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Restaurant business plans are a critical tool for success in the restaurant industry. If you’re thinking of opening a restaurant, opening a coffee shop, or even opening a bakery, a business plan is a must. 

But what goes into a restaurant business plan? And more importantly, how to write a business plan?

In this blog post, we’ll discuss what a restaurant business plan is and what are the key components in writing one. Keep reading.Revolution Ordering

What Is a Restaurant Business Plan?

A restaurant business plan is a detailed document outlining the various aspects of starting and running a restaurant business. It includes information on the restaurant’s concept, menu, marketing, and financial strategy. The business plan also serves as a tool for securing financing from investors or lenders.

You should create a restaurant business plan before starting a new restaurant business. It will help the business owner validate their idea, determine the venture’s feasibility, and develop a roadmap for success.

How to Start a Restaurant Business Plan

Creating a restaurant business plan can be a daunting task, but it is essential to the restaurant success. A well-thought-out business plan will help you to make informed decisions about your restaurant, attract investors, and ultimately grow your business. Here are some tips to get you started on creating your restaurant business plan: 

  1. Define your concept: What kind of restaurant do you want to open? What is your target niche market? What is your unique selling proposition (USP)?
  2. Do your research: Understand the industry, the competition, and the target market. This will help you to determine your USP and how to position your restaurant in the market. 
  3. Create a financial plan: Project your revenue, restaurant expenses, and asset requirements. This will help you to understand your start-up costs and how much capital you will need to raise. 
  4. Write your business plan: Once you have all the information, you can start writing your business plan. Include an executive summary, company overview, market analysis, financial plan, and details about your team and operations.

Now that we know how to start a restaurant business plan let’s write one. This section will provide an overview of the components you should include in your plan. Keep reading!

How to Write a Business Plan for a Restaurant

As you write your restaurant business plan, there are a few key components you will want to include. These components will help you paint a clear picture of your restaurant concept, the market opportunity, and your plans for making your restaurant a success.

There are 12 key components of a restaurant business plan.

  1. Executive Summary

The executive summary is a brief overview of your entire business plan. It should highlight the most important aspects of your plan, including your restaurant concept, target market, competitive advantage, marketing, and advertising strategy, and financial projections.

This section should be no more than two pages in length and should include the following information:

  • The name, location, and opening date of your restaurant
  • A brief description of your restaurant concept and business model
  • Your target market and marketing strategy
  • An overview of your competition and competitive advantage
  • Your financial projections for the next three to five years
  1. Company Description

The company description section of your business plan should provide an overview of your company’s structure, ownership, and management team. You’ll need to give an overview of your company, including your mission statement, values, and goals.

This section should include information on the following:

  • Your restaurant’s concept and restaurant menus
  • Your choice of location and facility type
  • Your target market and marketing strategy
  • Your business model (e.g., full-service, fast casual, etc.)
  1. Market Analysis

The market analysis section of your business plan should provide an overview of the restaurant industry and the specific market opportunity you are targeting. This section should include industry trends, demographic data, and economic indicators.

This section should include information on the following:

  • The size and growth of the restaurant industry
  • The types of restaurants that are popular with consumers
  • The trends that are affecting the restaurant industry
  1. Competitive Analysis

The competitive analysis section of your business plan should provide an overview of the competition in your market. This section should include information on the number of restaurants in your market, their average sales volume, their marketing and advertising strategies, and their pricing structures.

This should include information on the following:

  • The type of competition you face (e.g., direct, indirect, etc.)
  • The number of competitors in your market
  • The competitive landscape (e.g., who is the market leader, niche players, etc.)
  1. Menu

The menu section of your business plan should provide an overview of the dishes that you will be offering at your restaurant. It should include information on your recipes, ingredient sourcing, and pricing.

In this section, you will provide a sample of your restaurant menu. This should include information on the following:

  • Your choice of cuisine (e.g., American, Italian, Chinese, etc.)
  • Your pricing strategy
  • Your portion sizes, servings per dish, and plate presentation
  1. Employees

The employees’ section of your business plan should provide an overview of the team you will assemble to help you operate your restaurant. This section should include your staffing needs, job descriptions, and compensation structures.

In this section, you will describe your employee requirements. This should include information on the following:

  • The types of employees you will need to fill (e.g., chefs, dishwashers, wait staff, servers, bartenders, etc.)
  • The number of employees you will need to hire
  • The qualifications and experience you require of employees
  1. Restaurant Design

The restaurant design section of your business plan should provide an overview of the physical space you will be leasing or purchasing for your restaurant. This section should include information on the layout of your dining room, kitchen, and restrooms.

