you show investors how much monthly revenue you’ll need to cover all your overhead and operational costs. Remember there are always variable costs so highlight what you think those will be. How will you hit that revenue target during slow months?

4. Cash flow prediction

Your cash flow expectations hinge on your inventory purchases, staff size, payroll, and payment schedule. Some months will be better than others once your restaurant is up and running. This cash flow analysis will show investors that, based on your forecasts, your restaurant can sustain itself during leaner months without needing extra investments.

How to sell a restaurant idea and master your business plan presentation

Once your business plan is polished and ready, it's time to become its number one expert. Investors want to see that you know every nook and cranny of your business and are confident you can make it happen.

When you're ready, email your business plan to anyone in your network who might be interested in investing. With any luck, you'll get some interest, and investors will want to meet to discuss your restaurant.

Some investors might want a pitch presentation alongside the printed business plan. Use a professional template from Google Sheets or PowerPoint, and practice until you can nail the presentation without notes.

Be prepared for any questions—both the expected ones and those that come out of left field. If you don’t know an answer on the spot, it’s fine to say you’ll find out and get back to them quickly.

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. Including a sample menu in the business plan is necessary to showcase planned dishes and prices, which helps in selling the restaurant concept to potential investors and customers.

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.

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How much profit does the restaurant make.

When it comes to restaurant profitability, the numbers can widely vary. On average, restaurants report profit margins between 3% and 5% annually.

Fast-food establishments often have lower margins but benefit from a high volume of customers and quick turnover rates. In contrast, fine dining venues, although charging higher prices, see fewer customers and slower turnover, which influences their profit margins differently.

Our research indicates that, regardless of the type of restaurant, the average monthly profit usually falls between $15,000 and $25,000.

How to open a restaurant without money?

Starting a restaurant can be a daunting task, especially when funds are tight. However, with some creativity and determination, you can turn your dream into a reality. Here’s how:

Innovate Your Restaurant Concept

Consider a unique, low-cost restaurant concept. Instead of a full-scale establishment, perhaps a pop-up restaurant or a delivery-only kitchen could better fit your budget. Flexibility in your concept can significantly reduce initial costs.

Seek Funding Alternatives

Traditional bank loans aren't the only option. Look for investors who believe in your vision or explore crowdfunding platforms like Kickstarter or GoFundMe . Sometimes, you can even find grants aimed at smal l business startups.

Leverage Online Platforms

Start by building a strong online presence. Create a website and utilize social media to attract and engage customers. Online marketing can be a cost-effective way to generate buzz and gather a customer base before you even open your doors.

Collaborate with Other Businesses

Partnerships can pave the way for mutual growth. Collaborate with food suppliers, local farms, or even other small businesses to share costs and resources. This strategy can also expand your network and increase visibility within your community.

Start Small: Food Trucks or Catering

Consider launching your concept through a food truck, catering service, or pop-up stand. These options require significantly less capital than a traditional sit-down restaurant and can help you build your brand and customer base.

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

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When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .

While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.

We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.

Why you shouldn’t skip a restaurant business plan

First-time restaurateurs and industry veterans alike all need to create a business plan when opening a new restaurant . That’s because, even if you deeply understand your business and its nuances (say, seasonal menu planning or how to order correct quantities), a restaurant is more than its operations. There’s marketing, financing, the competitive landscape, and more—and each of these things is unique to each door you open.

That’s why it’s so crucial to understand how to create a business plan for a restaurant. All of these things and more will be addressed in the document—which should run about 20 or 30 pages—so you’ll not only have a go-to-market strategy, but you’ll also likely figure out some things about your business that you haven’t even thought of yet.

Additionally, if you’re planning to apply for business funding down the line, some loans—including the highly desirable SBA loan —actually require you to submit your business plan to gain approval. In other words: Don’t skip this step!

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to write a restaurant business plan: Step by step

There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than others, for example, or you might find that there’s a logical order that makes more sense than the one in the restaurant business plan example below. However, this business plan outline will serve as a good foundation, and you can use it as a restaurant business plan template for when you write your own.

Executive summary

Your executive summary is one to two pages that kick off your business plan and explain your vision. Even though this might seem like an introduction that no one will read, that isn’t the case. In fact, some investors only ask for the executive summary. So, you’ll want to spend a lot of time perfecting it.

Your restaurant business plan executive summary should include information on:

Mission statement: Your goals and objectives

General company information: Include your founding date, team roles (i.e. executive chef, sous chefs, sommeliers), and locations

Category and offerings: What category your restaurant fits into, what you’re planning to serve (i.e. farm-to-table or Korean), and why

Context for success: Any past success you’ve had, or any current financial data that’ll support that you are on the path to success

Financial requests: If you’re searching for investment or financing, include your plans and goals here and any financing you’ve raised or borrowed thus far

Future plans: Your vision for where you’re going in the next year, three years, and five years

When you’re done with your executive summary, you should feel like you’ve provided a bird’s eye view of your entire business plan. In fact, even though this section is first, you will likely write it last so you can take the highlights from each of the subsequent sections.

And once you’re done, read it on its own: Does it give a comprehensive, high-level overview of your restaurant, its current state, and your vision for the future? Remember, this may be the only part of your business plan potential investors or partners will read, so it should be able to stand on its own and be interesting enough to make them want to read the rest of your plan.

Company overview

This is where you’ll dive into the specifics of your company, detailing the kind of restaurant you’re looking to create, who’s helping you do it, and how you’re prepared to accomplish it.

Your restaurant business plan company overview should include:

Purpose: The type of restaurant you’re opening (fine dining, fast-casual, pop-up, etc.), type of food you’re serving, goals you have, and the niche you hope to fill in the market

Area: Information on the area in which you’re opening

Customers: Whom you’re hoping to target, their demographic information

Legal structure: Your business entity (i.e. LLC, LLP, etc.) and how many owners you have

Similar to your executive summary, you won’t be going into major detail here as the sections below will get into the nitty-gritty. You’ll want to look at this as an extended tear sheet that gives someone a good grip on your restaurant or concept, where it fits into the market, and why you’re starting it.

Team and management

Barely anything is as important for a restaurant as the team that runs it. You’ll want to create a section dedicated to the members of your staff—even the ones that aren’t yet hired. This will provide a sense of who is taking care of what, and how you need to structure and build out the team to get your restaurant operating at full steam.

Your restaurant business plan team and management section should have:

Management overview: Who is running the restaurant, what their experience and qualifications are, and what duties they’ll be responsible for

Staff: Other employees you’ve brought on and their bios, as well as other spots you anticipate needing to hire for

Ownership percentage: Which individuals own what percentage of the restaurant, or if you are an employee-owned establishment

Be sure to update this section with more information as your business changes and you continue to share this business plan—especially because who is on your team will change both your business and the way people look at it.

Sample menu

You’ll also want to include a sample menu in your restaurant business plan so readers have a sense of what they can expect from your operations, as well as what your diners can expect from you when they sit down. This will also force you to consider exactly what you want to serve your diners and how your menu will stand out from similar restaurants in the area. Although a sample menu is in some ways self-explanatory, consider the following:

Service : If your brunch is as important as your dinner, provide both menus; you also might want to consider including both a-la-carte and prix fixe menus if you plan to offer them.

Beverage/wine service: If you’ll have an emphasis on specialty beverages or wine, a separate drinks list could be important.

Seasonality: If you’re a highly seasonal restaurant, you might want to consider providing menus for multiple seasons to demonstrate how your dishes (and subsequent purchasing) will change.

Market analysis

This is where you’ll begin to dive deeper. Although you’ve likely mentioned your market and the whitespace you hope to address, the market analysis section will enable you to prove your hypotheses.

Your restaurant business plan market analysis should include:

Industry information: Include a description of the restaurant industry, its size, growth trends, and other trends regarding things such as tastes, trends, demographics, structures, etc.

Target market: Zoom in on the area and neighborhood in which you’re opening your restaurant as well as the type of cuisine you’re serving.

Target market characteristics: Describe your customers and their needs, how/if their needs are currently being served, other important pieces about your specific location and customers.

Target market size and growth: Include a data-driven section on the size of your market, trends in its growth, how your target market fits into the industry as a whole, projected growth of your market, etc.

Market share potential: Share how much potential there is in the market, how much your presence will change the market, and how much your specific restaurant or restaurant locations can own of the open market; also touch on any barriers to growth or entry you might see.

Market pricing: Explain how you’ll be pricing your menu and where you’ll fall relative to your competitors or other restaurants in the market.

Competitive research: Include research on your closest competitors, how they are both succeeding and failing, how customers view them, etc.

If this section seems like it might be long, it should—it’s going to outline one of the most important parts of your strategy, and should feel comprehensive. Lack of demand is the number one reason why new businesses fail, so the goal of this section should be to prove that there is demand for your restaurant and show how you’ll capitalize on it.

Additionally, if market research isn’t your forte, don’t be shy to reach out to market research experts to help you compile the data, or at least read deeply on how to conduct effective research.

Marketing and sales

Your marketing and sales section should feel like a logical extension of your market analysis section, since all of the decisions you’ll make in this section should follow the data of the prior section.

