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How to write a restaurant business plan

A small restaurant business plan is the roadmap you use to open a successful spot. As a first step to creating yours, ask your friends and colleagues to share restaurant business plan examples. Their restaurant business plan samples can inspire yours.

Once you’ve studied those examples, it’s time to start writing your own. No matter how much thought you’ve put into your concept or how many trusted colleagues have assured you of its greatness, you must write a restaurant business plan. It will prove the viability of your concept to potential investors and provide them with a clear and engaging answer to the question: “Why does the world need this restaurant?”

“The point of a business plan is to show that you’ve done your homework,” says Charles Bililies, owner of Souvla , a fine casual Greek restaurant in San Francisco that has received national acclaim since opening in the spring of 2014.

“You have to show any potential investor that you have an actual plan, you know what you’re talking about, it looks professional, and you’re not just screwing around.”

Quick links Branded cover Table of contents 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 finalized), the date, and your name.

2. Table of contents

A table of contents in a restaurant business plan provides an organized overview of the document’s structure and content. It typically appears at the beginning of the plan and lists the major sections and subsections with their corresponding page numbers.

The table of contents is important for several reasons. Firstly, it allows readers to quickly navigate through the plan, enabling easy access to specific sections of interest. Secondly, it helps in presenting a professional and well-structured document, showing that you have carefully organized your thoughts and ideas. It also improves readability and comprehension, as readers can easily locate and refer back to relevant information

3. Restaurant concept

Describe your restaurant concept and get the reader excited about your idea. Specify whether the restaurant will be fine dining or more casual. Include an executive summary and 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 and include your mission statement. This section should include a market analysis that shows how your restaurant will be similar and different from competing restaurants.

4. 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 that are based on a detailed cost analysis. This will:

• Give investors a clear understanding of your targeted price point
• Provide the info needed to estimate check averages
• Show the numbers used create financial projections for starting costs
• Show investors that you’ve done the homework
• Prove you can stay within a budget

This section is most relevant for:

• Fine-dining concepts
• Concepts that have a unique service style
• Owners who have particularly strong feelings about what role service will play in their 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 and restaurant hostess software designed to get guests on their way as quickly as possible, or will it look more like a theater, 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.

6. Management team

Write a brief overview of yourself and the team you have established so far. You want to show that your experience has provided you with the necessary skills to run a successful restaurant and act as a restaurant business owner.

Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full pitch 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.

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant.

Whether you’re planning to cook in a wood-burning oven or are designing an eclectic front-of-house, be sure to include those ideas. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

8. 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 appeal to them.

9. 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 neighborhoods.

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 neighborhood(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, freeway accessibility, outdoor seating , and other important details.

10. Market overview

Address the micro and macro market conditions in your area and how they relate to licenses and permits. 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 who your direct competitors are. Talk about what types of restaurants share your target market and how you’ll differentiate yourself.

11. Marketing and publicity

The restaurant landscape is only getting more competitive. Discuss your pre- and post-opening marketing plans to show investors how you plan to 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.

12. Specialists and consultants

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

• General contractor
• PR and marketing

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

13. 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 an attorney to help you determine what business structure is best for you.

“Step one: write a business plan. Step two: hire a good attorney. In addition to helping me build a smart, sustainable business structure, my attorney 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,” says Charles Bililies.

14. Financial projections

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

Before creating realistic financial projections, your accountant will want to know:

• How many seats the restaurant will have
• What your average check will be
• How many covers per day you plan to do

Being conservative in these estimations is key. 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, emphasizes, “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

Writing a comprehensive restaurant business plan is a crucial step towards opening a successful establishment. By seeking inspiration from examples, demonstrating your expertise, and addressing all the essential components, you can prove the viability of your concept to potential investors.

Remember, a well-prepared business plan demonstrates professionalism and a clear understanding of your goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

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Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create a successful restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

What is a Restaurant Business Plan?

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.  

What are the Main Types of Restaurants?

There are many types of restaurant businesses which vary based on their service style. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types.

Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.  

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks or independent restaurant investors. Typically you will find a local bank and present your restaurant business plan to them. Most independent restaurant investors are in the restaurant business already and can be a valuable resource for advice and help with your business plan.

Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.  

Sample Business Plan for a Restaurant Owner

Below is a business plan example to help you create each section of a comprehensive restaurant business plan.

Executive Summary

Business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new business for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.  

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

A sample menu can be found in the Appendix of this business plan.

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.  

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.  

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and restaurant design, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.  

Customer Analysis

Demographic profile of target market.

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Customer Segmentation

The target audience for Bluehorn Restaurant & Steakhouse will primarily include the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each of our direct competitors is below.

Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose.  

Oak & Ore

Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired restaurant experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC

The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.  

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows:

Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media

Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options.  

SEO Website Marketing

Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks.  

Third Party Delivery Sites

Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.  

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire the entire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.  

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income statement, balance sheet, cash flow statement.

  You can download our free restaurant business plan template PDF . This restaurant business plan template can be used to create a finalized business plan for your restaurant concept.

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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.

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The bottom line

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

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

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

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

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

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

Creating a solid business plan is important, as it helps:

Transform your restaurant ideas into reality.

Boosts entrepreneurial success by 16% ( Harvard Business Study ).

It equips you to navigate challenges before they arise.

Attracts potential investors.

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

To set yourself up for success create a restaurant business plan.

Here's how to get started. 

What is a restaurant business plan? 

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

When it comes to the length and level of detail, ranging from brief synopses to large papers, each business plan may vary. It's good to note that investors can benefit from clear insights and additional information provided from the start. 

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.

Steps to include in your business plan 

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

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

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

1. Executive summary

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

80% of venture capitalists say they read the executive summary first.

62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.

A strong executive summary can increase the likelihood of securing funding by up to 40%.

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

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

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

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

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

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

1.1 Concept Development

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

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

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

1.2 Cuisine Selection

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

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

To make an informed decision, consider factors such as:

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

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

1.3 Creating a mission statement

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

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

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

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

Related content: How to Write a Restaurant Mission Statement 

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

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.

2. Company description

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

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

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

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

Here's an example of the page layout:

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

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

Owner: [Owner Name]

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

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

Further reading

• How to Write a Great Restaurant Description

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market ? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

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

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

An example of analyzing your target market

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

Demographics and preferences

Identifying your primary target market involves considering factors such as:

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

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

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

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

Dining habits and trends

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

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

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

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

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

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

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

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

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

You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

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

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

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

Example for choosing an ideal location

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

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

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

7.1 Foot traffic and accessibility

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

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

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

7.2 Neighborhood demographics

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

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

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

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

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

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

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

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more : How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems.

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section. We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

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

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

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

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

Growth Marketing Manager at Eat App

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

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

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

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How to Write a Restaurant Business Plan + Free Template

You have cracked the recipe for good food & great ambiance and are planning to start a restaurant, fantastic!

Whether starting a cozy corner cafe, a theme-based fine dining restaurant, or growing an existing one, you will need a restaurant business plan as a roadmap for your business success.

But writing a business plan is complex, isn’t it? That is why we are here with our comprehensive restaurant business plan template to help you in writing yours.

Key Takeaways

• Highlight the concept of the restaurant along with the ambiance, types of cuisines, customer base, and USPs of the restaurant in the plan.
• Utilize tools for SWOT analysis to assess your strengths, weaknesses, opportunities, and threats for making informed decisions.
• Craft an impactful executive summary that outlines your restaurant’s concept, marketing approach, financial outlook, and team expertise to attract potential investors and partners.
• Conduct thorough market research to understand market trends, consumer preferences, and the needs of your target market.
• Analyze the competitive landscape, and identify direct & indirect competitors, to develop strategies that maintain your restaurant’s competitive advantage.
• To ensure efficient daily operations, provide in-depth operational plans that incorporate staffing, additional services, inventory control, and customer service.
• Create realistic financial projections for sales revenue, expenses, and profit forecasts while considering contingencies & emergencies.

Why is a restaurant business plan important?

Crafting a restaurant business plan is daunting but its significance cannot be underestimated. It is essential to drive your business toward success.

In the competitive atmosphere where there are 700,000+ restaurants in the USA, having a proper plan will help you get funding and better adaptability in a constantly changing business environment.

Even if funding isn’t a primary concern, a plan provides the restaurant owner or manager with clear direction on how to create actionable strategies for reaching business goals.

Your business plan will also help solidify the viability of the restaurant’s idea and concept.

In short, think of it as a guide for running all the aspects of the business smoothly.

How to write a restaurant business plan: Step-by-Step Guide

Since we are talking about a restaurant business plan; let us walk you through this restaurant business plan outline step-by-step without any delay:

1. Executive summary

An executive summary is the first section and the most significant section of any business plan. It captures the essence of your whole plan summarizing it for a quick understanding of your business.

Think of it as a sneak peek for the readers that draws their attention to the entire restaurant business plan.

You should start your summary with a compelling introduction with the name of your restaurant. It should also focus on the essence of your restaurant concept.

Give a brief overview of your unique selling points, emphasizing what makes your restaurant special. It might be the signature dishes, innovative ambiance, prime location, or some new cuisine experience.

Apart from the above essential points, your executive summary should include:

• Mission statement
• Vision statement
• Execution structure
• Potential costs
• Expected return on investment

Many readers will read the executive summary before making a judgment, so if this is all they read, make every word count.

Also, SBA advises to include financial projections in your executive summary if you’re using your business plan to request funding.

Say goodbye to boring templates

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2. Company Overview

Company overview is a part where you fully introduce your restaurant business including legal business structure, location, and your restaurant’s proposed concept.

Here you have the liberty to be a little more creative in describing your restaurant in the whole business plan.

Here are some points to incorporate in the company overview:

• Detailed vision and mission statement
• Type of restaurant (fine dining, small restaurant, bistro, cafe, etc.)
• Legal business structure
• Service style
• History and background of the restaurant (if existing)
• Owners’ names and qualifications
• Cusinies & menu highlights
• Restaurant size and seating capacity
• Operating hours & meal plans
• Related service availability (delivery, catering, etc)

Mainly emphasize the chosen location because easily accessible locations with high foot traffic will attract more walk-in customers. And if you haven’t decided on a specific location yet, then mention the type of place you are looking for to give an idea about it to your readers.

Besides, mention the short-term and long-term goals of your restaurant business in the later part of the company description. Along with that mention regional industry trends and your USPs.

Need Assistance Writing a Restaurant Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

Start Planning Now

3. Market analysis

The market analysis section provides you with a clearer picture of your target market, competitors, and industry trends.

Based on the above details, one can make informed decisions while creating strategies. Therefore, make this section precise and concise to understand.

Here are some steps to follow to write an engaging market analysis section of the restaurant business plan:

• Define your customer base: Identify and describe whom you are going to serve. Make a consumer base after considering the demographics, location, and concept of your restaurant.
• Competitive analysis: List out the names of other restaurants in your location and do the SWOT analysis. You can get the competitive advantage of your restaurant this way.
• Market trends: Discuss any shift in consumer behavior like healthy choices, an increase in vegan food consumption, or technological breakthroughs that might affect your restaurant.

