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How to Write a Restaurant Business Plan in 2024 (Free Template)

Saif Alnasur

So you want to open a restaurant? Then you need a business plan.

A restaurant business plan is your roadmap to success. It outlines and forecasts every aspect of your restaurant’s operation and management —from menu design and location to financial planning and staff training. A comprehensive restaurant business plan demonstrates professionalism and a clear understanding of goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

Why is a strong business plan important? Because it turns your restaurant idea into reality. According to the National Restaurant Association , having a business plan increases your chances of success by preparing you for problems before they arise and attracting investors and partners.

Planning is the key to restaurant success. Without a plan, you risk being part of the 30% of restaurants that fail in the first year​. To make sure your restaurant succeeds, you can start by creating a business plan. Financial projections are a crucial component, helping to secure funding and plan for the future. Here’s how to get started.

Download our free restaurant business plan  It's the only one you'll ever need. Get template now

The importance of a restaurant business plan 

Think of your business plan as your ultimate guide, showing business owners, stakeholders, and investors how you’re going to turn your vision into reality. It ensures nothing is overlooked as you grow your restaurant . When you’re deep in the chaos of construction, licensing, staffing, and other challenges, your business plan will keep you on track and focused. Without one, navigating the complex world of opening a restaurant becomes much tougher.

Restaurant Business Plan template

A solid business plan is also key to attracting investors. Most new restaurants need some outside capital from hospitality investors or silent partners. Before they invest in your dream, they need to see that you’ve got a solid, thought-out plan for success. Your business plan shows investors that you’ve considered every expense and every possible scenario. It provides a complete description of your strategy, highlights the experience and skills of your management team, and explains why and how it will succeed.

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Every business should have a business plan, whether new or existing. Business plans help you focus on your goals and can help get back on track if you stray from them.

  • How to write a restaurant business plan

Whether this is your first business plan or your 10th, using a template specifically designed for the restaurant industry can be incredibly helpful. Our restaurant business plan template includes all the necessary sections you need. You can download a customizable copy of the business plan template here.

Conducting a thorough market analysis to understand customer demographics and competition is crucial for the success of your restaurant. Keep reading to learn about the key elements that make a restaurant business plan successful.

Restaurant business plan

Further reading

  • How to Write a Restaurant Business Plan Executive Summary
  • Your Complete Guide to Restaurant Financing and Loans
  • How To Conduct a Restaurant Market Analysis
  • Essential elements of a restaurant business plan

Design a branded cover page

Start with a branded cover page that showcases your logo, brand fonts, and all relevant contact information. This sets a professional tone and makes your business plan easily identifiable.

Write the executive summary

Begin your restaurant business plan with an executive summary . This section introduces and sums up your entire vision, making sure to grab the reader’s attention. It should make investors feel invested in your idea and eager to read more.

Key elements to include are your restaurant’s mission statement , proposed concept, how you’ll execute the plan, an overview of potential costs, anticipated return on investment, as well as a business succession plan. Describe your restaurant concept, detailing the type of food being served, service style, design elements, and unique features. This is also a great spot to highlight your business’s core values. A strong executive summary sets the tone for your business plan and helps attract investor interest.

Additionally, include a management team write-up to highlight the credentials and past experiences of your management team, demonstrating their ability to run a successful establishment.

A well-conceived mission statement can provide a guiding light to keep your restaurant moving in the right direction. It helps ensure that every decision you make and every interaction you have is in line with your core values and goals.

Create the company overview

In this section, you’ll lay out the foundational details of your restaurant. Start by introducing the basic information: the restaurant’s name, address, and contact details. Include information about the owner and their background, showcasing their experience and passion for the industry. This sets the stage for your business’s credibility.

Next, describe the restaurant’s legal standing and its short- and long-term objectives. This helps potential investors understand the structure and vision of your business.

Highlight your understanding of the local food industry with a brief market research summary. Explain why your restaurant will succeed in this market by demonstrating awareness of local dining trends and consumer preferences. Crafting your own restaurant business plan is crucial to showcase your dedication and strategic planning, learning from others' mistakes to ensure success.

Here’s a sample layout for this section:

Company description

Restaurant Name : [Restaurant Name]

Location: [Restaurant Address]

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

Owner: [Owner Name]

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

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

  • How to Write a Great Restaurant Description

Include an industry analysis

First describe the current state of the market sector your restaurant will be in and the specific area you will be in. This should include local economic growth, existing restaurants, infrastructure projects, nearby businesses, residential areas and foot and car traffic counts.

To create an effective and professional business plan, it is important to study restaurant business plan samples.

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1. Review your target market

The restaurant industry is competitive so you need to find your niche. What will make your restaurant different? Who will your restaurant attract and who will be your repeat customers? Describe your target market and compare it to the overall restaurant industry in terms of diner demographics, characteristics and behaviour.

2. Location analysis

Even if you don’t have a specific location yet, focus on the general area or city where you will be opening your restaurant and explain why. Include local economic growth, major events and nearby infrastructure projects. Compare the current market conditions to your target market to show the proposed location fits your ideal customer profile. Investors will be looking closely at this section to make sure the location is right for your concept.

3. Competitive analysis

Get into the competitive landscape around your proposed location. Detail the number of other restaurants in the area, especially those with similar concepts. Investors want to know what will make customers choose your restaurant over the competition. What will make your food and service stand out and what other advantages do you have, like longer hours? Use a competitive matrix to show you understand your niche in the market.

Put together a restaurant marketing plan 

The marketing section outlines how you’ll promote your restaurant before and after opening. Not sure where to start? Check out our guide here. A well-thought-out marketing plan is crucial to grow a successful restaurant and distinguish it from competitors.

Start by listing out specific tactics you’ll use pre and post-launch. Will you work with a PR manager? Launch a social media account to document the build-out and generate buzz. Share those details. If you already have a large social media following , make sure to mention it.

Once the restaurant is open , which channels will you use to keep the momentum going? Email marketing? Regular social media posts? Charity partnerships? Local TV and radio ads? Will you invest in customer relationship management software to keep in touch with regulars or implement a loyalty program?

This section should give a clear picture of your promotional strategy and how you plan to engage with potential customers from the start.

Restaurant marketing plan

Outline your operation plan

Here’s how to outline your restaurant’s day-to-day operations once the doors open. Cover these key areas:

Clearly defining the service style of your restaurant, whether it is fine dining , quick-service, self-service, or another type, is important to ensure a consistent customer experience.

1. Staffing

Think about the positions you'll need and how many people you'll need for each role. What will make your place a fantastic workplace? Outline the pay for each position, how you'll recruit the right people, and what the hiring criteria will be.

2. Customer service policies and procedures

How will you ensure an exceptional and consistent guest experience every time? Detail your service values, policies, and procedures, and explain how you'll enforce or encourage them.

3. Restaurant point of sale and other systems

How will you keep track of sales and inventory, manage takeout and delivery, control labor, handle cash, process payroll, and accept various payment types? Cover the systems you'll use for all these tasks.

4. Suppliers

Where will you get your ingredients? Think about both one-time equipment purchases and items that need regular replenishment. Detail your plans for sourcing these essentials.

Nail down your financial game plan with first-year projections

The financial analysis usually wraps up your business plan, and it’s where investors really focus in. They want to see exactly how you’ll spend their money in the first year and how you expect costs and revenue to stack up. Make sure to hit these key points in this section.

1. Your investment plan

Here’s where you put in the initial investment and how you’ll use it in the first year. Think kitchen equipment, furniture, decor, payroll, legal fees, marketing, and a bit of working capital.

2. The projected profit and loss (P&L) statement

Since the business plan is done way before you open your restaurant you’ll need to make some educated guesses for your P&L statement. Estimate costs and sales based on your restaurant’s size, target market and the local competition. Use this P&L template and guide to dive deeper into P&L statements and create one for your future restaurant.

3. The break-even strategy

This is where you show investors how much monthly revenue you’ll need to cover all your overhead and operational costs. Remember there are always variable costs so highlight what you think those will be. How will you hit that revenue target during slow months?

4. Cash flow prediction

Your cash flow expectations hinge on your inventory purchases, staff size, payroll, and payment schedule. Some months will be better than others once your restaurant is up and running. This cash flow analysis will show investors that, based on your forecasts, your restaurant can sustain itself during leaner months without needing extra investments.

How to sell a restaurant idea and master your business plan presentation

Once your business plan is polished and ready, it's time to become its number one expert. Investors want to see that you know every nook and cranny of your business and are confident you can make it happen.

When you're ready, email your business plan to anyone in your network who might be interested in investing. With any luck, you'll get some interest, and investors will want to meet to discuss your restaurant.

Some investors might want a pitch presentation alongside the printed business plan. Use a professional template from Google Sheets or PowerPoint, and practice until you can nail the presentation without notes.

Be prepared for any questions—both the expected ones and those that come out of left field. If you don’t know an answer on the spot, it’s fine to say you’ll find out and get back to them quickly.

Restaurant presentation

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

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals. Including a sample menu in the business plan is necessary to showcase planned dishes and prices, which helps in selling the restaurant concept to potential investors and customers.

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

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

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How much profit does the restaurant make.

When it comes to restaurant profitability, the numbers can widely vary. On average, restaurants report profit margins between 3% and 5% annually.

Fast-food establishments often have lower margins but benefit from a high volume of customers and quick turnover rates. In contrast, fine dining venues, although charging higher prices, see fewer customers and slower turnover, which influences their profit margins differently.

Our research indicates that, regardless of the type of restaurant, the average monthly profit usually falls between $15,000 and $25,000.

How to open a restaurant without money?

Starting a restaurant can be a daunting task, especially when funds are tight. However, with some creativity and determination, you can turn your dream into a reality. Here’s how:

Innovate Your Restaurant Concept

Consider a unique, low-cost restaurant concept. Instead of a full-scale establishment, perhaps a pop-up restaurant or a delivery-only kitchen could better fit your budget. Flexibility in your concept can significantly reduce initial costs.

Seek Funding Alternatives

Traditional bank loans aren't the only option. Look for investors who believe in your vision or explore crowdfunding platforms like Kickstarter or GoFundMe . Sometimes, you can even find grants aimed at smal l business startups.

Leverage Online Platforms

Start by building a strong online presence. Create a website and utilize social media to attract and engage customers. Online marketing can be a cost-effective way to generate buzz and gather a customer base before you even open your doors.

Collaborate with Other Businesses

Partnerships can pave the way for mutual growth. Collaborate with food suppliers, local farms, or even other small businesses to share costs and resources. This strategy can also expand your network and increase visibility within your community.

Start Small: Food Trucks or Catering

Consider launching your concept through a food truck, catering service, or pop-up stand. These options require significantly less capital than a traditional sit-down restaurant and can help you build your brand and customer base.

Restaurant Business Plan template

Growth Marketing Manager at Eat App

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

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Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

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

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Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

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

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

What is a Restaurant Business Plan?

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

What are the Main Types of Restaurants?

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

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

How Do You Get Funding for Your Restaurant Business Plan?

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

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

Sample Business Plan for a Restaurant Owner

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

Executive Summary

Business overview.

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

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

Products Served

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

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

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

Customer Focus

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

Management Team

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

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

Financial Highlights

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

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

financial projections for Bluehorn Restaurant

Company Overview

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

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

Bluehorn Restaurant & Steakhouse History

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

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

Industry Analysis

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

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

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

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

Customer Analysis

Demographic profile of target market.

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

Customer Segmentation

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

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

Competitive Analysis

Direct and indirect competitors.

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

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

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

Oak & Ore

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

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

The Mule OKC

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

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

Competitive Advantage

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

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

Marketing Plan

Promotions strategy.

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

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

Social Media

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

SEO Website Marketing

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

Third Party Delivery Sites

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

Operations Plan

Operation functions:.

The company will hire the following:

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

Milestones:

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

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

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

7/10/202X – Finalize menu.

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

8/15/202X – Start of marketing campaign

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

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

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

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

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

Chef Peter Logan, Co-Owner

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

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

Anastasia Gillette, Co-Owner

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

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

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

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

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How to Write a Restaurant Business Plan

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When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .

While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.

We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.

business plans for a restaurant

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?

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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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Restaurant Business Plan

Restaurant Business Plan: What To Include, Plus 8 Examples

  • Business Growth & Management , Templates & Guides

Do you want to ensure the success of your new foodservice endeavor? Write a restaurant business plan.

In this article, the experts at Sling tell you why a business plan is vital for both new and existing businesses and give you tips on what to include.

Table Of Contents

What Is A Restaurant Business Plan?

Why is a restaurant business plan important, questions to ask first, what to include in an effective restaurant business plan, how to format a restaurant business plan, efficient workforce management is essential for success.

Man looking at charts on a wall for his restaurant business plan

At its most basic, a restaurant business plan is a written document that describes your restaurant’s goals and the steps you will take to make those goals a reality.

This business plan also describes the nature of the business itself, financial projections, background information, and organizational strategies  that govern the day-to-day activity of your restaurant.

Empty fine-dining restaurant

A restaurant business plan is vital for the success of your endeavor because, without one, it is very difficult — sometimes even impossible — to obtain funding from an investor or a bank.

Without that all-important starting or operational capital, you may not be able to keep your doors open for long, if at all.

Even if funding isn’t a primary concern, a business plan provides you — the business owner or manager — with clear direction on how to translate general strategies into actionable plans  for reaching your goals.

The plan can help solidify everything from the boots-on-the-ground functional strategy  to the mid-level business strategy  all the way up to the driving-force corporate strategy .

Think of this plan as a roadmap that guides your way when things are going smoothly and, more importantly, when they aren’t.

If you want to give your restaurant the best chance for success, start by writing a business plan.

Man on laptop writing a restaurant business plan

Sitting down to write a restaurant business plan can be a daunting task.

As you’ll see in the What To Include In An Effective Restaurant Business Plan section below, you’ll need a lot of information and detail to ensure that the final document is both complete and effective.

Instead of starting with word one, it is hugely beneficial to answer a number of general questions first.

These questions will help you narrow down the information to include in your plan so the composition process feels less difficult.

The questions are:

  • What problem does the business’s product or service solve?
  • What niche will the business fill?
  • What is the business’s solution to the problem?
  • Who are the business’s customers?
  • How will the business market and sell its products to them?
  • What is the size of the market for this solution?
  • What is the business model for the business?
  • How will the business make money?
  • Who are the competitors?
  • How will the business maintain a competitive advantage?
  • How does the business plan to manage growth?
  • Who will run the business?
  • What makes those individuals qualified to do so?
  • What are the risks and threats confronting the business?
  • What can you do to mitigate those risks and threats?
  • What are the business’s capital and resource requirements?
  • What are the business’s historical and projected financial statements?

Depending on your business, some of these questions may not apply or you may not have applicable answers.

Nevertheless, it helps to think about, and try to provide details for, the whole list so your finished restaurant business plan is as complete as possible.

Once you’ve answered the questions for your business, you can transfer a large portion of that information to the business plan itself.

We’ll discuss exactly what to include in the next section.

Man mapping out a restaurant business plan

In this section, we’ll show you what to include in an effective restaurant business plan and provide a brief example of each component.

1) Executive Summary

You should always start any business plan with an executive summary. This gives the reader a brief introduction into common elements, such as:

  • Mission statement
  • Overhead costs
  • Labor costs
  • Return on investment (ROI)

This portion of your plan should pique the reader’s interest and make them want to read more.

Fanty & Mingo’s is a 50-seat fine-dining restaurant that will focus on Sweruvian (Swedish/Peruvian) fusion fare.