The marketing and sales sections of your restaurant business plan should include:

Positioning: How you’ll describe your restaurant to potential customers, the brand identity and visuals you’ll use to do it, and how you’ll stand out in the market based on the brand you’re building

Promotion: The tools, tactics, and platforms you’ll use to market your business

Sales: How you’ll convert on certain items, and who/how you will facilitate any additional revenue streams (i.e. catering)

It’s likely that you’ll only have concepts for some of these elements, especially if you’re not yet open. Still, get to paper all of the ideas you have, and you can (and should) always update them later as your restaurant business becomes more fully formed.

Business operations

The business operations section should get to the heart of how you plan to run your business. It will highlight both internal factors as well as external forces that will dictate how you run the ship.

The business operations section should include:

Management team: Your management structure and hierarchy, and who is responsible for what

Hours: Your hours and days of operation

Location: What’s special about your location that will get people through the door

Relationships: Any advantageous relationships you have with fellow restaurateurs, places for sourcing and buying, business organizations, or consultants on your team

Add here anything you think could be helpful for illustrating how you’re going to do business and what will affect it.

Here, you’ll detail the current state of your business finances and project where you hope to be in a year, three years, and five years. You’ll want to detail what you’ve spent, what you will spend, where you’ll get the money, costs you might incur, and returns you’ll hope to see—including when you can expect to break even and turn a profit.

Financial statements: If you’ve been in business for any amount of time, include existing financial statements (i.e. profit and loss, balance sheet, cash flow, etc.)

Budget: Your current budget or a general startup budget

Projections: Include revenue, cash flow, projected profit and loss, and other costs

Debt: Include liabilities if the business has any outstanding debt or loans

Funding request: If you’re requesting a loan or an investment, lay out how much capital you’re looking for, your company’s valuation (if applicable), and the purpose of the funding

Above all, as you’re putting your financials together, be realistic—even conservative. You want to give any potential investors a realistic picture of your business.

Feel like there are other important components but they don't quite fit in any of the other categories (or make them run too long)? That’s what the restaurant business plan appendix section is for. And although in, say, a book, an appendix can feel like an afterthought, don’t ignore it—this is another opportunity for you to include crucial information that can give anyone reading your plan some context. You may include additional data, graphs, marketing collateral (like logo mockups), and more.

LLC Formation

The bottom line

Whether you’re writing a restaurant business plan for investors, lenders, or simply for yourself and your team, the most important thing to do is make sure your document is comprehensive. A good business plan for a restaurant will take time—and maybe a little sweat—to complete fully and correctly.

One other crucial thing to remember: a business plan is not a document set in stone. You should often look to it to make sure you’re keeping your vision and mission on track, but you should also feel prepared to update its components as you learn more about your business and individual restaurant.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

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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Who is this for?

4 key things to do before you begin writing your restaurant business plan.

So, you think you’re ready to dive into the restaurant biz? Hold up. Before you start fantasizing about your grand opening, there’s groundwork to be laid. And I’m not just talking about choosing which trendy aprons your staff will wear. Here are the four non-negotiable steps you need to tackle before you even think about drafting that business plan.

1. Figure Out Your Concept and Brand Identity

What’s your story? And no, “I want to open a restaurant” doesn’t cut it. Are you bringing the sultry tastes of New Orleans to the heart of New York? Or maybe you’re thinking of a vegan joint that even hardcore carnivores can’t resist? That’s your concept. Now, how will you sell it? That’s your brand. It’s not just about what’s on the plate; it’s about the vibe, the ethos, the whole shebang. Your concept and brand identity are what will set you apart from the “just another café” down the street. Got it?

2. Get a Grip on Locations and Logistics

Location, location, location – it’s not just a tired cliché. It’s the make-or-break factor for your restaurant dream. But here’s the kicker: some landlords want to see your business plan before they hand over the keys. It’s a bit of a chicken-and-egg situation, isn’t it? But fear not. This is where your concept shines. It gives landlords a taste of what’s to come, making them more likely to bet on your vision. And logistics? Start thinking about supply chains, kitchen flow, and whether your delivery guy will get stuck in traffic during rush hour. Thrilling, I know.

3. Menu Planning

Ah, the menu – the heart of your restaurant. This is where you get to flex your culinary muscles. But let’s not get carried away with truffle oil just yet. Your menu needs to be a carefully balanced equation of cost, creativity, and logistics. It should scream your brand, cater to your target demographic, and, above all, be feasible. Remember, a great concept with a poorly executed menu is like a smartphone with no battery life – useless.

4. Regulation and Licensing

Dreaming of a chic cocktail lounge to complement your restaurant? You better make sure you can secure that liquor license first. Regulations and licensing are the less glamorous side of the restaurant business, but they’re as crucial as the food you serve. This step is about dotting your i’s and crossing your t’s. Health inspections, food handler certifications, zoning laws – welcome to the bureaucratic maze. Navigate it successfully, and you’re one step closer to pouring those artisanal cocktails.

The Absolute Power of a Killer Restaurant Business Plan

Listen up, future restaurateurs! Why do you need a restaurant business plan that’s more detailed than your grandma’s recipe for lasagna? Simple. It’s the GPS for navigating the wild terrain of the restaurant industry. You’re not just opening a place where people eat; you’re stepping into a battlefield where only the strongest concepts thrive. You think you’ve got what it takes? Then you better have a plan that screams, “Invest in me, I’m going places!”

The Must-Haves of Your Restaurant Business Plan

Crafting this masterpiece involves more than jotting down some numbers and a catchy name. It’s about painting a picture so vivid, investors can taste your dishes just by reading the pages.

Executive Summary

This isn’t your high school book report. It’s the hook that grabs investors by their taste buds. Who are you? What’s your vibe? And why is your place going to be the new hotspot? 

Conceptualizing Your Offering

Are you the oasis for vegan foodies, or the haven for carnivores seeking their next meaty conquest? Define your universe. 

Dive deep into your menu. Why? Because your truffle mac ‘n cheese is going to revolutionize how we think about comfort food, that’s why.  

Location, Location, Location

Explain why your spot is the place to be. Is it the foot traffic, the local vibe, or because it’s an area screaming for a culinary revolution?  

Market Analysis

Who’s coming to eat? What’s the competition? And why’s your restaurant the answer to everyone’s food prayers? 

Strategy & Implementation

How are you going to fill those seats? If “If you build it, they will come” is your only plan, we need to talk. 

Management Dream Team

Who’s running the show? Why are they rock stars? 

Financial Genius

Show me the money – your startup costs, projections, and that magic break-even point. 

Might throw in a curveball or two, like the tech that’ll make your service smoother than a soufflé or the loyalty program that keeps ’em coming back for more. Custom-tailor your plan. This isn’t a one-size-fits-all kind of deal.

Why Sweating the Small Stuff Makes All the Difference

In the cutthroat culinary world, it’s the little things. Your business plan isn’t just a document; it’s your manifesto. It’s what sets you apart in a sea of sameness. Think of it as your restaurant’s DNA – from analyzing your market to breaking down your cash flow. This level of detail doesn’t just impress financiers; it gives you a map through the industry’s maze.

Ready, Set, Pre-Plan!

Think writing a restaurant business plan is your first step? Think again. Before you start dreaming up menu items or picking out tablecloths, there’s something crucial you need to tackle: our Pre-Planning Process . This isn’t just a preliminary step; it’s the foundation on which your entire concept will be built. Want to know more? We’ve laid out every detail on our website. Start Your Journey Here. Alongside the essential tasks to tackle before penning your plan, these resources are invaluable.

The Pre-Planning Process for Restaurant Entrepreneurs

Before the dream becomes reality, there’s the Pre-Planning Process. Think of it as the appetizer to the main course that is your restaurant. This phase is where your vision gets a reality check. Is your brilliant idea in sync with the market? Can it make you money? Let’s chop it up into bite-sized pieces.

Know Your Customer

Who’s sitting at your tables? Getting this right is like nailing the perfect spice blend. Use Pre-Vision Interviews and the Jobs-to-be-Done theory to decode your customers’ cravings. This isn’t just about filling bellies; it’s about fulfilling needs, wants, and dreams on a plate.

Get the full recipe on understanding your customer.

Core Cost Analysis

Next up: the dough. Can your restaurant make financial sense? Break down the costs like a recipe, from ingredients (goods) to chef’s time (labor). It’s all about balancing quality and cost to price your menu right.

Dive into the numbers with our Core Cost Analysis guide.

Business Model Development

Here’s where you sketch out your restaurant’s blueprint using the Business Model Canvas. Mix in customer insights, sprinkle in financial realities, and what do you get? A strategy that’s as solid as your signature dish.

Layer your business model with our development tools.  

Operations in Detail

Operations are the kitchen of your business. It’s where plans meet reality. From picking your team to setting up supplier ties, every choice cooks up the customer experience you’re aiming for.

Whisk through operational planning essentials here.

Startup and Operating Costs

Before the grand opening comes the bill. Understanding the full cost menu—from initial setup to the daily specials—is crucial. It sets up your pricing strategy and opens doors to investors.

Season your financial planning with our Startup and Operating Costs guide.

