Target the Market of Your Restaurant

By Silvia Valencia

target market restaurant business plan

Your target market is the group of consumers – in this case, diners – whom you will aim to attract. They are people who are most likely to buy what you’re selling.

The target customer of your restaurant is a specific segment of the larger dining market. Target markets are determined by a combined analysis of:

  • Demographics: segments of the population as divided by shared characteristics, including age, sex, income, education, religion, race, and geographical location
  • Psychographics: the classification of people according to attitudes, aspirations, and values
  • Behavior: analysis of a population segment according to the behavior of potential customers, including buyer habits, spending habits, digital behavior, and hobbies

Goals of Establishing Your Target Market

Why is it so important to establish the target market for a restaurant business from the beginning? So that you can fulfill the following goals:

  • Understand the demographics, psychographics, and behavior of those population segments you a) want to attract and b) will organically show interest in your restaurant
  • Refine your business plan so that the execution of that plan is driven entirely by your target market
  • Determine where to access your customers, how to talk to them, and which channels should be used to market to them
  • Identify your differentiators as a business
  • Identify your indirect and direct competitors

In business, these goals are often expressed as “the four P’s”:

  • Product: improve your product based on what customers want and need.
  • Price: set a price based on profit margins, competitor pricing, and what your customer is willing to pay.
  • Placement: decide where to set up your restaurant.
  • Promotion: determine the most effective channels for reaching your target market online and in real life.

How Your Target Market Influences Your Business Plan

Your target market influences every section of your business plan. Before we describe how to define your target market using target market examples for a restaurant, you’ll need to know a little about how your target market will influence the development of your business plan.

Here’s how your target market will come through several sections in your business plan.

Concept: The ambiance of your restaurant should be conceptualized based on the tastes of your target market. What would your target market get from your customer experience that they couldn’t get anywhere else?

Mission statement: Your mission statement should be crafted to resonate with your target market, as it appears on all marketing and internal materials.

Menu and services: Your menu and services are the reasons your target market will visit your restaurant. Your target market will determine what you offer at your establishment, and it’s important you really ask yourself the question: will my target market want what I’m offering?

Location: Your location should be chosen based on where your target market is most likely to live, work, or play.

Market trends: Your target market will determine which trends you choose to jump on and which ones you don’t.

Competition: Your target market is essential to defining your direct and indirect competition in your business plan. This is especially true for determining indirect competition, which can be less obvious. Indirect competition means you share a target market, although your restaurant concepts may differ.

Advantages, opportunities, challenges: You need to understand your target market to define how your restaurant will contribute to it. Without this firm understanding, you’re shooting in the dark.

Marketing: Brand development, voice, messaging and promotion channels can’t be defined unless you know whom you’re talking to.

Team: The people you employ should be representative of your target market.

Pro tip: check out our full guide on writing a restaurant business plan

Demographics, Psychographics and Behavior

Demographics, psychographics, and behavior are the tools you’ll need to become familiar with to define your target market in the food business.

Here’s everything you need to know about each category and some restaurant target market examples within each, so you can start to think about which ones resonate for your restaurant concept.

Demographics

Demographics include age/generation, gender, dwelling location (urban, suburban, rural), religion, and income. Some characteristics specific to demographic habits and their relation to dining are:

Age / Generation

Generation Z: Born 1995 to 2014

  • Spends money on food above all else
  • Prefers quick service and casual dining restaurants
  • Grew up with digital technology, thus expect information at their fingertips
  • If they’re a part of your target market, online prevalence on social media and online review sites is imperative

Millennials: Born 1980 to 1994

  • Eats out more often than the general population, with 53% going out to eat at least once a week
  • Prefers fresh, natural ingredients
  • Prioritizes sustainability and ethics
  • Prefers fast casual and fine dining over traditional fast food like McDonalds
  • Most likely to look at a restaurant’s menu online

Generation X: Born 1964 to 1980

  • Prefers organic food
  • Places a lot of value on family dining
  • Not as digitally savvy as Millennial and Gen Z counterparts
  • Still peruse review sites and social media

Baby Boomers: Born 1946 to 1964

  • Many baby boomers report being on a diet
  • They spend a significant amount of money eating out
  • Aren’t as tech savvy as their kids and grandkids, but they’re trying

Does your target consumer primarily inhabit an urban, suburban, or rural setting? You’ll really need to know this when you’re choosing the perfect location for your restaurant. Long commutes will be a deterrent for restaurant-goers, even if your concept fits the bill.

  • Combines commercial and residential dining
  • Caters to professionals, friends, families, and alcohol-focused consumers
  • Competition is greater – but population density is, too
  • Varying income levels
  • Groups of all sizes mean the need for various table settings
  • More appetite for food trends and entertainment options
  • Diners are more likely to look at online menus
  • Diners are more likely to try a new restaurant
  • Diners are more likely than suburban and rural diners to eat out
  • Diners are more likely to be influenced by social media and online reviews
  • Families, Generation X, and Baby Boomer generations
  • Larger groups and families
  • Middle-class income levels
  • More likely than urban diners to have small children
  • Diners are more influenced by locally sourced food choices
  • Families and Baby Boomer age groups
  • Diners are less likely to use review sites
  • Diners are less likely to try somewhere new
  • Diners are more likely to eat out with families
  • Diners are less likely to be influenced by social media and online reviews

Travel destination

  • Disposable cash
  • Interest in landmarks
  • Savour a luxury experience or, conversely, a quick meal

How much money does your target demographic make? This will be important to determine so that you know how much to charge your customers. If your target market are mostly middle-class families, you probably shouldn’t charge $50 for an entree.

High income

  • Frequently check online menus before committing to a restaurant
  • More likely to dine at a restaurant they’ve never been to
  • Influenced by negative online reviews

Middle income

  • Likely to dine at a restaurant they’ve never been to
  • Likely to eat fast food
  • Likely to look at online sources before going to a new restaurant
  • Less perturbed by negative reviews, but still somewhat influenced by them

Other fast facts

  • People with more education are more likely to go to full service restaurants.
  • Men are more likely than women to go to both fast food and full service restaurants.
  • People who worked more hours are more likely to go to both fast food and full service restaurants.
  • Smokers are more likely to go to fast food rather than full service restaurants.

Psychographics

If demographics are the “who” of your customer target market, psychographics are the “why” they buy. Psychographics represent your target market’s consumer personality type and personal preferences, including values, interests, and attitudes about the world.

Psychographics can range from someone who likes healthy food and a lively atmosphere to someone who prefers comfort food and the energy associated with a big sports game.

Behavior and habits

Behavior and habits are the “what” people actually do based on their psychographics, including activities and buying habits.

Outdoor communities, for example, have different lifestyles and behavioral rituals – say going for a morning five mile run – than retirement communities who may insist on watching the news at 6:00. Similarly, working parents who dine with kids will have different needs than singles who are ready to mingle.

Defining Your Restaurant Customer Profile

A customer profile is a description of a customer or set of customers that includes demographic, geographic, and psychographic characteristics, as well as buying patterns, creditworthiness, and purchase history.

Since you’re still in the early stages of developing your restaurant, you’re actually in a fantastic position to put the horse before the cart and not the other way around.

Here’s how to define your customer profile.

Step 1: Visit the competition to gather preliminary intelligence.

Before you start writing your customer profile, you’ll need to do some reconnaissance work to find out who’s dining at similar restaurants.

Make a list of local competitors in the neighborhood in which your business will be located. Start by going in for a breakfast, lunch, dinner, or even a drink.

Fill out the following criteria.

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  • General tone of the menu: formal, informal, young, straight to the point
  • Price range for appetizers and mains
  • General age range of customers
  • Ratio of men vs. women
  • Style of dress: formal, casual, work attire, trendy, relaxed, workout wear
  • Group dynamics: family, friends, partners, business, solo
  • What people are ordering
  • Atmosphere: lively, subdued
  • Music: elevator music, background music, live music, acoustic

Dining room

Surrounding area

  • Residential or commercial
  • Landmarks: Mall, financial district, shopping district, other bars and restaurants, surrounding shops

Once you’ve gone through this process for at least three competitors, look for trends in your findings. Is the atmosphere consistently relaxed? Are diners consistently wearing suits or workout gear? Is the music new age electronic, acoustic, or old classics?

Patterns will give you an idea of the target customers who are naturally drawn to your restaurant’s concept.

Step 2: Organize your preliminary intelligence into basic customer profiles.

From your notes, drill down on your observations using the following criteria. This will give you a starting point for a more complete profile of your ideal or typical customer.

Repeat this process for every general consumer demographic you observed in your preliminary intelligence.

  • Dining with
  • Price point

Here’s an example:

Customer type 1 at Bistro Competitor X

  • Gender: Both, predominantly female
  • Location: Urban
  • Music: Acoustic singer songwriters
  • Ambiance: Relaxed, lunchtime
  • Dining with: Friends, partners
  • Dress type: Casual, trendy
  • Order: Soup, salad, coffee
  • Price point: $10-15 per entree

Notes: Likely students. Seemed to linger and enjoy their meal.

Customer type 2 at Bistro Competitor X:

  • Gender: Both, predominantly male
  • Dining with: colleagues
  • Dress type: formal work wear
  • Order: sandwich and fries, burger
  • Price point: $15-–$18 for an entree

Notes: Took meals to go. Seemed to be on a lunch break from work.

Step 3: Look at census data.

Now that you have basic demographic information on your competition, your next task is to gather census information on your desired neighborhood. Census material will confirm the assumptions you’ve made so far about your target profile.

Where to find demographic information

U.S. Census

US Census Business Builder: Small business edition

Canadian Census

Census Profile, 2016 Census

View demographic information by:

  • Population and dwellings
  • Age characteristics
  • Household and dwelling characteristics
  • Marital status
  • Family characteristics
  • Household type
  • Immigration status

Step 4: Gather psychographic and behavioral data.

Once you’ve gathered your demographic data, here’s where you go a little deeper with gathering psychographic and behavioral data. Ensure your target market data covers the following points:

Psychographic

  • Their concerns: career, the environment, work-life balance
  • Their motivations: money, status, art, family, personal growth
  • Their sources of fulfillment: career, being a parent, family, friends
  • Their values: religion, political leanings, family values, social values
  • What they do in their spare time
  • How they make their purchases (online, in-person, on the phone)
  • How often they use the internet and social media
  • Whether they plan or act impulsively
  • Whether they look at restaurant review sites like Google, Yelp or OpenTable
  • Their preferred social media platforms
  • How much they rely on recommendations from friends
  • What draws them to a specific restaurant
  • What repels them
  • Who they dine with most frequently
  • How often they dine out

Ways to Gather Psychographic and Behavioural Information

Gather consumer research online.

A few sources to help you understand your market are:

Restaurants Canada

Restaurants Canada’s research section offers reports and benchmarks that you can use to learn more about Canadian diners. Resources include trend reports, forecasts, information on restaurant industry by province, and market reports. Some reports are available to Restaurants Canada members for free, while non-members have to pay a fee. Other studies are free for everyone.

National Restaurant Association (NRA)

The National Restaurant Association has a library rich with consumer data. Some reports are available to NRA members for free, while non-members have to pay a fee. Other information is free for everyone.

Host a focus group.

You can use focus groups to get direct feedback on your concept and more information about the wants and needs of consumers.

Focus groups enable you to conduct an intimate Q&A session to determine the appetite for your concept and learn more about your restaurant target market.

Consider having two focus groups: one with your target market and another “control” group. (A control group is a random sample of the larger population. A control group can shed light on how your target market differs from the general population.)

Here’s how to conduct a focus group.

Before the focus group

  • Choose a focus for your questions. What specific information are you looking to gather? In this case, your focus could be learning more about your target market’s dining behaviors and values.
  • Select a location for the focus group. It should be comfortable and relaxed. Keep in mind that you’ll have to record the conversation for your reference later. The space should be quiet enough for recording.
  • Prepare your questions. Stick to your script and purpose of the focus group. Don’t use the focus group as a PR activity.
  • Use ‘yes’ and ‘no’ questions sparingly. Use open-ended questions that will require a thoughtful response from participants.
  • Use a funnel approach. Start with general, broad sweeping questions. Then narrow your questions to get more specific answers.
  • Ask positive questions before negative questions.
  • Limit yourself to 10-12 questions. An acceptable timeframe for a focus group is between one and a half to two hours.
  • Recruit participants. Participants should be as objective as possible. To find objective participants, place an ad on social media or in publications like a local newspaper. If that’s not in the budget, you can also get friends to ask their network. That way you get an unbiased third parties to take part. Focus groups are usually made up of five to ten participants.
  • Incentives are welcome: Feel free to offer incentives like gift cards or loot bags.

During the focus group

  • Neighborhood of residence
  • Income bracket
  • Hand out a release form. Outline the purpose of the study. Confirm that the participant understands they will be recorded. Describe how the research will be used.
  • Introductions and icebreakers. Introduce yourself, review the purpose of the focus group, and ask participants to introduce themselves.
  • Make participants comfortable. Consider providing participants with water and snacks. Provide time for a bathroom break.
  • Ask your questions. As you go through your questions, your job is also to keep participants on track. Reroute them if they get off course and prompt them for further details if their answers are short-winded. Be curious, wear a smile and make eye contact.
  • Analyze your recording and findings. Using your questions as a guideline, record your participants answers, preferences and behaviors. Identify trends in their responses.

Create a survey.

Surveys allow you to gather anonymous feedback from more people with less time and commitment than a focus group. But keep in mind it’s harder to control the distribution of your survey.

The survey’s participants might vary from your target market. You will have to manually filter responses according to your restaurant target market vs. general population.

Here’s how to conduct a survey.

  • Choose a focus: What specific information are you looking to gather? In this case, your focus is to learn more about your target market’s dining behaviors and values.
  • Draft your survey questions.
  • Collect demographic information: Begin your survey by collecting demographic information. When you’re conducting your analysis, this will help you sort your target market’s answers from general survey responses.
  • Use close-ended questions: On a survey, open-ended questions can exhaust respondents. Respondents can answer close-ended questions faster and from their gut. When it comes time to analyze your survey results, close-ended questions are quantitative. Quantitative responses will lead you to general conclusions, faster. Close-ended questions are framed using scales:

Likert Scale

Best used for: Measuring behavior and feelings

  • Strongly Agree – Agree – Undecided / Neutral – Disagree – Strongly Disagree
  • Always – Often – Sometimes – Seldom – Never
  • Extremely – Very – Moderately – Slightly – Not at all
  • Excellent – Above Average – Average – Below Average – Very Poor

Question: Before visiting a restaurant, I look at their website online.

Answer: Always – Often – Sometimes – Seldom – Never

Nominal scale

Best used for: demographic information, like age and income

  • Age: 1-9, 10-21, 22-29, 30-44, 45-54, 55-64, 65+
  • Income: $15,000 – $29,999, $30,000 to $59,999, $60,000 to $79,999

Question: What is your age?

Answer: Under 21– 22 to 29 – 30 to 44 – 65+

Dichotomous scales

Best used for: Precise answers and data measuring

  • True or False
  • Fair or Unfair
  • Agree or Disagree

Question: I am interested in trying a new cuisine.

Answer: True or False

Multiple choice

Best used for: Questions that could have more than one answer

Question: Which of the following proteins do you like?

Answer: Beef – Chicken – Fish – Tofu – Other (Please specify)

Single choice questions

Best used for: Questions that ask respondents to determine their favorite choice

Question: What protein do you select most often?

When creating survey questions, avoid the following errors:

  • Leading questions: Do your best to create objective questions. Don’t ask, “Would you dine at an amazing restaurant if they played terrible country music?” Instead ask, “What music would deter you from dining at a restaurant? Choose the answer that most applies. Rock – Country – Indie – Classical – Top 40 – Oldies – Reggae – Rap – Other (please specify)”
  • Double-barrelled questions: Double-barrelled questions force respondents to answer two questions at once. For example: “Would you order takeout from a restaurant that offered Indian cuisine and was only open until 9:00pm?”

Create the survey.

Create digital surveys using one of the following tools:

  • SurveyMonkey
  • AYTM (Ask Your Target Market)

Test your survey.

Always test your survey before you distribute it to your restaurant target market. Your survey should take no longer than seven to eight minutes to complete.

To test your survey, send it out to five members of your network. Ask them to review the survey questions for clarity, spelling, and general flow. Once they’ve completed the survey, download their responses so you can see how the survey tool organizes and presents the results. You might find you need to adjust formatting or response types if the information isn’t organized in a logical way.

Distribute your survey.

You can buy targeted respondents from any one of the survey tools listed above. If you’re on a budget, distribute the survey to your network. Then ask that network to distribute the survey to their network, and so on.

Analyze responses and apply them to profiles.

While the general population’s information is still valuable, pay close attention to your target market’s answers. As you identify psychographic and behavioral information trending within your target market, you can add these insights into your target market profiles.

Step 5: Create buyer personas.

Finally, you will craft a buyer persona. Your buyer persona is an archetype of your target market based on the information you’ve gathered. This is where you create a character using statements that are based on the demographic, psychographic, and behavioral data you’ve gathered. You should be able to envision who this person is, just as a novelist does when they are writing about their characters.

Here’s an example of a buyer persona:

Meet Maria.

Maria’s demographics

Maria is a 28-year-old female who frequents casual dining restaurants. She is married or seriously dating and earns an income of $60,000, renting a condo on the outskirts of the city.

Maria’s psychographics

She lives an active, outdoor lifestyle, enjoys healthy food and is self-employed. She is motivated by health, personal growth, and is fulfilled by her friendships. She like a casual atmosphere where she can feel comfortable showing up in running shoes and yoga pants.

Maria’s behavior

She does much of her shopping online, and while she doesn’t look at reviews, she always looks at the menu online before going to a restaurant. She dines out three times a week and is drawn to a restaurant where she can enjoy healthy food with her partner or friends and based on recommendations from friends. She’s repelled by negative health scores, but not by negative reviews from friends.

Step 6: Revisit your target markets after you’ve drafted your business plan.

So you’ve put in the work to get a general sense for those consumers who occupy your target market, created profiles, and written your business plan .

The next step is to revisit your buyer personas after you’ve written your business plan. Do they still hold up? Ask yourself the following questions:

  • Do I understand what drives my customer’s buying behavior?
  • Does my concept fit into my customer’s buying behavior? Do I need to make adjustments?
  • What can I do to further adapt my concept to meet their needs?

You’ll likely end up making adjustments to your customer profile and your business plan when considering these factors. At this point in developing your restaurant, your business plan is a living, breathing document, and your work here will further inform the proposal you wish to cement later.

Now that you know the customer you’re going after and the market you want to break into, you can begin making the decisions that will bring your concept to life and get people in the door.