Consider conducting market research, TAM-SAM-SOM analysis , and SWOT analysis to get insights for this section.

Remember, this section helps your readers and potential investors understand your target market, restaurant market overview, market size, and growth potential, so make sure you play your cards right.

4. Sample Menu

The most vital step in launching your restaurant business is the menu. A well-curated menu design will sell itself for your restaurant. Even if you are a new restaurant, then present the sample menu with the name and logo of your restaurant on it.

The menu will showcase all the unique offerings your direct competitors might not provide. Not just the list of cuisines but the pricing is also crucial. This way potential investors and readers can understand your restaurant’s target price point.

Plus your menu should be in sync with target customers; for example, a restaurant near the university should contain more beverages and delicious food options for brunch as students prefer those things more.

Consider your menu as a part of branding, choose the same theme for the menu as for the restaurant.

5. Restaurant Design

Restaurant design is the part where you can show your restaurant concept to potential investors and readers practically. Moreover, create a mood board to explain things smoothly.

Utilize this section to show the uniqueness of your restaurant, and how it is different from competitors.

Explain how your design represents your restaurant’s branding and visual identity. Furthermore, mention how your target market will enjoy and appreciate the ambiance you plan to provide.

Note that restaurant design is one of the key elements to running a successful restaurant, so match the theme and cuisines accordingly.

In this section, you also have to provide a detailed description of how many seats are going to be there along with the floor plan of your restaurant.

6. Management Team

As the name suggests, the management team section of your restaurant’s business plan introduces restaurant owners, key executives, and the management team. It also incorporates the experience, qualification, and restaurant industry knowledge of every individual who is on the team.

A strong management team section can be essential to weigh authority and help potential investors be confident about your restaurant’s idea and vision.

You might consider including the following information in the management team section:

• Business owner or founder’s information
• Executive chef and culinary team
• Front-of-house manager
• Operations and back-of-house team
• Advisors/consultants
• The organizational structure of the team

Showcase how each member fits and what roles & responsibilities they will play.  You should include a resume-styled summary for each person in the restaurant’s management section.

7. Operations Plan

The operations plan section outlines the daily business processes and activities centered on achieving the restaurant dream and objectives described in the rest of the plan.

A detailed operations plan helps you and your team define your responsibilities, daily tasks, and short-term goals you need to achieve, keeping track of your long-term objective.

Here are a few key elements to include in your operations plan section:

• Staffing and training
• Operating hours
• Operational process
• Tools and equipment
• Inventory control
• Technology and software
• Quality control measures
• Customer service policies

Remember it should incorporate all important daily tasks. Also, an operations plan is a living document, you can change it often according to the change in the dynamics of the work.

Read More: The Ultimate Guide to Restaurant Operations Planning

8. Marketing Plan

Even with great food, prices, and ambiance, you won’t attract enough diners without marketing.

Thus, a well-crafted restaurant marketing plan is necessary to spread awareness and build a strong brand presence.

The marketing plan can help you streamline your marketing efforts and create impactful and effective marketing campaigns while keeping track of the projected budget and maximizing return on investment.

Hence, this is the section in which you give an idea to your potential investors about how you will acquire new customers and retain existing ones. This section should include:

• Target market and their dining habits
• Branding and positioning
• Marketing strategies (website, social media accounts, etc.)
• Marketing Calendar
• USPs of your restaurant (unique ambiance, amiable staff, new cuisines in the local area)
• Your marketing goals
• Customer retention strategies (loyalty program, giving coupons or discounts on bulk orders or events)

Even if you are going to hire a PR agency for marketing, then mention it and the reason why you chose them.

After taking care of marketing, let us move further to finances.

Read More: Step-by-Step Guide to Restaurant Marketing Plan

9. Financial Plan

The financial plan is the most crucial and demanding section of any business plan. It is one of the deciding factors for potential investors, banks, or any financial institute to invest in your restaurant business.

This section of your plan details your restaurant’s financial information and how it will reach its financial goals or how much revenue potential it has.

Here are key components and statements that you should include in your financial plan section:

• Pro forma profit and loss statement
• Break-even analysis
• Balance sheet
• Sales forecast
• Detailed cost analysis
• Cash flow projections
• Business ratios
• Funding request
• Tax considerations
• Exit strategy

Before you create financial projections, know how many seats the restaurant will have and what services you plan to provide. This will help you in making realistic financial projections if you are going to start a new business.

Also, if you are asking for funding, then mention where you will utilize your funds.

We hope that this sample restaurant business plan will provide you with an idea for writing a successful plan.

Restaurant Industry Highlights 2024

• Growth forecast : National Restaurant Association predicted US restaurant sales to reach $898 billion in 2022 which would further grow by 4% yearly to reach $1.2 trillion by 2030.
• Technology is everywhere : Automation is helping staff maximize their efficiency by handling orders, deliveries, and communication effectively.
• Sustainability & ethical sourcing : Eco-friendly practices such as minimizing food waste, avoiding single-use plastics, and ethical plus local sourcing are encouraged by customers.
• Delivery is the new deal : People prefer deliveries over dining out as they are time-saving. So, there is an incline in the number of delivery apps and delivery services providing restaurants.
• Kiosks are the preference : The number of people who prefer ordering and paying through kiosks is increasing due to the convenience.

How to Refine & Present a Restaurant Business Plan

Once you have written your entire business plan, it is time to read and re-read it and make it error-free. You have to be confident about every aspect of the plan before you present it in front of your audience.

Moreover, alter your plan to suit different audiences to enhance your communication. For instance, keep your plan professional and include all the growth potential, profitability, and ROI data when you present your restaurant business plan for seeking funding.

Also, when you present your restaurant business plan to potential partners or vendors, emphasize collaboration benefits and how it can help in their individual growth.

Apart from the above points, make sure your plan has various engaging visuals, interactive elements, and enhanced storytelling to present all the data interestingly. Thus, make a digital presentation of your plan to incorporate all the above things clutter-free.

Once you are confident, it is time to email your plan to the people already on your mind. And give a pat to yourself for finally taking that step.

Download a sample business plan for a restaurant

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free restaurant business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for restaurants. It includes step-by-step instructions & examples to help in creating your own restaurant business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Related Restaurant Resources

• Restaurant Marketing Plan
• Restaurant Financial Plan
• Restaurant Operations Plan
• Restaurant Industry Trends

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With Upmetrics, you will receive step-by-step guidance, customizable templates, 400+ sample business plans , and AI assistance to streamline your business planning process.

In fact, if you are not adept with finances, the financial forecasting tool Upmetrics provides will help you create realistic financial forecasts for 3 or more years.

Whether you’re starting a new venture or looking to grow one, Upmetrics offers the resources and insights you need to develop a successful & professional business plan that aligns with your goals.

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Frequently asked questions, why do you need a restaurant business plan.

A solid business plan is an essential tool for anyone looking to start or run a successful restaurant business. It helps to get clarity in your business, raise money, and identify potential challenges while starting and growing your business.

How to get funding for your restaurant business?

There are several ways to get funding for your restaurant business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

What is the easiest way to write your restaurant business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of restaurant business plan samples and edit it as per your needs. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good restaurant business plan help me secure funding?

Indeed. A well-crafted restaurant business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

What's the importance of a marketing strategy in a restaurant business plan?

Marketing strategy is a key component of your restaurant business plan. Whether it is about achieving goals or helping your investors understand the return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having a marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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

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

Maja Jankowska

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

What is a business plan for?

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

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

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

Create Restaurant’s Business Plan in these 9 steps:

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

1. Executive summary

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

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

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

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

2. Describe your concept

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

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

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

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

3. Market analysis

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

Target audience 

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

Competition

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

Market analysis for restaurant’s business plan

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

Example of SWOT analysis for a restaurant

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

4. Management and organization

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

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

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

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

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

5. Sample “yummy” Menu 

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

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

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

6. Design and branding 

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

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

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

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

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

resOS’ customizable interface for your booking system

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

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

7. Location

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

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

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

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

8. Marketing plan

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

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

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

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

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

9. Financial Plan

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

Here are the 🔑 key components to include:

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

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

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

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

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Small Restaurant Business Plan

Start your own small restaurant business plan

Bistro Locale

Value proposition.

Bistro Locale offers an intimate and authentic dining experience by serving fresh, seasonal dishes inspired by local flavors and ingredients. With its warm, inviting atmosphere and exceptional customer service, it provides a unique destination for food lovers seeking a local, high-quality dining experience.

The Problem

Many restaurants offer generic, mass-market menus, lacking the charm, authenticity, and personal touch that discerning diners seek. There’s a need for a dining destination that offers a menu deeply rooted in the local culinary culture, showcasing the region’s finest ingredients.

The Solution

Bistro Locale fills this gap by offering a rotating menu based on the seasons and local produce availability. With dishes prepared with passion and attention to detail, the restaurant provides a unique dining experience that supports local farmers and celebrates the community’s culinary heritage.

Target Market

The primary target market includes local residents who appreciate high-quality, locally-sourced food, as well as tourists seeking an authentic regional dining experience. The secondary market includes local businesses looking for catering services for corporate events or meetings.

Competitors & Differentiation

Current alternatives.

• Chain restaurants
• Other local independent restaurants
• Fast-food restaurants
• Food delivery services

Bistro Locale differentiates itself by emphasizing local produce and seasonal menus, offering diners an authentic, high-quality dining experience that truly represents the region’s culinary heritage. The restaurant’s intimate atmosphere and top-notch customer service also contribute to a unique and memorable dining experience.

Funding Needs

The initial investment for property lease, kitchen equipment, renovation, inventory, and working capital is estimated at $200,000.

Sales Channels

• Bistro Locale physical location
• Online reservations via the restaurant website
• Food delivery apps for takeout orders
• Catering services

Marketing Activities

• Social Media Campaigns
• Local SEO and Content Marketing
• Collaborations with Local Farms and Businesses
• Email Marketing and Special Promotions
• Participating in Local Food Festivals and Events

Financial Projections

2023: $250,000

2024: $280,000

2025: $315,000

Expenses/Costs

2023: $180,000

2024: $195,000

2025: $210,000

2023: $70,000

2024: $85,000

2025: $105,000

• Obtain necessary permits and licenses — June 1, 2023
• Complete renovations and set up — August 1, 2023
• Launch website and social media accounts — September 1, 2023
• Open for business — October 1, 2023
• Start offering catering services — January 1, 2024
• Achieve consistent monthly profitability — June 1, 2024
• Participate in the local food festival — September 1, 2024

Team and Key Roles

Owner/operator.

Responsible for overseeing the daily operations of Bistro Locale, including menu planning, inventory management, and staff training.

Oversees kitchen operations, ensures food safety practices, manages kitchen staff, and collaborates on menu development.