Now, assuming you’ve got the pre-planning in your rearview, it’s time to talk about step two: actually writing that killer restaurant business plan. This is where your concept starts to take shape, grounded in the gritty realities of the restaurant world and buoyed by your boundless passion. 

Get Up to Speed FAST!

Unsure where to start.

Actually Writing a Perfect Restaurant Business Plan

Okay, so you’re really, really, truly ready to write your restaurant business plan? Our resources guide you through, soup to nuts. Visit our Plan & Pitch section and start cooking up your success story, which will take you through the following steps: 

Understanding Audiences

Knowing who will be reading your business plan is half the battle. Customize your pitch to echo in the halls of banks, impress investors, comply with regulators, charm partners, or convince landlords. Your message needs to land with impact.

Get the right structure for your audience.

Model-Based Planning®

Our Model-Based Planning® slices through the noise, offering a strategic blueprint for any restaurant concept, from a cozy café to a bustling food truck. Embrace a bird’s-eye view of your business terrain, sharpening your concept and competitive edge.

Explore Model-Based Planning®.

Narrative Development

A story well told is a story that sells. Weave your restaurant’s vision, strategy, and USP into a narrative that captivates and convinces, laying a solid foundation for your pitch.

Craft your story.

Dish out a thorough market analysis to understand your competition, the industry trends, and the economic landscape. This is your compass for navigating towards success in the restaurant sector.

Dive into market analysis.

Organizational Structure

The backbone of any successful restaurant is its team. Chart out your organizational structure and pen down compelling team biographies that demonstrate capability and credibility to potential backers.

Build your team structure.

Financial Projections

Serving up a detailed financial forecast is essential. It’s your map for budgeting, setting prices, and securing the dough (funding, that is).

Forecast your finances.

Turn your concept into a full-blown plan with actionable strategies for marketing, sales, and customer delight. A well-seasoned marketing plan ensures you hit your targets and satisfy customer appetites.

Strategize and execute.

Pitch Deck & Finances

An irresistible pitch deck and savvy financial management are your secret ingredients for attracting early-stage investment and securing a smooth launch.

Perfect your investor pitch.

Unlock the Power of Expert Business Planning

Supercharge your restaurant's success.

Our Expert Business Planning Bundle, curated specifically for restaurant entrepreneurs, is a comprehensive toolkit with everything you need to create a winning business plan.

This bundle includes the Model-Based Planning® Worksheet, a professional financial projection Excel model, and expert guides on leveraging these tools and AI to develop your plan. Don’t miss this opportunity to invest in your restaurant’s future and watch your vision come to life.

Gain an Unfair Advantage

The tools you need.

This bundle was created by the top business planning team in the U.S., responsible for the most successful business plan writing company in history. By leveraging these expert resources and insider secrets specific to restaurant planning, you’ll be able to create a standout business plan that sets you apart from the competition.

With this bundle, you will:

• Access the insider knowledge and proven strategies used by the most successful business planning company in the U.S.
• Leverage expert resources tailored specifically to the restaurant industry, giving you a competitive edge
• Streamline your planning process with the Model-Based Planning® Worksheet for Restaurants and Cafes
• Create professional financial projections using the included Excel model
• Utilize the curated restaurant-focused business plan template to structure and organize your plan effectively
• Follow expert guides on leveraging these tools and AI to develop a compelling and comprehensive business plan
• Dramatically increase your chances of securing the loans, investments, or approvals you need to bring your restaurant vision to life

Use this bundle as your primary toolkit for crafting a restaurant business plan that unlocks the funding and support you need.

When crafting a business plan for your restaurant or cafe, you need more than just a generic template. You need a toolkit carefully curated by industry experts who have spent their careers helping restaurants succeed. That’s exactly what our Expert Business Planning Bundle offers, but why invest in this bundle when there are other options available?

The answer is simple: no other resource can match the depth, breadth, and practical wisdom contained in our Expert Business Planning Bundle. Our team has distilled their thousands of hours of experience working with successful restaurants into a comprehensive toolkit that will save you time, money, and the frustration of making costly mistakes.

With our targeted, practical knowledge tailored specifically to the restaurant industry, you’ll be able to write a business plan that’s smarter than what the best consultants could produce, and that’s exactly customized to your unique needs and goals. Whether you’re seeking funding, approvals, or simply want to set your restaurant up for long-term success, our Expert Business Planning Bundle is the ultimate resource to help you achieve your vision.

Frequently Asked Questions

• How do I tailor my business plan to attract potential investors specifically?

Tailoring your business plan to appeal to potential investors involves highlighting the aspects of your business that demonstrate profitability, scalability, and a clear competitive edge. Personal information about the management team’s experience

• What information should I include in the business description section of my restaurant business plan?

The business description section should provide a comprehensive overview of your restaurant, including the concept, target market, menu offerings, and unique selling points. It should also detail the restaurant’s location, design, and how it fits into the broader market landscape. Highlight any differentiators that set your restaurant apart from competitors and outline your vision for the restaurant’s impact on the local dining scene.

• How much personal information should I share about my management team in the business plan?

Your business plan should include succinct biographies of key management team members, focusing on their relevant experience, skills, and contributions to the success of the restaurant. This section should illustrate why each member is uniquely qualified to execute the business plan, without delving into excessive personal detail. 

• Should I highlight my past success stories in the business plan?

Yes, including past a success story or two in your business plan can significantly enhance your credibility and appeal to banks, potential investors, or even landlords. Highlight how these experiences have equipped you with the skills and insights necessary to make your current restaurant venture a success. 

• What are the key elements of a company overview in a restaurant business plan?

The company overview section should summarize the essence of your restaurant, including its name, location, cuisine type, and the dining experience it offers. It should outline your mission statement, core values, and the long-term objectives of your business. 

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Restaurant Business Plan Template & PDF Example

• July 23, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let’s dive in!

Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of the restaurant’s business concept, market analysis , management, and financial strategy.
• Restaurant & Location: Describes the restaurant’s prime location, size, seating capacity, and distinctive design, emphasizing its appeal to the target demographic.
• Supply & Operations: Outlines the supply chain management, focusing on local sourcing and quality ingredients, and details the operational aspects, including kitchen layout, equipment, and front-of-house operations.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the full-service restaurant market.
• Key Trends: Highlights recent trends affecting the restaurant sector, such as health-conscious dining, sustainability, and technology integration.
• Key Competitors: Analyzes the main competitors in the vicinity, showcasing the restaurant’s unique selling proposition in comparison.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for promoting the restaurant to maximize visibility and customer engagement.
• Timeline : Key milestones and objectives from the initial setup through the launch and operational optimization.
• Management: Information on who manages the restaurant and their roles.
• Financial Plan: Projects the restaurant’s financial performance, including revenue, profits, and expected expenses, aiming for profitability and sustainable growth.

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Restaurant Business Plan

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Executive Summary

The Executive Summary introduces your restaurant’s business plan, offering a concise overview of your establishment and its offerings. It should detail your market positioning, the variety of cuisines and dining experiences you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your restaurant will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your restaurant’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the restaurant’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your restaurant’s financial plan.

Restaurant Business Plan Executive Summary Example

Business Overview

The  business overview  should detail the restaurant’s specific features, such as its seating capacity, ambiance, and supply chain practices. It’s important to emphasize how the restaurant caters to its target demographic through its strategic location and operational model.

Example: “[Your Restaurant Name],” located in [specific area or neighborhood], covers [total square footage] sq ft and includes a main dining area, bar, and outdoor patio, offering a total of [number of seats] seats. The restaurant’s commitment to quality is reflected in its locally sourced produce and sustainable supply chain practices, catering to a diverse clientele.

Market Overview

This section involves analyzing the size, growth, and trends of the full-service restaurant market. It should address the industry’s digital transformation, health-conscious dining preferences, and eco-friendly practices, positioning the restaurant within the broader market context.

Example: “[Your Restaurant Name]” enters a U.S. full-service restaurant market valued at $293 billion. The restaurant’s focus on technology, healthier menu options, and sustainability aligns well with current  market trends  and consumer preferences, setting it apart from six main competitors in the area.

Management Team

Detailing the management team’s background and expertise is crucial. This section should highlight how their experience in culinary arts and restaurant management contributes to the success of the restaurant.

Example: The Executive Chef and Co-Owner of “[Your Restaurant Name]” leads menu development and kitchen operations, ensuring high-quality food preparation and presentation. The General Manager and Co-Owner manages daily operations, staff, customer service, and financial aspects, ensuring a seamless dining experience.

Financial Plan

This section should outline the restaurant’s financial goals and projections, including revenue targets and profit margins, providing a clear picture of its financial aspirations and health.

Example: “[Your Restaurant Name]” aims to achieve $2.7 million in annual revenue with an 11%  EBITDA  margin by 2028. This financial goal is supported by a focus on quality dining experiences, strategic marketing, and operational efficiency, positioning the restaurant for growth in the  competitive  full-service restaurant market.