Of course, you’ll need to conduct further analysis once you’ve started making decisions. For example, once you’ve chosen a location , you’ll have to get a sense of the local market. Following these steps will ensure that you’re creating a solid foundation for your business increase your odds of success from the very beginning.

Headshot of Silvia Valencia.

Silvia is the former Digital Marketing Manager for TouchBistro. During her time with TouchBistro, she managed and coordinated content for the RestoHub blog.

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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.

target market restaurant business plan

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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One blue credit card on a flat surface with coins on both sides.

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's photo

Maja Jankowska

target market restaurant business plan

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.

Restaurant business plan with step by step guide

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 the restaurant

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.

Custom design of your restaurant booking system with resOS

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.

target market restaurant business plan

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

  • Business , Restaurants
  • April 1, 2023

If you’re planning to start a restaurant, writing a business plan is a crucial step. A well-written business plan serves as a roadmap for your restaurant, outlining your goals, strategies, and financial projections. It’s also a document that potential investors or lenders will want to see before they consider investing in your restaurant.

Writing a restaurant business plan can seem daunting, but it doesn’t have to be. The key is to break it down into manageable sections and take it one step at a time. In this article, we’ll walk you through the essential elements of a restaurant business plan and provide tips on how to write each section effectively.

Executive Summary

The executive summary is a critical part of your restaurant business plan, as it provides an overview of your entire plan. It should be concise and clear, highlighting the most important aspects of your business plan.

In this section, you should include:

  • A brief introduction to your restaurant concept and target market
  • Your mission statement and core values
  • A summary of your management team and their experience
  • A description of your menu and pricing strategy
  • A financial summary, including startup costs, projected revenue, and profit margins

Keep in mind that the executive summary is often the first part of your business plan that potential investors or lenders will read. Therefore, it’s important to make a strong first impression and clearly communicate the key points of your plan.

Overall, the executive summary should be no more than one or two pages long, and should be written in a clear and concise manner. It should be easy to read and understand, and should leave the reader with a clear understanding of your restaurant concept and the potential for success.

Market Analysis

Before starting a restaurant business, it is essential to conduct a thorough market analysis to understand the market trends, competition, and target customers. The market analysis section of the business plan should provide a detailed overview of the restaurant industry’s current state and future growth potential.

One way to conduct market research is by analyzing industry reports, such as those published by the National Restaurant Association. These reports provide valuable insights into consumer trends, industry growth rates, and market size. Additionally, researching local competition and their offerings can help identify gaps in the market and opportunities for differentiation.

Another critical aspect of market analysis is identifying the target market. Understanding the demographics, preferences, and behaviors of potential customers is crucial in developing a successful restaurant concept. This information can be gathered through surveys, focus groups, and analyzing customer data from similar businesses.

Finally, it is essential to analyze the economic and regulatory environment in which the restaurant will operate. Factors such as minimum wage laws, health and safety regulations, and taxes can significantly impact a restaurant’s profitability.

Overall, a comprehensive market analysis is crucial in developing a successful restaurant business plan. By understanding the market trends, competition, and target customers, entrepreneurs can create a unique concept that meets the needs of their customers and stands out in a crowded industry.

Menu and Services

One of the most important aspects of a restaurant business plan is the menu and services section. This section outlines the types of food and beverages that will be offered, as well as the overall dining experience that customers can expect.

When developing your menu, it’s important to consider the target market and what types of cuisine they prefer. It’s also important to consider the cost of ingredients and the profit margins for each dish. Offering a variety of options, including vegetarian and gluten-free choices, can help attract a wider customer base.

In addition to the menu, the services section should outline the overall dining experience. This includes details such as the style of service (e.g. casual, fine dining), the ambiance of the restaurant, and any additional services offered (e.g. catering, delivery). It’s important to consider the competition in the area and what unique services or experiences your restaurant can offer to stand out.

Tables and bullet points can be useful in conveying information about the menu and services. For example, a table could be used to list the different menu items and their prices, while bullet points could be used to highlight any special promotions or events.

Overall, the menu and services section of a restaurant business plan is crucial in outlining the types of food and experiences that customers can expect. By carefully considering the target market, competition, and costs, you can develop a menu and service offering that will attract and retain customers.

Marketing and Sales Strategies

Marketing and sales are crucial components of any restaurant business plan. Without effective marketing and sales strategies, your restaurant may struggle to attract customers and generate revenue. In this section, we’ll discuss some key strategies for promoting and selling your restaurant’s products and services.

Target Market

Before you can develop effective marketing and sales strategies, you need to identify your target market. Who are your ideal customers? What are their demographics, interests, and behaviors? By understanding your target market, you can tailor your marketing and sales efforts to appeal to their specific needs and preferences.

Online Presence

In today’s digital age, having a strong online presence is essential for any business. Make sure your restaurant has a professional website that showcases your menu, location, and hours of operation. You should also create social media accounts on platforms like Facebook, Twitter, and Instagram. These channels can help you connect with potential customers and promote your restaurant’s offerings.

Promotions and Special Offers

Offering promotions and special deals can be an effective way to attract new customers and encourage repeat business. Consider offering discounts on certain menu items or hosting special events like wine tastings or live music nights. You can also use email marketing campaigns to promote your restaurant’s latest offerings and deals.

Customer Service

Finally, don’t overlook the importance of excellent customer service. Providing a positive dining experience can help you build a loyal customer base and generate positive word-of-mouth referrals. Train your staff to be friendly, attentive, and knowledgeable about your menu and offerings.

Management and Staffing

One of the key factors for any successful restaurant is having a strong management team in place. This includes a general manager, kitchen manager, and front-of-house manager. Each of these positions has unique responsibilities that are critical to the restaurant’s success.

The general manager oversees all aspects of the restaurant, including finances, marketing, and staffing. They are responsible for creating and implementing policies and procedures that ensure the restaurant runs smoothly and efficiently.

The kitchen manager is responsible for managing the kitchen staff, ordering supplies, and ensuring that all food is prepared to the highest standards. They must have a deep understanding of food safety and sanitation regulations, as well as excellent organizational and communication skills.

The front-of-house manager is responsible for managing the waitstaff, bartenders, and host/hostess staff. They must have excellent customer service skills and be able to handle any customer complaints or issues that arise. They are also responsible for creating schedules and ensuring that the restaurant is properly staffed at all times.

When it comes to staffing, it’s important to hire people who are passionate about the restaurant industry and committed to providing excellent customer service. This includes waitstaff, bartenders, and kitchen staff. It’s also important to provide ongoing training and development opportunities to ensure that staff members are equipped with the skills they need to succeed.

Having a strong management team and dedicated staff is critical to the success of any restaurant. By investing in your team and creating a positive work environment, you can ensure that your restaurant is well-positioned for long-term success.

Financial Analysis and Projections

As you develop your restaurant business plan, it is essential to include a section on financial analysis and projections. This section should provide a detailed overview of your restaurant’s financial health and future growth potential. Here are some key elements to include:

Revenue Projections

One of the most critical aspects of your financial analysis is revenue projections. This section should include a detailed breakdown of your restaurant’s expected revenue streams, including food and beverage sales, catering, and any additional revenue streams. Use tables and charts to make this information more accessible to readers.

Cost Analysis

Another essential component of your financial analysis is a detailed cost analysis. This section should include a breakdown of all your restaurant’s expenses, including rent, utilities, food costs, and labor costs. Use bullet points to make this information easier to read and understand.

Cash Flow Analysis

Your financial analysis should also include a detailed cash flow analysis. This section should provide an overview of your restaurant’s cash flow, including cash inflows and outflows. Use tables and charts to make this information more accessible to readers.

Profit and Loss Statement

Finally, your financial analysis should include a detailed profit and loss statement. This section should provide an overview of your restaurant’s revenue, expenses, and net income. Use tables and charts to make this information more accessible to readers.

By including a detailed financial analysis and projections section in your restaurant business plan, you can provide potential investors and lenders with a clear picture of your restaurant’s financial health and future growth potential. Use tables, bullet points, and other HTML tags as necessary to make this information more accessible to readers.

Here are a few additional resources that can help you with your restaurant business plan:

  • Sample business plans:  Look for sample business plans online to get an idea of what a successful restaurant business plan looks like. You can find templates and examples on websites such as Bplans, LivePlan, and SCORE.
  • Industry research:  Conduct thorough research on the restaurant industry to understand your target market, competition, trends, and challenges. Use resources such as the National Restaurant Association, industry publications, and market research reports.
  • Financial projections:  Use financial modeling tools such as Excel or software such as LivePlan to create realistic financial projections for your restaurant. Make sure to include all costs, revenue streams, and contingencies.
  • Legal requirements:  Consult with a lawyer to ensure that you have all the necessary permits, licenses, and contracts in place. This includes registering your business, obtaining food and alcohol licenses, and complying with health and safety regulations.

Remember that your restaurant business plan should be a living document that you update and refine regularly. It should guide your decision-making, help you secure funding, and keep you focused on your goals. With a well-written and well-researched business plan, you can increase your chances of success in the competitive restaurant industry.

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  • ZenBusiness > …
  • Plan Your Business
  • > How to Make a Restaurant Business Plan

How to Make a Restaurant Business Plan

Are you passionate about starting a restaurant? Discover the essential steps to write a compelling restaurant business plan and turn your culinary dreams into a thriving reality.

Starts at $0 + state fees and only takes 5-10 minutes

Start Your Restaurant Business!

Starting a restaurant is an exciting venture, but it requires careful planning to ensure its success. A well-crafted restaurant business plan serves as a roadmap, outlining your goals, strategies, and financial projections. In this article, we’ll guide you through the process of writing a restaurant business plan, step-by-step, making the first steps in your journey as a restaurant owner smoother.

What is a restaurant business plan?

A restaurant business plan is a document that outlines your restaurant’s concept, goals, target market, marketing strategies, operations, and financial projections. It serves as a blueprint for your business , helping you make informed decisions and attract potential investors or lenders.

A well-developed restaurant business plan not only helps you clarify your vision but also demonstrates your commitment and preparedness to stakeholders.

How to Write a Restaurant Business Plan

Every business will have a slightly different business plan, especially in the restaurant industry. However, there are a few common elements in most plans. To get started, include these elements to create an excellent business plan for a restaurant. 

Branded cover page

Your restaurant business plan should start with a professional cover page that reflects your brand identity. Include your restaurant’s name , logo , and contact information to make a strong first impression.

Executive summary

The executive summary is a concise overview of your restaurant business plan. It provides a snapshot of your concept, target market, competitive advantage, and financial expectations. Keep it engaging and captivating to grab the reader’s attention.

Company overview

In this section, provide detailed information about your restaurant. Describe your restaurant concept, location, legal structure ( such as an LLC ), and ownership. Explain your unique selling proposition (USP) and highlight what sets your restaurant apart from the competition.

Industry analysis

Conduct a thorough analysis of your target market , location, and competitors. Identify your target audience, their preferences, and demographics. Evaluate your restaurant’s location, considering factors like foot traffic, accessibility, and competition. Analyze your competitors’ strengths and weaknesses to identify opportunities for differentiation.

Sample menu

Present a sample menu that showcases your restaurant’s culinary offerings. Include a variety of dishes that reflect your concept and target audience. Describe the ingredients, cooking techniques, and pricing strategy to give potential investors or lenders an idea of your menu’s profitability.

Marketing plan

Outline your marketing strategies to attract customers and build brand awareness. Identify your target audience and develop a comprehensive marketing mix, including online and offline tactics. Include social media campaigns , your website , email marketing, promotions, partnerships, and community engagement initiatives.

Operations plan

Detail the operational aspects of your restaurant. Describe your staffing plan, including the organizational structure, key roles, and responsibilities. Explain your customer service policies and procedures, emphasizing your commitment to excellent service. Discuss your restaurant point-of-sale (POS) system and other operational systems you plan to implement. Lastly, outline your supplier relationships and inventory management strategies.

Financial analysis

Present a comprehensive financial analysis that demonstrates the viability and profitability of your restaurant. Include an investment plan, detailing the required startup costs and funding sources . Develop a projected profit and loss (P&L) statement, forecasting revenues and expenses over a specific period. Conduct a break-even analysis to determine the point at which your restaurant becomes profitable. Lastly, include an expected cash flow statement to showcase the flow of money in and out of your business.

Don’t panic if your business plan isn’t completely exact about potential prices or profits; these elements are just your best (educated) estimates. Including them, even if they change a bit after you get started, helps prove to your investors that you’ve done your homework and that you know the restaurant can succeed.

If there are other elements you want to include in your restaurant business plan, you can do so. Some businesses have an attorney help them draft this document, but that’s not a legal requirement. In fact, you can use a customizable business plan template to streamline this process. 

We can help!

At ZenBusiness, we understand the challenges of starting and running a restaurant. Our platform provides a range of services to support your journey. From seamless LLC formation to business license reports and registered agent services , we handle the administrative tasks, allowing you to focus on your restaurant’s success. Get started today and let ZenBusiness be your partner in building a thriving restaurant business.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional .

Restaurant Business Plan FAQs

What needs to be included in a restaurant business plan.

A comprehensive restaurant business plan should include key elements that outline your restaurant’s concept, target market, marketing strategies, operational plans, and financial projections. It should cover details such as your menu, pricing strategy, staffing plan, customer service policies, location analysis, competitive analysis, and investment plan. Additionally, it’s crucial to incorporate a well-researched industry analysis, highlighting market trends, customer preferences, and competitive advantages. Including these elements will provide a clear roadmap for your restaurant’s success.

How do I plan a small restaurant?

Planning a small restaurant involves several crucial steps. First, define your restaurant concept and identify your target audience. Conduct thorough market research to understand the local food industry, potential competitors, and customer preferences. Determine your budget and create a detailed financial plan that includes startup costs, equipment, inventory, and operational expenses. Develop a comprehensive marketing strategy to attract customers and build brand awareness. Lastly, create an operational plan, outlining staffing, customer service protocols, menu offerings, and supplier relationships. By carefully planning each aspect, you can set a solid foundation for your small restaurant’s success.

Is a restaurant a good business to start?

Starting a restaurant can be a rewarding and fulfilling venture for those passionate about the culinary industry. However, it’s essential to recognize the challenges that come with it. The restaurant business is highly competitive, with a significant failure rate. Success depends on various factors, including a well-defined concept, effective marketing strategies, strong financial management, excellent customer service, and a dedicated team. It’s wise to conduct thorough market research, develop a solid business plan, and use professional services like ZenBusiness to increase your chances of success.

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How To Write a Restaurant Marketing Plan + Template & Examples

restaurant marketing plan

In this article, we will describe what should be included in each component of your marketing plan and provide some restaurant marketing strategies that can help you reach your target audience.

Download our Ultimate Marketing Plan Template here

What is a Restaurant Marketing Plan?

A restaurant marketing plan is a written document that outlines the specific actions you’ll take to achieve your restaurant’s marketing and sales goals. This document is a crucial component of your larger restaurant business plan , as it details how you’ll attract and retain customers.

The marketing plan should be designed to support your overall business strategy and objectives. It should be updated regularly as your business changes and grows.

Your restaurant marketing plan should be built around your unique selling proposition (USP), which is the one thing that sets you apart from other restaurants in your market. From there, you’ll need to develop targeted campaigns, create compelling offers, and craft a promotions strategy that will reach your ideal customers.

Once you have all of the pieces in place, you’ll need to track your progress and adjust your plan accordingly. The best way to do this is to set measurable goals and track your results regularly.

Why You Need a Restaurant Marketing Plan

There are many reasons why you need a marketing plan to start your restaurant . First and foremost, a well-crafted marketing plan will help you focus your limited time and resources on the activities that will have the biggest impact on your business.

Second, a restaurant marketing plan can help you track your progress and see whether or not you’re on track to achieve your goals. This is important because it allows you to make changes to your plan as needed.

Finally, a marketing plan can be a valuable tool for communicating your restaurant’s marketing strategy to your team. By having a written plan, you can ensure that everyone on your team is aware of your goals and knows what needs to be done to help you achieve them.

Marketing Plan Basics

A typical marketing plan includes the following components:

Executive Summary

Target market segments, unique selling proposition (usp), pricing and positioning strategy, marketing materials, promotions strategy, digital marketing plan, conversion, referral, and retention strategy, financial projections, how to write a restaurant marketing plan.

Use the following restaurant marketing plan template, guide, and examples to write your own marketing plan.

Although the first section of your restaurant marketing plan, it should be the final section of your marketing plan that is written.

In two or three pages, summarize all of the information you have presented in the other sections and include a summary version of any graphs or charts you have included.

You should also include your marketing goals, objectives, and success metrics for the first year of operations.

Begin by dividing your potential patrons into segments based on their demographics, geography, lifestyle, behavior, or any other factors that are relevant to your restaurant. Be sure to explain how you determined these target market segments.

For example, you might segment your customers by:

  • Family size and composition
  • Behavioral factors

Once you have identified your target market segments, you’ll need to create profiles for each one. These profiles should include information about their needs, wants, and values. They should also include information about their buying habits and preferences.

You can use this information to develop targeted campaigns that will appeal to each segment.

Your USP is the one thing that sets you apart from other restaurants in your market. It’s what makes you unique and it’s what will make customers want to visit your restaurant over others.

Be sure to clearly define your USP and include it in your marketing plan. You’ll need to use it as a guiding force when developing your marketing strategy and campaigns.

To develop your USP, start by identifying your unique strengths. What do you do better than anyone else in your market? What can you offer that no one else can?

Once you’ve identified your strengths, use them to develop a USP that is clear, concise, compelling, and communicated through your website, marketing materials, and offers.

For example, if you’re a pizzeria with a wood-fired oven, your USP might be “the best wood-fired pizza in town.”

Your pricing and positioning strategy will be determined by many factors, including your target market, USP, and the overall goals of your marketing plan.

When setting your prices, be sure to consider your target market’s ability to pay. You want to position yourself in a way that allows you to compete against other nearby restaurants in your market. You want a pricing strategy that will be profitable for your restaurant and competitive in your market.

Your positioning strategy will determine how you communicate your USP to your target market. It will also determine the overall tone and approach of your marketing campaigns.

Be sure to clearly define your pricing and positioning strategy in your marketing plan. Include information on how you determined your prices and how you will position yourself in the market.

For example, will you be the high-end restaurant with premium prices or the budget-friendly option for the typical middle-class family?

Your offers are the incentives that you’ll use to get potential clients to take action. They can be in the form of coupons, discounts, freebies, or anything else that will entice your target market to visit your restaurant.

Your offers should be aligned with your overall restaurant marketing strategy. They should be developed to appeal to your target market and support your USP.

Be sure to include information on your offers in your restaurant marketing plan. Explain how they support your marketing strategy and what you expect them to achieve.

