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How to create an excellent business plan for your restaurant

An excellent business plan for your restaurant

As a restaurant manager, you will need to think about creating a solid business plan for the restaurant. It can provide you with a clear goal to follow and achieve what you want effectively at the end of the day. The process you have to follow in order to create a business plan for the restaurant is not a difficult one. You just need to pay your attention to few important factors and create it. From this article, I will be sharing all the prominent details with you on how to create an excellent business plan for your restaurant business.

What should be included in the restaurant business plan?

There are some key elements, which must be included in the business plan of your restaurant. Here are those key elements.

  1. Executive summary

The executive summary should be the very first part of the business plan of your restaurant. It should share information related to the primary objective of your restaurant. In addition to that, you need to include some details about the history of the restaurant and tell how you are looking forward to make it successful in the future.

You need to clearly define the exact model of the restaurant in this business plan. In addition to that, you will need to include information about food that you are going to share. Information related to the location and target customer base should be included as well. You should never miss out the prerequisites related to the restaurant, such as interior design, name and the menu.

  1. Company overview

Once you are done with the first part, you can come to the company overview section. This is where you give out a detailed overview of the restaurant. This will be a sketch of the restaurant concept. You need to include all the details that make your restaurant unique and different from others.

While creating the company overview, you should pay attention to three key ingredients. They include:

  • Restaurant model

You should first include information related to the restaurant model. For example, you need to specify whether it is a bar, café or a fine dining establishment. You will be able to include information related to interior designing and furnishing in here as well. In addition to that, you should also use the kitchen equipment that you are going to purchase and the technologies that you are going to use in the restaurant.

  • Restaurant menu

Menu of your restaurant is playing a major role and you should clearly include information related to it on the business plan. In here, you will need to include all the foods and beverages that you are looking forward to offering through your restaurant. In addition to the details, you can also think about including some pictures of the menu items. Then you will be able to create a solid impression about restaurant menu on the business plan.

  • Management

The third aspect you need to include in the restaurant business plan is details about the management. You should include information about the owner, bar manager, head chef and employees. It is better if you can clearly illustrate the hierarchy of employees in the management section.

  1. Industry analysis

The third section of your restaurant business plan will be dedicated to industry analysis. This will be one of the most important parts of the business plan. Before you start working in this section, you need to figure out the customers that you target. Along with that, you should figure out the expectations of those customers as well.

The industry analysis part should also contain some key details. They include:

  • Location analysis

You should clearly analyze the location of the restaurant in the business plan. You need to highlight the neighborhood and justify the reason on why you picked that location in the business plan. Along with that, you can also keep the target audience in mind and refer to them when needed.

When analyzing the location of the restaurant, you should never ignore the accessibility, availability of adequate space, and vendor friendliness.

  • Competitor analysis

The next ingredient would be competitor analysis. You should clearly outline all the competitors that you have to deal with. In here, competitors refer to other businesses who have the same target customer base. You will need to include how you are going to overcome competition and how you are going to make your restaurant stand out from the others.

  • Target analysis

The next section of industry analysis would be target analysis. This will be the targets that you are going to achieve in order to retain sustainable business operations in the long run. You will need to take customer behavior and your market into consideration when conducting the target analysis.

  1. Marketing Plan

When you just go ahead and start a restaurant business, you will have a difficult time with attracting customers to your business. This is where you need to have a proper marketing plan. This is where you need to market the brand in an appropriate manner, so that you will be able to widen the customer base along with time.

The marketing plan you create as a part of your business plan is in a position to create a strong impact on the overall success of your restaurant. Therefore, you cannot simply ignore the importance of it. You will have to outline how you are going to conduct marketing campaigns. These marketing campaigns should be realistic. That’s because you are going to stick to them after you start the business operation. On the other hand, the marketing strategies you create should be effective and they should be able to attract new customers to your business. Then you will be able to make sure that you don’t have to struggle too hard to get more customers to the business and offer your dishes.

In the marketing plan, you need to take a look at many different aspects. In other words, you will have to share details on the different marketing channels that you will be used for marketing purposes. They include social media, blogs, websites, emails and newsletters. No matter what channels you select, you need to make sure that you are including a detailed description of how to do it.