In this section, you will describe your restaurant’s overall design and concept. This should include information on the following:

  • The style of your restaurant (e.g., casual dining, fine dining, family style dining, etc.)
  • The theme or decor of your restaurant
  • The layout and design of your restaurant
  • Your choice of furnishings and fixtures
  • Branding elements
  1. Location

The location section of your business plan should provide an overview of the geographic market that you will be targeting with your restaurant. This section should include information on the demographics of your target market, the competition in your market, and the visibility of your restaurant location.

In this section, you will describe your restaurant’s location. This should include information on the following:

  • The location you are looking for (e.g., downtown, suburban, strip mall, etc.)
  • The size of the area you are looking for (e.g., 2,000 square feet, 3,000 square feet, etc.)
  • The features of the location you are looking for (e.g., parking, visibility, etc.)
  • The traffic patterns near your restaurant
  1. Market Overview

The market overview section of your business plan should provide an overview of the restaurant industry. It includes information on industry trends, demographic data, and economic indicators.

In this section, you will provide an overview of the restaurant market. This should include information on the following:

  1. Marketing and Advertising

The marketing and advertising section of your business plan should provide an overview of how you will promote your restaurant. This section should include your marketing budget, promotional strategies, and media mix.

In this section, you will describe your marketing strategy. This should include information on the following:

  • Your target market and target customer profile
  • Your marketing mix (e.g., product, price, place, promotion)
  • Your direct to consumer advertising and promotion strategy (e.g., print, online, social media, etc.)
  • Your direct marketing efforts (e.g., coupon, loyalty program, etc.)
  1. SWOT Analysis

The SWOT analysis for restaurant is a tool you can use to assess the strengths, weaknesses, opportunities, and threats of your restaurant business. This section should include your restaurant’s unique selling proposition, key marketing initiatives, and competitive advantage.

In this section, you will conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of your business. This should include information on the following:

  • Your restaurant’s strengths and weaknesses
  • The opportunities and threats posed by your competition
  • Your restaurant’s strengths and weaknesses (internal factors)
  • The opportunities and threats facing your restaurant business (external factors)
  1. Financial Analysis

The financial analysis section of your business plan should provide an overview of your restaurant’s financial projections. It includes your start-up costs, operating expenses, and revenue streams.

This section will provide a detailed financial projection for your restaurant business. This should include information on the following:

  • Your start-up costs and funding sources
  • Capital requirements
  • Your projected income and expenses
  • Your expected return on investment (ROI)
  • Your sales, revenue, and profitability projections for the next three to five years
  • Your exit strategy (e.g., IPO, sale, etc.)

When writing your business plan, be sure to include all the important sections listed above. These will give you the best chance for success when starting a new restaurant.

Frequently Asked Questions About Restaurant Business Plan

In light of what you’ve learned about restaurant business plans and their components, let’s explore some questions you may have about them.

What Is a Perfect Business Plan?

There are a few key things that make a business plan perfect. 

  • First, it should be clear and concise. It should lay out your goals and objectives for the business in a way that is easy to understand. 
  • Second, it should be realistic. It should consider your resources and limitations and craft an achievable plan.
  • Finally, it should be adaptable. Your business plan should change with it as it grows and changes.

How Long Should a Business Plan Be?

There’s no rule of thumb for how long a business plan should be, but 15-20 pages is a good starting point. The length of your business plan will depend on the scope and complexity of your business, as well as your goals and objectives. 

What are the Four Types of Business Plan?

The four types of business plans are:

  1. Short plans, or miniplans, are concise versions of a full business plan.
  2. Presentation plans, or decks, are visual representations of your business plan.
  3. Working plans are more detailed and comprehensive versions of your business plan.
  4. What-if plans are contingency plans that outline how you would respond to various risks and challenges that could impact your business.

A Roadmap to Success

A well-executed restaurant business plan is the key to a successful restaurant. By creating a plan that outlines your business goals, strategies, and financials, you can ensure that your restaurant will be on track for success.

While no plan is ever foolproof, following a sound plan gives you the best chance for success. If you are looking to start or expand your restaurant business, be sure to create a comprehensive business plan that will help you achieve your goals.BinWise inventory management CTA

Revolution Ordering is an off-premise, omni-channel, direct delivery-enabled ordering platform for individual, franchise, middle market and large multi-unit restaurant enterprises. Take advantage of cutting edge features including 360° order history, live order monitoring, and marketplace order insertion. Contact us for a demo now to see how our off-premise solutions can help grow revenue and earnings of restaurants. Note that Revolution demos are a walkthrough of our software, not a source of business advice.

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