For example, if you’re trying to attract families with young children, you might offer a discount on kids’ meals or a free toy with every child’s meal.

Your marketing materials are the tools that you’ll use to reach your target market and deliver your message. They can include things like your website, menus, flyers, posters, and more.

Your marketing materials should be consistent with your overall branding and messaging strategy. They should clearly communicate your USP and support your offers.

Be sure to include information on your marketing materials in your marketing plan. Explain how they support your marketing strategy and what you expect them to achieve.

Your restaurant marketing plan should also include samples of your marketing materials. This will give readers a clear idea of what your materials look like and how they support your overall restaurant marketing strategy.

Your promotional strategies are how you will promote your products and services to your target market. It should include information about the types of promotions you’ll use, the channels you’ll use to reach your target market, and the timing of your promotions.

As a restaurant, you’ll likely use a mix of online and offline promotions to reach your target market. Your promotions should be designed to appeal to your target market and support your USP.

Be sure to include information on your promotions strategy in your restaurant marketing plan. Explain how the promotions support your marketing strategy and what you expect them to achieve.

For example, if you’re launching a new menu item, you might promote it with a special offer or discount.

Your digital marketing plan outlines how you will use digital channels to reach your target market. It should include information about your website, social media, email marketing, and any other online marketing tactics you’ll use.

Your digital plan should be designed to support your overall marketing strategy. It should be tailored to reach your target market where they are spending their time online.

For example, if you’re trying to reach young adults, you’ll want to focus on social media channels like Snapchat and Instagram.

Your restaurant marketing plan should also include samples of your online marketing materials. This will give readers a clear idea of what your online presence looks like and how it supports your other marketing efforts.

Your conversion, referral, and retention strategy outlines how you will turn potential diners into paying customers and keep them coming back for more.

It should include information about your sales process, customer loyalty programs, and referral marketing campaigns.

Be sure to include information on your conversion, referral, and retention strategy in your marketing plan. Explain how it supports your marketing strategy and what you expect it to achieve.

For example, if you’re trying to increase customer loyalty, you might offer a loyalty program with discounts and rewards for repeat business.

Your financial projections outline the expected revenue and expenses for your restaurant. They should also include your restaurant startup costs . They should be based on your marketing strategy, target market, and other factors.

Be sure to include financial projections in your marketing plan. Explain how they were developed and what you expect them to achieve.

For example, if you’re trying to increase sales by 20% over the next year, your financial projections should reflect that goal and include the essential KPIs that will be used to measure success. 

7 Restaurant Marketing Strategies

For most restaurants, a mix of marketing tactics will be the most effective way to reach their target market. The following are some common restaurant marketing strategies:

  • Social media marketing : Use social media channels to connect with your target market and promote your restaurant. There are multiple platforms like Facebook, Instagram, and Twitter are great for sharing photos, updates, and special offers.
  • Email marketing : Use email to stay in touch with your restaurant customers and promote your restaurant. Send newsletters, coupons, and special offers to your email list.
  • Promotions : Run promotions and discounts to attract new customers and keep existing ones coming back. Offer a discount for first-time customers or run a contest for a free meal.
  • Events : Host events at your restaurant to generate buzz and foot traffic. Partner with local businesses or charities to co-host an event.
  • Offline marketing : Use traditional offline marketing tactics to reach your target market. Place ads in local publications or distribute flyers in high-traffic areas.
  • Public relations : Generate positive press for your restaurant with public relations campaigns. Pitch story ideas to local media outlets or hold a grand opening event.
  • Word of mouth : Encourage customers to spread the word about your restaurant with word-of-mouth marketing. Offer discounts or freebies for customers who refer their friends.

Sample Marketing Plan for a Restaurant

Example – black pearl seafood restaurant.

Black Pearl Seafood Restaurant is a high-end seafood restaurant in New Orleans, LA. The restaurant offers an elegant atmosphere and a la carte menu with fresh seafood options.

The marketing plan executive summary for Black Pearl Seafood Restaurant will outline the restaurant’s overall marketing strategy, including its goals, objectives, and tactics. It will also include a financial projection for the restaurant’s first year of operation.

The goal of Black Pearl Seafood Restaurant’s marketing plan is to generate buzz and foot traffic to the restaurant. The restaurant also hopes to build a loyal customer base and increase sales.

The objectives of Black Pearl Seafood Restaurant’s marketing plan are to:

  • Attract 100 new customers within the first month of operation
  • Increase sales by 10% each month
  • Build a loyal customer base of 200 customers within the first year

The tactics that Black Pearl Seafood Restaurant will use to achieve its objectives include:

  • Social media marketing : Use Facebook, Instagram, and Twitter to share photos, updates, and special offers with potential customers.
  • Email marketing : Send a monthly email newsletter to subscribers with coupons, discounts, and restaurant news.
  • Promotions : Run monthly promotions and discounts to attract new customers and keep existing ones coming back.
  • Events : Host events at the restaurant, such as wine tastings and cooking classes.
  • Offline marketing : Place ads in local publications and distribute flyers in high-traffic areas.
  • Public relations : Pitch story ideas to local media outlets and hold a grand opening event.
  • Word of mouth : Offer discounts or freebies for customers who refer their friends.

Financial Projection

Black Pearl Seafood Restaurant expects to generate $3,000 in sales per month in its first year of operation. The restaurant plans to spend $600 on marketing and advertising each month, resulting in a net profit of $2,400.  

Black Pearl Seafood Restaurant’s target market segments are high-income individuals who are looking for an elegant seafood dining experience. Demographics include:

  • Location: New Orleans, LA
  • Income: $100,000+
  • Interests: Fine dining, seafood, wine

The restaurant’s location in New Orleans puts it in close proximity to some of the wealthiest neighborhoods in the city including Uptown, the French Quarter, and the Garden District.

Additionally, Black Pearl’s menu features fresh seafood options that are not typically found at other local restaurants, making it a desirable dining destination for affluent local and tourist diners.  

Black Pearl Seafood Restaurant offers an elegant atmosphere and a la carte menu with fresh seafood options that are not typically found at other local restaurants. This makes it a desirable dining destination for affluent local and tourist diners who enjoy exotic Cajun seafood cuisine.

“A Unique Dining Destination for Exotic Cajun Seafood Cuisine”  

Black Pearl Seafood Restaurant will charge a premium price for its high-end seafood cuisine. The average meal price will be $30-$40 per person.

Black Pearl Seafood Restaurant will position itself as the go-to spot for upscale seafood dining in New Orleans. It will target middle to high-income individuals who are interested in experiencing fine dining at an affordable price.  

Distribution Strategy

Black Pearl Seafood Restaurant will distribute flyers in high-traffic areas to promote its grand opening. It will also place ads in local publications and pitch story ideas to local media outlets. The restaurant will also use its social media platforms and email marketing to reach potential customers.  

Offers and Incentives

Black Pearl Seafood Restaurant will offer discounts and coupons to customers who sign up for their email newsletter. The restaurant will also have monthly promotions and discounts to attract new customers and keep existing ones coming back. For example, the restaurant could offer a buy one get one free entrée coupon or a percentage off the bill for parties of a certain size.

Customer Relationship Management (CRM) Strategy

Black Pearl Seafood Restaurant will use a customer relationship management (CRM) system to track customer data and interactions. The CRM system will be used to send automated marketing emails, track online reviews, and measure customer satisfaction.  

Black Pearl Seafood Restaurant’s marketing materials will include a website, social media posts, email templates, flyers, and business cards.

The website will feature the restaurant’s menu, photos, and location. Social media pages will be used to post updates about special events and promotions. The email template will be used to send monthly newsletters to subscribers.

Flyers will be distributed in high-traffic areas to promote the restaurant’s grand opening. Business cards will be given to customers to encourage them to spread the word about Black Pearl Seafood Restaurant.  

Black Pearl Seafood Restaurant will offer a variety of promotions to attract new customers and keep existing ones coming back. The following promotions will occur during Q1:

  • January : “January Blues Buster” – 20% off the bill for dine-in customers
  • February : “Valentine’s Day Special” – Two for one entree on Valentine’s Day
  • March : “Lucky in Love” – Enter to win a free dinner for two when you dine at Black Pearl Seafood Restaurant

Black Pearl Seafood Restaurant will use a variety of digital channels to reach potential customers. The following channels will be used:

  • Website & Search Engine Optimization : The restaurant’s website will feature the menu, photos, and location. The website will be optimized for search engines so that it appears as a top result when customers search for keywords related to the business in Google searches, local search results, Google Listing for Business, and rank well on other search engines.
  • Paid Ads on Google Ads : Create ads on Google Ads to display Google.com, Google Maps, and delivery sites when customers search for keywords related to the business.
  • Social Media Platforms : Black Pearl Seafood Restaurant will have active social media pages on Facebook, Twitter, and Instagram. The pages will be used to post updates about special events and promotions.
  • Email Marketing : The restaurant will use email marketing to send monthly newsletters to subscribers. The newsletter will feature discounts, coupons, and upcoming events.
  • Online Review Sites : Black Pearl Seafood Restaurant will monitor online review sites such as TripAdvisor, Yelp, and Google Maps. The restaurant will respond to both positive and negative reviews in a prompt and professional manner.

Black Pearl Seafood Restaurant will use a variety of strategies to convert potential customers into paying ones. The following strategies will be used:

  • Sales Techniques : The restaurant’s sales team will be trained to upsell and cross-sell menu items. They will also be taught how to handle objections and close the sale.
  • Referral Program : The restaurant will offer a referral program to loyal customers who refer new business. The customer will receive a discount on their next visit for each referral.
  • Loyalty Program : The restaurant will offer a program to our most loyal customers who frequently dine at the restaurant. The loyalty program will include discounts, coupons, and exclusive access to events.
  • Customer Retention : The restaurant will use a customer satisfaction survey to measure customer satisfaction. The survey will be used to identify areas of improvement.

Black Pearl Seafood Restaurant’s financial projections for Q1 are as follows:

  • Revenue : $50,000
  • Cost of Goods Sold : $15,000
  • Gross Profit : $35,000
  • Operating Expenses : $30,000
  • Net Profit : $5,000

Free Restaurant Business Plan Example PDF

Download our restaurant business plan pdf here. This is a free restaurant business plan example to help you get started on your own restaurant plan.  

How to Finish Your Restaurant Marketing Plan in 1 Day!

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

With Growthink’s Ultimate Marketing Plan Template you can finish your plan in just 8 hours or less!

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A Complete Guide to Writing a Restaurant Marketing Plan (Free Template)

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You love food and you love people. And you want your restaurant business to grow. You know you need a good marketing strategy but it sounds overwhelming to create and execute. Where do you start? 

You may not have a marketing degree or even understand all of the social media, marketing tools and marketing channels and what they can offer you.

However, a great restaurant marketing plan is relatively simple and straightforward when your objectives are distilled and clearly stated.

In this post, we’re going to break down the key essentials of a highly effective restaurant marketing plan ( free template included ).

But before delving into expert tips for creating a restaurant marketing plan , let's first define it.

What is a restaurant marketing plan?

A restaurant marketing plan is a strategic document that outlines a restaurant’s strategy to promote a brand, acquire new customers, and enhance the guest experience.

It’s focused on a specific period of business and highlights a variety of marketing-related action steps, such as goal creation, budgeting, and content planning .

quote-img

[A marketing plan] serves as a roadmap for achieving your marketing goals, ensuring that your efforts are focused, consistent, and aligned with your overall business objectives.

Learning how to craft a marketing plan forces you to think about your existing promotions and what you can do to gain a competitive edge.

While some restaurants integrate their overall marketing strategy and vision into their overall business plan , because marketing is critical to customer acquisition and engagement, having a well-researched marketing plan on its own is advisable.

A good idea is to create a working document that you’re continuously accessing and building upon and can attach as an appendix to the restaurant business plan.

target market restaurant business plan

Why do operators need a marketing plan? 

0" ng-repeat="text in output.html track by $index" style="text-align: left;"> In 2016 alone, the global food service sector grew by 3% to $1.3 trillion , with a forecast to reach an estimated $4.1 Trillion USD by 2026. This means that there are now more restaurants around the globe than ever before.

0" ng-repeat="text in output.html track by $index" style="text-align: left;"> Restaurant owners, therefore, have a lot of competition. There are many restaurants out there and they are constantly trying to attract new guests.

0" ng-repeat="text in output.html track by $index" style="text-align: left;"> If you want to stand out from the crowd, you need to develop an effective marketing strategy. 

0" ng-repeat="text in output.html track by $index" style="text-align: left;"> Here are a few effective ways that restaurant owners can improve their marketing strategy and help increase their revenue:

What should be included in an effective marketing plan?

A comprehensive restaurant marketing plan should include the following:

0" ng-repeat="text in output.html track by $index" style="text-align: left;">Restaurant owners spend a lot of time thinking about their marketing strategy. And we understand why.

0" ng-repeat="text in output.html track by $index" style="text-align: left;">As mentioned above, a marketing plan is crucial to a restaurant's success. It helps keep your restaurant top of mind, acquire new guests, and most importantly, keep your revenue from declining. 

To help you get started, follow these steps covering all the moving parts of restaurant marketing to set up your new plan and start the process of meeting your new vision with ease.

1. Set measurable goals

The first step to creating a restaurant marketing plan is to establish some goals .

  • What objectives do you plan to accomplish?
  • Are there specific targets you want your team to meet?

If you’re really going to make your restaurant marketing strategies work, it’s going to happen because you’ve got a vision of what you want to achieve during the first year and subsequent years ahead.

Set goals that align with your resources and ambitions.

Smaller goals could be gaining 10 new shares weekly or attracting 150 guests to your grand opening . Larger goals could be doubling sales each quarter .

Get started by establishing a few goals that make sense for your specific case.

As an example, a few goals for your restaurant could be to:

  • Grow drink revenue by 10%
  • Grow lunch hour revenue by $3000
  • Grow per table profit by 12%

Also, quantify your overall objectives with numbers and dates. You could set the goal completion date at three months, and measure your growth daily.

Create a simple wall chart to post in your office so you can make your goals visual and track your progress. 

Use the SMART template created by Filestage for listing each goal. 

plan2

You may also want to take your revenue goals and create more specific goals for wait staff so that they can work on their individual objectives.

Some wait staff objectives could be as follows: 

  • Get at least 10 guests to order an appetizer
  • Get 5 takeout orders per shift 
  • Get 1 order per 2 tasting plates

2. Determine your mission statement

A restaurant's mission and values form the cornerstone of its brand identity, shaping its business decisions, branding, messaging, and operations.

These guiding principles articulate the restaurant's purpose, distinguishing it from competitors and establishing a clear brand narrative.

A well-crafted mission statement encapsulates the restaurant's essence, justifying its existence and setting the stage for effective marketing strategies.

Further reading

  • How to Write a Restaurant Mission Statement (Tips and Examples)

3. Identify potential problems

Once you've figured out your goals and you've come to an agreement regarding your mission statement, you now have to identify the potential problems you and your team might face.

These could include competition, lack of capital, or poor management. Make sure you address these issues before you start your marketing strategy. 

  • 32 Best Restaurant Marketing Strategies (2023 Updates)

It's also good to keep an eye on your restaurant's performance, and what part of your restaurant's operations needs to be added to the marketing plan.

For example , you've noticed that Wednesdays are a lot quieter compared to other days at your restaurant. You then need to consider and create a marketing plan to help increase revenue on these slower days.

But, most importantly how will you manage to have an overview of these types of potential problems?

Pro tip:  Eat App's Advanced Reports , will play a key role here. The performance tracking tool for restaurants is considered a powerful feature to help operators keep tabs on how their establishment is performing and where potential problems might arise. 

The analytic system automatically collects valuable bookings and guest data to help you keep track of your restaurant's growth and overall performance.  

Reports are also fully customizable to give you full control over what you would like to track and have an overview when shared with your team. 

The advanced reports allow you to: 

  • Review reservation and guest data
  • Customize daily, weekly, monthly, or yearly reports
  • A breakdown of covers or bookings
  • Export CSV files or even a graph of any time period

>>> Want to try it yourself? Sign up here - it's free.  

4. Determine your target customers

If you interview any successful restaurateur and ask them their secret, they’ll all tell you the same thing: know your ideal customer.

While it’s tempting to visualize that everyone is interested in dining at your restaurant, focusing on a narrowly defined ideal customer will save you months of wandering in the dark trying to be everything for everyone. 

That’s where an ideal restaurant customer profile comes in handy.

An ideal customer profile is a fictional representation of your ideal customer that helps personalize your sales and marketing efforts.

It lists out demographic information like age, gender, and income, as well as some qualitative details like what they enjoy in certain places, and what their preferences are when it comes time to pick a restaurant for lunch or dinner.

Below is an example by strategy leader Janice Chow.

plan3

To build one for your restaurant, think of the ways you can gather meaningful data on the type of people you aim to serve.

Tried-and-tested methods include: 

  • Conduct a survey on your restaurant website, Facebook page, or email message. Use SurveyMonkey or another similar tool to automate the entire process.
  • Placing comment cards on your tables. Don’t end the card with “Would you refer us to a friend or relative?” – Go one step further and ask why or why not.
  • Researching online communities. Quora , Reddit , and others have targeted communities and subgroups. For researching and gaining insight into your ideal customer personas, the information posted by and exchanged between the members is as good as gold.

Whether it’s families, college students, or both, it’s imperative that you take steps to understand your ideal customer.

The great thing about creating customer profiles is that they can be used to inform many different parts of your branding, product, and marketing strategy. >>> Learn how to find your target market.

5. Evaluate your current standing using SWOT 

The importance of self-evaluation can’t be overstated, especially when you’re creating a marketing plan from scratch.

Restaurants need to be evaluated for both strengths and weaknesses specific to your business; the essence is to discover what you do well, and where you pale in comparison with similar businesses. 

  • Restaurant SWOT Analysis Example You Can Use In 2023

After speaking with some of your guests, or just sitting down and writing it out, choose three strengths of your restaurant and three weaknesses.

Be clear with yourself and ask your servers and other management to write them down as well.

Then, compile them and have a good look at what’s going great and what needs improvement. 

These could be:

  • The food is always hot because you have hired a plate runner.
  • The amount of food is always filling and satisfying. 
  • The ambiance is always inviting and engaging.
  • The floor is always greasy.
  • The kitchen banter is always loud.
  • The chairs are hard.

Make sure your customers know about what you do best!

Focus on one of your strengths that raises you above the competition and spread the word – widely.

As for the weaknesses, make gradual improvements by going back to square one and reassessing where you went wrong with the approach, decision, or product that turned into a disadvantage.