For a Restaurant, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Briefly describe the restaurant’s physical environment, emphasizing its design, ambiance, and the overall dining experience it offers to guests. Mention the restaurant’s location, highlighting its accessibility and the convenience it offers to diners, such as proximity to entertainment venues or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Operations

Detail the range of cuisines and dishes offered, from appetizers and main courses to desserts and specialty beverages. Outline your sourcing strategy, ensuring it reflects a commitment to quality and sustainability, and matches the market you’re targeting.

Highlight any unique culinary techniques, exclusive ingredients, or innovative kitchen technologies that set your restaurant apart. Discuss your operational strategies, including inventory management, supplier relationships, and kitchen workflow, to ensure efficiency and consistency in delivering exceptional dining experiences.

Industry size & growth

In the Market Overview of your restaurant business plan, start by examining the size of the restaurant industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key market trends

Proceed to discuss recent market trends , such as the increasing consumer interest in farm-to-table dining, ethnic cuisines, and experiential dining experiences.

For example, highlight the demand for restaurants that offer unique cultural dishes, the growing popularity of health-conscious and dietary-specific menus, and the integration of technology in enhancing the dining experience.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your restaurant in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your restaurant’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Restaurant Industry

To comprehensively understand the competitive landscape, start by identifying both direct and indirect competitors in your area. Direct competitors are restaurants offering similar cuisines or targeting a comparable customer base. For instance, if your restaurant specializes in authentic Mexican cuisine, other nearby Mexican restaurants are direct competitors. Indirect competitors may include food trucks, cafes, or even fast-casual eateries offering diverse menus that overlap with your offerings.

Leverage digital tools like Google Maps, Yelp, or food delivery apps to map out the locations of your competitors. Reviews and ratings on platforms like TripAdvisor and social media can offer valuable insights into competitors’  strengths and weaknesses . Positive reviews highlighting exceptional service or a unique dining experience at a competitor’s restaurant can signify an area of focus for differentiation and improvement.

Restaurant Competitors’ Strategies

To conduct a comprehensive analysis, delve into various aspects of your competitors’ operations:

• Menu Offerings:  Assess the breadth and uniqueness of dishes offered by competitors. Take note if any local restaurants are gaining traction by focusing on farm-to-table ingredients, regional specialties, or offering innovative fusion cuisines, as these aspects often indicate emerging  market trends .
• Service and Ambiance:  Evaluate the overall customer experience. Identify if there’s a competitor renowned for its fine dining experience, another known for its trendy and vibrant atmosphere, or one that excels in providing a casual, family-friendly environment. These elements significantly contribute to a restaurant’s success and differentiation.
• Pricing and Positioning:  Compare pricing strategies . Determine whether competitors are positioned as budget-friendly eateries or if they adopt a more upscale approach with premium pricing, highlighting gourmet ingredients, or exclusive dining experiences.
• Marketing Channels :  Analyze how competitors market their restaurants. Do they leverage social media platforms for promotions, engage in collaborations with local influencers, or host special events or themed nights? Understanding their marketing tactics provides insights into effective promotional strategies that resonate with the  target audience .
• Operational Efficiency:  Observe if competitors have adopted technological advancements such as online reservations, mobile apps for ordering, or contactless payment systems. These innovations not only streamline operations but also contribute to an enhanced customer experience.

What’s Your Restaurant’s Value Proposition?

Reflect on what uniquely distinguishes your restaurant from the competition. It could be your innovative fusion of cuisines, a strong emphasis on locally sourced and sustainable ingredients, or perhaps a distinctive ambiance that reflects a particular cultural theme or historical narrative.

Listen attentively to customer feedback and observe emerging industry trends to identify gaps or unmet demands in the market. For instance, if there’s a growing interest in plant-based dining experiences and competitors have not tapped into this niche, it could present an opportunity for your restaurant to cater to this demand and stand out.

Consider how your restaurant’s location influences your strategy. A downtown location might warrant a focus on quick service and catering to office lunch crowds, while a suburban setting could embrace a more relaxed, family-friendly dining environment.

First, conduct a SWOT analysis for the restaurant , highlighting Strengths (such as a unique menu and exceptional customer service), Weaknesses (including potential high operational costs or strong competition in the area), Opportunities (for example, a growing interest in diverse cuisines and healthy eating), and Threats (such as economic downturns that may decrease consumer spending on dining out).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, food blogger outreach, and community involvement, such as local events or charity sponsorships.

Marketing Channels

Utilize various marketing channels to engage with your audience and attract new patrons.

Digital Marketing

• Social Media:  Utilize social media platforms such as Instagram, Facebook, Twitter, and TikTok to showcase your restaurant’s ambiance, signature dishes, behind-the-scenes glimpses, chef profiles, and customer testimonials. Regularly engage with your audience by responding to comments, hosting interactive polls, or sharing user-generated content.
• Email Marketing:  I mplement an email marketing strategy to build a loyal customer base. Offer incentives such as exclusive recipes, promotional offers, or early access to special events in exchange for subscribing to your newsletter. Regularly communicate with your subscribers, sharing updates, promotions, and stories that resonate with your brand.
• Website and SEO:  Maintain an  informative website showcasing your menu , chef profiles, reservation options, and reviews. Optimize it for local SEO to ensure visibility in searches related to your cuisine and location.

Local Advertising

• Printed Materials:  Distribute well-designed flyers in nearby neighborhoods, advertise in local magazines, and collaborate with tourism centers or hotels for exposure.
• Community Engagement:  Sponsor local events, collaborate with food bloggers or influencers, and participate in food festivals or charity events to increase brand visibility and community involvement.
• Partnerships:  Forge partnerships with complementary businesses (such as wine shops or local farmers’ markets) for cross-promotions or collaborative events.

Promotional Activities

Engage potential customers through enticing offers and events.

• Special Offers:  Launch promotions like ‘Chef’s Tasting Menu Nights’ or ‘Happy Hour Discounts’ to attract new diners and retain regulars.
• Loyalty Programs:  Implement a loyalty system offering rewards for frequent visits or referrals, such as a free appetizer or dessert after a certain number of visits.
• Events and Special Occasions:  Host themed nights, seasonal menus, or exclusive culinary events to create buzz and attract diverse audiences.

Sales Channels

Efficiently manage  sales channels  to maximize revenue and customer satisfaction.

In-Restaurant Upselling

• Menu Strategies:  Highlight premium dishes or chef’s specials, offer wine pairings or dessert suggestions, and train staff to upsell without being pushy.
• Merchandising:  Display branded merchandise, specialty sauces, or cookbooks for sale to complement the dining experience.

Online Ordering and Delivery

• Online Ordering Platform: I mplement an easy-to-use online ordering system for takeout or delivery orders. Offer exclusive online discounts or bundle deals.
• Delivery Partnerships:  Collaborate with food delivery services or establish in-house delivery for customers’ convenience.

Reservation Management

• Reservation System:  Utilize an efficient reservation platform to manage bookings. Offer incentives for off-peak reservations or special occasions.

Membership and VIP Programs

Developing membership and VIP programs can cultivate a loyal customer base and drive recurring revenue:

• VIP Memberships:  Create exclusive membership tiers offering perks like priority reservations, chef’s table access, or private event invitations.
• Reward Programs:  Develop a digital loyalty system where customers earn points for every dollar spent, redeemable for discounts, exclusive menu items, or special events.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the restaurant’s opening, marketing campaigns, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

The management section focuses on the restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the restaurant towards its financial and operational goals.

For your restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Writing a Restaurant Business Plan: 9 Sections to Include

When you start a business, having a business plan is essential. It helps you map out the direction of your business and your intentions. If you’re planning on opening a restaurant , opening a coffee shop , opening a bakery , or thinking about the cost to open a food truck , you’ll also need to have a restaurant business plan-where you can plan for direct to consumer trends . 

A business plan for types of restaurants like cafes, fine dining restaurants, and pop up restaurants , helps you differentiate your business from others. It sorts out the details in terms of the restaurant concept, design, location, and financials-like flat rate shipping costs. 

Putting thought and research into your potential business venture is crucial. With a business plan, you’ll have all the research in one place with the answers you and your investors need to move forward. It sets you up for long term success. 

So, how do you write a business plan? This article has everything you need to create a restaurant business plan and prove the viability of your idea.

Why Is a Restaurant Business Plan Important?

A restaurant business plan acts as the blueprint for any business venture. It provides an outline for your vision while also explaining in thorough detail how your business will operate. This plan can be shared with other business owners, investors, and stakeholders. 

With a detailed business plan in place, you’ll be able to ensure that no detail is overlooked, and you can successfully grow your business. If potential problems arise during the construction, staffing, licensing, or operational process, your business plan will act as a guide. 

Many restaurants will fail and some of them do because there was no business plan in place. Coming up with a well-thought-out and detailed business plan can be tough and time-consuming. However, it can make the entire process of opening a restaurant less stressful and messy. 

A solid business plan can help bring investors on board and prove that your idea is worth it. It’s what will help you figure out how you’ll reach that break even point and start profiting. 

How to Write a Business Plan for Restaurant

A solid restaurant business plan can vary based on the kind of food establishment you have. You have to take into account different factors of the business including the restaurant style, target or niche market , and location. 

If you’re a newbie to the restaurant industry, the idea of writing your own business plan can seem overwhelming. However, we can help you get started.