Front-of-House Manager

Manages the customer service aspect, oversees front-of-house staff, ensures a clean and welcoming environment, and handles customer complaints and feedback.

Partnerships & Resources

The purpose of these partnerships is to build a successful restaurant business that delivers quality and value to its customers while supporting the local economy and community.

Local Farmers and Food Suppliers

Partner with local farms and food suppliers to source fresh, high-quality ingredients and support local economic development.

Food Delivery Apps

Collaborate with popular food delivery apps to offer delivery services, making it easier for customers to enjoy Bistro Locale’s meals from the comfort of their homes or offices.

Community Organizations

Engage with local community organizations to host charity events, fundraisers, and community gatherings, positioning Bistro Locale as a community-conscious business.

Local Businesses

Develop partnerships for catering services, offering special rates and deals to encourage local businesses to use our services for their events and meetings.

Wine and Beverage Suppliers

Collaborate with local wineries and beverage suppliers to offer a diverse selection of regional wines and drinks that pair well with the menu and highlight local products.

Through these partnerships, Bistro Locale can effectively integrate into the local community, promote sustainable and local sourcing, and contribute to the local economy, while providing an authentic and high-quality dining experience to its customers.

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Restaurant Business Plan Template

Written by Dave Lavinsky

If you want to start a restaurant or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their restaurants. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a restaurant business plan step-by-step so you can create your restaurant’s business plan today.

Download our Ultimate Restaurant Business Plan Template here >

What Is a Restaurant Business Plan?

A restaurant business plan provides a snapshot of your restaurant business as it stands today, and lays out your projected growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research, information about your target market, and a sample menu to support your winning restaurant business plan.

Why You Need a Business Plan for a Restaurant

If you’re looking to start a restaurant or grow the existing restaurant you need a business plan. A restaurant business plan will help you secure funding, if needed, and plan out the growth of your restaurant in order to improve your chances of success. Your restaurant business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Restaurants

With regards to funding, the main sources of funding for a restaurant are bank loans and angel investors. With regards to bank loans, banks will want to review your restaurant business plan and gain confidence that you will be able to repay your loan and interest.

To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional restaurant business plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a restaurant is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Private equity groups are also a good source of funding for restaurant chains looking to expand further.

Finish Your Business Plan Today!

How to write a restaurant business plan.

Use the following restaurant business plan template which includes the 10 key elements for how to write a restaurant business plan that will help you start, grow, and/or secure funding for your business.

Executive Summary

Your executive summary provides an introduction to your restaurant business plan, but it is normally the last section you write because it provides a summary of each key section of your business plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of restaurant business you are operating and the status; for example, are you a startup, do you have a restaurant that you would like to grow, or are you operating a chain of restaurants?

Next, provide an overview of each of the subsequent sections of your business plan. For example, give a brief overview of the restaurant industry. Discuss the type of restaurant you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer a financial analysis of your business.

Company Overview

In your company analysis, you will provide a brief description of the type of restaurant you are operating.

For example, are you writing a small restaurant business plan or a business plan for a restaurant franchise. Further, you might operate one of the following types:

• Fine Dining : characterized by the fancy decor, a dress code, and high prices
• Casual Dining : offers waiter/waitress service in a nice (but not overly fancy) atmosphere with moderate prices
• Fast Casual : characterized by quality food (close to the quality of casual dining) but no waiter/waitress service in an accessible atmosphere
• Fast Food : quick service style provided at the counter or via a drive-through. Lowest quality food and lowest prices
• Steak Restaurant : focuses on steak entrees and is usually a higher priced and fancier restaurant
• Buffet Restaurant : may or may not offer waiter/waitress service. Patrons serve themselves from buffet food selection
• Ethnic Restaurant : focuses on a specific ethnic cuisine such as Indian food, Mexican food, or Moroccan cuisine.

Within these types of restaurants, there are also ethnic food specialties such as American, Italian, Japanese, Chinese, Indian, etc.

In addition to explaining the type of restaurant you operate, the Company Analysis section of your restaurant business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• Your mission statement and how it connects to your restaurant’s brand.
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new restaurant openings, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, also called a Market Analysis, you need to provide a market overview and an overview of the industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the restaurant industry educates you. It helps you understand the target market in which you are operating.

Secondly, research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards speedy restaurant services, it would be helpful to ensure your business plan calls for take-out or other quick-service options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your business plan, you achieve just that.

The following questions should be answered in the industry analysis section of your restaurant business plan:

• How big is the restaurant business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your restaurant? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your restaurant business plan must detail the customer base or target market you serve and/or expect to serve.

The following are examples of customer segments: business executives, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of restaurant you operate. Clearly, baby boomers would want a different atmosphere, pricing and sample menu options, and would respond to different marketing promotions than teens.

Try to break out your customers in terms of their demographic and psychographic profiles. With regards to diner demographics, include a discussion of the ages, genders, locations, and average income levels of the new customers you seek to serve. Because most restaurants primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. This should also include how your customers choose where they should eat, their dining habits, and how much they are willing to spend on a meal.

The answers to the following questions should be included in your customer analysis:

• Who is your target market?
• What are their needs and wants?
• How do they make dining decisions?
• What motivates them to choose one restaurant over another?

The more you can understand and define these needs, the better you will do in attracting and building customer loyalty.

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Competitive Analysis

This competitive research should help you identify the direct and indirect competitors that your business faces and then focus on the latter.

Direct competitors are other restaurants.

Indirect competitors are other options that customers have to purchase from you that aren’t directly competing. This includes restaurants, supermarkets, and customers preparing dishes for themselves at home. You need to mention such competition to show you understand that not everyone frequents a restaurant each day.

With regards to direct competition, you want to detail the other restaurants with which you compete. Your greatest competitors will be restaurants located very close to your specific location, who are of the same type (e.g., fine dining, casual dining, etc.) and who offer the same cuisine (Japanese, Italian, etc.).

For each such competitor, provide an overview of the other businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of repeat customers do they serve?
• What menu items do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the existing customers’ perspective. And don’t hesitate to find out this information from customers by reviewing your competitors’ Yelp listings and other review pages.

The final part of this section is to document your areas of competitive advantage. For example:

• Will you provide superior food items?
• Will you provide menu items that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your meals?
• Will you provide better customer service?
• Will you offer better pricing?

Think about your unique selling points that will help you outperform your competition and document them in this section of your business plan.

    Finish Your Business Plan Today!

Marketing plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a restaurant business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of restaurant that you documented in your Company Analysis. Then, detail the specific menu items you offer/will offer.

Price : Document the prices. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your restaurant. Perform a location analysis and mention how the location will impact your success. For example, is your restaurant located next to a heavily populated office building, or gym? Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate food trucks, detail the locations where the trucks will operate.

Promotions : the final part of your restaurant marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your restaurant’s front store extra appealing to attract passing customers
• Search engine marketing and optimization
• Social media posting/advertising
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your restaurant business plan explained your goals, your operational plan describes how you will meet them.

This section of your restaurant business plan should have two key elements as follows:

• Everyday short-term processes include all of the tasks involved in running your restaurant such as serving customers, procuring supplies, keeping the restaurant clean, etc.
• Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your restaurant’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in the restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience operating restaurants and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Pro-Forma Profit & Loss Statement / Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows how much revenue you expect to earn or have earned, and then subtracts your costs to show your actual or projected profit.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Pro-Forma Balance Sheets

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

For instance, if you spend $250,000 on building out your restaurant, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Pro-Forma Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for ingredients, supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a restaurant:

• Location build-out including design fees, construction, etc.
• Cost of equipment like stoves, refrigerators, blenders
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections, detailed cost analysis and/or break-even analysis in the appendix of your business plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint, location lease, or initial menu design.

Taking the time to write your own restaurant business plan for your business is a worthwhile endeavor. It will help you communicate your ideas and provide potential investors with the information they need to make an informed decision about investing in your restaurant.

A well-crafted business plan will also give you a road map for growing your business and achieving your long-term goals. So, while it may take some time to put together, it will be well worth the effort in the end.

If you follow the restaurant business plan template above, by the time you are done, you will truly be an expert. You will really understand the restaurant business, your competition, and your existing customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful restaurant concept.

Want more tips? Check out our related articles:

• How to Start a Restaurant
• Restaurant Startup Costs: How Much Does It Cost To Start a Restaurant?
• How To Write a Restaurant Marketing Plan + Template & Examples
• How To Get Funding To Start and/or Grow Your Restaurant

Restaurant Business Plan Template FAQs

What is the easiest way to complete my restaurant business plan.

Growthink’s Ultimate Restaurant Business Plan Template allows you to quickly and easily complete your restaurant business plan.

Where Can I Download a Free Restaurant Business Plan PDF?

You can download our restaurant business plan PDF template here . This is a restaurant business plan template you can use in PDF format.

Where Can I Find a Small Restaurant Business Plan PDF?

Our small restaurant business plan PDF is a free resource to to help you get started on your own small restaurant business plan.

Don’t you wish there was a faster, easier way to finish your Restaurant business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan professional services can help you create a winning business.

Other Helpful Business Plan Articles & Templates

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.

10 minute read

helped business professionals at:

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 and 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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• Restaurants
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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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How to Write a Restaurant Business Plan: Complete Guide

• January 31, 2023
• Food & Beverage

👇 Check all our resources on restaurants 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) to open a restaurant , you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your restaurant . Use this template to create a complete, clear and solid business plan that get you funded. Let’s dive in!

1. Restaurant Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a restaurant?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your restaurant’s executive summary?

Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your restaurant and the products and services that you intend offer. Mention the type of restaurant you intend to open (such as fine dining, casual dining, fast casual, ghost restaurant, café, pub, etc.), the menu and prices. Also add here the total number of customers your restaurant can host at once, its location, and some details on the surface and the design layout
• Market analysis : summarise the market where you will operate and provide a brief about the target audience , market size , competitors , etc. No need to provide granular data here, save it for the Market Overview section later on (or the appendix)
• People : introduce your restaurant’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak about your hiring plans.
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials statements
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Restaurant Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Restaurant Business Overview

This is the section where you will provide details about your restaurant and the chosen business model. You must address some important questions that lenders and/or investors generally ask .

Here is a quick list of some of those questions you must address:

• What is the rationale behind you opening this type of restaurant today?
• What’s the restaurant’s location and why did you select that location?
• Why did you select the type of restaurant you want to open?
• What will be the products and services you will offer?
• What will be your pricing strategy and why?
• What will be your opening days / hours?
• How many customers can you serve at once (capacity)?
• What is the surface of your restaurant? How is the restaurant designed (incl. dining rooms and kitchen area)?
• What will be the legal structure of your company?

a) History of the Project

Any business must have two components:

• Passion & experience of the business owner
• Rationale behind starting this type of business today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have been a restaurant manager in a popular restaurant for 6 years, and now you want to start your own restaurant and use your knowledge to run it more efficiently.