Note: You can also keep tabs on the potential opportunities and threats facing your business by conducting a restaurant SWOT analysis .

Free Restaurant Marketing Plan Template Create your restaurant's marketing plan using our free template Download the Free Template Now

6. Identify your restaurant's marketing objectives

You've decided on measurable goals for your restaurant, now it's important to put together a solid list of objectives that will help you determine your own restaurant's marketing strategy and goals.

To help, we've put together three important pillars you need to consider before finalizing your marketing strategy: 

This is essentially the way you present yourself to your guests and what they see when it comes to your restaurant.

This type of marketing is generally paid social media posts, billboards, an ad on the radio, television, or even in the local papers. 

Here's some great ideas you can share on social media: 

@ryaneditbutter Food people #restaurant #restaurantbusiness ♬ eyes - vip mix - skaiwater

Once your guests know who you are and what your restaurant is about, you can start by getting them to come through your doors.

Ask yourself, what will excite them to come to you?

Is it the food, great service, or that you offer special offers on certain days of the week?

Whatever you choose to be your unique selling point, make sure you add it to your marketing strategy. 

>>> Download our free Guest Acquisition Strategy today. 

Repeat Guests

This is where things really get interesting. Loyal guests are the best. Why?

They're one of the main reasons why you continue to get more customers coming through your door.

They enjoy telling their friends about one of their favorite places to eat, and they also post images of your dishes on their social media pages.

But, the question is, what are you doing as a restaurant owner to get them coming back for more? This is where a powerful CRM tool comes in. 

With Eat App's revolutionary software, you can automatically collect valuable guest data and create robust guest profiles from the moment they make an online booking.

Then to take it a step further, you can segment and filter your guest profiles to help identify your VIP guests and high-spenders so you can create personalized marketing campaigns.

Here you can also take the opportunity to send guests, who haven't been at your restaurant in a while, a special offer to get them to come back.

More on this topic of "Email Marketing" below. 

7. Develop your marketing strategy

You’ve laid the foundation. Now it’s time to build your restaurant marketing strategy.

You’ll want to consider what methods of promotion you will use, and for how long you’ll run each promotion before giving it a revamp.

Based on your goals, customer profiles, and strengths, pick a few of these strategies to implement first:

Also, consider implementing a restaurant marketing framework. 

a. Social media marketing 

While you can run a campaign on nearly every social media network out there, we recommend you narrow your focus to the following:

Instagram  

Instagram is the easiest place to showcase your food, your ambiance, and everything visual about your customer experience.

Everything is in the photos on Instagram so be sure to post some appealing images of food plates, happy customers, attentive servers, and management.

It’s your opportunity to show them what they can expect at your restaurant.

With your photos, be sure to add relevant #hashtags about the meals you make, the service you provide, and the location you serve.

If you’ve already set up a campaign, we’ve got some tips to help you break through the noise and upgrade your restaurant's Instagram marketing for higher engagement and conversions.

You can also add a "reserve" button on your Instagram page to drive reservations directly through your page.

This long-awaited feature helps restaurants turn their followers into customers without added effort.

Learn how you can add a reserve button on your Instagram page here

Facebook  

Social media platforms with more than 2 billion monthly active users can provide great exposure to your restaurant.

Get started by creating a restaurant business page and posting high-quality images of your food with some enticing captions that induce your target audience to visit your restaurant.

To accommodate for spikes in weekly traffic, schedule posts to go out even when you’re not available.

Spending an hour or two every week on this will mean you have a consistent stream of enticing content for your followers.

But perhaps the most effective way to get your business in front of audiences is by running Facebook ads.

The platform has a highly effective and intuitive ad manager that can help you reach massive amounts of potential diners.

The best part? You don’t need to spend thousands in order to achieve success; a budget of $100-$500 is enough to reach a good-sized local audience . 

Like Instagram, Facebook also offers a "reserve" button that allows people to book a table at your restaurant through your page.

  • How to Add the 'Reserve' button to your Restaurant's Facebook and Instagram Profiles

Google Business  

Whenever you search for a restaurant or a business you've probably noticed their Google My Business Listing before anything else.

This page is essentially considered a card that features important details about your restaurant.

What time you open, where you're based, what time you close, guest reviews and images of your restaurant, etc.

Learn more about Google and your restaurant

  • Adding reservation links to Google
  • Google Business for restaurants guide

All the more reason you should add a "reserve button" to give guests a seamless option to book online.

Pro tip: Reservation platforms like Eat App have partnered with Google to bring this feature to various restaurants around the world. 

TikTok  

TikTok boasts impressive open rates, indicating a high level of user engagement.

Restaurants can effectively showcase their brand, products, and services to a receptive audience by creating engaging and informative TikToks.

To harness the full potential of TikTok, businesses should consider the following strategies:

  • Understand Your Audience:   Tailor your content to resonate with your target audience's interests and preferences.
  • Embrace Creativity: Experiment with different video formats and trends to capture attention and spark engagement.
  • Consistency is Key: Maintain a regular posting schedule to keep your audience engaged and coming back for more.
  • Encourage Interaction: Respond to comments and answer questions to foster a sense of community.
  • Track and Analyze: Regularly monitor your performance metrics to identify what's working well and areas for improvement.

By embracing TikTok as an integral component of their social media strategy, local businesses can effectively engage potential customers, expand their online reach, and ultimately achieve their marketing goals.

@nonofo.brand.image.coach One of the best affordable restaurants in town #mmokolodibushkitchen ♬ Paradise - TELL YOUR STORY music by Ikson™
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b. Email marketing

72% of consumers prefer businesses to contact them through direct mail campaigns, and restaurant customers are no exception.

Email marketing is an important channel for restaurants.

Sending regular emails to people who’ve subscribed to your email list helps foster loyalty; when loyal customers see your restaurant logo often and receive your event updates, menu items, coupons, etc. they begin to feel they’re part of your exclusive community.

You can further encourage that feeling by including a quick note from your executive chef, or other personnel who is known as the face of your business.

Personalization and segmentation will also help your email campaigns gain more traction by categorizing your subscribers into specific groups for more targeted marketing tactics and promotions.

Pro tip: Consider leveraging an automation tool like, Eat App to streamline customer engagement.

Personalized messages based on guest data, such as visit frequency, spend history, and special occasions, can be automatically delivered, enhancing the customer experience.

c. Loyalty programs

In times where customer acquisition costs can be burdensome for new – and even established – restaurants, loyalty programs can help to secure brand value in the form of repeat business from people who’re already delighted to be dining with you.

These programs include restaurants offering membership to regular guests, and in turn presenting them with reward points that can be exchanged for perks like free desserts, 50% discount, and more.

Starting a restaurant loyalty program is simple. You’ll just need to order a batch of punch cards and hand them out to your regulars.

When a member orders a menu item, you put a stamp on their punch card.

Once they’ve received a specific number of stamps, they get a free perk.

Restaurant loyalty tools, however, have made it possible for restaurateurs to assign points and rewards digitally. 

8. Determine your restaurant marketing budget

Since every business has its priorities, there’s no set formula for determining a restaurant's SMS marketing and budget.

However, there are a few considerations that can be applied to any restaurant for determining the amount of money you should invest in digital marketing efforts.

If you’re a brand-new restaurant, you’ll have to spend more on marketing to get the word out. Plan to spend 25-35% of revenue on marketing. Use more if you need more traction, and less if you have a good roster.

When your restaurant is established and has a steady business, you can scale back your marketing spending to 12-18%, considering your competition and profit margins. 

If your revenues are declining due to an economic crisis or competition, it’s best to increase your percentage by 3-10% to generate more new clientele.

Choose to invest in the channels that are bringing in the most return.

Unfortunately, when a budget gets smaller marketing initiatives can be the first to go out the door when the exact opposite needs to happen.

Resist the urge to cut back on marketing because you need to generate market buzz to drive business.

For example, companies that spent 16.5% of their budget on marketing grew 1 - 15% year over year, those that spent 22% grew 16-30%, and those that spent 50% grew 31-100% more.

You can see how crucial marketing is in creating growth as per these findings from Small Business Marketing Tools.

9. Your restaurant itself should do the marketing

The restaurant is the marketing plan's most significant "medium." Even with the best marketing efforts and an abundance of traffic, the ability to meet customer expectations will be short-lived if the experience falls short of expectations.

Therefore, pay close attention to even the smallest aspects and try to make the restaurant as appealing as you can. It must have a certain atmosphere, energy, or emotion when you first go in.

10. Take ownership of a day

Have a day of your own. Instead of trying to get people to attend every day, focus on just one day.

It may be Wednesday or something. Create a marketing campaign centered around the idea that this restaurant has a special Wednesday offer that includes music, a certain food item, or something else entirely.

Thursday night is wings night at a nearby local eatery, and people swarm there for the inexpensive wings.

However, consumers are more inclined to visit on a Friday or Saturday after experiencing the location on a Thursday. Therefore, while it could last, it's a campaign idea.

11. Interact with the community

Donate to the local high school sports boosters, purchase advertisements in their publications, and build signs in the Little League park—there are many methods to spread the word about the restaurant's concern for the community and commitment to giving back.

12. Consider user-generated content (UGC)

Motivate customers to share photos of their cocktails on their social media channels. If they do, they might receive a half-off drink (it's simple to verify if they tag the restaurant).

Encourage some word-of-mouth, relevance, and friends' implied support.

The takeaway

There you have it, a step-by-step guide to building your own killer restaurant marketing plan. 

Marketing is the trumpet call of your business and it's an important element to success.

No matter how great your cuisine or ambiance is, if no one knows about your restaurant in the first place, you’re not filling any tables.

Guests don’t magically turn up out of nowhere, you have to take your business to them. 

This might take you anywhere from one day to a whole month of doing nothing except constantly crafting your plan and marketing calendar.

But rest assured, once it’s complete you’ll know exactly which route to take and how to tap into the full potential of your marketing to drive better revenue. 

Ready to get started with creating your restaurant's marketing plan? Download our free template to guide you through the process.

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Frequently Ask Questions

What are the 4 ps of a marketing plan.

The four Ps of marketing is the foundation of any marketing plan. They are:

Product: Define, meet, differentiate

Price: Attractive, profitable

Place: Available channels

Promotion: Effective communication

What makes a good marketing plan?

A good marketing plan is not just a static document; it's a dynamic process that adapts to changing market conditions and consumer preferences.

It's about setting goals, tracking progress, and evaluating results to ensure ongoing effectiveness.

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Ryan Andrews

For the past 7+ years Ryan has been focused on helping restaurants succeed with digital marketing and front-of-house operations. He is Director Marketing at Eat App.

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Target The Market of Your Restaurant

Your target market is the group of consumers – in this case, diners – whom you will aim to attract. They are people who are most likely to buy what you’re selling.

The target customer of your restaurant is a specific segment of the larger dining market. Target markets are determined by a combined analysis of:

  • Demographics: segments of the population as divided by shared characteristics, including age, sex, income, education, religion, race, and geographical location
  • Psychographics: the classification of people according to attitudes, aspirations. and values
  • Behaviour: analysis of a population segment according to the behaviour of potential customers, including buyer habits, spending habits, digital behaviour, and hobbies

target market restaurant business plan

Goals of Establishing Your Target Market

target market restaurant business plan

Why is it so important to establish the target market for a restaurant business from the beginning? So that you can fulfil the following goals:

  • Understand the demographics, psychographics, and behaviour of those population segments you a) want to attract and b) will organically show interest in your restaurant
  • Refine your business plan so that the execution of that plan is driven entirely by your target market
  • Determine where to access your customers, how to talk to them, and which channels should be used to market to them
  • Identify your differentiators as a business
  • Identify your indirect and direct competitors

In business, these goals are often expressed as “the four P’s”:

  • Product: improve your product based on what customers want and need.
  • Price: set a price based on profit margins, competitor pricing, and what your customer is willing to pay.
  • Placement: decide where to set up your restaurant.
  • Promotion: determine the most effective channels for reaching your target market online and in real life.

How Your Target Market Influences Your Business Plan

Your target market influences every section of your business plan. Before we describe how to define your target market using target market examples for a restaurant, you’ll need to know a little about how your target market will influence the development of your business plan.

Here’s how your target market will come through several sections in your business plan.

Concept: The ambience of your restaurant should be conceptualised based on the tastes of your target market. What would your target market get from your customer experience that they couldn’t get anywhere else?

Mission statement: Your mission statement should be crafted to resonate with your target market, as it appears on all marketing and internal materials.

Menu and services: Your menu and services are the reasons your target market will visit your restaurant. Your target market will determine what you offer at your establishment, and it’s important you really ask yourself the question: will my target market want what I’m offering?

Location: Your location should be chosen based on where your target market is most likely to live, work, or play.

Market trends: Your target market will determine which trends you choose to jump on and which ones you don’t.

Competition: Your target market is essential to defining your direct and indirect competition in your business plan. This is especially true for determining indirect competition, which can be less obvious. Indirect competition means you share a target market, although your restaurant concepts may differ.

Advantages, opportunities, challenges: You need to understand your target market to define how your restaurant will contribute to it. Without this firm understanding, you’re shooting in the dark.

Marketing: Brand development, voice, messaging and promotion channels can’t be defined unless you know whom you’re talking to.

Team: The people you employ should be representative of your target market.

Pro tip: check out our full guide on writing a restaurant business plan

Demographics, Psychographics and Behaviour

Demographics, psychographics, and behaviour are the tools you’ll need to become familiar with to define your target market in the food business.

Here’s everything you need to know about each category and some examples within each, so you can start to think about which ones resonate for your restaurant concept.

Demographics

Demographics include age/generation, gender, dwelling location (urban, suburban, rural), religion, and income. Some characteristics specific to demographic habits and their relation to dining are:

Age / Generation

Generation Z: Born 1995 to 2014

  • Spends money on food above all else
  • Prefers quick service and casual dining restaurants
  • Grew up with digital technology, thus expect information at their fingertips
  • If they’re a part of your target market, online prevalence on social media and online review sites is imperative

Millennials: Born 1980 to 1994

  • Eats out more often than the general population, with 53% going out to eat at least once a week
  • Prefers fresh, natural ingredients
  • Prioritises sustainability and ethics
  • Prefers fast casual and fine dining over traditional fast food like McDonalds
  • Most likely to look at a restaurant’s menu online

Generation X: Born 1964 to 1980

  • Prefers organic food
  • Places a lot of value on family dining
  • Not as digitally savvy as Millennial and Gen Z counterparts
  • Still peruse review sites and social media

Baby Boomers: Born 1946 to 1964

  • Many baby boomers report being on a diet
  • They spend a significant amount of money eating out
  • Aren’t as tech savvy as their kids and grandkids, but they’re trying

Does your target consumer primarily inhabit an urban, suburban, or rural setting? You’ll really need to know this when you’re choosing the perfect location for your restaurant. Long commutes will be a deterrent for restaurant-goers, even if your concept fits the bill.

  • Combines commercial and residential dining
  • Caters to professionals, friends, families, and alcohol-focused consumers
  • Competition is greater – but population density is, too
  • Varying income levels
  • Groups of all sizes mean the need for various table settings
  • More appetite for food trends and entertainment options
  • Diners are more likely to look at online menus
  • Diners are more likely to try a new restaurant
  • Diners are more likely than suburban and rural diners to eat out
  • Diners are more likely to be influenced by social media and online reviews
  • Families, Generation X, and Baby Boomer generations
  • Larger groups and families
  • Middle-class income levels
  • More likely than urban diners to have small children
  • Diners are more influenced by locally sourced food choices
  • Families and Baby Boomer age groups
  • Diners are less likely to use review sites
  • Diners are less likely to try somewhere new
  • Diners are more likely to eat out with families
  • Diners are less likely to be influenced by social media and online reviews

Travel destination

  • Disposable cash
  • Interest in landmarks
  • Savour a luxury experience or, conversely, a quick meal

How much money does your target demographic make? This will be important to determine so that you know how much to charge your customers. If your target market are mostly middle-class families, you probably shouldn’t charge £30 for an entree.

High income

  • Frequently check online menus before committing to a restaurant
  • More likely to dine at a restaurant they’ve never been to
  • Influenced by negative online reviews

Middle income

  • Likely to dine at a restaurant they’ve never been to
  • Likely to eat fast food
  • Likely to look at online sources before going to a new restaurant
  • Less perturbed by negative reviews, but still somewhat influenced by them

Other fast facts

  • People with more education are more likely to go to full service restaurants.
  • Men are more likely than women to go to both fast food and full service restaurants.
  • People who worked more hours are more likely to go to both fast food and full service restaurants.
  • Smokers are more likely to go to fast food rather than full service restaurants.

Psychographics

If demographics are the “who” of your customer target market, psychographics are the “why” they buy. Psychographics represent your target market’s consumer personality type and personal preferences, including values, interests, and attitudes about the world.

Psychographics can range from someone who likes healthy food and a lively atmosphere to someone who prefers comfort food and the energy associated with a big sports game.

Behaviour and habits

Behaviour and habits are the “what” people actually do based on their psychographics, including activities and buying habits.

Outdoor communities, for example, have different lifestyles and behavioural rituals – say going for a morning five mile run – than retirement communities who may insist on watching the news at 6:00. Similarly, working parents who dine with kids will have different needs than singles who are ready to mingle.

How to Define Your Target Market

Since you’re still in the early stages of developing your restaurant, you’re actually in a fantastic position to put the horse before the cart and not the other way around.

Here’s how to define your customer profile.

Step 1: Visit the competition to gather preliminary intelligence.

Before you start writing your customer profile, you’ll need to do some reconnaissance work to find out who’s dining at similar restaurants.

Make a list of local competitors in the neighbourhood in which your business will be located. Start by going in for  breakfast, lunch, dinner, or even a drink.

Fill out the following criteria.

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  • General tone of the menu: formal, informal, young, straight to the point
  • Price range for appetisers and mains
  • General age range of customers
  • Ratio of men vs. women
  • Style of dress: formal, casual, work attire, trendy, relaxed, workout wear
  • Group dynamics: family, friends, partners, business, solo
  • What people are ordering
  • Atmosphere: lively, subdued
  • Music: elevator music, background music, live music, acoustic

Dining room

Surrounding area

  • Residential or commercial
  • Landmarks: Mall, financial district, shopping district, other bars and restaurants, surrounding shops

Once you’ve gone through this process for at least three competitors, look for trends in your findings. Is the atmosphere consistently relaxed? Are diners consistently wearing suits or workout gear? Is the music new age electronic, acoustic, or old classics?

Patterns will give you an idea of the target customers who are naturally drawn to your restaurant’s concept.

Step 2: Organise your preliminary intelligence into basic customer profiles.

From your notes, drill down on your observations using the following criteria. This will give you a starting point for a more complete profile of your ideal or typical customer.