Below you’ll learn about some key elements you should include when writing your business plan. A business plan for a restaurant includes: 

• Executive Summary
• Business Concept
• Target Market and Competition
• Sample Menu
• Management and Employees
• Marketing and Advertising
• Financial Aspects

The Executive Summary

This summary should be the first section of your business plan. It plays two roles as it introduces and also summarizes the vision of your business. In the summary, you’ll want to introduce the key elements of your restaurant’s business plan so that the reader is invested. It’s best to add enough detail, but not too much so you can intrigue the reader. 

Within the executive summary, be sure to include the restaurant’s mission statement, the business concept, how you plan to execute the business, potential costs, and a brief ROI analysis . You can also include the core values of the business.

In the business concept section, it’s ideal to go into detail as you describe the restaurant’s concept. What kind of products or services will your restaurant offer? What is the inspiration behind the concept? How is your restaurant's concept unique?

Describe the service style you envision for your business. Identify the kind of food you’ll serve. It’s best to be as clear as possible about how your restaurant is unique compared to others. 

The restaurant industry is quite competitive as it is. Entering it with a new idea can be tricky. This is why it’s important to conduct thorough market research as this is what will help you stand out.

Complete a data-driven market analysis and identify the customers that you’ll attract with your new restaurant concept. Focus on what makes your niche different from other concepts, and how its relevance to the industry as a whole will be beneficial to you.

In this section, you’ll also want to elaborate on what other businesses exist around the location you’re targeting. These restaurants will be your biggest competitors. Include the number of competitors  in the area and explain their concepts. This information will be important for investors to understand how your business will stand out.

Your restaurant menus (see menu meaning ) will be the most important part of your business. Jotting down a list of menu items isn’t enough. You should incorporate a potential menu design and add a logo.

The sample menu in your business plan should include prices that are based on the cost analysis that you’ve done. There are different ways to find out how to price a menu , but in most cases, it will be based on potential food cost and labor cost . The prices will show investors that you’ve done your research and are confident that you can sell the menu items at the price points. 

There are countless types of menu options for you to choose from and the ideal one will be based on your restaurant concept. You can have a prix fixe menu , dessert menu , food and wine pairing menu , digital menu for wine, or table d hote menu . It’s possible to also incorporate a restaurant QR code menu.

A successful restaurant business will need to have restaurant management and staff. These include a restaurant manager , bar management team, wait staff , bar staff , and an inventory control manager .

This section of your restaurant business plan should provide an overview of the team you’ve established so far. It should also highlight any new positions that you may want to add. Include the employee and management work experience and necessary skills when presenting your team. 

Be sure to include the salary or pay that you will be giving each staff member based on their roles. With this information, your investors will get a solid understanding of the potential your restaurant has to succeed.

Within the design section of your business plan, you’ll have the opportunity to show off any ideas you have to your investors. You don’t necessarily have to include professional mock-ups, but it won’t hurt. You can express your vision through a mood board using pictures of ideas or aesthetics that you like. 

The design of your restaurant goes beyond the actual look. It should also include restaurant technology and software that can be essential for the business. If you plan to cook using a wood-burning oven, you should include it in the designs. 

Picking the location is one of the most important aspects of starting a business. This should go hand in hand with the target market that you’ve chosen. You might not have an exact location picked out yet, but you should include some to choose from. 

You should be as detailed as possible about each potential location so that you can explain why it would be the ideal place for your restaurant. Include the typical demographics of the location, the square footage, foot traffic, and any other important information. 

The restaurant marketing and sales portion of your business plan will be crucial. In this section, you should cover the position and brand identity of your business, promotional tools and tactics, as well as sales tactics. 

Your marketing plan must include a promotional strategy for before and after you open your restaurant. Potential options include marketing through social media and creating a website. On that website, you should include an about us page which can be created using an about us page template or by following about us page examples . These will give your restaurant credibility.

It’s possible for you to only have some of your marketing and advertising concepts planned out. However, as you develop more, you should add them to your plan. This will happen as you continue to develop your restaurant business. It's also crucial to use O2O marketing efforts.

The financial aspects of your restaurant business are crucial and a section that your investors will be interested in. You want to highlight the current financial state of your business, include financial projections for one, three, and five years from now, and be sure to reference cash flow and statistical averages. 

Explain what you’ve spent money on already, how much you plan to spend, and on what, how you plan to secure the funds, additional costs that may incur, and potential returns. This also includes when you plan to make a profit. This can be done with a restaurant profit and loss statement or income statement.

Frequently Asked Questions About Restaurant Business Plan

What is a restaurant business plan.

A restaurant business plan acts as the blueprint of your business activities and vision and explains each detail of business operation. Business plans are essential to have before actually starting a business because they can showcase your vision to other business partners and investors. It can also guide you as you start to get your small business off the ground. You may also consider using a business process flow chart template to identify your business processes.

Why Is It Important to Have a Restaurant Business Plan?

It’s important to have a restaurant business plan in place because it creates a roadmap for you to follow. If written correctly, it will include benchmarks for your restaurant business that will allow you to assess the progress of your business. It can also include timelines for all of your restaurant plans and encourage you to work towards achieving your goals. 

What Sections Should I Include in My Restaurant Business Plan?

The sections that you should include in your restaurant business plan are: 

What are the 3 Main Purposes of a Business Plan?

The three main purposes of a business plan are to:

• Define the business's goals and objectives
• Create a roadmap for how the business will achieve those goals
• Attract investment or funding from potential investors or lenders

What are the Common Problems of a Restaurant?

Restaurant owners face a number of challenges, including inventory shrinkage (theft), waste, and high labor costs. They must also deal with inventory turnover , employee turnover rates, which affect customer service and satisfaction.

What Makes a Business Plan Successful?

A successful business plan must be well-thought-out. This means that it should be clear and concise. By taking the time to carefully consider your business goals, you can increase your chances of success.

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Writing a Restaurant Business Plan: A Guide

Table of contents.

In many ways, a restaurant business plan is like a detailed recipe. But instead of listing ingredients and cooking methods, a restaurant business plan provides aspiring restaurant owners an overview of their proposed establishment—and it’s as crucial as a dish’s final dash of salt. 

However, writing a strong restaurant business plan can be confusing. That’s why we’re here.

By diving into how to write a restaurant business plan, we’ll discuss the detailed information you should include so you know how to start a restaurant business successfully. That way, your business plan can be as well-built as your famous chicken club—if not as tasty. So, put on your apron, pick up your pen, and let’s get to work.

What is a restaurant business plan?

Nearly all new businesses need a business plan. That’s because a business plan details a business’s structure, operation, finances, marketing strategies, and more. Without this, your business may have difficulty attracting investors. A weak plan may even prevent you from obtaining the necessary licenses and permits.

A restaurant’s business plan is no exception. In fact, a restaurant’s business plan may be even more important than plans for other business types. That’s because restaurants are especially liable to fail within their first year.

According to some estimates, 30% of restaurants fail during their initial 12 months.

While a carefully considered plan alone may not help you stay afloat, a bad one can sink you faster than a vegetable in a pickling jar.

What to include in a restaurant business plan

Regardless of the business’s type, most business plans include the following:

• An executive summary
• A company description
• A market analysis
• A marketing strategy
• A financial strategy

In addition to these common sections, restaurant business plans typically include:

• A menu overview
• A design plan
• A location assessment
• An employee plan

Let’s unpack each of these sections in more detail.

1. Executive summary

Although the executive summary is normally at the top of restaurant business plans, it may be the last section you write. That’s because your executive summary summarizes what’s included in your restaurant business plan. In doing so, an executive summary functions like a book’s introduction, letting readers know exactly what to expect.

Writing a compelling, yet informative, executive summary is just as important as setting the right temperature on your sous vide. When investors are crunched for time, your executive summary may be the only section they read. As a result, your executive summary should be:

• Informative
• Well-written

When writing your executive summary, aim to include:

• Your concept
• How you intend to execute your concept
• An overview of costs and benefits
• Your expected profit margin

2. Company overview

Your company overview should be longer than your executive summary. Depending on the amount of detail you wish to include, your company overview may span several pages. 

This is where you’ll describe your restaurant. Here are a few items to include in your company overview:

• The restaurant’s name
• The restaurant’s backstory
• The restaurant’s management structure
• Your goals and objectives
• Your food and concept

You should also include the location of your restaurant and any legal information about franchising and trademarking. Finally, it may be worthwhile to list your background as a restaurateur and your cooking experience.

3. Market analysis

A marketing plan, or industry analysis, looks at the market forces surrounding a new restaurant. This section is important because opening a new restaurant in an area with low demand or stiff competition could spell trouble. As a result, a strong market research analysis typically focuses on:

• The restaurant’s competition
• The state of the local restaurant industry
• The average revenue of similar restaurants
• The average rate of restaurant closures in the area
• The eating habits of the prospective customer base

You might also want to note current and expected meat and produce costs.

4. Marketing strategy

Before the internet changed the marketing landscape, many restaurants relied on word-of-mouth, radio, and newspapers to promote their eateries. Now, restaurant management teams have a wide range of marketing strategies—from billboards to social media accounts.