However, if you don’t already have experience, that’s fine. You must demonstrate your passion and some industry knowledge (you may have conducted thorough research).

What is your restaurant’s mission?

For example, there may not be any fine dining restaurant in your area where wealthy residents or tourists can enjoy an upscale meal experience in a sophisticated and elegant environment.

But that’s not all: your market must be suitable for your business to thrive.

For instance, if you are planning to open a fine dining restaurant in a low-income area, it is probably not going to attract many customers. Similarly, if the population of the target market has a high percentage of people preferring takeaway/delivery food options because of their busy lifestyle, a fine dining restaurant may not be a good idea.

b) Business Model

This sub-section of the Business Overview will explain your business model. Describe the following points briefly:

• Will you buy an existing restaurant and do some remodeling, or will you start a new restaurant and design it from scratch?
• Will you buy a franchise or do you plan to open an independent restaurant instead?
• The type of restaurant you want to open and why

What are the different types of restaurants?

There are multiple types of restaurants. Some of them that you may consider include, but are not limited to:

• Fine Dining : They provide upscale meal experience with several courses. The atmosphere is sophisticated and classy. They can be franchises or individually owned. Of course, they are quite expensive.
• Casual Dining : This type of restaurants serve customers at their tables and the food prices are moderate. The atmosphere is not very sophisticated. Though the décor is often unique, it can be based on the type of food a restaurant serves.
• Fast Casual : These restaurants will make your food available quickly, but the food is healthier than fast food. Also, food is cheaper than casual dining. They have a counter service (you must collect food from the counter) and the décor is more contemporary.
• Ghost Kitchens : ghost kitchens (or “dark kitchen”) restaurants do not have a storefront, a dining room, signage, or décor. They operate using food delivery partners and take orders through online ordering or phone ordering.
• Fast Food : Think of Taco Bell , KFC, Burger King, etc. The food is relatively cheap and is served quickly. Food ingredients are usually preheated or precooked, and food delivery happens over the counter or via a drive-through window.
• Buffet Style : These restaurants are similar to the Family Style restaurants but with a fundamental difference. People get to select from a selection of food that are made available against a fixed price. However, customers need to serve themselves and they are allowed to return to the buffet for as many times as they want.

c) Products & Services

Of course, the products you will offer in your restaurant will depend on the type of restaurant you are opening. A Buffet Style restaurant, for example, usually prefer specialty cuisines like Indian, pizza, home cooking, Chinese, etc. Similarly, if you are opting for a Diner, you will most likely offer fried foods (fish & chicken), breakfast items, burgers, etc. at a low cost.

It is a good idea to give a list of food and drinks that you want to sell. Depending on the scale of your operations, you may have too many menu items. It is not possible to list every item on your menu, but make sure that you are listing the most important ones. If you specialize in one or a few specific dishes, mention that, too.

d) Pricing Strategy

In this sub-section, you must explain the pricing strategy of your restaurant. If you have multiple competitors (in the same niche) in the vicinity, you cannot have huge pricing variation, especially for the similar food items. Pricing will, of course, depend on the type of restaurant you are opening, and the food items you are offering.

For example, if you are sourcing the raw materials only from organic farms that do not use fertilizers and pesticides, your menu items will have a higher price tag.

Similarly, you cannot expect to charge expensive Fine Dining-like prices if you are opening a Casual Dining restaurant instead.

Create a pricing table and ensure to provide an average price range for your products. You don’t need to provide exact pricing for each product. Use price ranges instead.

Offering a pricing table is important because your pricing strategy will allow investors to tie your pricing strategy with your financial projections .

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Restaurant Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if your intentions are to open a classy Fine Dining restaurant in a low-income area, you will not attract enough customers. Similarly, if you want to open a fast-food restaurant in a place where family dining is more popular, it will be a disaster.

Therefore, you must cover here 3 important areas:

• Market size & growth : how big is the restaurant industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? What type of restaurants do they prefer? How regularly do they visit restaurants for dining? What type of food do they prefer? How much do they spend at restaurants on average?

a) Restaurant Industry Status Quo

How big is the restaurant industry in the us.

According to Finance Online , there were over 1 million restaurants (all types combined) in the US in 2021. The industry recovered post a 60% drop in sales in April 2020 due to the pandemic, and recorded an annualised market size of over $1 trillion dollars in July 2022 ($1,033 billion)..!

How big is the restaurant industry in your area?

Once you provide the overall picture of the US, divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the market size .

For example, if there are 1,000,000 restaurants in the country with total annual revenue of $1 trillion, the average annual revenue for each establishment is around $1 million.

Therefore, if the area where you want to open your restaurant has 30 restaurants, you can safely assume that the restaurant industry in your area is worth approximately $30 million.

How fast is the restaurant industry growing in the area?

You must show the expected growth rate of the restaurant industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult as you can use metrics such as the number of competitors in your area.

For instance, if there were 25 restaurants in 2018 and 30 restaurants in 2022, the average annual growth rate would be 5%.

What are the current restaurant market trends in your area?

It is vital to understand the trends of the restaurant industry in your area. Understanding trends will allow you to devise marketing strategies.

Understanding trends won’t be easy. You must conduct research and talk with your target audience. Additionally, you must also study your competitors to understand their target audience, the products they sell, etc.

Some common questions you may ask the target audience include:

• What type of restaurants do they prefer?
• At what time of the day do they prefer to visit a restaurant (breakfast, lunch, dinner)?
• How frequently do they visit restaurants?
• What type of foods do they usually order?

You can ask as many questions as you need to understand the evolving trends.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their food offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

Restaurant SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strength: 8 years of senior manager experience in a reputed Michelin Star Fine Dining restaurant operated & owned by a renowned chef and a master’s degree in Hospitality management, experienced senior chef with 22 years of experience
• Weakness: Startup cost, zero reputation
• Opportunities: An affluent neighborhood with a rising demand for fine dining establishments, only one fine dining restaurant in the 3-mile radius
• Threats: Increasing cost of raw materials because of geo-political turmoil restricting international trade routes

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience.

Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Per capita expenditure on dining
• Frequency of restaurant visits
• Average monthly income and disposable income
• Average bill size per visit
• Average yearly or monthly spending on food at restaurants
• Type of restaurants preferred
• The expected price range for food
• Inclination towards loyalty programs & free perks
• Things they dislike about existing restaurants and what they expect to be improved

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers and increase sales .

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost ?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do restaurants use?

A few marketing channels that restaurants typically use are:

• Word-of-mouth, recommendations,
• Local listing & reviews (e.g. Google reviews)
• Online booking platforms (e.g. TheFork , Opentable , etc.)
• Influencer marketing
• Print media, etc.

It is not necessary to use all channels. You can start by focusing on a few of them and include other marketing strategies later instead.

What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs can be:

• Organic raw materials : we source organic farm fresh raw materials from local farmers
• Authentic Indian food : prepared by a Michelin Star chef from India
• Family run restaurant : run by a family, helping families connect over delicious food
• Price : affordable food & menu for the quality vs. competitors
• Location : the restaurant is located in a busy street, thereby attracting many customers who can easily glance over the menu
• Uniqueness : you may be the only tapas-style restaurant around, in an area where people are fond of this type of restaurant

5. Management & People

You must address 2 things here:

• The management team and their experience / track record
• The organizational structure : different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your restaurant business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the restaurant you are proposing. If they have specialized training, achievement, and experience (such as a degree in hospitality management, 3 Michelin stars, experience in developing menus for 5-star hotels, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired a restaurant manager, server, chef, head cook, busser, cashier, bartenders, and other relevant staff members, you must provide here a chart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a restaurant.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your restaurant is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new restaurant, renovate your restaurant, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your restaurant . For a restaurant, startup costs are all the expenses you incur before you open your restaurant and start making sales . These expenses typically are:

• The leasing deposit for the space (if you rent) or to buy the real estate (if you buy)
• Renovations and improvements
• Equipment & appliances
• Furniture & tableware

Of course, the startup costs depend on a number of factors, like the size of your restaurant, its location, the facilities, the menu, etc.

On average, it costs $484,000 to $685,000 to open a casual restaurant with 150 seats (2,500 sq. ft.) in the US.

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a restaurant, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your restaurant.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your restaurant.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of covers (customers or orders) over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, cost of raw materials (food supplies) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

7. Use of Funds

This is the last section of the business plan of your restaurant. Now that we have explained what your restaurant’s business model and concept are, what is your menu, your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need ?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any restaurant business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our restaurant financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Restaurant Business Plan Template

Download our template and start creating your restaurant business plan.

Updated September 22, 2023 Reviewed by Brooke Davis

Your restaurant business plan is an outline of your future success. A well-formulated plan helps put the big picture together no matter how good your restaurant ideas are.

A business plan helps prove the viability of your thoughts and can provide investors with the information they need to sign on to your project. Investors need to know how you will run your restaurant in a competitive market and how you will overcome any challenges.

Your business plan lets you provide a framework for yourself and others to get your restaurant off the ground. Lack of preparation and a proper plan is one of the leading reasons new restaurants fail within their first year.

Learn how to write a restaurant business plan and avoid many common pitfalls of new business owners. Legal Templates has a free restaurant business plan template to help you get started.

Why You Need a Business Plan for Your Restaurant Business

How to write a business plan for a restaurant, restaurant business plan example.

Too many new restaurant owners fail to put together a business plan. You may think you don’t need one because you know what you want to do. Without a proper business plan, however, you’re moving into a difficult process without a strong framework for success.

When you want people to invest in your business, you need to be able to demonstrate future success. A concrete and carefully detailed business plan is a must. A well-crafted plan increases the likelihood that you will secure investors.

A business plan aims to help you achieve your goals at each stage of your business development and operation. The program will cover operational details, regulatory compliance, hiring practices, and other essential details.

A business plan can also help you turn your vision into tangible goals others can see. With this in a detailed plan, you will be more likely to create a successful and long-lasting restaurant.

Many people don’t know how to start a restaurant business plan without help. A good plan hits the essential details and outlines your vision for the restaurant’s future. However, you don’t have to do this from scratch. A restaurant business plan example can help you get started and know what to include in your plan.

1. Executive Summary

An executive summary is a brief overview of your company. It will outline why the community wants your food and needs your restaurant. This summary section will focus on your intended reader, whether that person is yourself or a potential investor.

An executive summary is a place for brief details rather than an in-depth and fact-heavy outline. Many people consider this the essential part of the plan, as it will outline why the restaurant will succeed.

The executive summary is your chance to capture the reader’s attention. Many people will decide whether to keep reading your plan, so getting off on the right foot is essential. Your executive summary will include information like:

• How will your restaurant be competitive
• The type of food you will serve and a menu
• The target demographics for the restaurant
• An implementation plan
• Outline of competition you will face
• Who the owners and staff will be
• The organizational structure of your restaurant
• Marketing and sales strategies

Many of these details will receive an in-depth treatment later in your plan. They should provide just the key points you want to make to summarize the rest of your business plan.