Repeat this process for every general consumer demographic you observed in your preliminary intelligence.

  • Dining with
  • Price point

Here’s an example:

Customer type 1 at Bistro Competitor X

  • Gender: Both, predominantly female
  • Location: Urban
  • Music: Acoustic singer songwriters
  • Ambiance: Relaxed, lunchtime
  • Dining with: Friends, partners
  • Dress type: Casual, trendy
  • Order: Soup, salad, coffee
  • Price point: £10-15 per entree

Notes: Likely students. Seemed to linger and enjoy their meal.

Customer type 2 at Bistro Competitor X:

  • Gender: Both, predominantly male
  • Dining with: colleagues
  • Dress type: formal work wear
  • Order: sandwich and chips, burger
  • Price point: £15-–£18 for an entree

Notes: Took meals to go. Seemed to be on a lunch break from work.

Step 3: Look at census data.

Now that you have basic demographic information on your competition, your next task is to gather census information on your desired neighbourhood. Census material will confirm the assumptions you’ve made so far about your target profile.

Where to find demographic information

UK Census Data Service

London Data Store

View demographic information by:

  • Population and dwellings
  • Age characteristics
  • Household and dwelling characteristics
  • Marital status
  • Family characteristics
  • Household type
  • Immigration status

Step 4: Gather psychographic and behavioural data.

Once you’ve gathered your demographic data, here’s where you go a little deeper with gathering psychographic and behavioural data. Ensure your target market data covers the following points:

Psychographic

  • Their concerns: career, the environment, work-life balance
  • Their motivations: money, status, art, family, personal growth
  • Their sources of fulfilment: career, being a parent, family, friends
  • Their values: religion, political leanings, family values, social values

Behavioural

  • What they do in their spare time
  • How they make their purchases (online, in-person, on the phone)
  • How often they use the internet and social media
  • Whether they plan or act impulsively
  • Whether they look at restaurant review sites like Google, Yelp or OpenTable
  • Their preferred social media platforms
  • How much they rely on recommendations from friends
  • What draws them to a specific restaurant
  • What repels them
  • Who they dine with most frequently
  • How often they dine out

Ways to Gather Psychographic and Behavioural Information

Gather consumer research online.

A few sources to help you understand your market are:

UK Hospitality

UK Hospitality resource section offers reports and benchmarks that you can use to learn more about the hospitality industry. Resources include trend reports, forecasts, information on the restaurant industry by borough, and market reports. Some reports are available to members for free, while non-members have to pay a fee. Other studies are free for everyone.

The British Institute of Innkeeping (BII)

The BII has a library rich with consumer data. Some reports are available to BII members for free, while non-members have to pay a fee. Other information is free for everyone.

Host a focus group.

You can use focus groups to get direct feedback on your concept and more information about the wants and needs of consumers.

Focus groups enable you to conduct an intimate Q&A session to determine the appetite for your concept and learn more about your restaurant target market.

Consider having two focus groups: one with your target market and another “control” group. (A control group is a random sample of the larger population. A control group can shed light on how your target market differs from the general population.)

Here’s how to conduct a focus group.

Before the focus group

  • Choose a focus for your questions. What specific information are you looking to gather? In this case, your focus could be learning more about your target market’s dining behaviours and values.
  • Select a location for the focus group. It should be comfortable and relaxed. Keep in mind that you’ll have to record the conversation for your reference later. The space should be quiet enough for recording.
  • Prepare your questions. Stick to your script and purpose of the focus group. Don’t use the focus group as a PR activity.
  • Use ‘yes’ and ‘no’ questions sparingly. Use open-ended questions that will require a thoughtful response from participants.
  • Use a funnel approach. Start with general, broad sweeping questions. Then narrow your questions to get more specific answers.
  • Ask positive questions before negative questions.
  • Limit yourself to 10-12 questions. An acceptable timeframe for a focus group is between one and a half to two hours.
  • Recruit participants. Participants should be as objective as possible. To find objective participants, place an ad on social media or in publications like a local newspaper. If that’s not in the budget, you can also get friends to ask their network. That way you get unbiased third parties to take part. Focus groups are usually made up of five to ten participants.
  • Incentives are welcome: Feel free to offer incentives like gift cards or loot bags.

During the focus group

  • Neighbourhood of residence
  • Income bracket
  • Hand out a release form. Outline the purpose of the study. Confirm that the participant understands they will be recorded. Describe how the research will be used.
  • Introductions and icebreakers. Introduce yourself, review the purpose of the focus group, and ask participants to introduce themselves.
  • Make the participants comfortable. Consider providing participants with water and snacks. Provide time for a bathroom break.
  • Ask your questions. As you go through your questions, your job is also to keep participants on track. Reroute them if they get off course and prompt them for further details if their answers are short-winded. Be curious, wear a smile and make eye contact.
  • Analyse your recording and findings. Using your questions as a guideline, record your participants answers, preferences and behaviours. Identify trends in their responses.

Create a survey.

Surveys allow you to gather anonymous feedback from more people with less time and commitment than a focus group. But keep in mind it’s harder to control the distribution of your survey.

The survey’s participants might vary from your target market. You will have to manually filter responses according to your restaurant target market vs. general population.

Here’s how to conduct a survey.

  • Choose a focus: What specific information are you looking to gather? In this case, your focus is to learn more about your target market’s dining behaviours and values.
  • Draft your survey questions.
  • Collect demographic information: Begin your survey by collecting demographic information. When you’re conducting your analysis, this will help you sort your target market’s answers from general survey responses.
  • Use close-ended questions: On a survey, open-ended questions can exhaust respondents. Respondents can answer close-ended questions faster and from their gut. When it comes time to analyse your survey results, close-ended questions are quantitative. Quantitative responses will lead you to general conclusions, faster. Close-ended questions are framed using scales:

Likert Scale

Best used for: Measuring behaviour and feelings

  • Strongly Agree – Agree – Undecided / Neutral – Disagree – Strongly Disagree
  • Always – Often – Sometimes – Seldom – Never
  • Extremely – Very – Moderately – Slightly – Not at all
  • Excellent – Above Average – Average – Below Average – Very Poor

Question: Before visiting a restaurant, I look at their website online.

Answer: Always – Often – Sometimes – Seldom – Never

Nominal scale

Best used for: demographic information, like age and income

  • Age: 1-9, 10-21, 22-29, 30-44, 45-54, 55-64, 65+
  • Income: £15,000 – £29,999, £30,000 to £59,999, £60,000 to £79,999

Question: What is your age?

Answer: Under 21– 22 to 29 – 30 to 44 – 65+

Dichotomous scales

Best used for: Precise answers and data measuring

  • True or False
  • Fair or Unfair
  • Agree or Disagree

Question: I am interested in trying a new cuisine.

Answer: True or False

Multiple choice

Best used for: Questions that could have more than one answer

Question: Which of the following proteins do you like?

Answer: Beef – Chicken – Fish – Tofu – Other (Please specify)

Single choice questions

Best used for: Questions that ask respondents to determine their favourite choice

Question: What protein do you select most often?

When creating survey questions, avoid the following errors:

  • Leading questions: Do your best to create objective questions. Don’t ask, “Would you dine at an amazing restaurant if they played terrible country music?” Instead ask, “What music would deter you from dining at a restaurant? Choose the answer that most applies. Rock – Country – Indie – Classical – Top 40 – Oldies – Reggae – Rap – Other (please specify)”
  • Double-barrelled questions: Double-barrelled questions force respondents to answer two questions at once. For example: “Would you order takeout from a restaurant that offered Indian cuisine and was only open until 9:00pm?”

Create the survey.

Create digital surveys using one of the following tools:

  • SurveyMonkey
  • Smart Survey

Test your survey.

Always test your survey before you distribute it to your restaurant target market. Your survey should take no longer than seven to eight minutes to complete.

To test your survey, send it out to five members of your network. Ask them to review the survey questions for clarity, spelling, and general flow. Once they’ve completed the survey, download their responses so you can see how the survey tool organises and presents the results. You might find you need to adjust formatting or response types if the information isn’t organised in a logical way.

Distribute your survey.

You can buy targeted respondents from any one of the survey tools listed above. If you’re on a budget, distribute the survey to your network. Then ask that network to distribute the survey to their network, and so on.

Analyse responses and apply them to profiles.

While the general population’s information is still valuable, pay close attention to your target market’s answers. As you identify psychographic and behavioural information trending within your target market, you can add these insights into your target market profiles.

Step 5: Create buyer personas.

Finally, you will craft a buyer persona. Your buyer persona is an archetype of your target market based on the information you’ve gathered. This is where you create a character using statements that are based on the demographic, psychographic, and behavioural data you’ve gathered. You should be able to envision who this person is, just as a novelist does when they are writing about their characters.

Here’s an example of a buyer persona:

Meet Maria.

Maria’s demographics

Maria is a 28-year-old female who frequents casual dining restaurants. She is married or seriously dating and earns an income of £60,000, renting a condo on the outskirts of the city.

Maria’s psychographics

She lives an active, outdoor lifestyle, enjoys healthy food and is self-employed. She is motivated by health, personal growth, and is fulfilled by her friendships. She like a casual atmosphere where she can feel comfortable showing up in running shoes and yoga pants.

Maria’s behaviour

She does much of her shopping online, and while she doesn’t look at reviews, she always looks at the menu online before going to a restaurant. She dines out three times a week and is drawn to a restaurant where she can enjoy healthy food with her partner or friends and based on recommendations from friends. She’s repelled by negative health scores, but not by negative reviews from friends.

Step 6: Revisit your target markets after you’ve drafted your business plan.

So you’ve put in the work to get a general sense for those consumers who occupy your target market, created profiles, and written your business plan .

The next step is to revisit your buyer personas after you’ve written your business plan. Do they still hold up? Ask yourself the following questions:

  • Do I understand what drives my customer’s buying behaviour?
  • Does my concept fit into my customer’s buying behaviour? Do I need to make adjustments?
  • What can I do to further adapt my concept to meet their needs?

You’ll likely end up making adjustments to your customer profile and your business plan when considering these factors. At this point in developing your restaurant, your business plan is a living, breathing document, and your work here will further inform the proposal you wish to cement later.

Now that you know the customer you’re going after and the market you want to break into, you can begin making the decisions that will bring your concept to life and get people in the door.

Of course, you’ll need to conduct further analysis once you’ve started making decisions. For example, once you’ve chosen a location , you’ll have to get a sense of the local market. Following these steps will ensure that you’re creating a solid foundation for your business to increase your odds of success from the very beginning.

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13 Target Market Examples for Food: Who Are You Selling to?

Successful food businesses are always looking for new customers. Whether they are restaurants, bars, cafes, bistros, or fast-food joints, they are always on the lookout for new markets to attract.

If you are in the food business, you are no doubt wondering what additional markets you can target with your products, your menus, and your marketing strategies.

Interestingly, food businesses have a unique challenge when it comes to target markets. Unlike other industries, there are countless potential target markets for food businesses. This can be both a good and a bad thing.

The good news is that you have a lot of potential customers to choose from. The bad news is that you cannot address everyone and so sometimes it can be difficult to determine which target market is the best fit for your business.

Target market examples for food

In this article, we will review 13 target market examples for food businesses that you could potentially go after. We’ll also give you tips on how to determine who your target market is.

So, whether you’re just starting out or you’ve been in business for a while and want to refine your target market, read on!

Target Market Examples For Food Businesses

Here are 13 target market examples for food businesses you can choose from:

  • Single adults
  • Families with young children
  • Health-conscious individuals
  • Busy professionals
  • Empty nesters
  • Visitors to a city or town
  • People with food allergies or dietary restrictions
  • People looking for a quick snack
  • People looking for takeaway or home delivery
  • People looking for a specific cuisine
  • People looking for an upscale dining experience

Let’s discuss in detail the needs and wants of each of these target markets.

1. Single adults

Single adults often order food or go out to eat. They may not cook as much as people who are married or have families. They are often looking for convenience and quick service.

Single working adults also tend to have more disposable income than adults with children. This means they are willing to spend more on food, both in terms of quantity and quality. This makes them great markets for new dining experiences like those of fast casual restaurants .

This group of people will often order food online to avoid the hassle of cooking and cleaning but have the luxury of eating at home.

2. Families with young children

Families with young children want food that is affordable and kid-friendly. They may be looking for restaurants with a play area or special menu items for kids. They may also be looking for a place that is family-friendly and can accommodate large groups.

Large families are also a good target market for catering companies . If there is a family gathering involving extended family like grandparents, uncles, aunts, cousins, etc. they may choose to cater food rather than have everyone go to a restaurant.

3. Health-conscious individuals

Health-conscious individuals are interested in healthy food options . They may want organic food , vegetarian or vegan options , or gluten-free items. They may also be interested in knowing the nutrition information of everything they order.

If you are targetting this group of people, make sure to have plenty of options on the menu for healthy drinks and energy drinks as these are often high-margin items that health-conscious people are usually willing to pay for.

4. Busy professionals

Busy professionals look for quick and easy options. They may want food that is ready to eat or that can be easily taken on the go. They may also be interested in healthy options, as they often do not have time to cook or prepare meals.

This group of people is also a good target for lunch options. So if your food business is located in or near a business district, this is a target market you should consider.

5. Empty nesters

Empty nesters are often retired or no longer have children living at home. They may be looking for restaurants that are quiet and have a relaxed atmosphere. They may also be interested in trying new foods or exploring different cuisines.

However, empty nesters are not the same as retirees (our next segment) as they may still be working. This means they could have plenty of disposable income and would gladly visit fine dining restaurants .

So they may have similar needs to busy professionals. Also, they will be at an age where they will start becoming more health-conscious and may prefer healthy food options .

6. Retirees

Retirees often have more time to spend on activities, including cooking and dining out. They may be looking for restaurants with a leisurely pace or that offer a variety of activities. Like empty nesters, they too can be interested in trying new foods or cuisines.

However, retirees often have a fixed income, which means they may be more price-sensitive than other target markets. They may also prefer restaurants that offer discounts or seniors’ specials.

7. Students

Students are often looking for affordable and quick options. They may be looking for a place to study or do homework, as well as somewhere to eat. They may also be interested in restaurants that offer discounts or student specials.

It is important to target students at the right time, which is usually during the school year. However, you should also consider targeting them during summer break as they often have more free time then and may be more likely to dine out.

Also, remember that when it comes to food options students are looking to stretch their dollars as much as possible. So if you own a restaurant, think of offering a buffet with discounted prices for students.

When done right, buffets can be very profitable .

8. Visitors to a city or town

People visiting a city or town are often looking for a place to eat that is representative of the local area. They may be interested in trying new foods or cuisines that they are not familiar with.

They may also be looking for restaurants that are popular with locals, as this can give them a sense of what the city or town is like.

Visitors, especially those on vacation or business trips, often have a higher budget for dining out and are willing to spend more on food and drinks.

9. People with food allergies or dietary restrictions

If you own a food business, it’s important to cater to people with food allergies or dietary restrictions. This target market is often overlooked, but can be very loyal to businesses that accommodate their needs.

People with food allergies or dietary restrictions often have a difficult time finding places to eat that cater to their needs. As a result, they are often willing to spend more on food that they know is safe for them to eat.

If you want to target people with food allergies or dietary restrictions, it’s important to make sure your menu is clearly labeled and that you have a variety of options available. You should also train your staff on how to deal with people with food allergies or dietary restrictions.

10. People looking for a quick snack

Everyone needs a snack once in a while and people often look for a quick snack to tide them over till the next meal.

If you own a bakery, for example, you can target people looking for a quick snack by offering a variety of pastries, cakes , and other baked goods. You can also offer coffee or tea to go with the snacks. You could even consider having a juice bar on the side. Often, bakeries tend to make the most profits on such snack foods and drinks.

Remember, as well that there is a growing market for healthy snacks . People are becoming more health-conscious and are looking for healthier options, even when it comes to snacks. This market also includes parents who are always looking for a snack for their kids.

If you own a store, you could consider carrying protein bars and different brands of bottled water as well as other non-alcoholic beverages .

11. People looking for takeaway or home delivery

This segment of the target market for food overlaps all of the above. But we can treat them separately because they have a unique set of needs.

People looking for takeaway or home delivery often don’t have the time to cook, or they may not have access to a kitchen. They may also be looking for food that is more affordable than eating out at a restaurant.

If you offer takeaway or home delivery, it’s important to have a variety of options available. You should also make sure that the food is properly packaged and labeled so that it can be easily transported.

And be sure to have a website so that people can order food from you online .

It’s also important to have a good delivery system in place so that the food arrives fresh and on time. Remember, people are often looking for convenience when they order takeaway or home delivery, so it’s important to make the process as easy and effortless as possible.

12. People looking for a specific cuisine

Often people want to eat a cuisine that they are not able to cook at home. This target market is looking for a specific cuisine, and they are willing to pay for it.

For instance, if someone wants to eat sushi , or Indian or Italian , or seafood , they could either experiment and cook at home, or they could rely on an expert and go to a restaurant or order online for home delivery .

If you offer a specific cuisine, it’s important to make sure that you are offering authentic dishes. People who are looking for a specific cuisine often know a lot about the cuisine and can tell if the dishes are not authentic.

13. People looking for an upscale dining experience

As we say with some of the earlier segments, many people like to go to nice restaurants for an upscale dining experience. They look for fine foods, the best wines, and exquisite desserts.

While many people can cook this at home, sometimes it is best to go to a fine dining restaurant and get pampered. This is especially true for special occasions like anniversaries, birthdays, valentine’s day, etc.

If you target this market, it’s important to make sure that your restaurant offers a complete dining experience. This includes offering a wide variety of dishes, an extensive wine list, and delicious desserts. You should also make sure that your staff is properly trained to provide excellent customer service.

So, there you have it – 13 target market examples for food that you can use for your food business.

Remember, that while this list is long, it is not exhaustive. You could create as many segments in this vast market as you want. After all, everyone needs to eat.

What’s important is to create a segment or niche in a way that you can design a menu that appeals to this segment and then develop marketing strategies to attract customers to your business.

The key is to understand your target market and what they are looking for. Once you know that, you can create a food business that satisfies the needs of your customers.

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Steak Restaurant Business Plan

Start your own steak restaurant business plan

Fire Fountain Grille

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The following plan is based on years of experience, is highly focused and promises to follow a path of prosperity for its investors, owners, managers and staff. It is based on conservative sales figures, and actual sales may be higher. The projections contained herein are authentic and will be used as the budget for the business. The Fire Fountain Grille ® will show a profit immediately, and will increase sales and profits each year thereafter.

