Your dream has always been to open a restaurant? You have the ideas in mind, but you are not sure on how to even start? Worry not, we have summed up the most important steps to draft a restaurant business plan, the basis for a successful venture.
Why Start with a Business Plan?
The business plan will be your roadmap and your tool to convince investors to fund you.
It consists of the following:
• Restaurant Concept
• Market Analysis
• Menu Design
• Restaurant Design
• Human Resources
• Marketing Plan
• Finance Plan
The restaurant concept explains your general idea. This section is also called the executive summary. It should spike the interest of the potential investor. Thus, it will be the first impression he gets. It should include the most important key facts like location, legal standing, topic and size. Then, the short-, mid- and long-term objectives should be explained with reasons for success. An overview of the potential costs and of the expected return on investments should also be given.
The market analysis shows where and how you plan to position your business within the market. It should consist of a description of your targeted business segment and your target group. A research of the competition will also be needed including their pricing, opening hours, menus and design concepts. In conclusion, you should explain by which marketing measures you plan to win over guests.
The core of a restaurant is, of course, the food and drinks it serves. These were probably the first things you thought about when considering opening a restaurant. Besides having a nicely balanced meal plan, the menu should also already look appealing to the eye and include your logo. A smart way to showcase your menu is to use a digital menu instead of a printed version. This way you will be able to make adjustments without additional costs. You don’t need to have programming skills to achieve a digital menu. Apps, like Mike’s Digital Menu (available on Android in January 2020, with iOS following shortly after), will let you set up a menu quick, easy and even for free.
The ambience of a restaurant influences the guests’ impression a lot. It should represent the menu to give an overall themed experience. Also take the comfort into consideration when choosing chairs or lighting e.g. A professional mock-up will be very helpful to convey your vision. Otherwise, we recommend creating a mood board of how your restaurant will look like.
All ideas could be great but in vain, if you lack the manpower for realizing your goals. Thus, the owner(s) and the management team should be introduced properly in this section detailing their prior experience and professional skills. You will not need to have a full staff list yet, but there should be some skilled people behind this start-up.
Usually, there are already plenty of restaurants in the neighbourhood. You will need to explain on how you will spread the word about your new restaurant. We advise to come up with a timeline for the marketing measures before, during and after opening.
Another central section is the finance plan. For the financial assumptions, market trends should be taken into consideration. This part should include key figures like the break-even analysis, gross margin, projected profit and loss, cash flows and balance sheets. In the end, it will show if your goals are realistic.
If you already have business partners on board, list them and explain what they will do and why they are important for the success of the venture.