2. Management Team

Your restaurant business plan should include a section that presents your management team. Here, you detail the responsibilities of each owner, manager, and staff member. You lay out expectations for who will do what in getting the business started. These details also help show investors you are serious and know how to handle the day-to-day operation of a restaurant business.

The management team section should include essential details about the ownership of the restaurant, including:

• Legal names of each owner
• How the restaurant will be legally structured (corporation, limited liability company (LLC), etc.)
• Types of Ownership
• Percentage of ownership for each owner
• Ownership agreement among the parties

Your business plan should also include details about those running the restaurant daily. While there may be some overlap — especially in small restaurants — management responsibilities should be clearly outlined. This information should include the following:

• Full names of any management team member
• Education and background
• Past restaurant or management experience
• Title and summary of job responsibilities
• Any food industry training
• Salary and benefits information

3. Products and Services

Investors want to know what you will be serving and how you know customers will like it. This is where you can get specific and show why people flock to your restaurant. A robust opening menu shows you are prepared and know how to attract potential customers. The products and services section will include your sample menu and any other services your restaurant will provide.

This section should also address other questions about how you will handle your products:

• How will you order the necessary supplies?
• What are the costs of products and the sales price?
• How will you measure sales success?
• Why will customers choose your food over competitors’?
• How will your menu change over time?

Too many new restaurant owners have a great vision and food but don’t know how to execute a successful business. Investors want to know that your food will be good and that you fully understand how to run a restaurant. A restaurant business plan template can help you create a successful plan.

4. Customers and Marketing

You need to know who your customers are going to be. Any successful restaurant understands its key demographics and how it will market its business to these potential customers. Your business plan must outline important information about your customers and provide detailed data about the availability of these customers in your area.

Market research is often helpful in demonstrating that the type of customer you are looking for is readily available in your local marketplace. Supporting information must be available here to show investors you have customers to keep your restaurant long-term.

Marketing strategies and an ongoing plan are essential to the success of a new business — especially a restaurant. It would be best to show how you would make people aware of your new restaurant and engage customers in the future. Your restaurant business plan can include marketing details such as:

• Where will your restaurant be located?
• Will you offer delivery, and what is the range?
• Will you advertise on social media, your website, or other digital marketing?
• Will you use billboards, flyers, or other complex media advertising?
• What is your advertising budget?

These crucial details demonstrate you have a real plan for your restaurant’s success.

5. SWOT Analysis

A SWOT analysis for your new restaurant will focus on four key areas:

• Opportunities

A SWOT analysis addresses difficult questions in an easy-to-read format. It is a business tool that helps to analyze how your restaurant will perform against your competition. It will look at internal and external factors that may help or hurt your future business.

This data is based on real-world facts rather than ideal conditions or best hopes.

6. Financials

The financials section details the key areas of financial performance for your business. This includes information about start-up costs and break-even points. It also shows how and when the company can profit and see a return on investment.

The financial section should include the following:

• Monthly expenses — supplies, payroll, rent, etc.
• Price points for all products
• Projected revenue
• Mathematical projections for the restaurant
• Variable costs of the business
• Financial records and cash flow statements

7. Operations

Your restaurant business plan must address how your restaurant will run. While this includes details about products and services, it will also cover other critical operational details such as:

• Employment requirements
• Business hours
• Licensing and food inspection requirements
• Cleaning procedures
• Restaurant design
• Mission statement
• Restaurant location

Investors want to see precisely how you will run your business and how you will do it successfully. People often hesitate to invest in a restaurant, as many eateries fail within the first year.

However, a strong business plan showing you understand your specific operational issues will go a long way to alleviate these concerns and get you started on the right foot.

8. Appendix

The appendix section allows you to include other valuable documents and information at the end of the business plan. This may be information that does not fit well into different sections or is supporting documentation for the information in the primary areas. An appendix might include, but is not limited to:

• Letters of reference
• Legal permits and licensing
• Customer reviews of food and services
• Pictures of people enjoying your food
• Restaurant design sketches
• Photos of a proposed restaurant location
• Market research

The appendix lets you end on a good note. You can provide additional information to bolster the rest of your business plan.

Your restaurant business plan should be comprehensive and easy to understand. The prospect of putting one together can feel daunting without some help. A restaurant business plan sample can help you start and tell you what to include.

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Learning center series

How to start a restaurant

• Published on June 5, 2024
• by Oguzhan Uyar
• Last updated: 22 mins ago

Want to turn your restaurant dreams into reality? Starting a restaurant in 2024 is an exciting venture, but it’s not without its challenges.

With the right strategy and expert guidance, you can navigate the complexities of the restaurant industry and set your business idea up for success. In this comprehensive guide, we’ll walk you through the essential steps to start a restaurant, from crafting a winning business plan to building a strong team and optimizing profitability.

Discover 20+ expert tips that will help you avoid common pitfalls, make informed decisions, and bring your culinary vision to life. Whether you’re a seasoned entrepreneur or a first-time restaurateur, this article will provide you with the insights and tools you need to start a restaurant and thrive in the competitive world of restaurants.

Restaurant Industry In U.S. Projected annual sales in the U.S. restaurant industry are $863 billion , which is 4% of the country's gross domestic product

Start a Restaurant: Crafting a Winning Restaurant Business Plan

Creating a comprehensive business plan is crucial for the success of your new restaurant. A well-crafted plan serves as a roadmap, guiding you through the challenges of starting and growing your own small business together. It helps you define your concept, identify your target market, and develop strategies for marketing and financial management.

Defining Your Restaurant Concept and Target Market

The first step in crafting your restaurant business plan is to clearly define your concept and target market. This involves identifying your unique selling proposition (USP), determining your target demographics and psychographics, and conducting market research to validate your concept.

Identify your unique selling proposition (USP)

Your USP is what sets your restaurant apart from competitors. It could be a specific cuisine, a unique dining experience, or a commitment to using locally sourced ingredients. You can consider what makes your restaurant special and how it will attract customers.

Determine your target demographics and psychographics

Understanding your target market is essential for tailoring your menu, pricing, and marketing efforts. Define your target demographics, such as age, income level, and location. Also, you should consider psychographics, which includes lifestyle, values, and dining preferences. This information will help you create a dining experience that resonates with your target audience.

Conduct market research to validate your concept

Before investing time and money into your restaurant, it’s crucial to validate your concept through market research. Analyze your competition, assess the demand for your cuisine in the area, and gather feedback from potential customers. This research will help you refine your concept and ensure there is a market for your restaurant.

Outlining Your Marketing and Financial Strategies

With your concept and target market defined, the next step is to outline your marketing and financial strategies. These strategies will help you attract customers, manage your finances, and ensure the long-term viability of your restaurant.

Your marketing strategy and plan should include a mix of traditional and digital marketing tactics to reach your target audience. You may consider strategies such as social media marketing, email campaigns, and local advertising. Also, you can plan for grand opening promotions and ongoing customer loyalty programs to keep diners coming back.

Developing a realistic financial projection is crucial for managing your restaurant’s finances and securing funding. You must create a detailed budget that includes startup costs, operating expenses, and projected revenue. You may conduct a break-even analysis to determine how many customers you need to serve to cover your operating costs and turn a profit.

Based on your financial projections, determine how much funding you’ll need to start and operate your restaurant. It is better for you to consider various funding sources, such as personal savings, loans, or investors. Be prepared to pitch your concept and business plan to potential investors or lenders.

While owning a restaurant can be challenging, it can also be a profitable and rewarding business venture. The key is to create a unique concept, understand your target market, and develop solid marketing and financial strategies. By crafting a comprehensive business plan, you’ll be well-positioned to navigate the challenges and seize the opportunities of the competitive restaurant industry.

Average Profit Margins for Restaurants The average profit margins for restaurants recorded in 2023 was 10.6%

Estimating Restaurant Startup Costs and Securing Funding

Breaking down the major cost components.

Opening a restaurant involves significant upfront costs. It’s crucial to understand and plan for these expenses to ensure a smooth launch and long-term success. The three primary cost components are:

Leasehold Improvements and Construction Costs

One of the most substantial expenses when starting a restaurant is the cost of leasehold improvements and construction. This includes modifying the space to suit your restaurant’s needs, such as building out  the kitchen , dining area, and restrooms. The cost can vary greatly depending on the size and condition of the space, as well as the extent of the renovations required.

Kitchen Equipment and Furniture Expenses

Outfitting your restaurant with the necessary kitchen equipment and furniture is another significant cost. This includes items such as ovens, refrigerators, freezers, prep tables, and more. The cost of kitchen equipment can range from $50,000 to $150,000 or more, depending on the size and type of restaurant. Dining room furniture, including tables, chairs, and decor, can add another $20,000 to $50,000 to your startup costs.

Initial Inventory and Supplies Purchases

Before opening your doors, you’ll need to stock your restaurant with initial inventory and supplies. This includes food ingredients, beverages, tableware, linens, and cleaning supplies. The cost of initial inventory can range from $5,000 to $25,000, depending on your menu and the size of your restaurant. It’s essential to carefully plan your initial inventory purchases to avoid overspending or running out of essential items.

Exploring Funding Options for Your Own Restaurant

With the significant costs involved in starting a restaurant, securing adequate funding is critical. There are several options available for financing your restaurant business loan or venture:

One option is to self-fund your restaurant using personal savings and assets. This can include tapping into your savings account, selling investments, or leveraging equity in your home. Self-funding gives you complete control over your small business loan but also involves greater personal financial risk.

Another option is to seek investors or partners to provide capital for your restaurant. This can include friends, family members, or professional investors. When bringing on investors, it’s important to have a clear agreement outlining the terms of their investment, including ownership percentages and expected returns.

Creating a Realistic Budget and Financial Projections

To determine how much money you need to start your restaurant, create a detailed budget that includes all startup costs and projected operating expenses for small business loans in the first year. This budget should also include a contingency fund for unexpected expenses.

Based on industry averages, the total cost to start a small restaurant can range from $175,000 to $750,000. However, the actual cost will depend on factors such as location, size, and type of restaurant.

Once you have a clear understanding of your startup costs, create financial projections for the first few years of operation. This will help you determine the potential profitability of your restaurant and attract investors or secure loans.

Starting a restaurant can be a rewarding business venture, but it requires careful financial planning and adequate funding. By understanding the major cost components, exploring various funding options, and creating a realistic budget, you can set your restaurant up for success.

Navigating Restaurant Licenses and Permits

Opening a restaurant involves navigating a complex web of licenses and permits. Failing to comply with these regulations can result in hefty fines, delays, or even the inability to open your doors. By identifying the required licenses and permits, engaging with local authorities, and preparing the necessary documentation, you can streamline the application process and ensure a smooth opening for your restaurant.