The Fire Fountain Grille is a comfortable, inviting restaurant designed to make our customers feel as if they are enjoying VIP services in a world all to themselves. The decor and theme is based on an exterior fountain located at the main entrance that has a cascading water fountain combined with flame throwing torches. The show kitchen will also feature a custom made “Fire Fountain”, a unique show kitchen grill that also has a cascading water fountain combined with flame throwing torches. This spectacular marvel will be visible from the dining room side, and will be a functioning 48″ gas powered steak grill on the kitchen side. The energy and atmosphere of the restaurant is high, and draws some of its power from the dazzling “Fire Fountain”. By offering an exciting, tantalizing and rewarding experience for its customers, the Fire Fountain Grille and its service oriented approach will be immediately embraced by those that love dining out!

Steak restaurant business plan, executive summary chart image

1.1 Objectives

  • Sales for the first full calendar year will be $2.3 million, with Net Profit/Sales in excess of 19%.
  • A second unit will be opened in the first quarter of year three.
  • A third unit will be opened in the first quarter of year four.

1.2 Mission

  • Fire Fountain Grille is a commercial enterprise, and as such, exists for the purpose of generating sales and profits for its investors, owners, managers and staff.  Because Fire Fountain Grille is a service business, it also exists to serve its customers. These two reasons for its existence are inextricable.  If one aspect does not exist, the other will cease to exist.
  • Fire Fountain Grille will offer mouth-watering meals and beverages in a soothing environment.
  • Our staff will be cheerful, courteous, and focused on pleasing our customers.
  • Our customers will always be treated with importance and warmth. When it comes time for our customers to decide where to spend their entertainment dollars, we will strive to become their first destination of choice.
  • Our staff will be offered a workplace where they can prosper and grow in a dignified, fun and rewarding manner.
  • Our investors will see a lucrative return on their dollars, and will have opportunity for future growth and prosperity with our company.
  • Our vendors will be treated with loyalty, and they will find their future with us to be fruitful.
  • We will be a good neighbor to the businesses in our area, and we will be a contributing and supportive member of our community

1.3 Keys to Success

  • Our policy of having a manager pass by every table in the dining room every night to greet, visit with, or at least make eye contact with (with a smile) our customers.
  • Our policy of having a manager visit any and every table that has a question, or if the customer has positive or negative feedback. The manager is required to use every means possible to satisfy our customers.
  • Our commitment to the success and happiness of our staff.
  • Our commitment to providing excellent quality food and beverages at all times.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The Fire Fountain Grille is a steakhouse concept. It offers a comfortable, upscale ambience, replete with its signature fountains of flames and water. The menu features original variations of American favorites with a tantalizing array of seasoned steaks, prime rib, roasted caramel chicken, hot gourmet sandwiches and hearty salads. Beverages include an impressive wine list, microbrew beers, and festive cocktails. Fire Fountain Grille, Unit One, will be located in a newer free standing building. This location is an extremely high visibility spot on one of the most popular commercial corridors in the region. It has excellent parking, excellent ingress and egress from an eight lane thoroughfare.

2.1 Company Ownership

Fire Fountain Grille – Unit One LP, is projected as a Limited Partnership, but may switch the preferred structure to a stock “C” Corporation or Limited Liability Corporation “LLC”, for purposes of investment structuring (see section 6.1.1 “Investment Summary”). The number of investors could vary, based on various interpretations under SEC “Regulation D”.

OPERATING PARTNERS

  • General Managing Partner, with 31% ownership.
  • Vice Managing Partner for Dining Room and Human Resource Operations, with 9% ownership.
  • Vice Managing Partner for Beverage and Entertainment, with 9% ownership.
  • Vice Managing Partner for Kitchen and Catering Operations, with 9% ownership.

INVESTMENT PARTNERS

  • Limited Partner Group One, with 14% ownership.
  • Limited  Partner Group Two, with 14% ownership.
  • Limited Partner Group Three, with 14% ownership.

2.2 Start-up Summary

Fire Fountain Grille, Unit One, is a project that will take advantage of a newer, existing structure. Start-up costs will cover a number of details to convert the structure to suit our concept both visually, and functionally. Included in start-up costs are all necessary expenditures to cover the pre-opening hiring and training of our staff, adding and revising equipment needs, supplying smallwares and servicewares, inventory and other essentials.

Steak restaurant business plan, company summary chart image

2.3 Company Locations and Facilities

The Fire Fountain Grille is locate in a large stand-alone building with plenty of parking next to the Acres & Acres Mall, in Electrumburg, a fast growing suburb of Starburstville.

Products and Services

The Fire Fountain Grille is a comfortable, inviting restaurant designed to make our customers feel as if they are enjoying VIP services in a world all to themselves. The decor and theme is centered around the custom made “Fire Fountain”, a unique show kitchen grill that has a cascading water fountain combined with flame throwing torches on the dining room side, and is a sizzling 48″ gas powered steak grill on the kitchen side. The energy and atmosphere of the restaurant is high, and draws some of its power from the dazzling “Fire Fountain”.

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We are a dinner-house, but we do offer lunch on Friday, Saturday and Sunday. We have a “late-night seating” 10:00 pm-1:00 am Friday and Saturday. The lights come way down, and customers enjoy light jazz music, and a discount on certain food and beverage items. Gift Certificates always available. We have private dining facilities for group events, and we offer full catering services for events at any location! We offer “take-out” food for those on the run! Visitors to our website will find upcoming events, specials, and catering and gift certificate information.

The restaurant hours are: Monday-Thursday 3:00 pm-10:00 pm; Friday and Saturday 11:00 am-1:00 am; Sunday 11:00 am-9:00 pm.

3.1 Competitive Comparison

PF Chang’s®, Houston’s® and TGI Friday’s® are chains that offer fun atmospheres for comparison purposes. Our most competitive edge is our managers, and their ability and willingness to create goodwill among our customers, and to overcome any perceived difficulty, and indeed, turn it around into a positive experience.

The Fire Fountain Grille offers steaks and other foods that are prepared with an irresistible combination of flavors and spices. No one else in the industry serves steaks as delicious as ours.

3.2 Product and Service Description

Our menu consists of juicy, thick steaks that are coated with a secret combination of  flavorings and zesty spices. These steaks are grilled to perfection. We offer mouth watering prime rib, available “Fire Fountain Style”, in four portion sizes. The menu also consists of butter-roasted and seasoned chicken dishes, fresh grilled seafoods, imaginative salads, cold melon chowders, a variety of huge burgers and grilled sandwiches, tender pork chops, soups, appetizers with berry barbecue sauces, refreshing fountain drinks, and flaming desserts.

From the bar patrons can order a wide range of American wines, as well as dozens of beers including the most popular microbrews. The bar also offers festive martinis, margaritas, specialty frozen drinks, and hundreds of cocktails.

Fire Fountain Grille Menu

We have a “late-night seating” 10:00 pm-1:00 am Friday and Saturday, with a discount on food items printed in red…

Fire Fountain Specialties… These meals come with your choice of baked tater or sweet tater or red beans n’ rice or veggies or fries. Also, you get fresh baked rolls, butter, and a salad! All steaks are seasoned USDA Prime Cuts! You can also order anything on this menu without seasonings!

RIBEYE – Perhaps the tastiest of all steaks! Hand cut daily, choose from big (16 ounce) $16.95 or huge (22 ounces) $22.95!!

FIRE FOUNTAIN FILET –  Tender 9 ounce filet, lightly seasoned and sizzle-grilled $14.95

METROPOLITAN STRIP STEAK – 14 ounce Strip steak, with Bay Shrimp and Citrus-Bearnaise Sauce $17.95

NEW YORK STRIP – Classic Strip Cut, seasoned and grilled $13.95

TOP SIRLOIN – Prime delicate cut, seasoned and grilled to order. America’s#1 steak! $11.95

PRIME RIB – Hand carved cuts, slow roasted, and served with au jus and whipped horseradish sauce: 20 ounce – $19.95; 16 ounce – $16.95; 12 ounce – $13.95; 8 ounce – $10.95

Also, try our Fire Fountain Style of Prime Rib! Ask your server!

Seafood…

HONEY/CHILI GLAZED SALMON – Fire-Grilled Salmon, brushed with honey-chili glaze and topped with black bean salsa $13.95

GRILLED SALMON –  With your choice of side dish $12.95

JAMAICAN SNAPPER – Pan charred, topped with a sweet coconut-tomato glaze $11.95

ROASTED PRAWNS – 12 Grilled Jumbo Shrimp over rice $13.95

CHICKEN ASTORIA – Breast of chicken, topped with Bay Shrimp and asparagus spears, finished with Citrus-Bearnaise sauce $11.95

FIRE-SMOKE CHICKEN – Robust, entirely dark meat, quarter of a chicken, smoke-roasted, served with Three Berry Barbecue Sauce $12.95

CARAMEL FLAMED CHICKEN – Tender Chicken breast, buttered and basted with sweet caramel glaze, then charred over an open flame $10.95

Burgers ‘n such……they come with fries..

THE BACON SPECTACULAR – Broiled 1/3 pound burger with bacon, Cheddar cheese, lettuce, dill pickle and tomato. $5.95

BURGER BURGER – Juicy ½ pounder served on a toasted onion bun with pickle, onion, lettuce and tomato $4.95… add cheese $.50

THE HIGHWAYMAN – Colossal. Char-broiled. One entire pound of juicy ground beef with Canadian bacon, Swiss cheese, lettuce, grilled onions, barbecue sauce and tomato on a giant bun $7.95

SLOPPY JOE – Sweet ‘n zesty, a mouth-watering favorite! $4.95

SHAVED PRIME RIB SANDWICH – With smoked bacon-horseradish sauce and smothered with melted Monterey Jack cheese $4.95

BARBECUE-BEEF – Huge pile of beef, slathered with barbecue sauce and melted Cheddar cheese- served open-faced $4.95

CHICKEN RANCH SANDWICH – Golden deep-fried chicken, served on a kaiser roll with Ranch sauce, lettuce and tomato $4.95

Appetizers…

GRILLED CHICKEN STRIPS – Served with Three Berry Barbecue Sauce $4.95

GRILLED STEAK SKEWERS with Ginger Red Sauce $4.95

FIRE STICKS – Fried Pepper-Jack cheese with cool Ranch Dip $3.95

CHILLED MELON CHOWDER – Bowl $2.95 Cup $1.95

BEER BATTERED SHRIMP with Pineapple Salsa $5.95

CHICKEN STRIPS with Honey-Dijon Sauce $4.95

From The Fountain…

Coffee $1.25, Decaf $1.25; Coke, Root Beer, 7-UP, Diet Coke, Iced Tea $1.50; Milk, Large$1.50 Small $1.25;

Draft Beers…Pint $2.75, Glass $1.50; Microbrews…Pint $3.00, Glass $1.95

Wines…House Glass $3.95, House Carafe $12.00. Please ask your server for a wine list.

Desserts…

Flaming Fruit Kebabs with ice cream $5.95; Cherries Jubilee $5.95; Key Lime Pie $3.95

Milk Shakes $2.95; Banana Split $5.25; Ice Cream Sundae $2.50; Carrot Cake $3.95

Completely Fat-Free Dessert: Chewy Brownies with Frozen Yogurt $2.95

JUST FOR KIDS…Yaaay!!

Kids meals come with fries..

Little Burger $3.95; Chicken Toes $3.95; Little Steak $5.95; Cheesaroni $2.95; Corny Dog $3.95; Hot Doggy $3.95…kids soda pop is free!!!

Salads…

SMOKED CHICKEN SALAD – with caramelized Hazel nuts and Ginger-Orange dressing $7.95

Grilled Sirloin Caesar $7.95; Grilled Chicken Caesar $7.95; Grilled Shrimp Caesar $7.95; Traditional Caesar $2.95; Fresh Garden Salad $2.95; – with these dressing choices: Ranch, Bleu Cheese, Catalina, Honey-Mustard, Low-Fat Italian

Chilled Melon Chowder – Bowl $2.95, Cup $1.95; Side of Fries $1.95; Sides of Red Beans ‘n’ Rice or Baked Tater, Sweet Taters, Mashed Taters, or Veggies are $1.95; Grilled Onions $1.95; Daily Soup -Bowl $2.95, Cup $1.95

Remember! We offer “to-go” food for those on the run! 

Please visit our Website!

Market Analysis Summary how to do a market analysis for your business plan.">

Electrumburg is a dynamic city located in the rapidly growing Southeast part of the Starburstville metropolitan area. The city is known for its excellent medical and educational institutions, beautiful neighborhoods, easy access to freeways and a diversified economic base. From a residential perspective, Electrumburg features master-planned communities, luxury executive homes, older residences in tree-lined neighborhoods and affordable starter housing. A robust economy, attractive residential developments, exciting commercial and business growth, dynamic neighborhoods and abundant civic pride combined with outstanding city services – Electrumburg has all of the amenities necessary for ensuring a quality lifestyle.

Electrumburg has been one of the fastest-growing cities in one of the fastest-growing metropolitan areas in the United States over the past three decades. The city’s population grew 48 percent during the 1990s. Today, Electrumburg has a population of more than 225,000. Electrumburg is adjacent to Starburstville (pop. 500,000), within the Valley with 1.6 million residents.

4.1 Market Segmentation

Fire Fountain Grille, Unit One, is located in Electrumburg. According to the Electrumburg Chamber of Commerce and the US Census Bureau, the population within a five mile radius of this address is nearly 125,000, with over 59,000 households, and over 400 businesses. Income within one mile is over $81,000, $72,000 within three miles and $60,000 within five miles. Per capita retail spending in this area exceeds $13,000, with total retail spending exceeding $2.8 billion!

The first tier target segment for Fire Fountain Grille concentrates on the 30-44 year old age range, with income in the $40,000 – $80,000 range, located within a five mile radius. Second tier is the 45-59 year old range, with income in the $55,000 – $90,000 range, located within a five mile radius. Third tier is the 21-29 group, with income at $36,000 – $60,000, located within a five mile radius. Fourth tier is a combination of the age and income ranges mentioned in tiers 1-3, but extends the geographic radius to seven miles. Fifth tier is age ranges 60+, within five miles, and income of $65,000+. Sixth, and final tier is a composite of age ranges 60+, 10-20, and under 10, with a radius of five – seven miles, and a mixture of incomes.

Steak restaurant business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

Strategically, targeting the 30-44 year old age range in upper middle class areas close to our restaurant helps serve the needs and requirements of our customers, and ties in logically with our marketing plan (see Marketing Plan) and style of restaurant. Typically, the upper middle class in the 30-44 range are raising families whose children range from toddlers to teens, yet tend to continue to have “disposable” dollars available for a quality diversion (such as Fire Fountain Grille) to get them away from home and work. These customers have regimented schedules in their lives, and find value in exceptional service, timely service, and mouth watering, delightful food. If a couple chooses to leave the kids home, they’ll find value in the form of satisfaction and fun together, in their diversionary time. If they bring the kids, they will appreciate a value based kids menu. This first tier of our market segment, is also the primary focus of our marketing plan (see Marketing Plan), which has a deep commitment to focusing on kids, at their schools and in their community. These kids are primarily the children of our 30-44 tier-one group. Industry research (Nation’s Restaurant News®) has shown that the 30-44 age group appreciates steaks, chops, chicken and seafood dishes prepared with lightly seasoned recipes, which is a perfect fit for Fire Fountain Grille.

Our SECOND-TIER market group (45-59 / $55,000 – $ 80,000), will also find value in great service, and delicious food, and will appreciate a restaurant with a much better wine list than what is normally available in the upscale casual dining niche. Fire Fountain Grille will also be considered a refreshing escape from restaurants that sing and clap for birthdays.

Our THIRD-TIER group, the 21-29 year olds will find that the menu contains many favorites available to them that are considered essential: tantalizing appetizers, spicy steaks, and hundreds of cocktails and specialty beers. The Fire Fountain turns down the lights for late hour business on the weekends, and offers jazz and food and beverage specials, offering our customers a chance for some socializing and conversation.

FOURTH-TIER simply extends the market radius out to a five mile area, with the same demographics included in tiers 1-3.

FIFTH-TIER (60+ / $65,000+), represents a market that has abundant disposable income, and truly reveres attentive, efficient service. Fire Fountain Grille serves all of its meals with the option of cooking with little or no spices. This customization is much more appreciated by this group, who often prefer meals prepared to their own specifications. Because Fire Fountain Grille has only one purpose in mind when it comes to our customers – All Customers Must Leave Happy, customizing a meal to our treasured customers will always be a pleasure!

The SIXTH-TIER group will benefit from all of the quality approaches that are marketed to the previous five tiers, and will gain exposure to us primarily through our community involvement and word-of-mouth.

4.2.1 Market Trends

The trends in the Starburstville Metro market rely heavily on visual appeal, and locations. Most restaurants overlook targeting kids as a way to market to the parents. The Fire Fountain Grille does not seek to market to kids to get them to eat at our restaurant, but rather as a way to get their parents to eat there.

4.2.2 Market Growth

Steak restaurants comprise less than 5% of the total restaurant market. Service oriented steak houses have room to grow. Meat and potatoes is still what Americans want, and they want it with good service.

4.2.3 Market Needs

The market suffers from a lack of service oriented restaurants. The market needs a restaurant that values the customer as its number one priority.

4.3 Service Business Analysis

All restaurants combined, from fast food to fine dining, show an average bottom line profit of 3-10%. Margins are much better in full service restaurants with good management, good staff, good concepts, good menus and wine lists, good location and good financial controls. A full service steakhouse with all of these factors should show a bottom line profit of 13% – 25%.

4.3.1 Competition and Buying Patterns

The general nature of competition in this business, and how the customers seem to choose one provider over another can be measured by customer loyalty and positive word of mouth. Customer loyalty and brand preference come from developing a trust between the customer and the business. To be successful in the hospitality business, one must truly believe in, and always apply, the fundamental meaning of hospitality, which simply stated is, one must always be hospitable, and the customer must truly be made to feel welcome and cared for. The trust that a customer feels, is based upon the business’ ability to recognize what it takes to please a customer, and then is built upon by continuously delivering to that customer at, or above, the level of expectation that the customer expects. Fire Fountain Grille has carefully selected a management team that has been specially trained in the high art of exceptional customer service. The screening, hiring and training standards for front-of-the house staff are the highest in the industry.

The Fire Fountain Grille is conveniently located on a highly visible ingress near a successful mall. The restaurant has a huge, secure parking lot, excellent ingress and egress, and a beautiful and highly noticeable exterior. This area has other restaurants, which is a definite plus for us. This allows us to capitalize on a positive “clustering” effect, and works well with our marketing strategy.

4.3.2 Main Competitors

Competition comes from major chains and from various independents.