We will keep overhead and labor costs low thanks to simple but elegant decor , highly skilled food-prep staff, and well-trained servers.

Because of the location and surrounding booming economy, we estimate ROI at 20 percent per annum.

2) Mission Statement

A mission statement is a short description of what your business does for its customers, employees, and owners.

This is in contrast to your business’s vision statement which is a declaration of objectives that guide internal decision-making.

While the two are closely related and can be hard to distinguish, it often helps to think in terms of who, what, why, and where.

The vision statement is the where of your business — where you want your business to be and where you want your customers and community to be as a result.

The mission statement is the who , what , and why of your business — it’s an action plan that makes the vision statement a reality

Here’s an example of a mission statement for our fictional company:

Fanty and Mingo’s takes pride in making the best Sweruvian food, providing fast, friendly, and accurate service. It is our goal to be the employer of choice and offer team members opportunities for growth, advancement, and a rewarding career in a fun and safe working environment.

3) Company Description

Taking notes on restaurant business plan

In this section of your restaurant business plan, you fully introduce your company to the reader. Every business’s company description will be different and include its own pertinent information.

Useful details to include are:

  • Owner’s details
  • Brief description of their experience
  • Legal standing
  • Short-term goals
  • Long-term goals
  • Brief market study
  • An understanding of the trends in your niche
  • Why your business will succeed in these market conditions

Again, you don’t have to include all of this information in your company description. Choose the ones that are most relevant to your business and make the most sense to communicate to your readers.

Fanty & Mingo’s will start out as an LLC, owned and operated by founders Malcolm Reynolds and Zoe Washburne. Mr. Reynolds will serve as managing partner and Ms. Washburne as general manager.

We will combine atmosphere, friendly and knowledgeable staff, and menu variety to create a unique experience for our diners and to reach our goal of high value in the fusion food niche.

Our gross margin is higher than industry average, but we plan to spend more on payroll to attract the best team.

We estimate moderate growth for the first two years while word-of-mouth about our restaurant spreads through the area.

4) Market Analysis

A market analysis is a combination of three different views of the niche you want to enter:

  • The industry  as a whole
  • The competition your restaurant will face
  • The marketing  you’ll execute to bring in customers

This section should be a brief introduction to these concepts. You can expand on them in other sections of your restaurant business plan.

The restaurant industry in our chosen location is wide open thanks in large part to the revitalization of the city’s center.

A few restaurants have already staked their claim there, but most are bars and non-family-friendly offerings.

Fanty & Mingo’s will focus on both tourist and local restaurant clientele. We want to bring in people that have a desire for delicious food and an exotic atmosphere.

We break down our market into five distinct categories:

  • High-end singles
  • Businessmen and businesswomen

We will target those markets to grow our restaurant  by up to 17 percent per year.

restaurant menu board

Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you’ll serve in as much detail as possible.

You may not have your menu design complete, but you’ll likely have at least a handful of dishes that serve as the foundation of your offerings.

It’s also essential to discuss pricing and how it reflects your overall goals and operating model. This will give potential investors and partners a better understanding of your business’s target price point and profit strategy.

We don’t have room to describe a sample menu in this article, but for more information on menu engineering, menu pricing, and even a menu template, check out these helpful articles from the Sling blog:

  • Menu Engineering: What It Is And How It Can Increase Profits
  • Restaurant Menu Pricing: 7 Tips To Maximize Profitability
  • How To Design Your Menu | Free Restaurant Menu Template

6) Location

In this section, describe your potential location (or locations) so that you and your investors have a clear image of what the restaurant will look like.

Include plenty of information about the location — square footage, floor plan , design , demographics of the area, parking, etc. — to make it feel as real as possible.

We will locate Fanty & Mingo’s in the booming and rapidly expanding downtown sector of Fort Wayne, Indiana.

Ideally, we will secure at least 2,000 square feet of space with a large, open-plan dining room and rich color scheme near the newly built baseball stadium to capitalize on the pre- and post-game traffic and to appeal to the young urban professionals that live in the area.

Parking will be available along side streets and in the 1,000-vehicle parking garage two blocks away.

7) Marketing

Chef working in a restaurant

The marketing section of your restaurant business plan is where you should elaborate on the information you introduced in the Market Analysis section.

Go into detail about the plans you have to introduce your restaurant to the public and keep it at the top of their mind.

Fanty & Mingo’s will employ three distinct marketing tactics to increase and maintain customer awareness:

  • Word-of-mouth/in-restaurant marketing
  • Partnering with other local businesses
  • Media exposure

We will direct each tactic at a different segment of our potential clientele in order to maximize coverage.

In the process of marketing to our target audience, we will endeavor to harness the reach of direct mail and broadcast media, the exclusivity of the VIP party, and the elegance of a highly trained sommelier and wait staff.

8) Financials

Even though the Financials section is further down in your restaurant business plan, it is one of the most important components for securing investors and bank funding.

We recommend hiring a trained accountant  to help you prepare this section so that it will be as accurate and informative as possible.

Fanty & Mingo’s needs $250,000 of capital investment over the next year and a half for the following:

  • Renovations to leased space
  • Dining room furniture
  • Kitchen and food-prep equipment
  • Liquor license

Projected profit and loss won’t jump drastically in the first year, but, over time, Fanty & Mingo’s will develop its reputation and client base. This will lead to more rapid growth toward the third and fourth years of business.

working on restaurant business plan

Most entrepreneurs starting a new business find it valuable to have multiple formats of their business plan.

The information, data, and details remain the same, but the length and how you present them will change to fit a specific set of circumstances.

Below we discuss the four most common business plan formats to cover a multitude of potential situations.

Elevator Pitch

An elevator pitch is a short summary of your restaurant business plan’s executive summary.

Rather than being packed full of details, the elevator pitch is a quick teaser of sorts that you use on a short elevator ride (hence the name) to stimulate interest in potential customers, partners, and investors

As such, an effective elevator pitch is between 30 and 60 seconds and hits the high points of your restaurant business plan.

A pitch deck is a slide show and oral presentation that is designed to stimulate discussion and motivate interested parties to investigate deeper into your stakeholder plan (more on that below).

Most pitch decks are designed to cover the executive summary and include key graphs that illustrate market trends and benchmarks you used (and will use) to make decisions about your business.

Some entrepreneurs even include time and space in their pitch deck to demonstrate new products coming down the pipeline.

This won’t necessarily apply to a restaurant business plan, but, if logistics permit, you could distribute small samples of your current fare or tasting portions of new dishes you’re developing.

Stakeholder Plan (External)

A stakeholder plan is the standard written presentation that business owners use to describe the details of their business model to customers, partners, and potential investors.

The stakeholder plan can be as long as is necessary to communicate the current and future state of your business, but it must be well-written, well-formatted, and targeted at those looking at your business from the outside in.

Think of your stakeholder plan as a tool to convince others that they should get involved in making your business a reality. Write it in such a way that readers will want to partner with you to help your business grow.

Management Plan (Internal)

A management plan is a form of your restaurant business plan that describes the details that the owners and managers need to make the business run smoothly.

While the stakeholder plan is an external document, the management plan is an internal document.

Most of the details in the management plan will be of little or no interest to external stakeholders so you can write it with a higher degree of candor and informality.

Sling app for managing a restaurant business plan

After you’ve created your restaurant business plan, it’s time to take steps to make it a reality.

One of the biggest challenges in ensuring that your business runs smoothly and successfully is managing  and optimizing  your team. The Sling  app can help.

Sling not only includes powerful and intuitive artificial-intelligence-based scheduling tools but also many other features to help make your workforce management more efficient, including:

  • Time and attendance tracking
  • Built-in time clock
  • Labor cost  optimization
  • Data analysis and reporting
  • Messaging and communication
  • And much more…

Sling's scheduling feature

With Sling, you can schedule faster, communicate better, and organize and manage your work from a single, integrated platform. And when you use Sling for all of your scheduling  needs, you’ll have more time to focus on bringing your restaurant business plan to life.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com  today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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How to write a restaurant business plan

business plans for a restaurant

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

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

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

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

Quick links Branded cover Table of contents Concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials

1. Branded cover

Include your logo (even if it’s not finalized), the date, and your name.

2. Table of contents

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

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

Image depicts a restaurant worker in a new restaurant.

3. Restaurant concept

Describe your restaurant concept and get the reader excited about your idea. Specify whether the restaurant will be fine dining or more casual. Include an executive summary and go into detail about the food you’ll be serving, inspiration behind your concept, and an overview of service style.

Define clearly what will be unique about your restaurant and include your mission statement. This section should include a market analysis that shows how your restaurant will be similar and different from competing restaurants.

4. Sample menu

The menu is the most important touchpoint of any restaurant’s brand, so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices that are based on a detailed cost analysis. This will:

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

This section is most relevant for:

  • Fine-dining concepts
  • Concepts that have a unique service style
  • Owners who have particularly strong feelings about what role service will play in their restaurant.

It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service and restaurant hostess software designed to get guests on their way as quickly as possible, or will it look more like a theater, with captains putting plates in front of guests simultaneously?

If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

Image depicts two restaurant workers discussing finances.

6. Management team

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

Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full pitch deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

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

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

8. Target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Once you’ve described them in detail, reiterate why your specific concept will appeal to them.

Image depicts two restaurant workers having a discussion.

9. Location

There should be a natural and very clear connection between the information you present in the “Target Market” section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighborhoods.

Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there—make the connections clear. You want readers to be confident that your restaurant’s “ideal” diner intersects with the neighborhood(s) you’re proposing as often as possible.

If you don’t have a site , this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, freeway accessibility, outdoor seating , and other important details.

10. Market overview

Address the micro and macro market conditions in your area and how they relate to licenses and permits. At a macro level, what are the local and regional economic conditions?

If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss who your direct competitors are. Talk about what types of restaurants share your target market and how you’ll differentiate yourself.

11. Marketing and publicity

The restaurant landscape is only getting more competitive. Discuss your pre- and post-opening marketing plans to show investors how you plan to gain traction leading up to opening day, as well as how you’ll keep the momentum going.

If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media, your website , and media connections.

Image depicts two restaurant workers having a discussion over a tablet.

12. Specialists and consultants

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

  • General contractor
  • PR and marketing

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

13. Business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with an attorney to help you determine what business structure is best for you.

“Step one: write a business plan. Step two: hire a good attorney. In addition to helping me build a smart, sustainable business structure, my attorney was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters,” says Charles Bililies.

14. Financial projections

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

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

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

Being conservative in these estimations is key. These three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasizes, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors.

The key projections you can expect to work on are:

  • Pro forma profit and loss statement for the first three to five years of operation
  • Break even analysis
  • Capital requirements budget

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

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

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How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

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Restaurant business plan

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Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology, such as restaurant POS systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

Business plan scrollytelling example

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static presentation

Static PowerPoint

Interactive presentation

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Tabs slide example

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

business plans for a restaurant

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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Restaurant Business Plan Template & PDF Example

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  • July 23, 2024
  • Business Plan

the business plan template for a restaurant

Creating a comprehensive business plan is crucial for launching and running a successful restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let’s dive in!

Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

  • Executive Summary : Offers an overview of the restaurant’s business concept, market analysis , management, and financial strategy.
  • Restaurant & Location: Describes the restaurant’s prime location, size, seating capacity, and distinctive design, emphasizing its appeal to the target demographic.
  • Supply & Operations: Outlines the supply chain management, focusing on local sourcing and quality ingredients, and details the operational aspects, including kitchen layout, equipment, and front-of-house operations.
  • Key Stats: Shares industry size , growth trends, and relevant statistics for the full-service restaurant market.
  • Key Trends: Highlights recent trends affecting the restaurant sector, such as health-conscious dining, sustainability, and technology integration.
  • Key Competitors: Analyzes the main competitors in the vicinity, showcasing the restaurant’s unique selling proposition in comparison.
  • SWOT : Strengths, weaknesses, opportunities, and threats analysis.
  • Marketing Plan : Strategies for promoting the restaurant to maximize visibility and customer engagement.
  • Timeline : Key milestones and objectives from the initial setup through the launch and operational optimization.
  • Management: Information on who manages the restaurant and their roles.
  • Financial Plan: Projects the restaurant’s financial performance, including revenue, profits, and expected expenses, aiming for profitability and sustainable growth.

business plans for a restaurant

Restaurant Business Plan

business plans for a restaurant

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your restaurant’s business plan, offering a concise overview of your establishment and its offerings. It should detail your market positioning, the variety of cuisines and dining experiences you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your restaurant will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your restaurant’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the restaurant’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your restaurant’s financial plan.

Restaurant Business Plan Executive Summary Example

Restaurant Business Plan executive summary1

Business Overview

The  business overview  should detail the restaurant’s specific features, such as its seating capacity, ambiance, and supply chain practices. It’s important to emphasize how the restaurant caters to its target demographic through its strategic location and operational model.

Example: “[Your Restaurant Name],” located in [specific area or neighborhood], covers [total square footage] sq ft and includes a main dining area, bar, and outdoor patio, offering a total of [number of seats] seats. The restaurant’s commitment to quality is reflected in its locally sourced produce and sustainable supply chain practices, catering to a diverse clientele.

Market Overview

This section involves analyzing the size, growth, and trends of the full-service restaurant market. It should address the industry’s digital transformation, health-conscious dining preferences, and eco-friendly practices, positioning the restaurant within the broader market context.

Example: “[Your Restaurant Name]” enters a U.S. full-service restaurant market valued at $293 billion. The restaurant’s focus on technology, healthier menu options, and sustainability aligns well with current  market trends  and consumer preferences, setting it apart from six main competitors in the area.

Management Team

Detailing the management team’s background and expertise is crucial. This section should highlight how their experience in culinary arts and restaurant management contributes to the success of the restaurant.

Example: The Executive Chef and Co-Owner of “[Your Restaurant Name]” leads menu development and kitchen operations, ensuring high-quality food preparation and presentation. The General Manager and Co-Owner manages daily operations, staff, customer service, and financial aspects, ensuring a seamless dining experience.

Financial Plan

This section should outline the restaurant’s financial goals and projections, including revenue targets and profit margins, providing a clear picture of its financial aspirations and health.

Example: “[Your Restaurant Name]” aims to achieve $2.7 million in annual revenue with an 11%  EBITDA  margin by 2028. This financial goal is supported by a focus on quality dining experiences, strategic marketing, and operational efficiency, positioning the restaurant for growth in the  competitive  full-service restaurant market.

For a Restaurant, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Briefly describe the restaurant’s physical environment, emphasizing its design, ambiance, and the overall dining experience it offers to guests. Mention the restaurant’s location, highlighting its accessibility and the convenience it offers to diners, such as proximity to entertainment venues or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Operations

Detail the range of cuisines and dishes offered, from appetizers and main courses to desserts and specialty beverages. Outline your sourcing strategy, ensuring it reflects a commitment to quality and sustainability, and matches the market you’re targeting.

Highlight any unique culinary techniques, exclusive ingredients, or innovative kitchen technologies that set your restaurant apart. Discuss your operational strategies, including inventory management, supplier relationships, and kitchen workflow, to ensure efficiency and consistency in delivering exceptional dining experiences.

Business Plan_Pizzeria restaurant

Industry size & growth

In the Market Overview of your restaurant business plan, start by examining the size of the restaurant industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key market trends

Proceed to discuss recent market trends , such as the increasing consumer interest in farm-to-table dining, ethnic cuisines, and experiential dining experiences.