Identifying Required Licenses and Permits

Before you open your restaurant, you’ll need to obtain several essential licenses and permits. These may vary depending on your location and the type of restaurant you plan to open, but some common ones include:

Food Service Establishment License

This license is issued by your local health department. It ensures that your restaurant meets all health and safety standards. To obtain this license, you’ll need to pass an inspection of your kitchen, dining area, and storage facilities. The inspector will check for proper sanitation, food storage, and handling practices.

Health and Safety Permits

In addition to the food service establishment business license, you may need additional health and safety permits. These can include:

Fire safety permit: Ensures that your restaurant meets fire codes and has adequate fire suppression systems.

Building permit: Required if you’re constructing a new building or making significant renovations to an existing one.

Sign permit: Needed if you plan to install a new sign or awning for your restaurant.

Liquor License (if applicable)

If you plan to serve alcohol at your restaurant, you’ll need to obtain a liquor license. The process for obtaining a liquor license can be lengthy and complex, so it’s essential to start early. You’ll need to submit an application to your local alcohol control board, pay a fee, and undergo a background check. Some states may require you to complete a responsible alcohol service training program.

Streamlining the Application Process

Navigating the various licenses and permits required to open a restaurant can be overwhelming, but there are steps you can take to streamline the process:

Reach out to your local health department, building department, and alcohol control board early in the process. They can provide you with a list of the specific licenses and permits you’ll need and guide you through the application process. Building a positive relationship with these authorities can also help expedite the process and resolve any issues that may arise.

Each license and permit application will require specific documentation and forms. These may include:

Business registration and tax ID numbers

Floor plans and kitchen layouts

Menu and food preparation details

Employee health and safety training records

Proof of insurance

You should gather all the necessary documentation and complete the required forms in advance to avoid delays in the application process.

The time it takes to obtain licenses and permits can vary widely depending on your location and the complexity of your restaurant. In some cases, it may take several months to complete the process. You must plan accordingly and begin the application process well in advance of your target opening date to avoid any last-minute surprises.

Selecting the Ideal Restaurant Location and Design

Choosing the perfect location and crafting an inviting design are essential steps in starting a successful restaurant. A strategically selected site can greatly impact your restaurant’s visibility, accessibility, and customer base. Equally important is creating a layout and ambiance that not only reflects your brand but also enhances the overall dining experience for your patrons.

Evaluating Potential Restaurant Sites For Restaurant Owners

When scouting for the ideal restaurant location, several key factors must be carefully considered to ensure the best possible outcome for your small business owners.

One of the most critical aspects of a restaurant’s success is its visibility and accessibility to potential customers. When evaluating a site, observe the foot traffic patterns at different times of the day and week. A location with consistent, high foot traffic is more likely to attract walk-in customers and generate buzz.

Analyze the surrounding businesses and assess whether they complement your restaurant concept or pose significant competition. For example, if you’re planning to open a casual dining establishment, being located near office buildings or shopping centers can be advantageous, as they provide a steady stream of potential customers. However, be mindful of direct competitors in the restaurant’s location or area and evaluate whether the local market can support multiple similar restaurants. Research suggests that restaurants located in areas with high foot traffic and complementary businesses tend to perform better financially.

Once you’ve identified a promising location, it’s crucial to negotiate favorable lease terms and conditions. You should work with a real estate attorney to review the lease agreement and ensure that it aligns with your business needs and goals.

Creating an Inviting Restaurant Layout and Ambiance

With a location secured, the next step is to design a layout and create an ambiance full-service restaurant that will make your restaurant stand out and keep customers coming back.

Enlist the help of experienced interior designers and architects to bring your vision to life. These professionals can help you create a cohesive design that reflects your brand identity and creates a welcoming atmosphere for your guests. They can also ensure that your layout is functional, efficient, and compliant with local building codes and accessibility requirements. The American Institute of Architects recommends involving designers early in the planning process to ensure a well-integrated design.

An effective restaurant layout should maximize space utilization while ensuring a smooth flow of customers and staff. You may consider factors such as the placement of the entrance, waiting area, bar, and restrooms, as well as the arrangement of tables and seating. You can aim to strike a balance between maximizing seating capacity and providing a comfortable dining experience for your guests.

Your restaurant’s interior design should reflect your brand identity and create a memorable experience for your customers. Incorporate your brand colors, logos, and other visual elements throughout the space, from the signage and menus to the artwork and decor. Pay attention to lighting, as it can greatly impact the mood and ambiance of your restaurant. You can consider using a mix of ambient, task, and accent lighting to create a warm and inviting atmosphere.

Building a Strong Restaurant Team

Defining key roles and responsibilities, executive chef and kitchen staff.

The heart of any successful restaurant lies in its kitchen. The executive chef plays a crucial role in developing and executing the menu, managing the kitchen staff, and ensuring food quality and consistency. When hiring an executive chef, look for someone with proven experience, leadership skills, and a passion for creating memorable dining experiences.

The kitchen staff, including sous chefs, line cooks, and prep cooks, work under the executive chef’s guidance to prepare dishes according to the restaurant’s standards. Clearly, you should define each position’s responsibilities and expectations to maintain a smooth and efficient kitchen operation.

Front-of-House Managers and Servers

Your front-of-house team is responsible for creating a welcoming atmosphere and delivering exceptional service to your guests. You should hire experienced managers who can effectively lead and motivate the service staff, handle customer concerns, and ensure a seamless dining experience.

Servers are the face of your restaurant and play a vital role in building customer relationships. You can look for individuals with strong communication skills, a friendly demeanor, and a genuine desire to provide excellent service. You can train your servers to be knowledgeable about the menu, wine pairings, and any special dietary requirements to enhance the guest experience.

Support Staff

Behind the scenes, support staff such as dishwashers, cleaners, and maintenance personnel keep your restaurant running smoothly. These roles are often overlooked but are essential to maintaining a clean, safe, and well-functioning environment. It’s better to hire reliable individuals who take pride in their work and understand the importance of their contributions to the restaurant’s success.

Employees In The Restaurants 9 in 10 restaurants have fewer than 50 employees, and 63% of adults have worked in the restaurant industry at some point

Recruiting, Training, and Retaining Top Talent

Develop comprehensive job descriptions and hiring criteria.

To attract the right talent to start a restaurant, create detailed job descriptions that outline the responsibilities, qualifications, and expectations for each position. Be specific about the skills, experience, and personality traits you’re looking for in candidates. This will help you streamline the hiring process and ensure you’re bringing on team members who align with your restaurant’s values and goals. This approach is essential for starting a restaurant on the right foot and building a cohesive team.

Start a Restaurant: Salary of Waitstaff In The Restaurants Waitstaff at full-service restaurants earn a median of $27.00 an hour, with an upper quartile of $41.50 and a lower quartile of $19.00

Implement Effective Onboarding and Training Programs

Once you’ve hired your team to start a restaurant, invest in comprehensive onboarding and training programs to set them up for success. You should develop a training manual that covers everything from your restaurant’s history and mission to specific job duties and service standards. When starting a restaurant, you may assign experienced staff members as mentors to guide new hires through the learning process and provide ongoing support.

Foster a Positive Work Culture and Employee Engagement

Retaining top talent is just as important as recruiting them. You create a positive work environment that values open communication, teamwork, and professional growth. Regularly as a business owner, you must recognize and reward outstanding performance, and provide opportunities for advancement within the restaurant.

You must engage your staff by involving them in decision-making processes, such as menu development or customer service improvements. Encourage feedback and ideas from all team members, and actively listen to their concerns and suggestions. When employees feel valued and invested in the restaurant’s success, they are more likely to stay with the company long-term.

Establishing Reliable Supply Chain and Inventory Management

Sourcing high-quality ingredients and supplies.

Sourcing high-quality ingredients and supplies is crucial for the success of your restaurant or food service business. Start by researching and selecting reputable suppliers and vendors who consistently deliver fresh, high-quality products. Building strong relationships with these suppliers can help ensure a steady supply of ingredients and potentially lead to more favorable pricing and delivery terms.

When evaluating potential suppliers, consider factors such as their reputation, product quality, delivery reliability, and responsiveness to issues or concerns. Visiting their facilities and tasting their products can help you make informed decisions. Additionally, having backup suppliers for essential ingredients can mitigate the risk of supply chain disruptions.

Once you’ve identified reliable suppliers, negotiate favorable pricing and delivery terms. This may involve discussing volume discounts, payment terms, and delivery schedules. You may aim for contracts that provide flexibility and allow for adjustments based on your restaurant’s needs and growth.

Start a Restaurant: Importance of Healthy Food Option in the Restaurants 61% of diners say they are more likely to eat healthy at a restaurant that offers nutritional information

Implementing Efficient Inventory Control Systems

Effective inventory management is essential for minimizing waste, optimizing costs, and ensuring that you always have the necessary ingredients and supplies on hand when you start a restaurant. Adopting inventory management software and tools can streamline this process, providing real-time insights into your stock levels and helping you make data-driven decisions.

Establish par levels (the minimum quantity of an item you should have on hand) and reorder points for each ingredient and supply item when starting a restaurant. This helps prevent stockouts and overstocking, both of which can negatively impact your bottom line. Regularly you must review and adjust these levels based on sales data, seasonal trends, and menu changes.

When you start a restaurant, implement a schedule for regular inventory audits and reconciliations. This involves physically counting your inventory and comparing it to your records to identify discrepancies and make necessary adjustments. Consistent audits can help detect theft, spoilage, or other issues that may be affecting your inventory levels and costs. For example, you can consider weekly counts for high-value items and monthly full inventory counts.

Reducing Food Waste and Optimizing Menu Planning

When you start a restaurant, food waste is a significant challenge in the restaurant industry, with an estimated 4-10% of food purchased by restaurants ending up in the trash (ReFED, 2021). Reducing food waste not only benefits the environment but also improves your restaurant’s profitability.

It’s better to optimize your menu planning by analyzing sales data and customer preferences to identify top-selling items and adjust your offerings accordingly when starting a restaurant. You can use ingredients across multiple dishes to minimize waste and consider implementing a seasonal menu to take advantage of locally sourced, fresher ingredients.

Start a Restaurant: Restaurant Menu 31% of restaurateurs update their menu on a monthly basis

It is also better for you to train your staff on proper food handling, storage, and portion control to minimize waste. Implement a first-in, first-out (FIFO) system for inventory rotation, ensuring that older items are used before newer ones. You should consider donating excess food to local charities or composting food scraps to further reduce waste. For instance, use vegetable scraps to make stocks or soups, or repurpose day-old bread for croutons or bread pudding.

What is a Restaurant Business?

Understanding the restaurant industry landscape.

The restaurant industry is a diverse and dynamic sector that encompasses a wide range of establishments, from fast-food chains and casual dining restaurants to high-end fine dining establishments and specialized food trucks. Each type of restaurant has its own unique characteristics, target audience, and operational requirements.

To succeed in the restaurant industry, entrepreneurs must stay attuned to current market trends and consumer preferences. In recent years, there has been a growing demand for healthier and more sustainable food options, as well as a preference for unique and experiential dining experiences. Restaurants that can adapt to these trends and offer innovative menu items and engaging dining environments are more likely to attract and retain customers.