Providing an overview of your marketing strategy can help you set your budget. It can also keep you focused on the marketing strategies that work best for your target clientele. In addition to detailing how you’ll promote your restaurant, your marketing strategy might also discuss:

• Meal discounts
• Special promotions
• Community events
• In-kind donations
• Partnerships

5. Financial Strategy

So, how much does it cost to start a restaurant business ? Restaurants aren’t typically built on spare change. In fact, according to some estimates, the average restaurant startup cost is upwards of $250,000—and that’s just the initial investment. 

Anyone who has ever worked in a restaurant knows that even fine-dining restaurants experience occasional equipment malfunctions. Some restaurants also have exorbitant food costs. As a result, knowing how you’ll pay for these expenses before they mount can give you peace of mind. 

Your financial analysis should carefully outline the following:

• Potential investors
• Operating costs
• Equipment costs
• Employee costs

Your financial strategy might also include how you’ll save on expenses. For example, you could potentially minimize your upfront kitchen costs by opting for a ghost kitchen . Thus, your financial strategy could reflect how the ghost kitchen will impact your operating costs.

6. Menu overview

Your menu overview section might be the most exciting section you write. After all, your menu is often the focal point of your restaurant. 

That said, your menu need not be totally complete. Instead, you can start menu engineering with just a general idea of your food and beverage concept. When constructing your sample menu overview section, consider the following:

• Restaurant logos
• An overview of the types of service
• Potential prices of each menu item
• A preliminary design

Once you have a firmer grasp of your menu’s general direction, you can tinker with it as your restaurant concept continues to grow.

7. Design Plan

Your restaurant’s layout can be just as important as your menu. Do you envision a central dining room flanked by smaller dining rooms? Do you prefer mostly two-top tables or community-style tables? Using your business plan to think through your restaurant idea’s design can help you budget for tables and chairs accordingly. It can also help you plan light fixtures and table decorations.

The best design plans may also include kitchen layouts. Since a successful restaurant’s efficiency is largely measured by its kitchen’s efficiency, a well-designed layout can boost productivity. When considering your kitchen’s layout and equipment , think about the following:

• Ovens and ranges
• Freezer space
• Dishwashing equipment
• Shelves and storage 
• Office space
• Prep and hand sinks

8. Location assessment

Similar to a market analysis, a location assessment measures the profitability of your restaurant based on its area. However, its focus is different from that of a market analysis. 

Instead of analyzing larger industry forces like supply and demand, location assessments look at the particular characteristics of a restaurant’s environment. These characteristics include:

• Available parking
• Population density
• Foot traffic 
• Urban development
• Future zoning regulations
• Average rent

Location assessments can be particularly useful for restaurants in underdeveloped areas. They can give you an idea of an area’s expected growth or decline.

9. Employee plan

Finally, an employee plan is a valuable element to add to your restaurant business plan template. In short, an employee plan anticipates your staffing needs. A sample employee plan might include the following:

• Staffing needs
• Shifts and hours
• Back-of-house jobs
• Front-of-house jobs
• Employee pay

The last two items are especially important. Will your employees collect individual tips, or will tips be pooled? Will gratuity already be included in the guest’s checks? Furthermore, will all employees be paid an hourly wage, or will some employees be salaried?

Your plan might also discuss how you’ll advertise jobs, your onboarding requirements, and your restaurant’s required training.

How to present a completed business plan

A recipe may contain the ingredients to make an elaborate French sandwich. But if you don’t present the sandwich right, it may just look like a regular old ham on rye. The same principle applies to business plans.

In short, designing and presenting your business plan effectively is the best way to attract potential investors. Here are a few ways to make your business plan stand out:

• Include charts and pictures : Many people have said that the “eye takes the first bite.” While this adage applies to the way food looks on the plate, it can also apply to the way restaurant concepts are presented. Charts and pictures can help potential investors visualize your concepts more fully.
• Use a template : Business plan templates have made many restaurateurs’ lives easier. That’s because these templates can enhance the presentation of information. That said, don’t be hemmed in by a template. If your restaurant defies simple categorization, it may be helpful to take a more creative approach. 
• Be confident in your plan : You’ve done most of the heavy lifting by completing your business plan. Now, it’s time to be confident in your delivery. Review your plan thoroughly to anticipate any questions.

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Eat. How to Write a Restaurant Business Plan (Step-by-Step Guide with Samples) . https://restaurant.eatapp.co/blog/restaurant-business-plan

On the Line. What is the Restaurant Failure Rate? https://pos.toasttab.com/blog/on-the-line/restaurant-failure-rate#:~:text=The%20restaurant%20failure%20rate%20is,t%20survive%20their%20first%20year

Sage. How much does it cost to open a restaurant? https://www.sage.com/en-us/accounting-software/startup-costs/restaurant/

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How to write a comprehensive restaurant business plan

fanWhen opening a new restaurant, having a solid restaurant business plan is key for the success of a a business. The best ones identify, describe and analyse business opportunities while setting a blueprint. Here, we’ve put together a guide for how to write a restaurant business plan so life at your spot starts off on the right foot.  

What your restaurant business plan should cover

The strongest restaurant business plans always include all or most of the components described below. Charles Bililies , founder and CEO of Souvla , advises that first-time restaurateurs read plenty of different business plans for other restaurants, technology and retail companies to get a better sense of layout options, writing styles and clarity of concept. Put the sections that you feel would be most compelling to someone who’s never met you first: the “Management Team” section if you’re coming from high-profile establishments, for example. The goal is for the reader to keep turning the page.

Quick links Branded cover Concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials

1. Branded cover

Include your logo (even if it’s not finalised), the date, and your name.

Describe your restaurant concept and get the reader excited about your idea. Go into detail about the food you’ll be serving, inspiration behind your concept and an overview of service style. Define clearly what will be unique about your restaurant.

3. Sample menu

The menu is the most important touchpoint of any restaurant’s brand, so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices based on a detailed cost analysis. This will give investors a clear understanding of your targeted price point, provide the first building block to figuring out average bill estimations needed to create financial projections and show investors that you’ve done the homework needed to be confident that you’ll be able to sell these items at these prices and operate within your budget.

This section is most relevant for fine-dining concepts, concepts that have a unique service style or if you have particularly strong feelings about what role service will play in your restaurant. It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service designed to get guests on their way as quickly as possible, or will it look more like theatre, with captains putting plates in front of guests simultaneously? If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

5. Management team

Write a brief overview of yourself and the team you have established so far. You want to demonstrate that the work experience you’ve acquired over the course of your career has provided you with the necessary skills to run a successful restaurant. Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

6. Menu Design

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant. Planning on cooking in a wood-burning oven? Include that. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

7. Restaurant target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Once you’ve described them in detail, reiterate why your specific concept will be appealing to them.

8. Location

There should be a natural and very clear connection between the information you present in the ‘Target Market’ section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighbourhoods. Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there — make the connections clear. You want readers to be confident that your restaurant’s ‘ideal’ diner intersects with the neighbourhood(s) you’re proposing as often as possible.

If you don’t have a site, this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, road accessibility and other important details.

9. Market overview

Address the micro and macro market conditions in your area. At a macro level, what are the local and regional economic conditions? If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss your direct competitors. Talk about what restaurants share your target market and how you’ll differentiate yourself.

10. Marketing and publicity

The restaurant landscape is only getting more competitive. Talk about your pre- and post-opening marketing plan to show investors how you will gain traction leading up to opening day, as well as how you’ll keep the momentum going. If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media , your website , and media connections. To help you get started be sure to check out our zero budget marketing checklist .

11. Specialists and consultants

List any outside contractors you plan to retain, such as:

• Main Contractor
• PR & Marketing

Briefly explain the services they’ll be providing for you and why you chose them, along with any notable accomplishments.

12. Business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with a lawyer to help you determine what business structure is best for you.

“ Step one : write a restaurant business plan. Step two : hire a good lawyer. In addition to helping me build a smart, sustainable business structure, my lawyer was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters”, Charles Bililies explains.

13. Restaurant financials and funding

Let your accountant guide you through this portion of your business plan. It is crucial that whoever you retain to help you with your finances has a wealth of restaurant experience (not just one or two places), as they should be familiar with the specifics of restaurant finances and know what questions to ask you.

Before creating realistic financial projections, your accountant will want to know approximately how many seats you’re planning on having, what your average bill will be, and how many covers you expect per day. Being conservative in these estimations is key as these three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasises that, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors. The key projections you can expect to work on are:

• Pro forma profit and loss statement for the first three to five years of operation
• Break even analysis
• Capital requirements budget

Free tools to build a restaurant business plan in Australia:

If design is not your forte, consider using a free online template. There are plenty of templates available on the web that can aid in this process. Whether you’re a seasoned pro or need help getting started, there are some great options

• Canva : Bring your descriptions and its templates will help you do the rest. Canva hosts a library of thousands of free menu templates to choose from.
• Australian Government:   a collection of free tools and templates to help you build your first business plan
• VistaCreate:  The plug-and-play menu templates are easy to use, and the platform has the option for print and delivery.

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Writing a restaurant business plan.