Along with online marketing methods, you should also include information related to the offline marketing methods. They include print ads, events and dealing with food critics in the neighborhood as well.

  1. Business operations plan

The next part of your business plan should be about the business operations plan. There are some key ingredients, which you will need to include in the operations plan as well. They include:

  • Staff

You should include details about how you are planning to hire staff members and how you are planning to provide training to them. In addition to that, you need to figure out what sort of staff that you will have to hire to the restaurant as well. You will need to recruit people who come from different backgrounds for the restaurant.

  • Customer service

As the next step, you need to understand how you are going to provide customer service. You need to pay more attention towards this because your customers are going to contribute towards the overall success of the restaurant. You should provide a top-notch service to the customers at all times.

  • Technology for streamlining the operations

You should then determine what technology that you are going to use to streamline the business operations of the restaurant. For example, you should invest to purchase Point of Sales system, so that you can manage your customer orders.

  1. Financial analysis

This is another important part of your business plan. Therefore, you will need to focus more on it. You are going to include all details related to finances of your business in this section. Therefore, you will need to include some important points under this section as well. They include:

  • Investment plan

You will need to include details related to potential investors on this section. You should also be including details on how you are going to find money to move forward with the business operations. They include formal loans and informal loans as well.

After working on the finances that you would gain, you need to take a look at the expenses that you will have to bear. They include the rental costs, license costs, and the costs that you have to bear to finish the design of the restaurant, marketing expenses, labor costs and operational costs. You should clearly outline the one-time costs and long term costs that you have to bear.

There are certain financial documents, which you should include in the business plan. The profit and loss statement holds a prominent place. In addition to that, you should include the expected cash flow document as well.

  1. Legal requirements

In order to manage a restaurant, there are some legal requirements that you must fulfill while operating a restaurant. Information related to them should also be included in the business plan. For example, you will need to obtain the food license, which is also known as FSSAI license. Then you should obtain a separate license to sell liquor. Likewise, you should focus on many other licenses, including eating house license, health license, fire and safety license and signage license.

  1. SWOT analysis

It is a must to include a properly defined SWOT analysis in your business plan. Then you will be able to get a clear picture on how to proceed with the business operations accordingly. Here is a detailed breakdown of the SWOT Analysis.

  • Strengths

Your restaurant business has a Unique Selling Proposition. This would be your strength. Along with that, you should include all the strengths of the business as well. It can be your location, concept or anything that provides advantage over the competitors.

  • Weaknesses

Your business is exposed to many pitfalls as well. In other words, there are plenty of weaknesses, which would lead the business towards struggles. These are your weaknesses and you must include them in the business plan.

  • Opportunities

The opportunities will be new ideas, which are in a position to contribute towards the overall success of the business. In fact, these are the ideas, which have not been touched by anyone else in the past.

  • Threats

Threats are mainly categorized based on the competition of your business. For example, if there is another restaurant in the neighborhood, which serves the same cuisine, you can call that as a threat that you have to deal with. These threats are in a positon to restrict the overall growth of your restaurant.

  1. Business consultants and specialists

You will have to work with a large number of business consultants and specialists while you are managing the business. You will be able to work along with them and reach the goals that you have defined. Some of the people that you have to work while starting and managing a restaurant business include marketing professionals, menu designers, interior designers, architects, lawyers and financial accountants. You will not be able to manage some of the aspects of your business, but these specialists will be able to offer their services to you.

Final Words

Now you are aware of how to create the business plan of your restaurant and what details you should be including within the business plan. It is true that you will have to work hard to come up with this business plan. However, you will be able to receive effective results out of it at the end of the day. Then you can structure out all the different areas of your restaurant and focus on them individually. This can reduce the chances of you ending up with a failure.


About the Author:

Michal Fico
I help Business Owners leverage proven, results-driven online marketing systems to generate more leads, add more clients & increase revenue. I provide marketing agency services, one-on-one consulting, group coaching, online training programs, and marketing content targeted at helping you discover how to generate more business using online sales & marketing systems. If you are struggling to use online marketing to drive sales for your business, then I want to help you. Inbox me at


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