Types of Restaurants

Fine Dining: Upscale restaurants offering high-quality, often expensive cuisine and a formal dining experience

Casual Dining: Mid-priced restaurants with a relaxed atmosphere and a variety of menu options

Fast-Casual: A hybrid between fast-food and casual dining, offering higher-quality food than fast-food restaurants but with quicker service than casual dining

Fast-Food: Quick-service restaurants focusing on speed, affordability, and convenience

Food Trucks: Mobile restaurants that offer a limited menu and operate from a vehicle, often specializing in a particular type of cuisine

Key Elements of a Successful Restaurant Business

Running a successful restaurant requires a multifaceted approach that focuses on delivering consistently high-quality food and service while maintaining a sound financial foundation. Some of the key elements of a thriving restaurant business model include:

Food Quality and Consistency: Customers expect delicious, well-prepared meals every time they visit a restaurant. Maintaining a high standard of food quality and consistency is essential for building a loyal customer base and positive reputation.

Service Excellence: Excellent customer service is just as important as the quality of the food. Restaurant staff should be well-trained, friendly, and attentive to customers’ needs, creating a welcoming and enjoyable dining experience.

Effective Marketing and Customer Loyalty Programs: In a crowded market, restaurants must actively promote their brand and engage with customers to stand out. Developing a strong online presence, utilizing social media, and implementing customer loyalty programs can help attract new customers and encourage repeat visits.

Financial Management and Cost Control: Restaurants operate on thin profit margins, making prudent financial management and cost control critical for long-term success. Owners must closely monitor expenses, such as food costs, labor costs, and overhead, while also setting competitive prices and managing cash flow effectively.

Common Pitfalls to Avoid in Restaurant Entrepreneurship

While the restaurant industry offers many opportunities for success, it also presents numerous challenges that can trip up even the most experienced entrepreneurs. Some common pitfalls to avoid when starting and running a restaurant include:

Underestimating Startup Costs and Operating Expenses: Many new restaurant owners fail to accurately estimate the costs associated with opening and operating a restaurant, leading to cash flow problems and potential failure. It’s essential to create a detailed business plan that accounts for all expenses, including rent, equipment, inventory, labor, and marketing.

Neglecting Market Research and Competitor Analysis: Opening a restaurant without a clear understanding of the local market, target audience, and competitive landscape can lead to a mismatch between the restaurant concept and customer demand. Conducting thorough market research and analyzing competitors’ strengths and weaknesses can help inform key decisions, such as menu design, pricing, and location selection.

Failing to Adapt to Changing Customer Needs and Preferences: The restaurant industry is constantly evolving, and businesses that fail to adapt to changing customer tastes and preferences risk falling behind. Regularly reviewing and updating menu offerings, incorporating new technologies, and responding to customer feedback can help restaurants stay relevant and competitive.

Overlooking the Importance of a Strong Team: A restaurant’s success depends heavily on the quality and performance of its staff. Neglecting to invest in proper training, fostering a positive work culture, and providing competitive compensation can lead to high turnover rates and inconsistent service quality, ultimately harming the business.

Poor Inventory Management and Food Waste: Ineffective inventory management and excessive food waste can quickly erode a restaurant’s profits. Implementing robust inventory tracking systems, training staff on proper food handling and storage techniques, and regularly reviewing sales data to optimize purchasing decisions can help minimize waste and improve profitability.

How Profitable is Owning a Restaurant?

Restaurant profitability depends on factors like menu pricing, labor costs, and overhead expenses

Strategies like cost control, menu engineering, and diversifying revenue streams can maximize profits

Industry benchmarks show average profit margins, but break-even analysis and financial planning are crucial

Factors Influencing Restaurant Profitability

Running a profitable restaurant requires careful management of various factors that directly impact the bottom line. One of the most critical aspects is menu pricing and food cost management. Restaurant owners must strike a balance between offering competitive prices and ensuring that each menu item generates sufficient profit. This involves closely monitoring ingredient costs, and portion sizes, and minimizing waste.

Labor costs and staff productivity also play a significant role in restaurant profitability. Overstaffing can lead to unnecessary expenses while understaffing may result in poor service and lost revenue. Effective scheduling, cross-training employees, and implementing productivity-boosting technologies can help optimize labor costs.

In addition to food and labor costs, restaurant owners must account for overhead expenses such as rent, utilities, insurance, and maintenance. These fixed costs can significantly impact profitability, especially during slow periods. Negotiating favorable lease terms, implementing energy-efficient practices, and regularly reviewing insurance policies can help keep overhead costs in check.

Strategies for Maximizing Restaurant Profitability

To maximize profitability, restaurant owners can implement various strategies. Effective cost control measures are essential, such as regularly reviewing vendor prices, negotiating better deals, and minimizing waste through proper inventory management. Tools like POS systems with inventory tracking capabilities can help streamline this process.

Menu engineering and pricing strategies also play a crucial role in boosting profitability. By analyzing sales data and customer preferences, restaurant owners can optimize their menus by featuring high-profit items, removing underperforming dishes, and adjusting prices based on demand and competition.

Diversifying revenue streams is another effective strategy for increasing restaurant profitability. In addition to dine-in service, restaurants can offer catering services, delivery options, and merchandise sales. Catering can be particularly lucrative, as it often involves larger orders and higher profit margins. Partnering with popular delivery platforms like Uber Eats or DoorDash can expand a restaurant’s reach and generate additional sales.

Realistic Expectations for Restaurant Profit Margins

Understanding industry benchmarks and average profit margins is essential for setting realistic expectations.

Break-even analysis and financial planning are crucial for long-term success. Restaurant owners should regularly review their financial statements, identify areas for improvement, and adjust their strategies accordingly. This may involve cutting costs, increasing prices, or exploring new revenue streams.

Turning Your Restaurant Dreams into Reality

Opening a restaurant in 2024 requires careful planning, unwavering dedication, and a willingness to adapt to the ever-changing hospitality landscape. When you start a restaurant, from crafting a solid business plan to securing funding, navigating permits, and building a strong team, the journey to restaurant success is filled with challenges and opportunities.

By focusing on your unique concept, understanding your target market, and implementing effective marketing and financial strategies, you can set your restaurant apart from the competition. When starting a restaurant, investing time and effort into selecting the ideal location, creating an inviting ambiance, advertising and marketing strategies, and establishing reliable supply chains will lay the foundation for long-term success.

Remember, owning a restaurant is not just about serving delicious food; it’s about creating memorable experiences for your guests while effectively managing costs and maximizing profitability. With the right mindset, tools, and support, you can turn your restaurant dreams into a thriving reality.

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Money blog: Subway drastically changing how you order

Subway is following in the steps of some of its fast-food rivals with the introduction of self-service kiosks and its own dedicated app. Read this and the rest of today's consumer and personal finance news below - and leave your thoughts in the comments box.

Wednesday 5 June 2024 20:43, UK

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Subway is following in the steps of some of its fast-food rivals with the introduction of self-service kiosks and its own dedicated app.

Customers will be able to place orders via digital screens sent to the kitchen instead of making their way along the chain of ingredients.

The self-service kiosks will be in all UK stores before the end of the year,  The Grocer  reports.

The sandwich shop chain is also launching a new app which will enable online orders - and offer customers points towards its "Subway Rewards" loyalty scheme, it said.

The points can eventually be converted into "Subway Cash" to spend on menu items.

Dan Holm, digital leader at Subway, said: "As we think about Subway's future, we're doubling down on our global digital commitment to streamline and simplify the guest experience from start to finish."

P Diddy has sold off his stake in the media company he founded more than a decade ago. 

The rapper, whose real name is Sean Combs, released his shares of Revolt with the company saying the have been fully redeemed and retired. 

Revolt has not disclosed how much Combs was paid for his stake in the hip-hop news and entertainment company, which he founded in 2013.

It also announced a new ownership structure that will give its employees an equity stake in the company. 

The move comes after several lawsuits were filed against Combs , accusing him of sexual assault and rape. 

In November, he was sued by R&B singer Cassie, who said he subjected her to a years-long abusive relationship that included beatings and rape.

Combs settled the lawsuit with Cassie, whose full name is Casandra Ventura, a few days after it was filed.

Three in five secondary school teachers and nearly 80% of primary school teachers are spending their own money on supporting students, according to new research.

A report by the National Foundation for Educational Research, based on a survey of 1,282 teachers and senior leaders, found a quarter of teachers had already spent £100 of their own cash on their pupils or school this academic year.

Some 79% of primary school teachers and 62% of secondary school educators reported spending their own money at some point.

And nearly one in five primary and 17% of secondary teachers said they were spending money on meeting pastoral needs such as providing food or clothes.

Jude Hillary, the NFER's co-head of UK policy and practice, said the report "clearly highlights the high level of need among young people".

She said teachers were "going above and beyond to meet pupils' pastoral needs using their personal funds" and the "unrecognised" support was coming at a time when staff themselves are facing their own cost pressures.

Tesco has started re-stocking its packs of a dozen eggs online, after lengthy supply issues forced them to stop selling them.

The supermarket had already re-started selling them in stores, but online shoppers had to buy two packs of six eggs if they wanted 12, costing them very slightly more.

The shortages began in the autumn of 2022 as farmers left the industry or pulled back on production due to rising costs.

An outbreak of bird flu last year also impacted the sector.

Customers of Loveholidays have had their travel plans thrown into chaos after the parent company of two of its partners unexpectedly went bust. 

In a post on Facebook, the holiday firm said FTI Group, which owns YouTravel and Meeting Point, had filed for insolvency. 

As a result, the accommodation and transfer arrangements of some travellers have been affected. 

A "small number" of hotels have already started contacting Loveholiday travellers, asking them to pay for their rooms again.

In the comments of the post, one person said they had been "threatened to be removed by police" for refusing to pay again. 

"We are supposed to go home Thursday evening and worried our transfers and flights might be affected because we are refusing to pay again," Scott Love wrote. 

"Shambles this and has ruined our holiday for me, my partner and three children." 

Several other people commented, asking the provider to tell them if their trip had been impacted. 

Loveholidays said it was "working hard" to honour its customers bookings and "minimise disruption" to any holiday. 

It also said it was "absolutely committed" to covering costs and was working with affected customers, and the hotels involved, to make sure that happens.

Those who are on holiday and need support have been advised to contact the holiday support team by calling the number on their booking documents. 

"If you're travelling with us soon and are wondering if your holiday is affected: Please don't worry. There is nothing you need to do - our team is working hard to honour any impacted bookings with another partner," Loveholidays added. 

Sky News has contacted the company for comment. 

Chef Tom Brown has announced he is closing his high-end Hackney restaurant Cornerstone due to high costs of the tasting menu format and changing diner preferences.

The seafood-focused restaurant first opened in 2018 and earned a Michelin star in 2021.