4.3.3 Business Participants

The general category is eating and drinking places. Typically, this can be broken down as follows:

  • Fine dining  (white tablecloths, expensive wines).
  • Private Clubs and Country Clubs
  • Upscale casual  (good prices, fun) 
  • Boiler plate casual
  • Neighborhood  places
  • Breakfast/lunch/dinner chains

The Fire Fountain Grille will participate in the upscale casual category.

Strategy and Implementation Summary

Build a relationship-oriented business Build long-term relationships with customers, not single-visit deals. Become their restaurant and destination of choice. Make them understand the value of the relationship.

Focus on target markets We need to focus our offerings on specific population groups as the key market segment we should own. We do not want to compete for the buyers who go to fast food or “microwave frozen foods” types of “restaurants. We definitely want to be able to sell to smart, quality conscious customers.

5.1 Competitive Edge

Clearly, our competitive edge is the customer service experience and approach that our management team will bring to the table. Our smiling, unassuming and good natured approach to all of our customers is evident, and highly appreciated. Our recipes are delicious, and the portions are large. The foods are fresh and satisfying, and the drinks are fulfilling and refreshing.

5.2 Marketing Strategy

An overview of the marketing plan includes:

• Kids Tours • Gift Certificate Program • In-store comp cards • Direct mail • Free surprise dinners for radio station DJ’s. • Charity events for senior citizens, high schools, grade schools, churches and community centers. • Trade shows • Vintner and Chef Dinners • Eye-catching exterior and interior neons, fountains and torches. • High profile interaction between our managers, and the customers. • Excellent service and high food quality every single day in the restaurant.

5.2.1 Positioning Statement

The Fire Fountain Grille. Sizzling, Refreshing, Exciting!  For A Dinner To Remember…

5.2.2 Pricing Strategy

Prices are fit to attract the consumer who prefers a quality steak for a reasonable price. The prices are above those of operators such as Sizzler®, El Paso BBQ® and Black Angus®, are below Ruth’s Chris® and Morton’s®.

5.2.3 Promotion Strategy

The Fire Fountain Grille uses a mix of various promotions and media to spread news about ourselves. This includes:

  • Direct mail, generated from in-store “Event Cards” and customer’s business cards. Event cards are forms that the customers fill out so as to receive notices of our upcoming events.
  • Young people’s tours, to generate enthusiasm among the kids in our area, who in turn spread it to their folks.
  • Eye-catching exterior neons and torches.
  • In-store comp cards for appetizers and desserts.
  • Free surprise dinners for radio station DJ’s.
  • Charity events for senior citizens, high schools, grade schools, churches and community centers.
  • Trade shows, to promote private dining, banquets and catering.
  • “Vintner and Chef Dinners” bringing together the wine making and culinary fields at showcase events, to be held at the Fire Fountain Grille.
  • High profile interaction between our managers, and the customers.
  • Excellent service and high food quality every single day in the restaurant.

5.2.4 Marketing Programs

Children’s tours will be an ongoing program that has proven to work over and over again. The kids are brought to the restaurant by teachers or parents, in groups of no more than 25, and are greeted at the door by our manager. They all go inside and are seated near the Fire Fountain where they are told a cool short story. They then are taken on a tour of the store and kitchen and get to go inside of a giant refrigerator, and see some cool cooks doing their thing. Then everyone is seated for a free lunch of  “Chicken Toes” or “Hot Doggies” and soda pop. Everybody talks a little about restaurants and other neat stuff. When its time to say goodbye, we take pictures and everybody gets an appetizer or dessert card, and some promotional menus. When the kids come back with their parents, we address the kids by their first names and treat them special.

5.3 Sales Strategy

We require our servers to have a thorough and comprehensive understanding of the menus, ingredients and methods of preparation of all of our foods and beverages. We train our staff to always describe and recommend items, even to regular customers, and to always upsell. The key to a server’s success in upselling is the realization that it almost always brings in better tips because the checks are higher.

GIFT CERTIFICATES The Fire Fountain Grille will aggressively sell gift certificates. The strategy behind gift certificate sales is simple and proven. Most GC sales occur during the holidays. Most GC’s are then redeemed in the post holiday months of January and February, helping drive sales in those traditionally slower months.

5.3.1 Sales Forecast

The first month sales will open strongly, because of the advance buzz created by our pre-opening marketing, and our Grand Opening Festivities. Sales will drop off slightly as we begin to sort out our operational patterns. September is a slower month for restaurants. October and November see sales begin to build as we continue with our marketing, and relentless quality. December sees a sharp spike upward as the Holidays are in full swing. A typical week for the first six months will look like this ( conservative estimate ):

Years 2005 – 2008 will see an 8% annual increase. Costs will be higher during the start-up months.

Steak restaurant business plan, strategy and implementation summary chart image

5.4 Strategic Alliances

The Fire Fountain Grille will align with hotels, movie theatres, live theatres, cab companies, banks and retail stores in an informational brochure exchange. Each business will have a chance to promote the other businesses at their place of business. Additionally, our respective businesses will barter with each other, using gift certificates and comps.

5.5 Milestones

The milestone table is set up as a flow-chart. We opted to exclude budgeted dollars in the milestone category because we detailed these dollars in the start-up table. The milestone table is specific in detail, allowing for the smooth flow of functions that are necessary to set up the restaurant on schedule for the Grand Opening. Each function is timed to coincide with the proper execution and time needed to complete each task. Each Managing Partner has specific duties assigned specifically to his area of expertise. The end of the milestone table also shows the beginning of the 2004 marketing plan.

Web Plan Summary

Our website, is an opportunity to offer current information on special events, menu offerings, public service announcements and comp specials.

6.1 Website Marketing Strategy

Our website will be promoted on all of our menus, and promo pieces. We will link to CitySearch.com® and many other hospitality oriented websites and portals.

6.2 Development Requirements

The Fire Fountain Grille website will be initially developed with few technical resources. VeriSign® will host the site and provide the technical back end. We will maintain a simple, classy, yet Internet focused site. The website logos, and graphics will be the same artwork found on our hard-copy menus, and in various spots in the business plan. Our managers will maintain the website. As the website rolls out future development such as restaurant delivery options, newsletters and downloadable market research reports, a technical resource may need to be contracted to build the trackable download and the newsletter capabilities. We will also look into pre-packaged solutions through VeriSign® and other Web hosting resources.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

We will open with a team of four manager/owners, one bookkeeper, and fifty-three staff members. Each member of the management team has specific industry experience that will apply to their assignment. Each Vice Managing Partner will also cross train for one year in preparation for their promotions to their own Fire Fountain Grille units. This is an extremely experienced and well balanced team. There are no gaps in its structure.

7.1 Personnel Plan

The personnel table (labor pro-forma) shows the number, and structure of the “back-of-the-house” (BOH),  “front-of-the-house” (FOH), and management staffs. June 2004 has a higher labor cost, as is usual in a restaurant start-up. Labor costs come down as the operation begins to flow more smoothly. The service staff is large, and is necessary to provide the level of service that the Fire Fountain Grille needs to set it apart from the competition.

Financial Plan investor-ready personnel plan .">

Our main concerns will be aggressive time management, so that our labor costs stay under control, and proper purchasing, prep and food handling to keep food costs down, as well as managing the higher costs of meats and seafoods. Secondarily, hiring the best grill and broiler cooks, training them properly and retaining them will be a critical component to good meat and seafood costs. A good grill cook does not waste steaks by burning them, nor does he anger customers by undercooking them. He must also be accurate time after time in how he carves his prime rib.

Growth will be sustained through a contribution to an expansion fund, and potential investment from current investors in a “roll-over” plan, and from potential future investors or bank capital.

8.1 Start-up Funding

We are seeking $900,000 (see section 2.2 “Start-up Summary”), and will seek it from one, two, or three investment groups, or under an SEC “Regulation D” equity offering (where the company sells partial ownership in the company – via the sale of stock or a membership unit, to raise capital). We prefer this approach as an early stage company because there is no set repayment schedule or debt service payments – the investors profit when the company profits. Initially, the company is projected as a Limited Partnership, but may switch the preferred structure to a stock “C” Corporation or Limited Liability Corporation “LLC”. The preparation of the investment documents will be handled in a cooperative effort by the legal firms representing each party individually. These documents will include, but are not limited to:

Private Placement Memorandum The Private Placement Memorandum, or “PPM”, is the document that discloses all pertinent information to the investors about the company, proposed company operations, the transaction structure (whether we are selling equity ownership or raising debt financing from the investors), the terms of the investment (share price, note amounts, maturity dates, etc.), risks the investors may face, etc.

Form D SEC Filing It notifies the SEC that we are using the Regulation D program and provides them basic information on the company and the offering. It is not an approval document or registration – it is merely a filing that notifies the SEC that we have a Regulation D Offering in place. Raising capital from investors without filing this document with the Federal government could place a company in violation of securities laws.

Subscription Agreement The Subscription Agreement sets forth the terms and conditions of the investment. It is the “sales contract” for purchasing the securities.

Promissory Note For a debt offering (if necessary), outlining the terms of any loan arrangement with the investors. The note is the actual “loan document” between the company and the investor.

8.2 Break-even Analysis

Break-even based on fixed costs including rent, insurance, maintenance, investor note, and pre-opening amortization. Additionally, controllables such as service labor, kitchen labor, management labor, payroll taxes, property taxes, excess rent, advertising and legal/professional fees are included.

Steak restaurant business plan, financial plan chart image

8.3 Projected Profit and Loss

2004 is not a full year on the yearly P&L. Highlights include a bottom line of better than 18% for every year. The numbers reflect realism in the start up and continuing operations of the restaurant. We begin contributing aggressively to an expansion fund in 2005. We begin accruing for vacations immediately, and we are budgeting money from the insurance line for health benefits, all as an early commitment to the future prosperity of our staff. These numbers are an excellent indication that our investors, owners, partners and staff will all prosper and grow with the Fire Fountain Grille!

Steak restaurant business plan, financial plan chart image

8.4 Projected Cash Flow

The cash flow depends on assumptions for good daily operational management, good traffic counts in the restaurant, inventory turnover, payment days, and accounts receivable management. We will need no new financing until we open our second unit.

Initial projections are a sales-to-investment ratio in excess of 2-to-1, return on investment in excess of 30 percent and return on equity of 20 percent-plus.

Steak restaurant business plan, financial plan chart image

8.5 Projected Balance Sheet

The balance sheet is quite solid. We do not project any real trouble meeting our debt obligations–as long as we can achieve our specific objectives.

8.6 Business Ratios

The table follows with our main business ratios. We do intend to improve gross margin, collection days, sales and labor controls.  Our ratios are compared to industry ratios for Steak Restaurants – SIC code 5812.0802.

8.7 Long-term Plan

Our long term plan is to continue to maintain a cash flow of 19-20% while increasing sales annually, thereby increasing actual dollars earned by our investors, principals and staff.

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How to Create a Restaurant Marketing Plan

target market restaurant business plan

To sum up, a well-written restaurant marketing plan along with a comprehensive business plan is the secret ingredient of a successful restaurant.

You can streamline your planning process without any fuss with the help of business plan software .

Thus, don’t miss out on the opportunity to make your restaurant a standout success. Invest time and effort into crafting a solid marketing and business plan today, as your restaurant’s future success depends on it.

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Frequently asked questions, what are the most effective marketing channels for a restaurant.

Some of the most effective marketing tools for a restaurant are:

  • Discounts & coupons through the restaurant website
  • Social media marketing
  • SMS and email marketing
  • Google My Business presence
  • Online review sites like Yelp
  • Loyalty programs
  • Influencer marketing

These marketing channels differ according to the location, type of cuisine, and marketing budget.

What are some cost-effective restaurant marketing strategies?

Here are some cost-effective marketing strategies for your marketing plan that won’t break your bank account:

  • Social media
  • Content marketing
  • Email marketing
  • SMS marketing
  • Partnership or Collaboration
  • Online Review management

These strategies don’t require a large budget but can impact your restaurant’s visibility & customer engagement and cover your target market.

What Should Be Included in a Restaurant Marketing Plan?

Here are some elements to include in your restaurant’s marketing plan:

  • Mission statement
  • Unique selling proposition
  • Target market
  • SWOT & competitor analysis
  • Pricing and positioning strategy
  • Marketing tactics with the timeline
  • Marketing calendar
  • Conversion, Referral, and Retention Strategy
  • Marketing budget and financial plan

A well-organized marketing plan offers a road map for your promotional activities, helps in resource allocation, and directs your restaurant toward success in a cutthroat market.

What are some common mistakes to avoid in restaurant marketing?

Avoiding common mistakes in restaurant marketing can help you achieve better results and maximize your efforts. Here are some mistakes to watch out for:

  • Refusing paid advertisements
  • Having no or poor restaurant website
  • Inconsistent branding
  • Ignoring online reviews, especially negative reviews
  • Not defining the target market
  • Not listing on delivery sites for initial stages
  • Poor-quality pictures & videos
  • Ignoring trends & customer retention strategies
  • Not making marketing plans
  • Last but important, not tracking the results

By avoiding these mistakes, you can create a more effective and strategic marketing plan that resonates with your target audience and helps your restaurant grow.

What are the 7P’s of a restaurant marketing strategy?

The 7Ps help you understand the marketing elements of a restaurant. They are:

  • Physical evidence (ambiance, decor, overall environment of restaurant)

Understanding and optimizing all these Ps are necessary for all local businesses. It will help you address various aspects of business that resonate with the target market.

About the Author

target market restaurant business plan

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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The complete guide to restaurant marketing strategies

target market restaurant business plan

Restaurant marketing attracts new customers, keeps regulars coming back, and sets one restaurant apart from the crowd. It’s more important than ever to make savvy marketing central to your business. In this complete guide to restaurant marketing, we’ll cover everything you need to know to take your restaurant to a new level of success.

Quick links What is restaurant marketing? Why is restaurant marketing so important? How to develop a restaurant marketing plan What is the right restaurant marketing budget? How to use social media for restaurant marketing How to use paid advertising for restaurant marketing How to use email marketing

What is restaurant marketing?

Nobody got into this business for the love of marketing, so restaurateurs can be forgiven if they lack expertise and interest in this part of the work.

Let’s start with the absolute basics: Restaurant marketing refers to the strategies and tactics that restaurant owners use to promote their business and attract customers.

In the competitive landscape of 2023, effective marketing is a key driver of growth for restaurants and all other businesses. Ignore it at your peril.

There are tons of types of restaurant marketing these days. You’ve got the old ways: traditional advertising methods such as signs and billboards as well as print and radio ads. Then there are the newer ways: digital marketing tools like social media , email marketing , and search engine optimization (SEO). And the quest to land media coverage on TV, in print, and online, also known as “ earned media ,” is eternal.

The good news is that you don’t have to do every kind of marketing under the sun. The secret sauce of successful restaurant marketing is to pick the strategies that work best for your specific restaurant, guests, and goals.

Image depicts a restaurant worker photographing food.

Why is restaurant marketing so important?

Today, restaurant marketing is essential for success. This is just as true for independent mom-and-pop restaurants as it is for large chains. The restaurant industry has been evolving at warp speed and so have the wants and needs of guests.

It’s vital to have a thoughtfully planned and expertly executed marketing strategy to magnetize the right people. Regularly brainstorming restaurant marketing ideas should be built into your workflow.

Not only does marketing put butts in seats directly, it also builds your brand identity and reputation as you continually get the message about your restaurant out there over time. Through marketing, people can get to know you, your menu, the kinds of events you host, and even your team before they ever step foot in the restaurant.

Social media platforms, an OpenTable profile page, email marketing, and paid advertising can all be used to entice potential guests through the door and drive traffic to the restaurant’s online presence.

But even when guests aren’t dining with you, marketing helps you stay top of mind between visits, driving repeat visits and creating loyal customers. By staying in touch with guests in their inboxes, through social media posts, and elsewhere online, restaurants nurture relationships that keep their brand relevant.

How has restaurant marketing changed over the years?

Pre-Internet, old-fashioned marketing methods such as print ads, radio ads, direct mail, and billboards were the best ways for restaurants to promote themselves. The rise of social media has completely remade this marketing landscape.

Today, there’s a staggering variety of digital marketing tools at your disposal: Instagram, Facebook, TikTok, Snapchat, YouTube, email, Google ads, Boost campaigns , and Bonus Points campaigns to name a few. These tools let restaurants target guests in amazingly specific and effective ways.

All this tech has also made it easier for restaurants to collect data about guest preferences and behavior, allowing them to create highly personalized marketing campaigns and tailor their offers to the needs and wants of specific groups.

In a way, digital marketing has leveled the playing field in the industry and given small and independent restaurants a chance at competing with larger chains. It’s clear that those who prioritize digital restaurant marketing strategies and stay up-to-date on the latest trends are more likely to see sustainable success in the years ahead.

Image depicts a restaurant worker using a computer

How to develop a restaurant marketing plan

The first step to uplevel your restaurant marketing is to create a marketing plan. In a nutshell, a marketing plan is a blueprint that outlines your marketing efforts for a specific time period.

It spells out your marketing objectives and actions as well as the results you want to achieve. It takes some effort to put a plan like this together, but it will save time in the long run.

A simple but strategic marketing plan can help you identify your ideal guests, set concrete goals, allocate resources wisely, and create campaigns that get results.

Here’s a step-by-step guide on how to create your marketing plan:

Do some market research Start with a clear-eyed look at your competition. This will help you identify your target audience, understand their wants, and create marketing messages that resonate authentically with them.
Set clear goals Describe your desired outcome in specific terms. These might include target sales numbers and guest loyalty benchmarks.
Set your budget Allocate a realistic and specific amount of money for your marketing plans. This will help you prioritize your marketing efforts and ensure you get the best ROI .
Choose your channels Determine which marketing channels are the most effective for reaching your desired guests, such as organic social media, email marketing, or paid advertising.
Sketch out a content calendar Plan out your marketing activities for the month or the quarter and decide when you’ll do them.

Image depicts a restaurant worker photographing food.

Who is your ideal guest avatar and how to create one?

The ideal guest avatar can be like a decoder ring for your whole marketing strategy. Simply put, an ideal guest avatar is a fictional representation of your restaurant’s ideal regular. It’s a profile that includes demographic information, interests, behaviors, and pain points.

By creating an ideal guest avatar, you can better understand your guests and send marketing messages that feel like you’re talking personally to them.

4 steps to creating your ideal guest avatar

  • Gather and review information about your guests. Use tools like surveys, customer feedback, guest notes, and social media analytics to learn more about their preferences and behaviors.
  • Create a profile that includes details such as average age, gender, income, occupation, hobbies, and preferred dining occasions for some imaginary person who would be your dream regular.
  • Give your ideal guest avatar a name and a backstory. This will help you imagine them as a real person with specific needs and motivations. Think about the challenges they face when dining out. Consider how your restaurant can solve these problems and provide a special dining experience that exceeds their expectations.
  • Use your ideal guest avatar to guide your marketing efforts. Create content and creative promotions that speak directly to their interests. Customize your messaging and advertising to appeal to your ideal guest avatar and use social media platforms they frequent.