For example, highlight the demand for restaurants that offer unique cultural dishes, the growing popularity of health-conscious and dietary-specific menus, and the integration of technology in enhancing the dining experience.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your restaurant in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your restaurant’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Restaurant Industry

To comprehensively understand the competitive landscape, start by identifying both direct and indirect competitors in your area. Direct competitors are restaurants offering similar cuisines or targeting a comparable customer base. For instance, if your restaurant specializes in authentic Mexican cuisine, other nearby Mexican restaurants are direct competitors. Indirect competitors may include food trucks, cafes, or even fast-casual eateries offering diverse menus that overlap with your offerings.

Leverage digital tools like Google Maps, Yelp, or food delivery apps to map out the locations of your competitors. Reviews and ratings on platforms like TripAdvisor and social media can offer valuable insights into competitors’  strengths and weaknesses . Positive reviews highlighting exceptional service or a unique dining experience at a competitor’s restaurant can signify an area of focus for differentiation and improvement.

Restaurant Business Plan key competitors

Restaurant Competitors’ Strategies

To conduct a comprehensive analysis, delve into various aspects of your competitors’ operations:

  • Menu Offerings:  Assess the breadth and uniqueness of dishes offered by competitors. Take note if any local restaurants are gaining traction by focusing on farm-to-table ingredients, regional specialties, or offering innovative fusion cuisines, as these aspects often indicate emerging  market trends .
  • Service and Ambiance:  Evaluate the overall customer experience. Identify if there’s a competitor renowned for its fine dining experience, another known for its trendy and vibrant atmosphere, or one that excels in providing a casual, family-friendly environment. These elements significantly contribute to a restaurant’s success and differentiation.
  • Pricing and Positioning:  Compare pricing strategies . Determine whether competitors are positioned as budget-friendly eateries or if they adopt a more upscale approach with premium pricing, highlighting gourmet ingredients, or exclusive dining experiences.
  • Marketing Channels :  Analyze how competitors market their restaurants. Do they leverage social media platforms for promotions, engage in collaborations with local influencers, or host special events or themed nights? Understanding their marketing tactics provides insights into effective promotional strategies that resonate with the  target audience .
  • Operational Efficiency:  Observe if competitors have adopted technological advancements such as online reservations, mobile apps for ordering, or contactless payment systems. These innovations not only streamline operations but also contribute to an enhanced customer experience.

What’s Your Restaurant’s Value Proposition?

Reflect on what uniquely distinguishes your restaurant from the competition. It could be your innovative fusion of cuisines, a strong emphasis on locally sourced and sustainable ingredients, or perhaps a distinctive ambiance that reflects a particular cultural theme or historical narrative.

Listen attentively to customer feedback and observe emerging industry trends to identify gaps or unmet demands in the market. For instance, if there’s a growing interest in plant-based dining experiences and competitors have not tapped into this niche, it could present an opportunity for your restaurant to cater to this demand and stand out.

Consider how your restaurant’s location influences your strategy. A downtown location might warrant a focus on quick service and catering to office lunch crowds, while a suburban setting could embrace a more relaxed, family-friendly dining environment.

Restaurant Business Plan strategy

First, conduct a SWOT analysis for the restaurant , highlighting Strengths (such as a unique menu and exceptional customer service), Weaknesses (including potential high operational costs or strong competition in the area), Opportunities (for example, a growing interest in diverse cuisines and healthy eating), and Threats (such as economic downturns that may decrease consumer spending on dining out).

Restaurant Business Plan SWOT

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, food blogger outreach, and community involvement, such as local events or charity sponsorships.

Marketing Channels

Utilize various marketing channels to engage with your audience and attract new patrons.

Digital Marketing

  • Social Media:  Utilize social media platforms such as Instagram, Facebook, Twitter, and TikTok to showcase your restaurant’s ambiance, signature dishes, behind-the-scenes glimpses, chef profiles, and customer testimonials. Regularly engage with your audience by responding to comments, hosting interactive polls, or sharing user-generated content.
  • Email Marketing:  I mplement an email marketing strategy to build a loyal customer base. Offer incentives such as exclusive recipes, promotional offers, or early access to special events in exchange for subscribing to your newsletter. Regularly communicate with your subscribers, sharing updates, promotions, and stories that resonate with your brand.
  • Website and SEO:  Maintain an  informative website showcasing your menu , chef profiles, reservation options, and reviews. Optimize it for local SEO to ensure visibility in searches related to your cuisine and location.

Local Advertising

  • Printed Materials:  Distribute well-designed flyers in nearby neighborhoods, advertise in local magazines, and collaborate with tourism centers or hotels for exposure.
  • Community Engagement:  Sponsor local events, collaborate with food bloggers or influencers, and participate in food festivals or charity events to increase brand visibility and community involvement.
  • Partnerships:  Forge partnerships with complementary businesses (such as wine shops or local farmers’ markets) for cross-promotions or collaborative events.

Promotional Activities

Engage potential customers through enticing offers and events.

  • Special Offers:  Launch promotions like ‘Chef’s Tasting Menu Nights’ or ‘Happy Hour Discounts’ to attract new diners and retain regulars.
  • Loyalty Programs:  Implement a loyalty system offering rewards for frequent visits or referrals, such as a free appetizer or dessert after a certain number of visits.
  • Events and Special Occasions:  Host themed nights, seasonal menus, or exclusive culinary events to create buzz and attract diverse audiences.

Restaurant Business Plan marketing plan

Sales Channels

Efficiently manage  sales channels  to maximize revenue and customer satisfaction.

In-Restaurant Upselling

  • Menu Strategies:  Highlight premium dishes or chef’s specials, offer wine pairings or dessert suggestions, and train staff to upsell without being pushy.
  • Merchandising:  Display branded merchandise, specialty sauces, or cookbooks for sale to complement the dining experience.

Online Ordering and Delivery

  • Online Ordering Platform: I mplement an easy-to-use online ordering system for takeout or delivery orders. Offer exclusive online discounts or bundle deals.
  • Delivery Partnerships:  Collaborate with food delivery services or establish in-house delivery for customers’ convenience.

Reservation Management

  • Reservation System:  Utilize an efficient reservation platform to manage bookings. Offer incentives for off-peak reservations or special occasions.

Membership and VIP Programs

Developing membership and VIP programs can cultivate a loyal customer base and drive recurring revenue:

  • VIP Memberships:  Create exclusive membership tiers offering perks like priority reservations, chef’s table access, or private event invitations.
  • Reward Programs:  Develop a digital loyalty system where customers earn points for every dollar spent, redeemable for discounts, exclusive menu items, or special events.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the restaurant’s opening, marketing campaigns, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Business Plan Gym Timeline

The management section focuses on the restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the restaurant towards its financial and operational goals.

For your restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Restaurant Business Plan management1

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Restaurant Business Plan financial plan1

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How to Write a Small Restaurant Business Plan + Free Sample Plan PDF

Group of seven individuals standing around inside of the entrance of a restaurant. Two are speaking with the owner, who just finished planning for his restaurant, preparing to order food.

Makenna Crocker

10 min. read

Updated March 18, 2024

Download Now: Free Business Plan Template →

Free Download:  Sample Restaurant Business Plan Template

From greasy spoon diners to Michelin Star restaurants, food service has captured the hearts and imaginations of countless culinary entrepreneurs.

In the United States, 90% of restaurant owners operate small restaurants with fewer than 50 employees . And 70% operate in just one location.

If you’re passionate about food and dream of opening a restaurant, you have plenty of company. But cooking skills alone won’t cut it. You need a plan.

In this article, we’ll walk you through writing a small restaurant business plan, from conducting market research to developing promotional strategies and creating a financial forecast. 

Need more guidance? Download our free small restaurant business plan template .

Why write a small restaurant business plan?

Starting a restaurant from scratch isn’t cheap.  Startup costs range from $175,000 to $750,000 and include hefty upfront expenses like:

  • Building lease
  • Kitchen equipment
  • Ingredient sourcing

The financials section of a business plan gives you space to compile these costs into an expense budget and compare them to your revenue projections . These will be invaluable in helping you determine if your restaurant concept is financially viable.

And if you need a bank loan or investor to help fund your restaurant , they’ll want to see a plan that includes financial projections (more on that later).

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  • How to write a small restaurant business plan

The business plan is not only where you lay out your plan, vision, and goals for the restaurant – it pushes you to thoroughly research and understand your market , competitors , and customers to make informed decisions. It guides you through the intricacies of opening and running a small restaurant and helps you keep your finances in order.

Here are some tips for writing a small restaurant business plan that sets you up for success.

  • Start with a company overview

A good place to start is to think about the big picture. What do you want your restaurant to be? Are you envisioning upscale dining in a candlelit, intimate setting? Or maybe you’re going for comfort food in a family-friendly atmosphere?

Capture the essence of your restaurant with a brief, attention-grabbing overview. Think of the start of your overview section as an elevator pitch. You’re introducing your concept and vision to highlight what will make your business unique .

Just keep it succinct. 

You’ll need to include other important information about your business here, such as the legal structure of your business and the qualifications of you and your management team.

If you’re writing a business for an existing restaurant, you should also cover its history – when the restaurant was founded, who was involved, and milestones it has reached.

  • Understand your target market

Conducting a thorough market analysis is key to the success of your small restaurant. In an industry as competitive as the restaurant business, you’ll need to have your finger on the pulse of your dining market if you hope to create a unique offering.

Defining your target market is essential when starting your restaurant, helping answer questions like:

  • Is there demand in the local market for your food?
  • Who are your primary competitors? 
  • Is there building space for lease near where your target customers live or work?
  • What types of partnerships with food distributors (wholesalers, farmers, butchers, etc.) will be needed to ensure a steady flow of fresh ingredients?

The first step is to identify who your diners will be. 

It’s unrealistic to try to appeal to every single customer. So, ask yourself who you envision walking through your doors. Are they:

  • Adults aged 40 and over, with lots of disposable income and exotic culinary tastes.
  • Children, young adults, and families looking for quick, convenient food that doesn’t stretch their budgets.

Of course, these aren’t the only two customer demographics for a restaurant. But you should get the sense that these customer segments have very different preferences.

Read more: Target market example

Understanding your target market involves more than just demographics. Consider their:

  • Spending habits
  • Daily routines

If you plan to operate in a busy city center, your target market might include working professionals seeking quick lunch options or upscale dining options after work. But if you’re opening in a less visible area near residential neighborhoods, you may be more likely to target families.

  • Size up your competition

With a target customer in mind, you need to understand who you’ll be competing with for their dining budget.

Analyzing your competitors is about understanding their strengths, weaknesses, and strategies. 

Start by identifying direct competitors (other small restaurants) and indirect competitors (like fast-food chains or food trucks). Observe how they attract customers, the ambiance they create, and the variety and pricing of their menus.

Get a feel for their operational strategies:

  • How much staffing do they have?
  • How fast (or slow) is their service?
  • What kinds of supplier relationships do they seem to have?

And their marketing tactics :

  • How do they engage with customers?
  • What deals or promotions do they offer?
  • What kind of reviews are they getting online?

Finally, think about their long-term position: 

  • Have they expanded or downsized recently?
  • Have they changed their operating hours?
  • Have they changed their menu?

As you observe these competitors and their customers, ask yourself what they are doing right and where they are coming up short. 

This knowledge will help you identify gaps in the market and opportunities to offer a unique experience.

  • Create a detailed operations plan

With so many moving pieces to manage as a restaurant owner, writing an operations plan is just as important as creating a market analysis.

The operations section of your business plan details how your restaurant will function daily. 

It should briefly touch on every aspect of running the business–from staffing needs to how often you will need to buy new ingredients, kitchen equipment, or dining utensils.

Your operations plan will reflect the unique needs of your business, but a typical restaurant operations plan might include:

  • Staffing and training: Lay out a staffing plan, with the roles and responsibilities of each team member. Include strategies for hiring, training, and employee retention.
  • Equipment and technology: Outline your dining, kitchen, and technology needs, from tables and chairs to ovens and point-of-sale systems.
  • Supply chain management: Explain your ingredient sourcing and inventory management strategies and your plan to build relationships with suppliers.
  • Customer service policies: Describe how you manage customer service needs and feedback to ensure a positive dining experience.
  • Health and safety protocols: Detail procedures for maintaining kitchen hygiene practices and food handling standards to ensure food safety and compliance with health regulations.

Without an operations plan, you’ll lack a documented strategy for managing your kitchen workflow, maintaining customer satisfaction, or even basic tasks like inventory or staffing.

And if you’re writing a business plan to get a bank loan or investment , they’ll want to see that you have a plan for successfully managing the restaurant. 

  • Actively market your restaurant

Your small restaurant may serve the most mouthwatering dishes in town, but no one will discover it without effective promotional strategies. 

You need to develop a comprehensive marketing plan to showcase your culinary delights and entice customers through your doors.

Consider both traditional and digital marketing channels to reach your target audience. Traditional methods may include:

  • Hosting special events
  • Participating in local food festivals
  • Partnering with complementary businesses in your community

Digital strategies may include:

  • Creating an engaging website
  • Building a strong presence on social media platforms
  • Utilizing online review platforms to build credibility and foster positive word-of-mouth.

When developing your promotional strategies, consider the following tips:

Be smart about your online presence

Build a visually appealing and user-friendly website that showcases your restaurant’s ambiance, menu, and story. 

Leverage social media platforms to engage with your audience, share enticing food photos, and run targeted advertising campaigns.

Consider promotions

Encourage repeat business by implementing a loyalty program that rewards customers for their patronage. Offer incentives such as discounts to certain customer segments, like seniors, veterans, or students.

Engage with the local community

Participate in community events, sponsor local sports teams or charity initiatives, and establish partnerships with neighboring businesses. 

Becoming an active community member will build brand awareness and loyalty.

Don’t ignore your pricing and financial strategy

According to data from the National Restaurant Association , about 60% of restaurants fail in their first year, and 80% close within five years.

You need to understand your startup and ongoing operating expenses to run a successful small restaurant.

Start by estimating your startup costs , including:

  • Site acquisition (down payment if owning the space, initial payment if leasing)
  • Building improvements
  • Equipment purchases
  • Licenses and permits
  • Initial inventory
  • Menu creation

Then, account for ongoing operating expenses, such as:

  • Employee wages
  • Mortgage or rent payments
  • Ingredient costs

Pricing your menu items strategically is essential to ensuring profitability. Analyze ingredient costs, consider portion sizes, and compare prices in your local market to determine competitive yet profitable pricing.

Conduct a break-even analysis to determine the number of customers you need to serve to cover costs and start generating profits. Regularly review your financials and adjust your pricing as needed to maintain a healthy bottom line.

Consider these financial aspects when developing your small restaurant business plan:

Budget Allocation

Determine how you will allocate your budget across different areas of your restaurant, such as kitchen equipment, interior design, marketing, and staff training.

Prioritize investments that will have a direct impact on customer experience and operational efficiency.

Revenue Streams

Identify multiple revenue streams for your restaurant. This may include revenue from food sales, catering services, private events, or partnerships with local businesses.

Diversifying your revenue sources can help stabilize your cash flow.

Cost Control

Develop strategies to control costs without compromising quality. Efficient inventory management, negotiation with suppliers, and staff training on waste reduction can contribute to cost savings.

Sales Forecasting

Create a sales forecast based on your market research, pricing strategy, and seating capacity. Consider seasonal fluctuations and special events that may impact your restaurant’s performance.

Other information to include in your small restaurant business plan

As a restaurant owner, a few components of your business plan are unique to your industry. 

None of these fit neatly into any one section of a business plan. We suggest addressing them in additional sections or within the appendix .

Restaurant location and layout

Include information about your restaurant’s location . 