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Introduction

If you're considering opening a restaurant, your first step should be writing a business plan. A well-written business plan can help you raise money, manage your restaurant and succeed. Here's what you need to know about writing one:

Executive Summary

An executive summary is a short but powerful document that can help you to get your point across quickly and effectively. Although it is usually the first section of a business plan, it should be the last piece written. It should be one page at maximum and clearly describe your business plan's critical points in a way that makes sense to anyone who reads it. The purpose of an executive summary is to convince potential investors or lenders that they will profit from investing in your restaurant idea, so avoid unimportant details or lengthy descriptions of how great your food tastes.

An excellent way to write an executive summary is by starting with an introduction paragraph that summarizes what the rest of your plan contains—this helps readers understand why they should continue reading further into the document. Then go into discussing why this particular project is worthwhile; why people need it. How will it benefit them? Next comes some background information about yourself: include any relevant experience or education related to running this business. Finally, end with future goals: where do you see yourself after opening the shop?

Here are some items to include in your restaurant business plan:

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Before you launch your business, it's important to validate your concept and test the viability of your business model. You can do this by conducting market research, talking with potential customers, and interviewing industry experts with similar business experiences. You can also test the viability of your plan by completing an "experience economy" analysis. That is, looking at ways people enjoy spending money on experiences rather than goods (such as dining out). For example, if people value experiences over material goods, opening a restaurant may be a good idea!

Labor Costs and Staffing Plan

Labor costs, including direct and indirect labor, are essential to your labor budget. Direct costs refer to wages paid directly to employees, while indirect expenses include benefits like healthcare coverage and payroll taxes. To calculate these figures, you'll need to estimate the number of full-time equivalents (FTE) positions you'll need and their average salaries. This calculation can be tricky because each restaurant has its unique staffing plan based on its size, location, cuisine type, and reputation among customers, not to mention any other factors that might affect staffing decisions (e.g., whether it's open 24/7).

The first step is deciding whether or not you want full-time staff or part-time workers who work only during peak times such as lunchtime rush hour or Friday night dinners out with friends at restaurants nearby yours. As tempting as it may seem, wait to write anything down until after reading through the following sections because several factors are explicitly related to determining how many people we'll need overall.

You want your menu to be focused and simple. Try to add only a few items, as too many menu items may confuse customers, making it difficult for them to choose what they want.

If there are any "signature" items on your menu, include them first when listing off your offerings so that people know what kind of food you serve before even stepping inside the restaurant. Also, incorporating local ingredients into these specialties will help build community spirit around supporting local businesses.

Site selection is a critical factor in your success. After conducting a comprehensive market study, the site selection is based on the data you discover to determine if your customers are in and frequent that area. David Simmonds, Founder and CEO of ResolutRE , a Commercial Real Estate firm in Austin, Texas, states: "More than ever, entrepreneurs opening a restaurant need to analyze what their own customers look like on paper (demographics, psychographics, etc.), so then when they are examining a market, they can find the highest concentration of their customers within that market. From that data, they are able to determine the number of restaurants that the market could support, and from there, create the blueprint for their expansion."

Your plan should describe your ideal location . Your chosen location must be close to your target market and similar businesses, such as restaurants or cafes. The site should also have high foot traffic and be accessible by car, bike, and public transportation. Simmonds goes on to say: "Analytics reinforces or disputes instincts. It is a necessary part of the expansion process, whether the restauranteur has 1 unit or 37.

Marketing Strategy

When developing your business plan, think about the marketing strategy you will use. Your plan should consider and explain the following marketing tactics:

• Advertising: You can use print or online ads on social media sites like Facebook and Instagram. Also, consider running commercials on local television stations.
• Public relations: This can include writing articles about your restaurant in local newspapers or magazines, hosting events at your restaurant (such as wine tastings), speaking at community events like Chamber of Commerce meetings with other business owners in the area, participating in charity events related to foodservice industries like Feeding America—the possibilities are endless! The idea is to get people talking about what makes YOU unique so they think of YOU first when ready for their next dine-out experience!
• Social media: Let's face it—most millennials don't even pick up the phone anymore; they prefer texting over talking face-to-face because it feels intimate somehow, and guess what? By interacting directly with customers through social media platforms like Facebook Messenger or WhatsApp (which allows users from all over the world access 24 hours per day, seven days per week), we can offer immediate customer service support during high-demand times such as weekend brunch hours without having employees sitting idle during slow periods throughout weekdays when traffic drops off significantly due the lack of demand generated elsewhere.

Profit and Return on Investment Analysis

• Profit is the difference between your sales revenue and your costs. To calculate it, you need to know the following:
• Sales revenue (how much money you expect to make from selling food)
• Cost of goods sold (the cost of ingredients and supplies)
• Other operating expenses (including labor, rent, and utilities)

The reader of your business plan should be able to find these numbers in your budgeting worksheet and financial projections spreadsheet.

Financial Plan

The financial plan is the most critical part of your business plan. It should clearly show how much money you need to start, run and grow your restaurant.

You will need to show a projected profit and loss statement. The projected profit and loss statement (P&L) shows how much revenue comes in, what expenses are incurred, and what profits are made over time. In addition, the P&L shows all revenue sources, including but not limited to sales of food/alcoholic beverages and income from private parties. It must also project all costs associated with operating the restaurant, such as Cost of Goods (raw materials) and salaries for employees - these include both front-of-house roles such as waiters or bartenders, as well as back-of-house roles like chefs who prepare food during off hours so it can be served fresh upon opening each day - cleaning supplies needed throughout each week, etc., depreciation costs associated with long term assets such as ovens that wear down over time and waste of unused food product.

Multi-Year Projections of Revenue and Costs

Accurate projections are the key to a successful business plan. They help you to understand how much money you will make and how much you will need to make it happen. Projections also help with understanding what your costs will be.

For example, if I were starting a restaurant today and wanted my business plan projections for opening day and going out one, three, and five years.

Then I would look at similar restaurants that serve similar foods, noting their prices, portion sizes, and any specialties they offer, such as breakfast all day or lunch specials every Friday during football season. This research of other restaurants will give you a basis for your projections. Include the documentation of this research in the narrative of the plan.

A Business Plan Is Your Road Map To Success.

A business plan can help you raise money by demonstrating that you have a viable idea for a restaurant. In addition, investors want to see that others are interested in investing in your vision, so they'll be more likely to give you money if they see other investors involved with it as well. An excellent example is when an investor wants to invest but only if another investor does first; this way, both parties feel comfortable investing because they know someone else believes in the project enough to put their own money into it too!

A well-written business plan helps manage restaurants by giving owners information about how much money will be coming in over time, so there aren't any surprises when bills come due every month - which could lead businesses into trouble if left unchecked."

This article has given some insights into how to write a business plan for opening a restaurant. Do your research and learn other aspects of good business plan writing. I know that it can be a lot of work, but I also know that the payoff is worth it. Not only will you have a better understanding of what it takes to open up shop and run it successfully but also potential investors will be more likely to fund your project if they see that you've done your research. And remember: don't be afraid to ask other restaurant owners for help or advice; many of them have been where you are now.

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How to write a comprehensive restaurant business plan

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Are you considering opening a new restaurant , adding a virtual restaurant , or pivoting your restaurant’s business strategy to adapt to the shifting restaurant industry? Make sure you take the time to build a restaurant business plan. Why?

• Business plans are like professional road maps — they literally lead the way to success
• They’re critical if you’re looking for investors and need to outline your restaurant’s current wins and future revenue potential
• They help you foresee challenges before they arise, so you can sidestep some catastrophes and be better prepared for the others

Some 26% of restaurants fail within a year of opening, and failure to plan is one of the primary reasons those restaurants close. Create a business plan, and you’re setting yourself up to be on the right side of that statistic.

Here’s how to do it.

What is a restaurant business plan?

Before you learn how to write a business plan , it’s crucial to understand what a business plan is — and what it isn’t.

The goal of a business plan is to create a guide that helps you navigate each stage of launching and running your business. That plan should also be comprehensive and articulate enough that a total stranger, for instance an investor, could read through it and easily understand your vision, your goals, and how you intend to turn your restaurant dream into a reality.

Business plans come in a variety of structures and they can be as short as a single page or long enough to bind into a booklet. You may want to start with a lean startup plan that focuses on a high-level take on your strategy, then follow up with a more detailed plan that elaborates on key points and offers investors more information.

In short, your business plan should communicate everything you have and plan to put into your restaurant to ensure ongoing success.

11 elements every restaurant business plan should include

Your restaurant and mission statement should be unique to your business and your vision, but that doesn’t mean you have to start completely from scratch. Crafted by industry experts and packed with insider knowledge, the Grubhub Restaurant Business Plan template is your step-by-step guide to whipping up a winning business strategy. Take a look at our editable business plan template to start planning your restaurant. However you write it, your finalized business plan should include seven key sections.

1. Executive summary

This is a brief summary of your company, why it’s something the community wants or needs, and why it will be successful. Many different types of restaurants speak to various demographics, and it’s important to know  what kind of restaurant you want to run . Are you opening a quick-service deli focused on takeout sandwiches and ready-to-eat salads? Or are you going to be the first tapas restaurant in a city eager for more variety?