In a statement, Brown said Cornerstone had been his "proudest moment" and his "home for the last six years", and added that his focus would now be on his nearby Pearly Queen site.

First Direct is ending its text message banking service after 25 years, according to a report.

An email seen by This Is Money said the service - which texts customers mini bank statements and alerts them to their balance dropping below a certain amount - will be stopped on 10 August.

First Direct told the outlet that customers could get "more detailed and up-to-date information" by logging onto its app or online banking.

Tesco has partnered with Virgin Red to offer Clubcard holders the chance to turn points into experiences.

Those signed up to the supermarket's loyalty scheme will get twice the points value when they turn points earned on their shopping into Virgin Points.

A bonus 5,000 points is available for anyone who signs up to auto-exchange all their Clubcard points to Virgin Points for the first time.

McDonald's has lost the EU trademark for "Big Mac" when it comes to chicken sandwiches after a long-running dispute with an Irish restaurant chain. 

The European Court of Justice upheld a complaint from Galway-based Supermac's against the US fast food giant. 

The trademark for the words "Big Mac" was initially registered with the EU International Property Office (EUIPO) in respect of meat, fish and chicken sandwiches as well as a range of restaurant services by McDonald's in 1996.

Generally, the rights of a holder to an EU trademark are revoked if it has not been put to genuine use within a continuous period of five years.

Supermac's argued McDonald's had insufficiently used the contested trademark in relation to "chicken sandwiches".

McDonald's and the EUIPO put forward examples of advertisements and display boards relating to "Grand Big Mac Chickens".

However, the court found the evidence was not sufficient to prove McDonald's had used the contested trademark enough in relation to poultry products.

Supermac's complaint was upheld and McDonald's protection of the phrase for such purposes was overturned. 

Rishi Sunak's claim in last night's debate that Labour will raise everyone's taxes by £2,000 comes from a "dossier" published by the Tories last month, which purported to calculate their tax and spending plans. 

The headline "finding" was that over the course of the next four years, Labour had roughly £59bn of spending plans but only £20bn of revenue-raising plans.

That leaves a £39bn hole. Divide that by the number of households in the country (18.4m) and you get a figure of just over £2,000.

Now, there are all sorts of objections to the way the Conservatives have carried out this exercise. 

For one thing, they deployed a weapon Labour don't have: because they're the party of government, they were able to ask Treasury civil servants to cost some Labour policies.

Today there has been a backlash - including from the Treasury's permanent secretary himself - about the way the Tories have portrayed these sums. 

The £2,000 figure isn't really a Treasury calculation or an "independent" one, as Mr Sunak called it last night. It's a Conservative figure - but it was put together in part with figures commissioned from civil servants. 

Labour also says many of the policies in that Tory dossier won't cost half as much as the Conservatives claim. 

Regardless, while £2,000 sounds like a big number, it's actually a cumulative total from four years. A far more representative figure to take from the dossier is £500 - the annual figure. 

And while that's not to be sniffed at (if you believe it - which you probably shouldn't) it's far, far smaller than the tax rises we've all experienced under this Conservative government since 2019.

They amount, all told, to an average of around £3,000 a year per household or, if we grit our teeth and tot it up as the Tories did in their dossier, over £13,000 over the course of the parliament. 

Which rather dwarfs that £2,000 figure.

Current account holders looking to make a quick bit of cash can benefit from a flurry of new switching incentives being offered by banks at the moment.

Several providers are fighting for new custom with offers ranging from £100 to £200 upfront plus other rewards.

Now is actually a good time if you're considering switching - as everything should be wrapped up in time for payday at the end of the month, when many people also have bills coming out of their account.

Anyone looking to make the move to a new provider and qualify for the switching offer will need to do so through the  Current Account Switch Service .

The latest data from CASS found Nationwide set a record for UK current account switches in the last three months of 2023.

Switchers can get £175 by opening up a Santander Edge current account. The incentive also offers 1% cashback on household bills paid by direct debit and 7% AER on a linked savings account.

To get the bonus, you'll have to complete the full switch, set up two active direct debits and pay in £1,500 within 60 days of telling Santander to switch your account.

The offer is only available to those who've never had a switching bonus from Santander.

Similarly to Santander, Lloyds is offering £175 for people who switch to its Club Lloyds, Club Silver or Club Platinum accounts.

Customers can also choose an extra reward of a year's Disney+ subscription, six cinema tickets, a Coffee Club and Gourmet Society membership or magazine subscription.

The switch has to include the transfer of at least three direct debits, and you won't be eligible if you've switched to Lloyds, Halifax or the Bank of Scotland since April 2020 or the switch occurs after 30 July.

Existing Nationwide current account holders can make £200 by switching a non-Nationwide current account with at least two direct debits to a new or existing FlexDirect account.

To be eligible, you'll need to have held an eligible Nationwide account on 31 March, and you can't have received a switching bonus from the building society since 18 August 2021.

Those who choose to switch to TSB will get a £100 bonus and up to £60 in cashback, plus a reward if they stay until January 2025.

To qualify for the £100, switchers will need to make a minimum of five debit card payments before 5 July. For up to £60 cashback, you'll need to make at least 20 debit card payments each calendar month. 

Eligible customers can also choose an extra reward in January, such as a night away, monthly cinema tickets or a NOW Entertainment membership.

Similarly to previous offers, you can't have benefited from a TSB switch bonus since 1 October 2022.

First Direct

Customers will get a £175 welcome bonus if they switch to a First Direct 1st Account, including access to a linked 7% AER regular saver account and a possible interest-free £250 overdraft.

You can't have had any account with the bank before or have opened a current account with its partner company HSBC since 1 January 2018. 

To get the bonus you'll have to pay in £1,000+ within 30 days of opening the account and use the debit card five times.

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Out of the Centre

Savvino-storozhevsky monastery and museum.

Zvenigorod's most famous sight is the Savvino-Storozhevsky Monastery, which was founded in 1398 by the monk Savva from the Troitse-Sergieva Lavra, at the invitation and with the support of Prince Yury Dmitrievich of Zvenigorod. Savva was later canonised as St Sabbas (Savva) of Storozhev. The monastery late flourished under the reign of Tsar Alexis, who chose the monastery as his family church and often went on pilgrimage there and made lots of donations to it. Most of the monastery’s buildings date from this time. The monastery is heavily fortified with thick walls and six towers, the most impressive of which is the Krasny Tower which also serves as the eastern entrance. The monastery was closed in 1918 and only reopened in 1995. In 1998 Patriarch Alexius II took part in a service to return the relics of St Sabbas to the monastery. Today the monastery has the status of a stauropegic monastery, which is second in status to a lavra. In addition to being a working monastery, it also holds the Zvenigorod Historical, Architectural and Art Museum.

Belfry and Neighbouring Churches

Located near the main entrance is the monastery's belfry which is perhaps the calling card of the monastery due to its uniqueness. It was built in the 1650s and the St Sergius of Radonezh’s Church was opened on the middle tier in the mid-17th century, although it was originally dedicated to the Trinity. The belfry's 35-tonne Great Bladgovestny Bell fell in 1941 and was only restored and returned in 2003. Attached to the belfry is a large refectory and the Transfiguration Church, both of which were built on the orders of Tsar Alexis in the 1650s.  

To the left of the belfry is another, smaller, refectory which is attached to the Trinity Gate-Church, which was also constructed in the 1650s on the orders of Tsar Alexis who made it his own family church. The church is elaborately decorated with colourful trims and underneath the archway is a beautiful 19th century fresco.

Nativity of Virgin Mary Cathedral

The Nativity of Virgin Mary Cathedral is the oldest building in the monastery and among the oldest buildings in the Moscow Region. It was built between 1404 and 1405 during the lifetime of St Sabbas and using the funds of Prince Yury of Zvenigorod. The white-stone cathedral is a standard four-pillar design with a single golden dome. After the death of St Sabbas he was interred in the cathedral and a new altar dedicated to him was added.

Under the reign of Tsar Alexis the cathedral was decorated with frescoes by Stepan Ryazanets, some of which remain today. Tsar Alexis also presented the cathedral with a five-tier iconostasis, the top row of icons have been preserved.

Tsaritsa's Chambers

The Nativity of Virgin Mary Cathedral is located between the Tsaritsa's Chambers of the left and the Palace of Tsar Alexis on the right. The Tsaritsa's Chambers were built in the mid-17th century for the wife of Tsar Alexey - Tsaritsa Maria Ilinichna Miloskavskaya. The design of the building is influenced by the ancient Russian architectural style. Is prettier than the Tsar's chambers opposite, being red in colour with elaborately decorated window frames and entrance.

At present the Tsaritsa's Chambers houses the Zvenigorod Historical, Architectural and Art Museum. Among its displays is an accurate recreation of the interior of a noble lady's chambers including furniture, decorations and a decorated tiled oven, and an exhibition on the history of Zvenigorod and the monastery.

Palace of Tsar Alexis

The Palace of Tsar Alexis was built in the 1650s and is now one of the best surviving examples of non-religious architecture of that era. It was built especially for Tsar Alexis who often visited the monastery on religious pilgrimages. Its most striking feature is its pretty row of nine chimney spouts which resemble towers.

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The Breakfast Cafe

Hours updated 3 weeks ago

Location & Hours

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6 N Main St

Homedale, ID 83628

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Overall rating

We stopped in to try out the new Breakfast Cafe in Homedale this morning after our discovered it to be open earlier this week. It's nice to have another decent option for breakfast/lunch close to where we live. Our order consisted on the Machaca Ah! chihuahua and the Meat Lovers omelette. Both meals were delicious. I did post the current menu, and it has quite a few options for everyone to pick from. It's a new place with three people working this morning. Service was great and the meal came out rather quickly. The endless cup of coffee was a nice item for myself. There is actually quite a lot of seating inside for what looks to be a small place from the outside. Noise level is average for most small cafes. I found the place to be very nice and well maintained. As of now, 01/09/2024, the plan is to be open 8 AM to 3 PM seven days a week.

Machaca Ah! Chihuahua breakfast plate.

Absolutely love this place! Great food first of all, everything gets made old school style. Staff is awesome and super polite they will take care of you.

Really good food! Well seasoned!! Super friendly service and warm environment! If you're in Homedale, stop by for breakfast! You won't be disappointed

This place was absolutely disgusting. To start the restaurant was poorly done. Weeds growing in the doorway, and the smell itself was just terrible. Then the food over cooked ,burnt ,and just tasted bad. Took 3 bites and left I just couldn't do it. I will never eat there again. Just horribly disappointed.

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Debra S. said "Homedale Idaho Subway is the best! We were in town to visit our grandson & take them for lunch. There were plenty of staff to keep the line going and everything was clean and the food fresh & good! I highly recommend this Subway!" read more

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Shannon H. said "We went for my free Birthday grand slam and we had Mirium as our server and she was very pleasant and very attentive. She assisted my husband in another choice to go along with his biscuits and gravy. She wasn't to pushy about the…" read more

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