Some of this information will be included in your market analysis, but once you’ve secured a location, you should go deeper and analyze factors like:

  • Rent and utilities
  • Foot traffic
  • Parking availability
  • Nearby businesses

Explaining the layout of your restaurant – especially your kitchen – is also important. Consider adding photos or diagrams of each room to your plan. 

Diagrams can be especially helpful. You can add in-depth details for seating arrangements in the dining room or how staff should move efficiently throughout the kitchen.

What do many people do before deciding whether to eat at a restaurant? 

They look at the menu.

You can gain or lose customers on the strength of your menu. It affects numerous business areas, from marketing to pricing and operations.

For instance, if you’re running a family-friendly restaurant but your prices are too high, people will see that on your menu and may decide to eat somewhere cheaper. 

On the other hand, if you’re running a fine dining restaurant , but your menu fails to describe your dishes in an appealing way, diners may go somewhere they perceive as having higher quality meals.

That makes the business plan a great place to create menu concepts. 

You can experiment with different offerings, price points, and menu designs until you’re confident about sharing them with customers. 

And since business plans are continuously updated as your business changes—you can see how your menu has changed over time and what’s been most successful.

Download your free small restaurant business plan template

If you’re ready to start a restaurant, you can download our free small restaurant business plan template from our library of over 550 sample business plans . 

Get started today, and discover why businesses that plan grow 30% faster than those that don’t .

More restaurant business plan examples:

  • Food truck business plan
  • Coffee shop business plan
  • Bakery business plan
  • Brewery business plan

Content Author: Makenna Crocker

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

Check out LivePlan

Table of Contents

  • Why you need a plan
  • Don’t ignore your pricing and financial strategy
  • Additional info to include
  • Free business plan template

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How to write a restaurant business plan [with sample].

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You can't start a restaurant without a plan. A restaurant business plan is one of the most (if not the most) essential elements in getting a new restaurant off the ground. There are a few reasons for this:

  • A business plan is typically the first thing any lender or investor will want to look at
  • Taking the time and energy to create one proves to others (and yourself) that you're serious about the venture
  • You'll have a document to reference during the planning or opening of your restaurant.

Although it's an essential step in starting a restaurant , creating a business plan can be challenging for an aspiring restaurateur. But it doesn't have to be overwhelming. There are a few key sections that should be included...

Table of Contents

  • What is a Restaurant Business Plan?
  • Restaurant Business Plan Sample Outline
  • Section 1: Executive Summary
  • Section 2: Company Description
  • Section 3: Market Analysis
  • Section 4: Marketing Plan
  • Section 5: Operations Plan
  • Section 6: Financials

Section 7: Appendix

  • Other Resources

What is a restaurant business plan, and why do you need one?

A restaurant business plan is a document that outlines the various aspects of your restaurant business. It can be used to secure funding from investors or keep track of your progress as you develop your business. A business plan should include information on your target market, competition, business model, marketing strategy, and financial projections.

A business plan is commonly associated with investors—it's what they will look to for a better understanding of a business, its concept , and its competitive advantage. It will also show how you plan to create a successful restaurant.

Restaurant investor Lauren Fernandez at Full Course keeps it simple: “It's to convince someone to give you money.”

“If you seek investment, it tells the story of the venture to potential investors and/or banks. For the business owner, it sets parameters as well as goals for both the pre and post-opening period. A good operator looks back on their Business Plan on a monthly or quarterly basis to gauge where they are in terms,” says Mark Moeller, president, and owner of The Recipe of Success , a national restaurant consulting firm.

That being said, a business plan doesn't have to be extensive. “Be detailed but not overly so,” says Moeller. “When a plan is too wordy, it tends to turn off the reader and can actually prevent them from finishing,” Lauren Fernandez adds that the business plan should be more akin to a sales document, not an A-to-Z tactical roadmap. At the end of the day, the main goal is to convince a lender or investor to give you money.

business plans for a restaurant

Restaurant Business Plan Template

Start creating you restaurant business plan with our free PDF template

The key ingredients of a great restaurant business plan

Section 1: cover page and executive summary.

This is the “elevator pitch.” An effective executive summary quickly tells the reader who you are and leaves them wanting more. Include items like:

  • Your restaurant's name, concept, and cuisine—if you have a logo, use it!
  • The management team
  • Your market position and competitive advantage
  • Your financial projections and the break-even point in sales and days

Section 2: Company description

This section gives a high-level overview of the business you're looking to start: tell investors what your restaurant is all about, who your team is, and how you're going to serve the market.

Restaurant concept

What type of restaurant are you looking to open? Here is where you'll want to give investors an overview of your business. Speak to what sets you apart from the pack, what food you'll serve, the service style (fast-food, fast casual, fine dining, etc.) you'll use, and what makes your new business special. Check out these successful restaurant ideas .

Mission Statement

Your restaurant's mission statement should boil down the essence of why you're starting this new venture in just a few words.

Some mission statements are short and to the point, like Ninety Nine's (“A Passion to Serve”). If you can't simplify your mission in just four words, there's no harm in elaborating. Here is Union Square Hospitality Group 's mission statement: At Union Square Hospitality Group, our mission is to enrich lives through the power of Enlightened Hospitality. This unique approach puts our employees first because we believe that attracting, hiring, and nurturing the right people is what sets our businesses apart. We aim to find “51%ers”, individuals who embody our Family Values of Excellence, Hospitality, Entrepreneurial Spirit, and Integrity. While much longer, it clearly speaks to the company's unique position and goals for the industry.

Management team

Tell potential investors who you already have on your team. It works in your favor to show strong connections to the restaurant industry. “Are they an island, or do they have good connections? The more people they have around them, there's something about that; there's an indicator of success that I can't put my finger on.” says Lauren Fernandez. Investors want to see that you have good people around you. If you have a great GM on board, introduce them here. An award-winning chef in the kitchen? Tell investors about them. Include a headshot, quick bio, and list of relevant experience.

Sample Menu

You don't, by any means, have to have a menu ready to go. But give an idea of some dishes or drinks with projected price points. A sample menu can go a long way in helping a potential investor imagine themselves eating at your restaurant. It also shows that you've done your research given the market, suppliers, and have an idea on menu design .

Section 3: Conduct a market analysis

This covers the customer base you're hoping to appeal to, your position in said market, and what you'll do to catch people's eyes. Describe the current restaurant market where you want to open:

Target market and demographics

Who is your target customer? Here's where you'll explain the tactics you took in conducting your market research and the results of those findings.

You'll want to highlight the most relevant statistics you found about your restaurant business. For example, if you're starting a coffee shop , you may cover that your primary research concluded that 24-36 year-olds make up 40% of your area's population. Research from other outlets suggested that coffee consumption for millennials continues to rise.

This would lead to a convincing, research-based conclusion that the coffee shop could be a realistic and profitable endeavor for the area.

Location analysis

You don't have to have a specific restaurant location or address in mind when you create a business plan. Set your focus on the city or the general neighborhood you want open in, and why you're looking at that area.

Give an overview of the market conditions in your area. Talk about things like restaurant foot traffic , day-parts, local events, and what that part of the city looks like in the future. Is there a new stadium or highrise on the way? Outline it in this section.

Your location choice should align well with the market you intend to target. For example, if you're hoping that young professionals will make up a large portion of your business, ensure your chosen location has that density of people.

Competitive analysis

Explain how your restaurant will stand out in a sea of competition. A good idea is to include SWOT analysis for your restaurant, outlining the internal strengths and weaknesses you believe your new business would have, as well as any external opportunities and threats you'd face as an entrepreneur.

Here are examples of each:

  • Strengths : Combined 30+ years of restaurant experience from the leadership team.
  • Weaknesses : Needed ramp-up time for staff could set our financial projections back.
  • Opportunities : Our location is near several office buildings, suggesting we would have a steady flow of white-collar lunch customers and after-work dinner guests.
  • Threats : An established restaurant of a similar concept is close in proximity, posing a direct threat to our potential market share.

In your SWOT analysis, you should identify how you intend to overcome the weaknesses and threats your restaurant will face to reassure investors they won't be the downfalls of your business.

Section 4: Marketing strategy

How will you reach your target audience? Sticking with the above example of a coffee shop, you may want to talk about your restaurant advertising ideas for millennials, like using TikTok marketing to promote your menu items and an app-based loyalty program.

Marketing plan and channels

Talk about what marketing channels you plan to use to get butts in seats. Detail your plans for using social media , local advertising, promotions, and how you're going to reach your target audience.

Positioning

You'll also want to take a stance on how you'd like to position your restaurant's brand and how you'd like it to be perceived. 65% of consumers feel an emotional connection to brands, so the stronger your emphasis on yours, the more likely your target market will notice and identify with it.

Grand opening plan

You can't have a restaurant without a grand opening .

“Budget at least 2-3% build cost for Grand Opening marketing. You have ONE shot at making a splash in the market, and you must get the grand opening right,” says Lauren Fernandez.“Grand opening should be a week-long celebration, not just one day. Give loyal fans a reason to come back daily. The grand opening ramp-up should begin ~90 days to open, working the market and creating excitement,”

Recommended Reading: Simple Restaurant Marketing Plan + PDF Template

Section 5: An overview of operations

Some investors want to see how all the moving pieces will mesh daily with a detailed operations plan. This section should encompass your staffing strategies, what tech you'll use, and what your restaurant layout may be.

Hiring is routinely one of the most difficult tasks in food service. Recent statistics showed that the number of people working in restaurants is declining. Add to that rising restaurant labor cost and high staff turnover . Investors want to know your hiring and retention tactics, such as retention and engagement strategies.

Back of the house

Talk about the details of the back-of-house in your restaurant, such as the commercial kitchen equipment your cooks and chefs will be wielding during their shifts and what the kitchen layout and workflow will be. If you have mock-ups - such as a kitchen floor plan - you can include them here.

Here is also a good time to discuss processes you plan to adhere to in the back of the house, such as food cost control methods and who your inventory suppliers are.

Restaurant technology

Tell investors what technology you plan on using to run your business—and not just the POS (point of sale). Restaurants have access to a bevy of software to run their business efficiently, and investors want to see that you are a savvy operator. You may want to list out:

  • Team Management
  • Point of Sale Systems
  • Scheduling software
  • Inventory management systems
  • Task management tools
  • Time Clocking
  • Manager Log Books

Recommended Reading: Everything to Know About Restaurant Management Systems

Section 6: The financials

Don't be offended if you see investors skip straight to this section. After all, a business comes down to making money.

So before you finalize this plan, quadruple check these projections, look over your graphs and tables, and consider running them by a hired financial professional in your area.

Startup costs

Any good investor will want to know what his or her money will be going to. Disclose how much money you'll need to get this project off the ground, identify the biggest expenses, and don't be afraid to put a line item in for working capital - which is a reserve fund for your first few (likely slower) months of operation. Also, disclose if there are any planned restaurant business loans .

Sales forecast

It can be hard to create an accurate forecast without a business. But a conservative yet confident restaurant sales forecast can show investors that you're doing the research and considering the right things. You should base this forecast on a few criteria: capacity, target market, delivery/takeout options, month-over-month growth expectations, hours of operation, and menu prices.

Projected Profit & Loss Statement

Use a projected (or pro forma) P&L statement to show investors how much money you expect to have made - or lost - by the end of your first year. This should be based on your sales forecast and your projected restaurant costs (both for opening the restaurant and operating it throughout the year).

Recommended Reading: Free Restaurant Profit and Loss Statement Template

Break-Even Analysis

It's an unforgettable day for a restaurant owner when the business becomes profitable - and you can determine that point in time with a break-even analysis . Calculating break-even will project the threshold to reach in time and sales to pay back investments and startup costs, thus reaching profitability.

Show investors how you reached your break-even point with a break-even calculation. You can reach this number by dividing total fixed costs by the difference between average revenue per guest and average variable cost per guest.

Alternatively, plug those projections in this formula to produce break-even dollars:

Break Even Point = Total Fixed Costs ÷ (Avg. revenue per guest - Avg. variable cost per guest)

You can then compare this number to your sales forecast to determine a timeline for the break-even point in days to let investors know what day they'll start seeing an ROI.

Recommended Reading: 15 Restaurant Metrics to Know and How To Use Them

The appendix and its contents are all optional, but this section could contain charts, plans, graphics, imagery, or any other material investors may find useful.

Floor Plans

As mentioned earlier, the appendix is the perfect place to include any mockups of your restaurant floor plans . These plans give readers an idea of how guests and employees will be able to maneuver through and interact with each other in the space.

Additional Financial Charts

Got supporting financial documents, like projected cash flow and a projected income statement? Awesome. Place them in here to show investors you really know your numbers.

Design Mockups

If you’ve worked with a building renovator and/or interior designer, include any graphic mockups of what the space would look like. Again, this section is completely optional, but it helps investors visualize the project you’re so passionate about and proves to them that you’ve gone the extra mile in your business research and preparation.

Use this sample template to help you build your restaurant business plan. Feel free to copy and paste this entire section into a Microsoft Word file or download the outline sample in Google Docs . Then replace the explanations for each section with information about your restaurant business.

Other Resources for Your Restaurant Business Plan

No great business plan is written in a vacuum. Use whatever you have at your disposal, from industry contacts to other entrepreneurs, and read up on more best practices. Here are a few resources that you can use to help you write a successful restaurant business plan.

  • Writing a Business Plan
  • US Gov - Start Your Own Business
  • US Chamber: 64 Grants, Loans and Programs to Benefit Your Small Business
  • SCORE Business mentors: About Score

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Restaurant Business Plan Template

Written by Dave Lavinsky

how to start a restaurant

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

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

Download our Ultimate Restaurant Business Plan Template here >

What Is a Restaurant Business Plan?

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

Why You Need a Business Plan for a Restaurant

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

Sources of Funding for Restaurants

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

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

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

Finish Your Business Plan Today!

How to write a restaurant business plan.

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

Executive Summary

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

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

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

Company Overview

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

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

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

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

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

Include answers to questions such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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

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

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

Finish Your Restaurant Business Plan in 1 Day!

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Competitive Analysis

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

Direct competitors are other restaurants.

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

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

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

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

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

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

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

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

    Finish Your Business Plan Today!

Marketing plan.

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Pro-Forma Profit & Loss Statement / Income Statement

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

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

Pro-Forma Balance Sheets

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

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

Pro-Forma Cash Flow Statement

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

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

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

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

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

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

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

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

Want more tips? Check out our related articles and downloads:

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

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

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

Other Helpful Business Plan Articles & Templates

Business Plan Template

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

resOS - your restaurant system

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.

business plans for a restaurant

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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></center></p><h2>How to Write a Restaurant Business Plan in 2024</h2><ul><li>By Taylor Anderson</li></ul><p><center><img style=

The restaurant industry is as dynamic as it is diverse, with various types of restaurants catering to different culinary preferences. For those aspiring to open a new restaurant, understanding this vast landscape is crucial. One of the pivotal steps before diving into this venture is to create a business plan. It not only defines the unique essence of your eatery but also lays out a roadmap for its successful operation. Familiarizing oneself with the different types of restaurants is essential to pinpoint your niche and stand out in a bustling market.

What is A Restaurant Business Plan?

When you’re planning to open a restaurant, a comprehensive restaurant business plan is your blueprint to success. It serves as a strategic guide, outlining your restaurant’s vision, objectives, and operational procedures. But beyond its functional use for the business owner, a well-crafted plan becomes a tool to attract potential investors.