By creating a strong connection with your ideal guest avatar, you can build a loyal customer base and increase your restaurant’s revenue. It’s counterintuitive that marketing to a single imaginary guest can help you draw a lot of new people to your restaurant, but it’s a time-tested marketing strategy that gets results.

What is the right restaurant marketing budget?

Finding the sweet spot in terms of how much to spend on marketing is notoriously tricky. You want to get as much out of those dollars as possible. Overspending and underspending are both real risks.

The first step to determining the right marketing spend for your restaurant is to set a budget that feels comfortably within your means. Determine how much you can really afford to spend on marketing each month or quarter, and stick to that budget.

Next, decide on your channels, such as social media, email, paid search, etc. These options all come with different price tags and varying bang for the buck. Once you’ve chosen your channels, decide what you want to spend on each. Think through the potential reach and effectiveness of each channel.

Over time, you’ll be able to get granular about the ROI for various types of marketing and that will shape your plan and budget as you move forward.

If one particular marketing channel is performing very well, it’s time to increase the budget there. At the same time, keep your eyes peeled for underperforming channels so you can move that money into marketing that works.

Image depicts a restaurant worker using a tablet and smiling.

How to build a strong restaurant brand

Branding can be an overlooked form of marketing because it’s less quantifiable than other strategies. Building a beloved restaurant brand requires showing up with clear and consistent messaging over time. It takes strong visuals, memorable dining experiences, and media savvy.

Following these tips to build a brand that wins fans:

Define your brand by your values

Start by laying out the restaurant’s values. This will help you create a clear and consistent message that resonates with your target guests. Many restaurants have core values of community, fun, or social justice.

If things like sustainability and community service matter to you, shout it out. Many customers are drawn to restaurants that prioritize values they share. Highlight your efforts in these areas to build a strong brand that resonates with people.

Hone a visual identity

Your visual identity includes everything from your logo and color choices to the look of your menu and website. Make sure all visual elements are consistent and reflect your chosen vibe.

Focus on the guest experience

The experience your guests have at your restaurant makes or breaks a brand. Make sure your service is friendly and welcoming, your food is high-quality and consistent, and your atmosphere is warm, memorable, and preferably Instagrammable.

Engage on social

Social media marketing is a powerful tool for building your brand and engaging with guests when they aren’t in the dining room. Show off your food, people, and events—anything that brings your restaurant’s personality to life. If you come across a negative review online, respond and try to make it right if possible.

How to optimize your website for SEO

As more and more customers are turning to online sources to pick restaurants and make reservations, you’ve got to have a strong online presence. You want your restaurant’s website to be optimized for search engines (SEO) .

It doesn’t have to be complicated. Use words on your website that you think potential guests will search for. Place these keywords throughout your website, especially on your menu items description and about page.

A website’s structure and navigation also play a role in SEO. Make sure it’s easy for visitors to find the information they’re looking for , such as the menu, hours of operation, and contact information. Also, check that the website is mobile-friendly. Most people will be looking at it on their phones.

Overall, optimizing your restaurant’s website for SEO can boost online visibility and drive more guests through your doors.

Image depicts two restaurant workers recording a video.

How to use social media for restaurant marketing

Social media has become an essential tool for marketing in all industries. With billions of active users, it’s a powerful way to engage guests and potential guests.

If you aren’t already active on social media, start with one platform where you know your guests spend time. Post the best photos and videos you can. Don’t forget to keep the “social” in social media by actually having conversations with followers. When people comment on a post, reply. Pose questions, ask for suggestions, and repost things your guests share about you.

Using social media for restaurant marketing can help increase brand awareness, drive traffic to your website, and ultimately boost sales, both on-premise and through online ordering . Remember to track your results to refine your approach over time.

How to use paid advertising for restaurant marketing

Paid advertising, also known as paid media , can be a powerful tool for restaurant owners looking to build brand awareness and attract new guests. On the flip side, the world of paid advertising can be confusing and expensive.

If you’re going to invest in paid ads, spend some time investigating which are the right advertising channels for your restaurant. Google ads and Meta (Facebook and Instagram) ads are popular choices, but they’re far from the only ones. Research the different options and choose the channels that best fit your restaurant’s goals.

When investing in ads, you want to make sure you have the most effective ad copy and visuals as possible. It may be worth the money to enlist a professional to create the kind of polished ads most likely to get results.

Setting and sticking to a budget is also crucial for successful paid advertising. Start with a smaller budget and test different strategies to find what works best for your restaurant. And always track your metrics and know your ROI. That way you can adjust your strategy to maximize the benefits and minimize the risk of wasting money.

How to use email marketing

In the digital age, email marketing is an essential tool for any business to reach customers.

For restaurant owners, email marketing can be especially beneficial. Here are just a few reasons why your restaurant should be using email marketing:

Drive repeat visits

Send personalized messages to your guests that invite them to come back to your restaurant, especially when you haven’t seen them in a while. This can be in the form of special offers (such as buy one get one free), loyalty rewards, or even just a friendly reminder that you’re open. Repeat customers, aka regulars, can make or break a restaurant.

Compared to most other marketing channels, email marketing is relatively cheap. It allows you to reach a large number of people at a low cost. Email can provide a significant return on investment.

Track results

Email marketing campaigns can be easily tracked, allowing you to see how effective your campaigns are and make changes accordingly.

Effective restaurant marketing drives growth and sets your restaurant up for success. By developing a strategic marketing plan and making the most of select channels you can win a steady stream of new guests and foster loyalty in your customer base.

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9 Local Store Marketing Ideas for Restaurants to Attract a Loyal Crowd

local store marketing ideas for restaurants

  • 1. Why Local Store Marketing for Restaurants is Important
  • 2. 9 Local Store Marketing Ideas for Restaurants
  • Become a master of local SEO for restaurants
  • Use social media to target the local audience
  • Collaborate with local influencers
  • Try local search advertising
  • Set up a loyalty program
  • Distribute flyers around your location
  • Organize events for the local community
  • Attract locals with promotions
  • Encourage and promote positive reviews
  • 3. Final Words

Clients are the main pillars of your restaurant’s success. Especially the loyal ones who patronize your business and recommend you to their friends. Often, returning clients usually live in your area and visit your restaurant because it is convenient.

If you want to get customers to pick your business over your competition, we’ve prepared a variety of useful local store marketing ideas for restaurants you must try.

Why Local Store Marketing for Restaurants is Important

As a restaurant owner, you know promoting your business is a must if you want to become a relevant name in the industry. Here are the benefits you will enjoy if you incorporate local store marketing into your promotional strategy:

  • Increase brand awareness : by trying out local store marketing ideas for restaurants, you make people in your area aware of your delicious food and exact location;
  • Build community engagement : by constantly targeting the local crowd, you get people to interact with your restaurant both online and offline;
  • Get more loyal customers : the end goal of local store marketing is to persuade as many people as possible to return to your restaurant, time and time again;
  • Create partnership opportunities : you not only get to create a relationship with your customers but with other businesses that provide access to new audiences.

9 Local Store Marketing Ideas for Restaurants

Use these easy-to-implement tips if you want to see a significant improvement in your number of clients and sales, both short-term and long-term.

1. Become a master of local SEO for restaurants

Mastering SEO techniques for restaurants will ensure you increase your visibility, and attract new clients to your restaurant. However, focusing on local SEO will help you get new and return clients that live in your area.

Follow these tips:

  • Get a sales and locally SEO-optimized website : your restaurant’s website must be full of locally relevant keywords and correct information about your place such as address, location, and menu. Use our restaurant website builder to generate a fully optimized website in under 10 minutes, without effort;

local store marketing for restaurants

  • Claim your Google Business Profile : and fill in all the information like a link to the website and working hours so people can easily find you online;
  • Get listed in directories : make sure you have a profile on Yelp, TripAdvisor, and other directories where people may search for a restaurant in your area.

Read more : How to Market Your Restaurant Locally and Attract People in the Neighborhood

2. Use social media to target the local audience

One of the best local store marketing ideas for restaurants is to take advantage of social media. Your customers are already there, you just have to reach them and convince them to visit you.

Here is what you must do:

  • Be consistent : you can’t post a photo today and then forget about the account for a week. You must post constantly, at least once a day, to entice people with mouth-watering food photography;
  • Use local hashtags : when you create a post, you should have two main things in the caption (a convincing Call to Action and relevant hashtags). Add hashtags that include your location and other relevant items in your area, such as places of interest, monuments, and the type of food you serve;
  • Advertise with geo-targeting: paid ads may make your marketing budget higher, but it is worth it because they help you reach your target audience. You can advertise with ads including attractive promotions to people in walking distance.

Read more : How to Attract More Customers to Your Restaurant Using Social Media

3. Collaborate with local influencers

Countless restaurants had their sales skyrocket after an influencer promoted them. Food influencers have the advantage that they already have a community that trusts them. If you can get them to recommend you, their fans can become your clients.

Here are a few tips for working with influencers:

  • Find small, local influencers : the whole point of local store marketing ideas for restaurants is to attract people in your area. Therefore, it makes sense to look for an influencer that is also active only in your area. Moreover, the smaller they are, the less you will have to pay;
  • Focus on food influencers : influencers that work in other niches such as beauty or games may not have the audience you seek. Food influencers are clearly followed by people interested in food, so they are your answer.

Read more : Restaurant Influencer Marketing Guide: How to Do It and Why

4. Try local search advertising

You are probably on the lookout for local store marketing ideas for restaurants that are free. But, if you are at the start, it is better to invest more in advertising until you start to rank high organically.

By creating some local campaigns for paid ads, your restaurant will be shown first in the results, above your competition. You can tempt people with promotions or attractive menu items on a variety of platforms:

  • Google search
  • Google Maps

5. Set up a loyalty program

Most local store marketing ideas for restaurants will focus on getting people into your restaurant for the first time. But once you have them, you must do all you can to keep them.

On top of an amazing customer experience and delicious food, you can persuade people to come back with loyalty programs.

For example, the online ordering system from GloriaFood has an embedded Promotions module that can be set up to work as a loyalty program. Once people reach a certain number of orders, you can reward them with discounts and promos. Find out more from this video:

6. Distribute flyers around your location

While almost all promotional work is done online in this day and age, you must not forget the traditional ways. One of the most efficient local marketing ideas for restaurants is distributing flyers in your area.

To persuade customers to order and increase your online sales, we recommend you use the online ordering flyer provided by our online ordering system. It includes 5% off their first order, so people are incentivized to take the big step.

local store marketing ideas for restaurants

You can share your flyer:

  • In front of your restaurant, especially if there is a lot of foot traffic
  • In busy areas around your restaurant such as markets
  • In other stores if you partner up with the business
  • At local hotels and B&Bs

7. Organize events for the local community

Some local store marketing ideas for restaurants don’t have immediate results, but they pay out in the long run. One of them is to engage with your local community by organizing or participating in events. Here are some ideas you can try:

  • Offer samplings : choose the busiest hour of foot traffic outside of your restaurant and tempt people with small samples of your food. Even if they don’t come in to eat then, they will remember the gesture and seek you out;
  • Host charitable events : show your community you care by offering your place for charity. Hosting a fundraiser or donating to shelters are great options;
  • Sponsor local sports teams : having your name on banners or t-shirts at sports events will signal to your community that you are involved and trustworthy;
  • Host local singers : offer singers who are just starting a platform to show their talent. They get to promote themselves while you have entertainment for guests.

Read more : Top 8 Restaurant Fundraising Techniques to Support Your Community

8. Attract locals with promotions

People may know about your restaurant, either by walking by or following you on social media, but they have not yet become your clients. To persuade them to take the step from bystander to client, you can tempt them with promotions.

With GloriaFood, setting up a promotion is both easy and fast. You just need a few seconds to add an attractive promotion to the top of your menu. Here are a few deals you can implement:

  • 5% off total
  • Buy one, get one free
  • 30% off any dessert
  • Free item on orders over $60

Watch this video for step-by-step instructions:

9. Encourage and promote positive reviews

Did you know that 92% of consumers read restaurant reviews? Even if a customer lives three steps away from your restaurant, they will search online for reviews before visiting you.

Potential customers trust other people’s opinions. Therefore, if you want more clients, you need to get the existing ones to leave positive reviews. Here is what you can do to encourage reviews:

  • Have servers politely ask for reviews : at the end of the meal, train servers to nudge clients to leave a positive review if they enjoyed the experience;
  • Link to review platforms on your website : make it easy for clients to leave a review by adding a direct link to the platforms you are on;
  • Offer an incentive for reviews: you can promise a free dessert or a free drink for every positive review to persuade people to make the effort;
  • Ask people on social media : let your followers know how important reviews are for you and you would appreciate if they took the time to write one;
  • Promote your positive reviews on social media : ask for permission first and then add the positive reviews on your profile to show potential clients you are a trustworthy business.

Read more : The Importance of Online Reviews for Restaurants & How to Get More

Final Words

If you use the local store marketing ideas for restaurants mentioned above, you will notice a considerable increase in the number of new and returning clients.

Remember this is not a one-and-done deal, you must constantly make the effort to become a part of your local community and attract them to your restaurant.

photo of GloriaFood blog writer Otilia Dobos

Otilia Dobos prides herself on well-documented, easy to understand and SEO-optimized content, both short and long form.

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  1. How to Identify Your Restaurant's Target Market

    Market trends: Your target market will determine which trends you choose to jump on and which ones you don't. Competition: Your target market is essential to defining your direct and indirect competition in your business plan. This is especially true for determining indirect competition, which can be less obvious. Indirect competition means ...

  2. Restaurant Target Market: Find Ideal Market Segment (Examples)

    Creating a restaurant business plan needs to start with conducting a market analysis, a crucial first step when preparing to open a restaurant. If you are already running a restaurant, but it's not profitable, the reason might also be the lack of marketing efforts toward attracting your restaurant's target audience that matches your ...

  3. How to Identify Your Restaurant's Target Market (Expert Tips Included)

    Step 6: Reevaluate your target market after drafting your business plan. The target market is the key component for writing a business plan in the restaurant industry. However, target markets evolve, and once you fill in the rest of the business plan you should revisit your customer base to add or remove certain groups.

  4. Target Market Examples

    In the case of a restaurant, it makes sense to focus on the geographic location and who currently frequents the area (more on that in the next section). ... Get started with your business plan template. A target market analysis is a key part of any business plan. But it's just one piece. At Bplans, we take some of the pain out of business ...

  5. How to Write a Restaurant Business Plan in 2024 (Step by Step Guide

    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.

  6. Finding Your Restaurant Target Market

    Restaurant Target Market Examples. Neighborhood Coffee Shop/Bakery: Your coffee shop is in a mostly residential area that's a few blocks from a commercial area. You're open from 7 AM to 6 PM, and you're busiest in the morning. You notice you have a lot of regulars who stop by on their morning commute, but the rest of the day is fairly quiet.

  7. How to Write a Restaurant Business Plan

    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 ...

  8. Restaurant Target Market

    Market research plays a vital role in identifying and attracting your ideal customers. It helps you make informed decisions, shape your marketing strategies, and optimize your restaurant's offerings. Understanding your target market's needs and desires enables you to create tailored experiences that resonate with them.

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

    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.

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

    The executive summary is a critical part of your restaurant business plan, as it provides an overview of your entire plan. It should be concise and clear, highlighting the most important aspects of your business plan. In this section, you should include: A brief introduction to your restaurant concept and target market.

  11. Restaurant Business Plan Template [Updated 2024]

    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.

  12. Writing a Business Plan for a Restaurant

    A restaurant business plan is a document that outlines your restaurant's concept, goals, target market, marketing strategies, operations, and financial projections. It serves as a blueprint for your business, helping you make informed decisions and attract potential investors or lenders. A well-developed restaurant business plan not only ...

  13. How To Write a Restaurant Marketing Plan

    Email marketing: Send a monthly email newsletter to subscribers with coupons, discounts, and restaurant news. Promotions: Run monthly promotions and discounts to attract new customers and keep existing ones coming back. Events: Host events at the restaurant, such as wine tastings and cooking classes.

  14. A Complete Guide to Writing a Restaurant Marketing Plan (Free Template)

    As an example, a few goals for your restaurant could be to: Grow drink revenue by 10%. Grow lunch hour revenue by $3000. Grow per table profit by 12%. Also, quantify your overall objectives with numbers and dates. You could set the goal completion date at three months, and measure your growth daily.

  15. Target Market Of Your Restaurant

    The target customer of your restaurant is a specific segment of the larger dining market. Target markets are determined by a combined analysis of: Demographics: segments of the population as divided by shared characteristics, including age, sex, income, education, religion, race, and geographical location. Psychographics: the classification of ...

  16. Mediterranean Restaurant Business Plan Example

    2.2 Start-up Summary. Our start-up expenses come to $61,450 which is mostly expensed equipment, rent, and legal and consulting costs associated with opening our first restaurant. We also require $69,000 of start-up assets, which includes $22,000 cash and $45,000 of long-term assets.

  17. 13 Target Market Examples for Food: Who Are You Selling to?

    Large families are also a good target market for catering companies. If there is a family gathering involving extended family like grandparents, uncles, aunts, cousins, etc. they may choose to cater food rather than have everyone go to a restaurant. 3. Health-conscious individuals.

  18. Steak Restaurant Business Plan Example

    4.2 Target Market Segment Strategy. Strategically, targeting the 30-44 year old age range in upper middle class areas close to our restaurant helps serve the needs and requirements of our customers, and ties in logically with our marketing plan (see Marketing Plan) and style of restaurant.

  19. How to Create a Restaurant Marketing Plan

    To get the best results from integrating social media marketing tactics into your overall marketing plan, it's essential to set clear goals, choose the right social media platforms, provide engaging content, and continuously monitor & optimize your marketing campaigns. 6. Traditional Restaurant Marketing.

  20. The complete guide to restaurant marketing strategies

    Think about the challenges they face when dining out. Consider how your restaurant can solve these problems and provide a special dining experience that exceeds their expectations. Use your ideal guest avatar to guide your marketing efforts. Create content and creative promotions that speak directly to their interests.

  21. 9 Local Store Marketing Ideas for Restaurants

    2. 9 Local Store Marketing Ideas for Restaurants. Become a master of local SEO for restaurants. Use social media to target the local audience. Collaborate with local influencers. Try local search advertising. Set up a loyalty program. Distribute flyers around your location. Organize events for the local community.

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