Preparing a Business Plan For a New Restaurant

The preparation of a strong and detailed business plan is essential for a restaurant business for several reasons. Firstly, you will need it to be able to convince others, such as bank managers or investors of the viability of your plans. Secondly, it will be useful to you as the business owner as a place to compile your research findings, set goals and to run some hypothetical scenarios about how the business could run if things go better or worse than expected. Below we have outlined the key components of a business plan for a design for menu restaurant start-up.

Executive Summary

This part of the report should only be about one page in length and should introduce the reader to your proposal. Firstly you can set out your personal background and why you are interested in starting a restaurant. Secondly you should include basic details of your proposal such as the location that you have or are looking for, the theme or style of the restaurant, the kind of food that you will serve, whether of not you will be licensed and the type of clientele that you wish to target.

Mission Statement

Take some time to describe the kind of business that you want to be in terms of your business philosophy and values. Think about what you really want to achieve, financially and otherwise. Consider how you want to be perceived in the eyes of your customers and by the local community.

Objectives

Set out a timeline that highlights the goals that you have for the restaurant business in the short and medium term. Gauge your progress and success by setting a variety of targets such as daily and monthly gross sales, percentage of full restaurant capacity reached on a consistent basis, and how long it takes to get the first course on the table from the point that the order was taken for example.

Ownership Structure, Management and Employees

List any people that have an ownership stake in the business and their respective interests. Also set out a management plan so that there are no arguments when it comes to making decisions if there is more than one owner. Estimate the number of employees that will be needed initially and set out a schedule to hire more as the restaurant grows in popularity.

Start-up Requirements and Operating Costs

Set out a comprehensive list of everything that will be needed for the restaurant to start as planned. Try to think of every little detail as you compile a list of equipment, building renovations, other supplies and compliance costs. You also need to estimate the amount that is needed for monthly operating costs and some entrepreneurs will allow for several months of operating costs when they calculate total start-up costs as revenue will be slow at first.

This is also a good part of the report to include details of how the restaurant startup will be funded and the sources of finance that you, as the owner have available.

Location and Competition

Set out your reasons for wanting to locate your restaurant in a specific location. Include details of all local competitors and how you propose to differentiate your restaurant in a way so as to allow you to stand out and compete with them. You should be able to show that there is a local market that is not being met by your competitor’s offerings and suggest ways of meeting this demand. It is helpful here to back up your reasoning with some demographic data or market research.

A Marketing Plan

Marketing is one of the most important factors contributing to the success of a new restaurant. Discuss your target market in detail and how you plan on packaging an experience that suits their tastes in the way of food, music, theme and atmosphere. Give details as to how the dining experience that you create will be branded with a name and a logo and how you will live up to your brands promises and reputation in a way that strengthens your brand over time.

Talk about pricing and include a list of proposed menu items with proposed prices. Consider how your prices will compare with other restaurants in the area and how the value that you offer would be comparable or better than what they have to offer. Estimate what the average customer will spend at your restaurant.

Lastly, set out some methods that you feel could work well for adverting and promoting the restaurant.

Financial Analysis

Set out some financial projections for your first three years in business. Estimate monthly cash flows coming in and out of the business and set these out in a spreadsheet. Change your figures to allow for a variety of different scenarios in the case that things go worse or better than expected. You will then have a fair idea of how profitable your restaurant will be if it runs according to your plans.

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