Writing a business plan requires detailing every aspect of your restaurant dream, from the concept and target demographic to the financial projections and marketing strategies. For restaurant owners, this document encapsulates the essence of their establishment, ensuring they remain on the right track. Moreover, presenting this plan to potential investors offers a clear, organized view of your vision, increasing their confidence in the venture.

Ff you want to get your restaurant off the ground and appeal to both patrons and investors, a restaurant business plan is not just a recommendation—it’s a necessity.

Why A Business Plan Is Important For A Successful Restaurant Business?

Making a restaurant a reality isn’t just about great food or an attractive interior; it’s about laying the groundwork for success with a good business plan. A well-crafted restaurant business plan comes with a slew of benefits, not least of which are:

Clear Vision and Objectives: One of the foremost reasons to plan for your restaurant is to articulate a clear vision and set definitive objectives. This process helps you refine your restaurant ideas, making them more viable in the real world. With a concrete vision, you can maintain a consistent direction and avoid being swayed by fleeting trends that don’t align with your brand.

Financial Planning: Money is the lifeline of any venture. A restaurant business plan provides a detailed financial blueprint, determining startup costs, projecting revenues, and outlining budgetary constraints. It anticipates potential financial hurdles, allowing restaurant owners to make informed decisions. By meticulously charting out every financial detail, restaurant owners can ensure they have the necessary funds to sustain the business, even during lean periods.

Operational Efficiency: Operational hiccups can turn even the most promising restaurant ideas into failures. With a comprehensive business plan, you can optimize staffing, inventory management, customer service, and daily operations. A good plan streamlines the restaurant’s workflow, enhancing efficiency and customer satisfaction.

In a world teeming with culinary ventures, a business plan is essential to stand out. It gives clarity to your vision, ensures sound financial footing, and optimizes operations, paving the way for the restaurant needs to thrive.

Step-by-step Guide To Write A Restaurant Business Plan

Starting a restaurant is a dream for many, but to make that restaurant dream into a reality, one needs a structured approach. A winning restaurant business plan provides a comprehensive roadmap to bring your vision to life. Here’s how to craft that perfect plan:

1. Executive Summary

The executive summary is a snapshot of your entire restaurant business plan. Typically, it should be concise, about one to two pages long, capturing the essence of what your restaurant is about and what it aims to achieve.

What should you cover in an Executive Summary?

  • Introduce your bakery business : Begin by describing the kind of restaurant you’re opening.
  • State your mission and vision : Your mission statement reflects your restaurant’s core purpose, while the vision paints a picture of its future.
  • Outline your objective : Define the goals for your new business.
  • Provide a financial overview : Offer a brief insight into the financial state of your business.

2. Restaurant Business Description

This section provides an in-depth look into what your restaurant is and what it aims to offer to the diner.

What should you cover in the restaurant description section?

  • Talk about your bakery concept : Describe your restaurant, its theme, and its unique approach to serving patrons.
  • Explain your unique selling proposition (USP) : What sets your restaurant apart?
  • Operational model : Explain how you’ll operate your restaurant before and after opening.

3. Market Analysis

Market analysis provides data-driven insights derived from thorough market research. It helps restaurant owners understand their audience and the market landscape.

  • Target market : Delve into the demographics of your potential clientele.
  • Location : Describe where your restaurant fits geographically and why it’s an ideal spot.
  • Competition : Analyze other restaurants in the area and their offerings.

4. Organization and Management

This section presents the business structure and the key players driving your restaurant’s operations.

What should you cover in the organization and management plan?

  • Restaurant ownership information : Detail the type of business entity (e.g., LLC, Partnership) and ownership distribution.
  • Profiles of your Restaurant management team : Introduce your core team members, their roles, and their experience in the restaurant industry.

5. Sample Menu

This section is a sneak peek into what diners can expect when they visit.

What should you consider when creating a sample menu?

  • Menu items : List down dishes and beverages you’ll offer.
  • Unique Selling Proposition (USP) : What makes your menu stand out?
  • Menu Pricing : Provide a range or specific prices for your offerings.

6. Marketing Strategy

The restaurant marketing strategy outlines how you plan to market your restaurant and drive sales.

What should you cover in the marketing strategy for your restaurant business?

  • Define your brand : Discuss the brand identity – from logo to restaurant design.
  • Plan how you’ll attract diners, from online promotions to loyalty programs,  SEO for website, and partnerships with local local businesses
  • Considering using an  online food ordering system  in your food truck
  • Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Business Operations

This section delves into the day-to-day operations of running your restaurant.

What operational issues should you address in your business plan?

  • Supply chain : Detail how you’ll procure ingredients and manage inventory.
  • Operating hours : What days and hours will you operate? Consider peak meal times and special events.
  • Staffing : Discuss hiring, training, and staff management plans.
  • Equipment : List the equipment needed to run the restaurant.

8. Financial and Loans

Opening a restaurant is an exciting venture, but it comes with its own financial intricacies. Before embarking on this journey, understanding the fiscal requirements is essential.

How Much Does It Cost to Start a Restaurant?

Depending on the type of restaurant you’re opening, costs can vary significantly. Starting a bar business, for instance, can range anywhere from $95,000 to over $2 million. Several factors can influence these numbers. The size of the restaurant, its location, and the culinary offerings play crucial roles in the total investment. Want to delve deeper into the specifics? This comprehensive guide on how much it costs to open a small restaurant breaks down the various expenses you can expect.

How Many Ways to Fund Your Restaurant?

For every restaurant dream, funding is a pivotal aspect. From traditional bank loans to seeking angel investors or crowd-funding, there’s a multitude of avenues available for those considering opening a restaurant.

Important Questions to Consider When You Create Your Funding Request

Beyond just how much you plan to spend, you’ll want to include details on projected ROI, repayment strategies, and how the funds will directly help grow your business. Remember, lenders and investors are most interested in understanding how their contributions will help the restaurant flourish and ensure a return on their investment.

9. Financial Projections

Financial projections are a crucial aspect of the business plan, providing a roadmap for operating the restaurant and giving potential investors a clear picture of your business strategy.

Break-even analysis

This analysis tells you when your restaurant may start to turn a profit, balancing out initial investments and operational costs. It’s essential to understand this when you plan to gain traction and open the restaurant.

To calculate the break-even point, use this formula: Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement

This section should include estimations of your future revenues, costs, and profits over a specific period, helping you and investors visualize the financial health of your restaurant.

Cash flow analysis

A comprehensive cash flow analysis is part of your business plan, showing the movement of cash in and out of your business. This plan can help identify periods of potential cash shortages and allow for strategic preparations.

Restaurant Business Plan Template

As you embark on the journey to make your restaurant dream come true, using a free template for guidance can be invaluable. This example provides a glimpse into what a business plan can look like. However, always remember to choose your restaurant’s features that align with your vision and market demand. For more insights, consider consulting various restaurant business plan examples and business plan samples to get a holistic view.

  • Mission : “To provide an unforgettable dining experience by blending authentic flavors with a modern twist.”
  • Vision : “To be the leading global chain offering our signature fusion cuisine.”
  • Restaurant Description : “DineFusion, an innovative blend of Italian and Japanese cuisines, located at the heart of downtown.”
  • Costs : Initial investment of $150,000.
  • Profits : Expected yearly net profit of $75,000 after operating costs.

2. Description of the Restaurant

  • Restaurant Concept : A fusion of Italian and Japanese cuisines, bringing together the best of both worlds.
  • Restaurant Name : “DineFusion”
  • Restaurant Type : Casual dining
  • Restaurant Location : 123 Downtown Street, Metropolis
  • Order Fulfillment : Dine-in, takeaway, and online delivery through partnering platforms.
  • Working Hours : 10 AM – 10 PM daily.
  • Type of Cuisine : Italian-Japanese Fusion
  • Offer : From sushi rolls with a twist of Italian herbs to pizzas topped with sashimi. Include a sample menu for a detailed look.
  • Unique Selling Point : “Where East meets West on a Plate!”

4. Market and Competition Analysis

Market Analysis :

  • Target Customer : Young professionals aged 25-40 and tourists.
  • Size of the Target Customer : Approximately 150,000 individuals fit our target profile in Metropolis.

Competition Analysis :

  • Size of the Competition : Collectively serve an estimated 500 customers daily.
  • Competitors’ Offer : Traditional fusion dishes without the unique Italian-Japanese blend.
  • Competitors’ Prices : Average meal price is $25.

5. Investment Plan (Detailed Cost Analysis)

  • Renovation: $50,000
  • Kitchen Equipment: $40,000
  • Initial Inventory: $10,000
  • Licenses and Permits: $5,000
  • Marketing and Promotion: $20,000
  • Miscellaneous: $25,000
  • Rent: $5,000
  • Salaries: $15,000
  • Utilities: $1,000
  • Inventory Replenishment: $4,000
  • Marketing: $2,000
  • Miscellaneous: $3,000

Total Cost : Estimated monthly operating cost of $30,000.

6. Financial Forecast

Based on the expected customer footfall and average ticket size, we anticipate monthly revenues of $60,000, with a profit of $30,000 before taxes.

  • Owner/Manager : Jane Smith, with 10 years of experience in the restaurant industry.
  • Chef : Marco Tanaka, a specialist in both Italian and Japanese cuisines.
  • Supporting Staff : 10 members, including servers, cleaners, and kitchen assistants.

8. Marketing Plan

Our marketing strategy involves an initial launch on social media platforms, collaborations with influencers, and partnerships with delivery platforms. Periodic offers, loyalty programs, and events like “fusion food fests” will help in consistent customer engagement.

Tips For Creating A Successful Restaurant Business Plan

Opening your restaurant is exhilarating, but to transform your culinary dreams into business a reality, a well-crafted business plan is paramount. Here are some tips to ensure success:

  • Thorough Research : Before you put pen to paper, conduct in-depth research. Understand your target market, competition, and potential challenges. This will not only guide the rest of your plan but also demonstrate your commitment and seriousness to potential restaurant investors.
  • Use a Template : If you’re unsure where to begin, use a business plan template to get started. It will offer structure and ensure you cover essential sections of your business plan.
  • Clarity is Key : Your business plan should be concise yet comprehensive. Avoid jargon. Remember, you may be presenting this to individuals who might not be familiar with restaurant terminologies.
  • Be Realistic with Projections : Overestimating your future success can be as detrimental as underselling it. Ensure your financial forecasts are realistic and achievable.
  • Highlight What Sets You Apart : Whether it’s a unique theme, a special dish, or an innovative service model, pinpoint what makes your restaurant stand out.
  • Seek Feedback : Before finalizing, seek feedback. Whether from industry peers, potential restaurant investors, or mentors, a fresh set of eyes can offer invaluable insights.

Remember, to make a restaurant business plan truly effective, it should be a living document, revised and updated as you gather more information, make decisions, and choose your restaurant’s path forward. Keep refining and adjusting to ensure the best path to make the business a thriving success.

Frequently Asked Questions

1. what should be included in a restaurant plan.

A comprehensive restaurant business plan should include an executive summary, a clear description of the restaurant’s concept, target market, and location, a detailed menu offer, a market and competition analysis, an organizational and management outline, a marketing strategy, and financial projections. When you choose your restaurant’s theme and style, consider aspects like the restaurant interior, which plays a pivotal role in attracting diners. Leveraging a free restaurant business plan template can streamline this process, ensuring that no critical section of the business plan is overlooked.

2. What is a strategy plan of a restaurant?

The strategy plan of a restaurant defines its path to success. It encompasses the restaurant’s mission, vision, and the tactics it will use to achieve its objectives. This might involve decisions on restaurant technology, like using a particular POS system, adopting a reservation tool, or incorporating a digital feedback system. It also details how the restaurant will stand out in the market, whether through unique culinary offerings, exceptional service, or a distinctive dining environment.

3.  How do I write a business proposal for a food business?

When writing a business proposal for a food business, begin by introducing your business concept and vision. Detail the products or services you intend to offer and your target market. Highlight the operational aspects, such as suppliers, equipment, and location. Delve into financial projections, including startup costs, expected revenue, and profitability. Your proposal should align with the specific needs and interests of the person or entity you’re pitching to.

4. How do you write a marketing plan for a restaurant?

A marketing plan for a restaurant should start with an understanding of your target customers. Identify where they spend their time online and offline and strategize accordingly. Outline your brand voice and how you’ll communicate your unique selling proposition. Factor in promotions, advertising campaigns, and loyalty programs. Also, consider modern restaurant technology tools that can aid in marketing, such as CRM systems or social media analytics tools. Ensure that each marketing initiative has clear objectives, a set budget, and methods to track effectiveness.

Related Restaurant Resources

  • How to start a restaurant with no money
  • How much do restaurant owners make
  • Restaurant profit margin calculator
  • Restaurant name ideas

Opening a restaurant is a thrilling yet intricate endeavor. Every section of the restaurant business plan serves as a roadmap, guiding entrepreneurs towards realizing their culinary dreams. As you choose your restaurant’s concept, location, and design, always revert to your business plan to ensure alignment with your vision. In essence, a meticulously crafted plan not only provides clarity and direction but also instills confidence in potential stakeholders. Remember, success in the restaurant industry goes beyond delectable dishes; it lies in foresight, strategy, and relentless execution.

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How To Start A Restaurant In 2024

Belle Wong, J.D.

Published: Aug 23, 2024, 8:35am

How To Start A Restaurant In 2024

Table of Contents

Why open a restaurant, 10 steps to open a restaurant, bottom line, frequently asked questions (faqs).

Embarking on the restaurant business journey can feel like navigating a maze with no clear exit. But what if you had a map that guided you through every twist and turn? That’s what this step-by-step guide on how to start a restaurant is designed to do. From crunching numbers to cutting ribbons, we explore it all here. So if the restaurant world is calling your name, consider this your starting line.

Why take the plunge into opening your own restaurant in the first place? Simple: It’s because you’ve got something unique to offer the food world. We’re not just talking about the cooking, either. Starting a restaurant is about creating a space where people can come together to celebrate life and enjoy great food.

It can be your vision, your rules. Whether it’s a secret family recipe or a vegan haven you’ve been dreaming about, it’s about bringing something new and exciting to the table—literally.

Opening your own restaurant is also a path to independence. A lot of hard work will be involved, but it can be incredibly rewarding too. You get to be your own boss, set your hours and directly see the fruits of your labor. Plus, you’ll have the chance to impact your community in a positive way, from sourcing local ingredients to creating a new and vibrant local hotspot.

Ready to make your mark? Bringing your unique culinary vision to life requires more than a love for food and ideas for an awesome menu that’s sure to go viral. You need a plan.

In the following 10 steps, we break down the process of starting your own restaurant into manageable parts, helping you to focus on what’s important at each stage of the journey. From the spark of your original idea to the big opening day, here’s how to turn your vision into a bustling food haven that stands out in a crowded market.

1. The Visionary’s Table: Defining Your Restaurant’s Concept and Brand

Every great restaurant starts with an equally great concept. This is—quite literally!—your opportunity to bring something new to the table. Begin by asking what makes your restaurant idea unique. Is it an untapped cuisine, an innovative dining format or maybe a commitment to sustainability? Your concept should excite you: It’s the seed from which your restaurant will grow and the basis for everything from building your menu to creating ambiance.

Once you’ve honed your concept, it’s time to look at branding. Branding turns your concept into a story, one that’s told through your restaurant’s name, design, menu and even the uniforms your staff wears. You want to ensure every element of your brand speaks to your chosen concept. For example, if your restaurant is all about local, organic produce, let this shine through in every decision, such as the décor and the dishes you serve.