If you’re using your business plan to ask for financing, the SBA recommends including financial information and high-level growth plans in your executive summary, too. Your executive summary should include:

• Mission statement: A concise description of your restaurant’s purpose
• Proposed concept: The summary or outline of the restaurant idea
• Execution: How you plan to make this proposed concept work
• Potential costs: A brief overview of expected exprenses
• Anticipated ROI: How much the restaurant is expected to make

Think of your summary as your opportunity to capture your reader’s attention. Many investors will make a split-second decision based on the executive summary alone — if this section is all they’re going to read, make every word count.

2. Company description

Now it’s time to launch into a more detailed description of the company, including its  vital differentiator(s) , target audience, and any other factors that could sway investors like experts you’ve brought on board as advisors or a location you’ve already scouted or secured.

You’ll want to include the legal structure of the business, explaining whether you’re a sole proprietorship, LLC, etc., and list out existing management and their roles (including your own).

Now comes the fun part: Writing out a description of your concept. This is where you can let your creative side come out, showcasing your passion for what you hope to create and using plenty of adjectives to engage your readers and give your concept life. You’ve already decided what  type of restaurant  you’re opening, now flesh out all the other details:

• Service style (counter vs. sit-down, casual vs. fine dining, etc.)
• Restaurant size and seating capacity
• General ambiance, including décor and music
• Options for styles of seating, lighting, and other fixtures
• Operating hours
• Style of cuisine
• Peripheral service offerings such as retail products, delivery/takeout, and catering
• Unique selling points such as using produce grown on an adjacent farm or a 30-minute lunch guarantee to serve the area’s office workers better

3. Target market analysis

Detail your target market, using buyer personas to indicate who you see being your primary customer and what their dining habits might look like. These personas should include information on where target customers live, their income levels, their pain points (do they hate long waits or want restaurants that are open later?), and how often they dine out or order in.

The more specific you are during this step of the process, the easier it will be to create marketing to reach them.

4. Sample menu

If you’re a new restaurant, including a sample menu is the only way investors will know what you plan on serving. It’s not enough to say you’re going for “rustic Italian,” as that could mean different things to different people. Chances are your menu is your key differentiator, or at least part of it — otherwise, why will customers choose you over tried-and-true competitors already offering similar dishes?

Collaborate with your chef and keep the core tenets of  great menu design  in mind:

• Know your audience and tailor your design and descriptions to your target customer base — a college crowd eager for drink deals and shareable eats will be more interested in pictures and flashy pricing than diners looking for a white tablecloth experience
• Menu descriptions should be short but evocative — choose words that help customers understand exactly what they’ll be eating and get them excited about trying it (for example, say “succulent tea-smoked duck with anise-scented plum sauce” rather than “duck with plum sauce”)
• Refer to menu psychology when determining and placing pricing, sticking to simple numerals (no dollar signs) placed to the right of the menu item with no dots or dashes in between
• Use that same psychology to guide customers through your offerings, using call-out boxes and bold text to highlight more profitable items
• View your menu as an extension of your restaurant branding , using the same colors, design elements, and fonts

5. Organizational management

While you’ve touched on your organizational structure and management earlier on in your business plan, now you’ll explain  your business structure  and share a more comprehensive look at your team. An organizational chart can be helpful, as is a summary of your collective experience. Some people include a bullet list of the team’s top achievements that’s easy to scan and digest. This section should include any employe positions you will need to fill and a plan for how you will train these employees .

In addition to listing out co-founders, managers, servers, etc., you can attach resumes from your executive team or critical players like a well-known mixologist that’s helping you develop your cocktail program.

6. Restaurant design

Restaurant interior design is crucial for your customer’s experience. The ambiance and floor plan impact how they perceive your business and whether it’s a good enough place to eat at. In fact, even the color of the walls and types of flooring can impact people’s moods and how they feel while in your restaurant.

Come up with a restaurant design that matches your theme and cuisine. This is also the time to plan out any patio seating , and decide on how many tables can you can serve.

7. Location

You may already have a specific location picked out or even have a building purchased. If so, this section is less of a concern for you. It’s important to ensure that your location is going to benefit you rather than hurt your business. If you still need to find the right space to host your business, the location you end up choosing should be in line with your target market and be an easily accessible place for them to eat.

Before you sign a lease, it’s a good idea to check out the other competition in your area. If you found the perfect building for your pizzeria but it’s next to another popular pizza shop, it may be hard to convert customers to your cheesy creations. You want to enter a market where you can grab diner’s attention with new offerings rather than rival existing ones.

8. Marketing plan

With so many restaurants vying for customers’ attention, marketing is extremely important for getting diners through the door (or onto your website). Crafting a marketing plan for your restaurant gives you a blueprint for all potential advertising and outreach. Promotional events, social media, and paid ads are just some ways you can help get your restaurant off the ground, and investors will be very interested to hear what you have planned.

9. Takeout and delivery

Having reliable delivery and takeout services is pretty important for most target audiences. In fact, 51% of consumers said if they cannot order delivery or takeout from a restaurant, they probably won’t visit them for dine-in as often. Offering off-premise dining options will increase your order volume and customer base.

If you’re hoping to have takeout and delivery capabilities at your restaurant, Grubhub makes it easy . Whether you want to use your own drivers or our professional fleet, we offer :

• Grubhub Delivery: Our fleet of Grubhub Drivers pick up and deliver orders to your customers’ doors. We coordinate and pay the delivery drivers — all you have to do is provide the food.
• Supplemental Delivery: Utilize our delivery fleet of 300,000 drivers to widen your customer base.
• Self Delivery: Use your own drivers to deliver Grubhub orders to diners. You have full control over delivery and fees, but benefit from Grubhub online ordering.
• Pickup: Set up a Grubhub account to accept pickup and deliver orders from your customers, letting you reach new customers and increase sales.

10. External providers

To make your restaurant a reality, you’ll likely need a bit of help. Make a list of any external companies or software you plan to use or hire to get your restaurant up off the ground. This could be accountants who you wish to balance your books or designers who can help make your design dreams a reality. This list may also include outside suppliers for your food and beverages. Who is it that you want to partner with when it comes to receiving your raw ingredients and materials? Do you want to source locally or use a distant distributor? Whoever it is that you want to potentially work with, write them down!

Luckily, when you join Grubhub you not only do have your food delivery and pickup service partner chosen, you can also simplify your order and menu management using Grubhub for Restaurants’ easy technology integration . Our tech integrations allow orders to come from the Grubhub app or Grubhub.com directly to your kitchen. Plus, you can create a customized online ordering site with Direct . Encourage customers to place a commission-free order right from your restaurant’s website.

11. Customer service policies and procedures

As a business owner, you want to give your customers a five-star experience at your restaurant. Creating customer service policies and procedures will help ensure that your staff create a great dining experience for your customers. Have a blueprint for how certain situations will be handled and what you’ll do if problems arise. For example, if a customer has an issue with the food, your entire staff should know how to handle the circumstance and what to say to the diner. Then, ensure that your staff is all on the same page about your expectations for them and consistently utilize the same guidelines and approach.

12. Financial projections

Finally, it’s time to address the financial side of your business, especially if you’re using your business plan to acquire startup funds or additional capital after you’re already operational.

If you’re pre-launch, your projections are just that: guesses. But these guesses should be based on market research, actual expenses, and projected income, culminating in a five-year look at everything from estimated revenue to capital expenditure budgets.

If your business is up and running, you’ll include actual financial records such as cash flow statements and your P&Ls, ideally for the last five years. Use colorful charts and graphs to highlight financial wins and make it easier for investors to gauge your company’s financial health quickly.

If you’re asking for funding, specify how those funds will be used and whether you have collateral you’re able to put up to secure a loan.

Start writing your own restaurant business plan

Now that you understand the various steps for creating a strategic restaurant business plan , it’s time for you to create your own. Download our Restaurant Business Plan template to draft your restaurants’ operational foundation. Use this as a playbook for you to refer back to whenever you make business decisions.

Once you get your business plan off the ground, consider partnering with Grubhub. Platforms like Marketplace can make it easier than ever to capture the attention of new customers and reinvigorate relationships with existing customers by offering quick-click access to ordering and stress-free pickup or delivery.

Ready to reach millions of hungry customers? Sign up for  Grubhub for Restaurants  today!

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Money blog: Fines for parents taking children out of school to change next month

Welcome to the Money blog, a hub of personal finance and consumer news/tips. Today's posts include a look at the discounts available to students, and local a revolt against Gail's. Leave a comment on any of the stories we're covering in the box below - we round them up every Saturday.

Friday 16 August 2024 06:53, UK

• Fines for parents taking children out of school to increase next month
• Mortgage product shelf life drops significantly in sign of volatility
• The UK's highest-earning roads revealed

Essential reads

• Is this the end of the British pub?
• What's gone wrong at Asda?
• Best of the Money blog - an archive of features

Tips and advice

• All the discounts you get as a student or young person
• TV chef picks best cheap eats in London
• Savings Guide : Why you should now be checking T&Cs
• 'I cancelled swimming with weeks of notice - can they keep my money?'

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