You should also consider your operational model at this early stage of the process. Will your restaurant offer quick service, fine dining or a casual eatery format? This decision affects everything from menu pricing to interior design and even your choice of location. Aligning your operational model with your concept and brand ensures a seamless execution of your vision, creating an authentic, efficient dining experience for your customers.

2. Blueprint for Success: Drafting Your Restaurant’s Business Plan

What’s behind every successful restaurant? A meticulously crafted business plan . Your restaurant’s business plan isn’t a mere formality. Think of it as a blueprint that details your concept, market analysis, operations and financial forecasts. Your plan answers a crucial question: How will your restaurant stand out in a competitive market?

While your business plan has several key components, your financial projections are a cornerstone, providing you with a realistic look at your financial needs and prospects. Here, you’ll break down the costs associated with starting up and sustaining your restaurant. From equipment purchases and restaurant POS systems to staffing and daily operations, accurate financial forecasting helps you secure funding and keep your business on track.

The marketing strategy section also plays a pivotal role in bringing your culinary vision to life. This is where you’ll outline how you’ll introduce your restaurant to the community and build a loyal customer base. Cover everything, such as branding efforts, promotional activities and social media engagement, to paint a picture of how you’ll create buzz and maintain interest in your establishment as a go-to dining destination.

3. Capital Cuisine: Securing Your Restaurant’s Funding

Money isn’t everything, but when it comes to transforming your restaurant dream into reality, it does count for a lot. A successful restaurant startup requires not just passion and planning but also capital, which means securing financing is a critical step with significant influence on how you can bring your vision to life.

Exploring various funding options —such as traditional bank loans , small business grants, private investors and crowdfunding—can help provide the financial backbone your restaurant needs to start on solid ground.

Bank loans offer a traditional route, with options such as SBA loans that are designed to support small businesses. Less traditional routes include investors who may be able to offer capital and also valuable business expertise. And crowdfunding is an increasingly popular way to raise funds while building a community of supporters, although it does require a compelling campaign and rewards system.

Regardless of your financing method, managing your startup costs is crucial. Budget carefully, distinguishing between essential expenses and areas where you can cut costs without compromising on quality. And always include a buffer for unexpected expenses. Your goal isn’t just to open a restaurant, but to sustain and grow it into a profitable venture. Effective financial management from the very start establishes the foundation of this success.

4. Location, Location … and Cuisine: Finding the Perfect Spot

When it comes to real estate, location is everything and the same applies to the restaurant biz. You want your location to draw in the crowd but also complement your restaurant’s identity. And while areas with high foot traffic are often goldmines for potential customers, they also come with higher rent. Balancing visibility and affordability is key.

You also need to evaluate your competition. A crowded marketplace means you’ll need a solid USP (unique selling proposition) to differentiate your dining establishment. But too little competition might mean a lack of demand in the area. Analyze your competition not just as potential rivals but also as indicators of what works in your chosen locale and to explore ways you can fill a niche they’ve missed.

Another factor influencing your location choice? Demographics. Much like you wouldn’t serve family-friendly fare in a neighborhood of young professionals, you wouldn’t want to offer high-end dining in a budget-conscious area. Aligning your concept with local demographics isn’t just about fitting in—it’s about filling a need so you can weave your establishment into the heart of your chosen location.

5. The Regulatory Recipe: Navigating Permits and Licenses

The path to opening your restaurant is paved with essential paperwork, such as securing the right to serve food and obtaining permission to operate in your chosen location. Understanding what permits and licenses are required by your city, county and state is one of the first orders of business. Depending on your locale, this may include food service licenses, liquor licenses, health department permits and a general business license.

Start early and stay organized. The application processes for various permits will vary significantly in terms of both time and complexity. Use a detailed timeline to track each application’s submission and approval stages. Working with a consultant or legal advisor who specializes in restaurant regulations can be a game-changer when it comes to ensuring you meet all legal requirements.

Don’t underestimate the power of networking with other restaurant owners in your area, either. Their firsthand experiences can provide you with practical tips for navigatine bureaucratic hurdles and may even highlight common pitfalls to avoid. And regular communication with regulatory authorities can help clarify any ambiguities in the process and help you stay compliant as regulations evolve.

6. The Art of Atmosphere: Crafting the Perfect Ambiance (and Layout)

You want to create a unique experience for the customer from the moment they walk through the door. Think of designing the physical space as crafting a story that complements your menu and service. Every element, from the entrance to the back of the house, plays a role in this narrative.

Your space should reflect the essence of your brand and concept. Consider the flow of movement within the space, ensuring both guests and staff can move freely and efficiently. This enhances the customer’s dining experience and also optimizes operational functionality. And ensuring accessibility means your restaurant is an inclusive space that welcomes everyone.

The kitchen, as the heart of your restaurant, requires particular attention. Make efficiency and safety your guiding principles here with a layout that supports smooth culinary operations. Equip the space with the right tools in an arrangement that minimizes unnecessary movement to create a high-performance workspace capable of keeping up with the demand of peak hours.

7. Your Culinary Toolkit: Equipping and Provisioning Your Kitchen

Selecting the right equipment for your restaurant’s kitchen requires balancing quality, efficiency and budget. Start with the essentials that match your culinary style and volume needs, with a focus on durability and energy efficiency. An initial investment in high-quality equipment can reduce long-term maintenance costs and operational inefficiencies so your kitchen runs smoothly from day one.

When it comes to sourcing ingredients, building relationships with local suppliers is key. This doesn’t just support the local economy (a priority goal on its own), it also ensures the freshness and quality of your produce, meat and dairy. Consider the seasonality of local ingredients and how they can inspire your menu to create a connection between your dishes and the community’s agricultural heritage.

Another important aspect that’s not talked about often enough is sustainability. Committing to sustainable practices in your kitchen operations and your supply chain can significantly impact your business’s environmental footprint and community reputation. Opting for eco-friendly equipment options and engaging with suppliers who prioritize sustainable methods can help you create a brand that aligns with the values of today’s consumers.

8. A Core Ingredient: Cultivating a Dynamic Team

Your restaurant’s team functions as its heartbeat—vital to creating an atmosphere where service excellence and culinary delight converge. Hiring a diverse and skilled staff means looking beyond each résumé to see the individual’s passion for hospitality and potential for growth.

Creating an inclusive workplace goes hand in hand with building a strong team. Ideas include implementing regular training programs that emphasize teamwork, communication and service excellence and encouraging open dialogue and feedback—strategies that help prevent burnout , unify your staff and elevate your customer’s dining experience.

Training equips your staff with the knowledge and skills necessary for excellence. Think beyond onboarding new team members to strategies such as mentorship programs and ongoing training sessions that focus on personal development and team dynamics. Equally important? Leadership training for your management team to equip them with the skills to lead by example.

9. The Flavor of Visibility: Crafting a Marketing Strategy

In the age of connectivity, your restaurant’s marketing strategy needs to seamlessly blend online engagement with real-world presence. Begin by establishing a strong digital footprint through a well-designed website, active social media profiles and targeted online advertising. These digital tools serve as your direct line to potential customers by showcasing your menu, ambiance and unique selling points.

Social media is an incredible tool for building relationships with your audience. Regular updates, professional-looking food photography and user-generated content in the form of comments on your posts help keep your audience engaged and enthusiastic about your culinary offerings. Encourage customers to share their dining experiences at your establishment to amplify your reach and attract new patrons through word of mouth.

But there’s more to life than the screen. Community involvement can be key to sustaining long-term interest and loyalty. Participate in local food festivals, host charity events or offer cooking classes to embed your restaurant within the fabric of the community. These community-building efforts enhance your visibility and showcase your commitment to giving back.

10. Your Grand Debut: Plating Up Deliciousness on Opening Night

And now we’re at the finale to your preparations—and the door to your ongoing journey as a restaurant owner. The opening of your restaurant is a milestone event that sets the tone for its future success. With a well-planned launch, you can create excitement and draw in an eager, famished crowd from day one.

Consider beginning with a soft launch, where friends, family and local influencers can experience everything your restaurant has to offer in a more controlled environment—this generates initial buzz and lets you fine-tune operations based on real-life feedback.

Special events surrounding your opening can also amplify interest and attract diverse crowds. Whether it’s an elaborate tasting menu that showcases your culinary range or a community-focused event highlighting local partnerships, make it an affair to remember. These opening celebrations aren’t just about good food: They help you to build connections and set the stage for what your guests can expect.

And after the fanfare of launch day, it’s important to keep the momentum alive. Continue to engage with your customers and the wider community through targeted marketing campaigns and ongoing events. Leverage social media to highlight customer reviews, menu updates and behind-the-scenes glimpses to keep your audience engaged and encourage repeat visits.

Embarking on the restaurant business journey is much like navigating a maze, but now you’re equipped with a map to guide you through each twist and turn. As you stand at the starting line, ready to embark on this adventure of a lifetime, know that your passion, armed with the practical steps we’ve outlined here, is the compass that can lead you to success.

Is $10,000 enough to open a restaurant?

Starting a restaurant with $10,000 is a challenge, as opening a restaurant typically involves significant upfront costs that can quickly exceed this amount. While creativity and resourcefulness can stretch your budget—for example, opting for a food truck or pop-up with a limited menu in a low-cost location—$10,000 is likely insufficient for most traditional restaurant models.

How profitable is owning a restaurant?

The profitability of owning a restaurant can vary widely based on several factors, including location, restaurant type and market demand. Restaurants tend to operate on slim profit margins, although the margins can be higher for well-known or well-managed establishments or unique dining concepts with strong demand.

How much does the average food license cost?

The cost of a food license varies significantly depending on the location, type of restaurant and the specific regulations of the local health department or licensing authority. In general, you can expect to pay anywhere from a few hundred to several thousand dollars for a food license, a variance that’s due to differing local requirements, the size of your establishment and whether any additional permits are needed.

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Belle Wong is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. She spends her spare moments testing out the latest productivity apps and plotting her latest novel. Connect with Belle on LinkedIn or Twitter.

  • 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.

  • Branded Cover Page
  • Executive Summary
  • Company Overview
  • Industry Analysis
  • Sample Menu
  • Marketing Plan
  • Operations Plan
  • Financial Analysis

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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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Everything You Need to Write a Restaurant Business Plan

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business plans for a restaurant

Before your car was built, it was a series of lines on an engineer’s laptop screen. Before your favorite album was recorded, a musician scribbled out some rhymes in a notebook. And before your restaurant is going to launch, you likewise have to begin with the intense work of creating a blueprint of your idea — your restaurant’s themes, its physical spaces, its food, its drink, its staff, its marketing, its tech, and its expenses. The title for this package of art, chemistry, design, and accounting goes by the extraordinarily humble title of your business plan.

With a business plan, you show the world — or, more precisely, potential investors and partners — exactly what you intend to create, if you can secure the money and the help. You don’t need to know everything about the future in order to make a convincing plan. You should do your best to figure out what it costs to hire a sous chef in Seattle and the price of bread flour in Honolulu and what A/C costs for a barbecue joint in July in Tulsa. Don’t get blindsided by the obvious costs of your unique project, because not-so-obvious ones will be all around you.

To get you started, we got the download from two people who know the score: Sean F Hennessy and Richie Karaburun, both clinical associate professors at New York University’s Jonathan M. Tisch Center of Hospitality. They underlined how difficult this process is in any environment, and how it’s only becoming tougher as investors steady themselves from the whipsaw of the past few years. “The strength of the market research being applied will support the comfort level of investors in your business,” Hennessey said. “The industry is a bigger leap of faith for investors. Your business is only as good as how many customers you’ve had during the last meal, period.”

But don’t let the world economy discourage your very personal idea. If you know you have the goods, charge ahead and get that bag. Here’s how to build a restaurant business plan that will lead you into a future of your making.

Begin with your executive summary

Your executive summary should present the tl;dr of your business plan. Think of it like the back cover of a novel. This is where you boil down the tightest possible description and pitch for your establishment, drawing from all the other facets of your business plan. As you continue developing your business plan, your executive summary will evolve to reflect your learnings and structure. You may write this first, but be prepared to revise it constantly. Ideally by the time you're finished, a reader will think, Oh, yeah, that should totally be a business — this will work .

Next, bang out a business description

Start by describing what kind of restaurant you want to create. Think through such questions as: What kind of food will you serve? Are you going for fine dining, casual, or quick-serve? What kind of ambiance or vibe will you create? And what sorts of customers do you expect to attract? Paint a picture for your reader. 

Explain your value proposition

Your value proposition is what you bring to the table (heh) that no one else does, or what you bring better than anyone else. Identify your competitive advantage. This could be a combination of things: an amazing location, a winning concept for décor, a brilliant chef, your grandmother’s secret recipes. What sets you apart? Lean into whatever this is as you plan and create your concept. The world is full of restaurants already. Your value proposition is what you have figured out that makes you original (and, ideally, profitable).

Describe your background and credentials

If you have history as a restaurateur, describe your successes. If you are or have a notable chef on your team, say so. If you have deep ties to a specific community or neighborhood, or another network to draw from (professional, academic, spiritual, whatever it might be) bring it to the fore. Sell yourself. Ask: Why would you fund you?

Build and develop your menu

You probably wouldn’t even be considering opening a restaurant if you didn’t have the beginnings of a menu in mind. Still, go further than that. The menu determines not just what customers eat, but your food costs, your build-out needs, your competition, and in many cases the very location you’ll choose. Your menu should be price-competitive, yet creative enough to set you apart. You want to be reliable, yet flexible. Your menu also must work in concert with your overall brand identity and with your business model. Some foods are amazing at delivery — pizza and wings are the champs there, and drive many ghost kitchen concepts . Other foods simply aren’t going to drive as much revenue through food delivery or pickup. 

So don’t simply wave your hand and say “we’re a roti joint” or “we’re going to be a New American concept.” Get down into the weeds. Is your ideal menu seasonal or perennial? Will you be serving family style? Small plates? Can you source your ingredients from vendors you can afford? And will you have back-up vendors, just in case? What does your drinks program look like ? Are you doing NA cocktails , on-tap cocktails, or to-go cocktails ?

Good news is, a menu by no means needs to be long to be profitable. The price of your food, your prep, and your labor all will come to bear on your bottom line. For everything you intend to execute, consider cost, consider feasibility, and consider its possible appeal. Also — consider your own personal enjoyment. Don’t build a menu around foods or kitchen tasks that you can't find a way to enjoy. Your menu should make people happy, and you are the most important person in this entire equation.

Sketch out an organizational chart

You’re as successful as the people around you, and you can’t do this by yourself. Write out your org chart: who does what tasks, and who reports to whom.

Maybe you won’t need to hire immediately because your first phase is a food truck or a very small mom-and-pop. You should nonetheless consider staff planning. Figure out how many and what kinds of staffers you’ll need, what shift schedules will look like, and how much your labor will cost. Those projections are essential to building out a budget and any other financial planning (such as your expected restaurant prime cost ).

Outline your technology plan 

Take a deep breath, clear your mind, and consider your tech needs. They’re going to be several. For some restaurants the sum of your technology tools, or the so-called tech stack , is surprisingly straightforward: Pizza joints , tap rooms , and coffee shops , for example, use a handful of go-to tools. Most everyone else has to improvise a bit.

First thing, you’ll need a point-of-sale system — a huge choice, and one that will determine many other downstream tech choices. A good POS can simplify financial reports and analysis, stock turnover, and more. Your POS will be your best business management tool for day to day operations. Many businesses have transitioned to a cashless model by accepting sources like Apple Pay, Venmo, and credit card systems . Do some shopping, and don’t be shy about haggling over the price with your eventual provider.

You might need delivery and marketing services like DoorDash and GrubHub (or you might decide to launch your own delivery service ). Digital menus and ordering, virtual check-in, mobile payment systems , and a solid website all belong in this section. You might also push the boundaries further with e-commerce , reservation software , inventory management, payroll and staffing and hiring, food waste monitoring, your kitchen display systems , and online ordering platforms. So many aspects of a restaurant’s operation are propelled or assisted by different tech tools, you’re going to want to get nerdy with it, and check those price tags.

Show off some elements of your restaurant design 

Plan and consider the experience when you first walk into your restaurant following through every step of your space. What do you want your customers to experience? What environment do you want to create to represent your brand identity and how should it influence the dining experience? What about your workers — will they have their own bathroom? Lockers?

This vision will vary depending upon your type of restaurant, the space you’re working with, and your budget. Get creative. Depending upon how you expect to use the space at different times of the year and day, you may want a space that can transition to present different energies for different settings. The general design aesthetic may be something to test run at a soft opening or in feedback surveys.

Lay out your market analysis

Failing to do enough unbiased, thorough research is perhaps the greatest mistake restaurateurs make in business planning. With so many factors to consider, a guess or your gut aren’t the most reliable guides. Do your research, gather data, and make the best-educated decisions possible for your location, your budget, your concept, and your model.

Here are some broad areas to consider, with some questions to get you probing.

Location. This includes both your specific address and the rest of the neighborhood. What is foot traffic or driving traffic like? And will you have high traffic and good visibility? Who lives nearby, what do they spend, and what are their dining habits?

Have a look around, within a short drive or walking distance. Are there other restaurants with similar offerings to yours? This might not be a bad thing — opening a gelato shop on a block with an Italian restaurant might benefit you both. But if they are similar, how does their menu stack up to yours? Is their location more visible? If so, how can you set your establishment apart?

Competitive analysis. This is somewhat related to location. How well you do will depend on who else exists in your area that is both a direct and indirect competitor.

Do a SWOT analysis — strengths, weaknesses, opportunities, and threats. What demand will there be for your restaurant? Who are your top competitors, and what advantages do you have that they don’t?

Competitive analysis information for restaurants can be tricky. Business intelligence in this industry commonly travels as mostly word of mouth, which doesn’t always paint a full picture. If you have the budget, consider hiring a consultant or data firm to help you figure out the landscape. While it may be difficult to get some competitive market data, you have to be thorough.

Performance KPIs. Know how to calculate top restaurant key performance indicators, and know the most appropriate metrics of your type of restaurant. You want to set realistic financial goals.

Target marketing. Without limiting yourself, ask who is your ideal customer? Age, income, background, tastes, family size, you name it. You’re going to want to build your brand to appeal to them, without needlessly alienating other possible customers. Restaurant owners commonly overestimate how much their target demographic will spend — for instance young, hip diners are great for bringing energy and attention, but they’re often cash-poor. Know what people in your area have to spend so that you can set realistic expectations for sales.

Theme. Branding, branding, branding. This again draws from your value proposition and your overall design. Know your theme and maintain consistency to build your brand .

Financial analysis. This might be the most important analysis. If you’re spending faster than you’re earning, you’ll be sunk, and for a variety or reasons it’s easy to overestimate your profitability. Do the math — pitting all your costs against your projected revenue. Then run those calculations back while considering how you would withstand a shock to the system such as another pandemic , supply chain woes, or a bird flu that sends the price of eggs soaring. Economics is known as the dismal science for a reason. Confront the hard questions about whether you can turn a profit. 

Soft openings. Have you attempted a trial run, or a pop-up ? Do you have some other solid form of proof that your ideas — your menu, your marketing plans, your vibes — can draw an audience? If not, figure out a way to present a proof-of-concept menu of items to 50 or 100 people to get their customer feedback on quality, experience, and price point. Incorporate their testimony (and suggestions) into your overall plan, and use the test run to let investors know you’ve prototyped your concept. It gives them confidence.

Sketch out your marketing plan 

Second perhaps only to your market analysis, your marketing plan may be the most important aspect of your business plan. Your marketing plan should at the very least include: a website, a plan to use social media, a plan to use Google, a plan to use incorporate loyalty programs, any relevant traditional media (such as print or radio ads), and any other direct-to-consumer outreach — coupons, flyers, mailers, email, and so forth. Figure out what it all costs and include that estimate into your expenses.

As you imagine your marketing, picture how the other aspects of your business plan connect to it. Does your restaurant design lend itself to creating the sort of vibe you want to showcase on Instagram, for instance? Does your menu include items that perform especially well on TikTok? Is the lighting suitable for content creators to make posts of their favorite menu items? Make a note of it. Part of the business plan’s essential function is itself to market your idea to people who might back your restaurant and encourage them to bring more people next time they visit. The marketing plan thus has a dual function. It lays out your strategies and ideas; it also serves to market the business plan itself. So think of it as a place where the other components of your overall plan converge.

If you’re stumped for ideas, scope out this quick rundown of top restaurant marketing tools and digital marketing tips . Then check out ways to build a great restaurant website , strategies to win on SEO and on local SEO in particular , a primer on setting up a Google Business Profile , basic social media best practices , specific best practices for Instagram , strategies for marketing your restaurant on TikTok (plus some TikTok accounts to follow ), pointers on how to shoot great food video , how to use email as your secret weapon, and how, after all of this, to get the best returns from your restaurant marketing budget .

Finally, put the business plan to use by presenting to investors

Now, to the point of the plan: Showing people who might want to invest in your restaurant that you’ve got a chance to turn a buck. Restaurants fail all the time. Top of your investors' minds will be the question you've been considering all along now, namely: How will this venture survive to make a profit?

Ideally you’re presenting to investors around your soft launch. If the soft launch and the pitch are successful, you may get some capital lined up and get to move ahead to the hard launch.

Whether you win over private investors or secure a business loan, this business plan will allow you to present a strong, metrics-based pitch that shows a path to success grounded in realistic expectations and thorough market research. By the time you’ve honed your business plan, tweaking and adjusting as you interrogate your ideas, you should feel ready for anything.

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How to Write a Restaurant Business Plan

A comprehensive business plan is the foundation of every successful restaurant. You need a business plan before you can begin to execute on anything having to do with opening your establishment. A proper business plan is a guide that will help take your idea from concept to reality.

When you begin to seek professional and financial support for your new business, your business plan will be the primary document of reference to describe your concept, market, and potential for profitability. You need a business plan for investors, lenders, consultants, partners, and other team members who will help make your dream of opening a restaurant come true.

business plans for a restaurant

In this article, we’ll walk you through every part of how to write a restaurant business plan, explain the function of each section, and provide an example you can use as a starting point.

Before Writing Your Business Plan: Questions to Answer

How to Write a Restaurant Business Plan

Before you start writing your business plan, you’ll want to consider a few key things. Knowing the answers to these questions will make writing your business plan and communicating your vision a hundred times easier. Keep the answers to these questions top of mind as you’re writing your business plan.

Who is your business plan for?

Are you approaching investors and lenders, or is your plan specifically for you and your staff? You’ll need to adapt your writing for different audience types, and perhaps place emphasis on certain sections over others depending on your primary audience.

Where will your restaurant be located?

If you don’t yet have a location for your restaurant , you should at least know which neighbourhood your restaurant will be located in. Your restaurant’s location will determine important elements of your business plan, like your competitive analysis, ingredient availability, venue type, etc. If you’re in the early stages of planning, you likely don’t know your exact address, but nailing it as close as you can will guide you in your writing.

What is your venue type?

You should have a clear idea of what kind of restaurant you’re opening , whether it’s an intimate cafe, craft microbrewery, or gourmet food truck. If you aren’t quite sure, you’ll need to decide before you write your business plan. You should know exactly what your venue is going to be as you work through the details of a business plan.

What are your goals?

Do you want to start a food truck and then grow to open a sister restaurant, or do you want to open a full service restaurant and grow to operate a fleet of food trucks? Are you looking to open a burger place with a constant flow of customers? Or maybe you want to be the go-to place for special occasions. Be as specific as you can in your vision, and be clear on exactly what you want to achieve.

What are your credentials?

Have you worked in the restaurant industry before? How well do you know the market? Do you need any additional skills before you start your restaurant? If you’re confident you have the skills, feel free to start. But if you’ve never spent any time in a kitchen or in the foodservice industry, you may want to get some hands-on experience so you know what you’re getting into.

5 Tips on How to Write a Restaurant Business Plan

Before you start writing your business plan, here are some tips to make the process easier.

  • Collect materials that are relevant, like links, articles, quotes and information that may benefit you as you are writing, and use them for inspiration or include them within the appropriate sections of your business plan.
  • Taking something from concept to creation can be challenging, but try to put everything you see in your imagination down in the most accurate words possible. Go through the business plan template the first time and make tons of notes for each section, then come back to it later and flesh out your ideas further.
  • If a section stumps you, make a note and move on, then revisit it later when you have more information or more clarity. Refine and rework. Be sure to add all new developments that are happening, and when you’re confident you’ve said all you can about a section, go back in and edit and re-word until you’re satisfied.
  • Use graphics and images to clarify your message when you feel it’s necessary. Consider creating Pinterest boards to keep you inspired and help you get visual. Then, when you are writing your business plan, go back to your boards to pull in graphics that get your idea across better than words.
  • Just as Rome wasn’t built in a day, know that your business plan will take time. It can take anywhere from weeks to months to years to get a solid grasp on what it is you’re creating. As time passes and you continue to work on it, you’ll fine-tune your message and have a crystal clear plan on your hands.

Are you confident in your vision, clear on your goals, and comfortable with your skills? Ready to jump in?

Restaurant Business Plan Template

Table of Contents

Your restaurant business plan is going to be a long document. Depending on the nature of your restaurant, your business plan could be anywhere from 10 to 50 pages – so your readers will need to find sections easily. This is where a table of contents comes in. It’ll look something like this:

  • Executive Summary – p. 3
  • Business Overview – p. 5
  • Business Description – p. 7
  • The Marketplace – p. 12
  • Marketing – p. 20
  • Business Operations – p. 25
  • Financials – p. 30
  • Business Plan Summary p. 37

After you’re finished writing your restaurant business plan, make sure to review your table of contents so that your page numbers are accurate.

Executive Summary While the Executive Summary may live at the beginning of your business plan, it’s the last thing you’ll write. The Executive Summary is a one-page summary of every section in your business plan, so that readers can get a general sense of your entire plan in one page. Remember to keep this section brief yet impactful.

Business Overview

Your Business Overview is simple: it’s a list of basic information about your business, such as your legal name, type of business, business number, etc. You may have some empty fields until you’re closer to actually opening. This list is for quick reference and especially important if you’ll be seeking bank loans or approaching investors:

  • Legal name of business
  • Trade name of business (doing business as)
  • Business address or potential business address
  • Current mailing address
  • Phone number
  • Social media handles
  • Structure of business
  • Date business was established
  • Nature of business
  • Banking details (branch and banker’s name)

Quick tip: many of the details in your business overview will be filled out as your business takes shape. fill in what you can as you go. if some of this information is unknown, don’t let it hold you up.

Business Description

Your Business Description is where your restaurant comes to life. Here is where you’ll describe, in detail, what your business is going to look like, where it will be, and the kind of vibe it will have. Your Business Description answers all of the questions that relate to your vision and goals. Be as expansive as you want here – go into as much detail as possible, and don’t be afraid to use visuals! Here’s what to include in your Business Description.

Will your business be run as a sole trader, a partnership, or a company? Who is involved and what is their role? This can be a short paragraph.

Your restaurant concept is your idea . Take the time to describe why your business is special, and talk about what you’ll do differently as compared to other restaurants. Why should people choose your restaurant over another? What kind of experience will you be providing customers?

Mission statement

Your mission statement is one sentence that describes what your restaurant will achieve. Think of your end goal, the ultimate driving force behind your business. Your mission statement should be something that can be displayed on marketing materials, and it should express to people what your business is all about.

Short-term and long-term goals

Here you’ll want to mention any relevant personal goals, then list your short-term and long-term objectives. Think about where you’re going and what you hope to be doing in a couple of years. Your short-term goals describe your first year as a restaurant owner. Long-term goals are larger, like how you plan to scale your business and how you hope to grow. Be descriptive in this section, but also remember to remain realistic and within the scope of your projections in the financial section.

Menu and services

Include a sample menu, or menus, and discuss the details of each, such as times of day offered and the inspiration or rationale for each. If you’re going to offer catering, delivery, or any other services, mention those here. Describe anything else you’ll be selling, such as pre-packaged foods, canned or bottled drinks, or retail items such as t-shirts and hats.

You likely won’t have secured a location or negotiated a lease at this point, so instead mention the neighbourhoods you’re considering for your venue. Answer the following questions here: Which features of the neighbourhood will affect your business? What other businesses are located in the area? What kinds of people live, work, or visit the neighbourhood? Consider and document all effects that the location will have on your business, like access to parking, public transportation, walk score, etc.

Take the time to describe your concept with as much visual detail as you can. Express why these details are important (hint: they should relate back to your branding). If you’re working with a design agency or interior design specialist, mention them and show their proposals or mockups. Business description summary Finally, briefly sum up everything in this section. Your Business Description tends to be a long section, so you’ll need a summary that provides an overview of what you’re going to achieve with your business.

The Marketplace

This section is where you’ll describe the current status of the marketplace for your business. The most important thing to remember about this section is that you’ll need to remain honest and authentic. You won’t do yourself or anyone else any favours by painting an unrealistic picture of the marketplace and how your business fits within it. This section requires a lot of research and critical thinking skills.

Visit your direct competition and gain some intel on their customer experience and menu. Ask people in your prospective neighbourhood about how businesses perform in the area. By gathering as much information as you can, your marketplace assessment will be clear and rooted in reality.

Market segment

This section should provide a quick overview of the size of your customer base. What are the demographics, psychographics, and segments of your target market?

You need to know your target customers. Who will frequent your restaurant and what characteristics do they share? List statistics you’ve gathered about your market and any other relevant information about your potential customers. Make a note of any customer segments within your target demographic that have certain needs over others.

You’ll want quantitative and qualitative research to round out this section. Make sure to talk to people within your target market to gain a clear understanding of their needs and how you can serve them. You’ll also discover other valuable insights through these discussions.

Market trends

Here you’ll want to list relevant statistics about past and current trends within your marketplace. Include anything that relates to the demand for your business, social or economic factors, and trends that have affected similar businesses. If you’ve done research or hired a firm to conduct some for you, mention all the outcomes from that research here.

Competition

So you know other restaurants are your competition, but you’ll need to be specific. Analyse your prospective neighbourhood, and make a list of all your competitors from small to large. Use a critical eye to determine how they differ from your establishment. Categorise your competitors into “direct” and “indirect”. Your direct competitors are those restaurants that are offering similar customer experiences and type of cuisine, while indirect competitors may be different from your restaurant but still compete for your target market’s attention and spend.

Now that you’ve analysed the competition, you should be able to spot how you’ll be able to stand out. What will your restaurant do that no one else is doing? What are your differentiators that will cause the market to take notice of your business?

Opportunities

After you determine your differentiators, you’ll know how your restaurant can fill potential gaps in the marketplace or provide a better option for customers. From the menu to the hours, whatever your restaurant can do better, list it here.

Now, the other side of the coin: what your restaurant may not be able to do better than the competition. Take the time to list these as challenges, provide rationale as to why your restaurant will face these barriers, and how you’ll tackle them once you’re open. Don’t be afraid of honesty here; a candid account of the challenges you’ll face will show readers you’re self-aware and ready to overcome problems with practical solutions.

Marketplace summary

Briefly sum up everything that you’ve talked about in this section, reiterating the demographics of your target market, advantages, and opportunities.

You may be an amazing chef and create exceptional dishes, but without customers and sales, you don’t have much of a business. You need a marketing strategy to get people in the door and coming back. In this section on how to write a restaurant business plan, we’ll get into your strategy: how you’re going to price your meals, how you’ll position yourself to appeal to your target customers, and how you’ll promote your business to let customers know you exist.

Positioning

Describe how you’ll appeal to your target customers and where you will place yourself in the customer’s mind. Use your differentiators in the previous section to guide your positioning strategy. How will you communicate your differentiators to your market? What will you be offering the market that your customers wouldn’t be able to get anywhere else?

Describe your pricing and how it compares to similar businesses. Provide ballpark figures for different menu items and list standard pricing for your type of business. List your competitors’ prices and explain why yours will be higher or lower. Make sure to align this section with your financials so that your food and labour ratios are taken into account when crafting this section.

Online promotion

If you plan on creating and maintaining social media accounts like Facebook, Twitter, and Instagram, explain how you’ll use them to promote your business. Describe your website’s main elements, design style, and who will build it. List all paid digital promotion here such as Google ads, paid social media ads, and any agencies you’ll work with to develop and execute on all digital marketing initiatives.

Traditional promotion

Will you be holding any events, releasing a press release, or taking out any print ads?

Marketing summary

Briefly summarise your overall marketing strategy and what you’ll concentrate on the most: digital, traditional, PR, etc. Let readers know why you think your marketing strategy will work for your type of restaurant.

Business Operations

You’ve described your vision, the market, and how you plan to promote your business. But how will you actually execute your plans? Who will operate your business day-to-day? Here’s where you get into the nitty-gritty details of your business operations.

Introduce everyone on your payroll. List their qualifications, special skills, and job description, with an emphasis on how they will help you reach your goals and the tasks they will do every day. Categorise each staff member into other owners, chefs, managers, servers, bartenders, etc.

Supplier relationships

List your suppliers by type: food, payment, alcohol, cleaning, etc. Note how each supplier serves your restaurant’s needs , and list their credit and payment terms. List all suppliers for the following:

  • Waste removal
  • Restaurant supplies like dishware and glass
  • Paper products
  • Payroll service
  • Cleaning services
  • Plants or landscaping
  • Linen service
  • Entertainment
  • Marketing and advertising
  • Technology, such as EPOS hardware and software, mobile delivery apps, loyalty apps, and an internet provider

Your restaurant will need insurance coverage . Do some research to determine mandatory insurance and special coverage, and start to compare costs between insurance providers. List each type of insurance your restaurant will need and what it covers.

What kind of licencing does your restaurant need? List all of the licences and permits required for your restaurant and staff here. Check your local government website for the details and anything else that you are required to obtain in your area.

Business operations summary

Briefly sum up everything that you’ve talked about in the Business Operations section.

You’ve now arrived at the most important – and the most daunting – part of your restaurant business plan. This is where you prove that your idea is actually a business that can turn a profit. Complete a financial forecast that takes your concept and translates it into numbers. This exercise is the most important part of your business plan, as investors and lenders will be scrutinising these numbers before they read anything else.

The Breakdown

Your forecast will be broken into four main parts:

  • Revenue: Forecasted sales
  • Controllable costs: Food and beverage costs as well as cost of labour
  • Expenses: Marketing, rent, supplies, utilities, etc.
  • Start-Up Costs: What it costs to get you to open, as well as things like capital improvements and training.

We’ve created a downloadable sample forecast that demonstrates what you’ll need to do. Our example is Joe’s Burgers, a small 1,000 square foot quick service restaurant with no alcoholic beverage sales. Once you understand the sample forecast, we’ve included a blank forecast sheet where you can add in your own numbers to project how profitable you’ll be. Notes about the forecast spreadsheet

  • Take the blank forecast and “save as” so that if you make a mistake, you can return to the original spreadsheet and start again.
  • There are formulas pre-programmed in the cells of the spreadsheet.
  • If you are planning to open a restaurant that will serve alcoholic drinks, you will have to figure out your sales mix of the various types: bottled beer, draft beer, liquor, and wine, and the costs associated with each. For example, if your bottled beer cost is 28% and wine cost is 40%, you’ll have an average beverage cost of 34% to add to your forecast.
  • If you are going to offer catering or other services, you can create another revenue stream that covers events executed, average spends, revenues, cost of goods sold and labour costs for that source.

Business Plan Summary

Your Business Plan Summary should tie the whole message together. Use this section to highlight how you’re different and what you’re offering, reiterating the most important points about your restaurant.

Sections to include are:

  • Why you will succeed: in a few short sentences, repeat how you are different and why your business will work.
  • What you need: if you’re asking for money, repeat the ask here.
  • A thank you: a quick thanks at the end reminds people that you value their time and input.

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How to Write a Restaurant Business Plan

A restaurant business plan is the foundation when starting a new restaurant , whether you're opening a franchise or a small family-owned restaurant. Your business plan will act as a roadmap for starting your restaurant: it can help you get loans from financial institutions , and it will be a point of reference when forecasting sales. In this article, we'll teach you all of the essential information to include in your restaurant business plan as well as walk you through the process of writing a restaurant business plan.

What Should You Include in a Restaurant Business Plan?

Your business plan will be a guide through the process of starting a new business, but you may also share it with potential investors, so there's a number of useful things that you'll want to include in it. Here are some key ideas to include in your restaurant business plan:

  • Concept: Your restaurant's concept is the theme that ties all of the elements, such as your menu and decor, together. Having a strong concept is essential for opening a successful restaurant.
  • Sample Menu: Early in the process of starting a restaurant, you should think about what type of food you want to make and sell. Your sample menu doesn't need to be extensive, but give readers a few examples of the types of food you're planning on serving.
  • Management Structure: Investors will want to know how your restaurant is structured. Are you going to be the sole owner or is it a partnership? Are you starting an LLC or taking sole proprietorship?
  • Market Analysis: Is your new restaurant going to be located in a competitive market? What are the demographics in that region? Is your business going to be able to succeed in the current market? These are all issues that you should cover in your restaurant's business plan.
  • Financials: The centerpiece of every business plan are the financials. Be sure to have answers to how much money you're planning on spending, how long it'll take to become profitable, and where you're planning on getting financing.

These are some of the topics that you should cover throughout your restaurant business plan. This information will be spread out through the various sections of the document, but having concrete answers to these questions and topics will help your business prepare for the challenges of opening.

Sections in a Restaurant Business Plan

Business plans are typically split it up into multiple sections to keep them organized. There are eight essential sections in restaurant business plans, which are listed below. You can click on the section to learn more about it.

  • Executive Summary
  • Company Description
  • Concept and Menu
  • Management and Ownership Structure
  • Employees and Staffing Needs
  • Market and Competitor Analysis
  • Advertising and Marketing Strategies

We will detail the contents of each section and how to write them in the sections below.

Restaurant Business Plan Sample Breakdown

Below is an in-depth look at each section of a restaurant business plan, what information you should include, and how to write them.

1. Executive Summary

The executive summary is a brief overview of all the information contained in your restaurant business plan. A strong executive summary is essential not only for starting a business, but also for getting funding for your new restaurant, as it is the first section potential investors will read. A business plan executive summary should be between 1 and 4 pages long, and it should contain the most important information about your new restaurant. The goal of an executive summary is to get your foot in the door with investors and banks to procure startup capital.

Here is some of the information that should be included in the executive summary:

Restaurant owners looking at financial data

  • Your restaurant's concept.
  • The restaurant's mission statement .
  • A realistic timeline for opening your restaurant.
  • Your target location and how much building space your restaurant needs.
  • A brief market analysis.
  • What makes your new restaurant unique.
  • The restaurant's core strengths, such as experienced management or talented chefs.
  • Expected costs, business goals, and financial projections for starting your restaurant.

Think of your executive summary as an elevator pitch to potential investors and banks. It should be a very brief summary of the plan for opening your new restaurant and stress why your restaurant is worth investing in.

Tips for Writing an Executive Summary

Once you have all the information you want to include, here are a few tips for writing a persuasive and concise restaurant executive summary:

  • Be concise and to the point. The ideal executive summary is short and to the point and doesn't hide the important information behind flowery language.
  • Know who you're presenting your business plan to and write your executive summary accordingly. Think about who you're going to present your restaurant business plan to and what they're most interested in, and place that information front and center.
  • Avoid cliches and superlatives. Avoid claims that you can't back up, such as "we make the best cheesesteaks in the world!" or "our clam chowder is the best in the city."
  • Be authentic. Let your passion for foodservice and food show through in your executive summary.

2. Company Description

The company description section, also called a company overview, contains all of the same information as the executive summary, but provides greater detail on each part of your business plan. For example, your company description should include more detailed financial projections and any marketing strategies you've designed.

In a restaurant business plan, the executive summary will get readers interested, and then your company overview has more in-depth information that you can give them to give a complete overview of your new restaurant. Additionally, the company overview of your business plan is your chance to explain, in more specific terms, how and why you're opening a restaurant.

When writing a company description, be sure to answer these questions:

  • What is your restaurant's concept?
  • What makes your restaurant unique?
  • What sort of items will be on your menu?
  • Who is your target audience, and what are their spending and eating habits?
  • What team members do you have lined up?
  • How is your restaurant going to function in a day-to-day capacity?
  • What sort of management structure are you planning to use?
  • Do you have any logos or marketing materials prepared?

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3. Restaurant Concept and Menu

While you may cover your restaurant's concept and menu ideas in other sections of your restaurant business plan, this section allows you get into the finer details. You can divide this section up into three main parts: menu, service, and decor. We'll break down each section below.

Menu Ideas and Design

You can include your sample menu design in this section. If you don't have a full mockup of your restaurant's menu, then list some of the items or recipes that you're planning on using.

Restaurant Service

Are you planning on opening a fine dining restaurant or a fast casual establishment? Will you have a full-time wait staff or just a service counter where customers can order and pick up their food? For many restaurants offering standard service, this section will be fairly short.

Design and Decor

This is the section of your business plan where you can show any branded materials or logos that have already been designed for your new restaurant. Additionally, you can include any design and decor choices you've made, such as your color scheme , furniture choices, or tableware aesthetic.

4. Management and Ownership Structure

Restaurant owner using a POS system

This section of your restaurant business plan is all about the ownership structure of your new business, what type of business ownership you're creating, and how your management team will be set up.

There are several types of ownership structures , each with their own benefits. Here's a brief overview of some of the most popular business ownerships in the restaurant industry:

  • Sole Proprietorship: This ownership structure has one person who owns the whole restaurant. This is the easiest structure to set up, and it makes filing taxes simple since it's taxed as part of the owner's personal taxes. While it offers many benefits, sole proprietorship offers no protections for the owner if the business were to fail or take on debt.
  • Partnerships: Partnerships are similar to sole ownership, but they have two or more owners. Usually, partners bring different sets of expertise to the table, which can be a benefit when opening a new restaurant. But, there are similar downsides to sole ownership, such as limited protection in case of failure.
  • Limited Liability Corporations (LLC): Offering the most personal protection, LLCs act as a separate business entity. They are very tax efficient and flexible, but they can be time consuming and complicated to set up, especially if you're a first time business owner.

Management Structure

In addition to listing how your new business will be organized, you need to consider how your new restaurant is going to run on a day-to-day basis and how it's going to be managed. Will you, the restaurant owner, be acting as the manager or are you planning on hiring management staff? Will you have separate managers for the front- and back-of-house areas?

It's best to have these protocols in place when you're writing your restaurant business plan so you can reference them during the process of opening your restaurant.

5. Staffing and Employment

Restaurant owner and kitchen staff

Once you've laid out your restaurant's ownership and management structures, you can get into the finer details of your staffing needs. In this section, you can lay out exactly what your staffing needs are, such as how many servers you'll need, kitchen staff requirements, as well as any employees, such as managers or chefs, that you already have on staff.

Additionally, it will be worth noting in this section if you, the owner, will be working in the restaurant in a management or chef role. You can also list any employee handbooks or wait staff training materials you have prepared.

Be sure to also list any auxiliary employees that are affiliated with your restaurant, such as accountants, lawyers, advertising agencies, or contractors.

6. Market Analysis

Requiring some of the most research, the market analysis section of your restaurant business plan will explain to potential investors how your new business will fit into the existing market. This section can also be broken down further into two main types of analysis: demographic analysis and competitive analysis.

Demographic Analysis

Understanding your target demographic is essential for success when opening a new restaurant. You can detail information about your target demographic in this section of your restaurant business plan. Here is some important information to include:

  • What's the age of your target demographic?
  • What is their income level?
  • How much disposable income do they have?
  • How much money do they typically spend on eating out?

This information will help you understand your potential customers, what they're interested in, their eating and spending habits, so you can adapt to cater to their wants and needs. When writing this section of your restaurant business plan, you want to make sure that you're in-depth, and you can also use the data to draw conclusions to persuade potential investors.

Competitive Analysis

The other half of market analysis is analyzing the competition in your restaurant's chosen location . Established restaurants will have a loyal customer base, so you need to make sure that your business is targeting a different demographic or has a competitive edge that can entice customers away from your competitors.

Here are some things to think about when compiling competitive analysis:

  • How many restaurants are in your target area?
  • Do any of these competitors offer similar menus or services to your new restaurant?
  • How do their menu prices compare to your menu?
  • Are there any non-traditional competitors in the area, such as grocery stores and convenience stores offering ready-to-go meals?

Once you lay out this information in your restaurant business plan, you can begin to describe your plan for competing with these businesses and gaining a loyal following.

Also consider how close other restaurants have to be to your own to be considered competition. If you're in a city the sphere of competition may only be a few square blocks, but it could be several miles in rural or suburban locations.

7. Marketing and Advertising Strategies

After you've identified your target demographics and competitors in the previous section, you can begin outlining your plan to appeal to those customers and to compete with other businesses in your area in the marketing and advertising strategies section.

There are a number of marketing and advertising tactics that your business can take to get your new restaurant's name out there. Some of the most popular options include hosting opening day events, starting a social media marketing campaign , offering coupons to potential customers, or creating customer loyalty programs.

In this section, you'll want to list all of the marketing and advertising strategies you're planning on implementing, how they'll benefit your business, what exactly is involved in each tactic, and how you're planning to enact them. For example, you can detail how you're going to hire a marketing agency to create a run a social media account for your restaurant to create excitement before it opens.

8. Financial Data

One of the most important sections in your restaurant business plan, the financial data will also require the most significant amount of research and work on your part. To find this financial data you can use experience from previous restaurants you've worked at or operated, use estimates from suppliers, and research available financial information in your specific region.

Financial documents

You should organize the information in your financial section based on the people you're presenting your business plan to. For example, if you're preparing a presentation for the bank to receive a loan, you will want to put information about how long it will take your business to become profitable and a break-even analysis at the beginning of this section.

Regardless of how you organize the data in the financials section of your restaurant business plan, here is some information that you want to make sure you include:

  • How much capital you have on hand currently.
  • A breakdown of your expected startup costs, such as new kitchen equipment , lease payments, renovations, or licensing fees.
  • A timeline of how long you expect it will take for your restaurant to become profitable.
  • How much money you expect your business will spend on a daily and weekly basis.
  • Sales forecasting based on previous experience or competitor data.
  • A list of recurring expenses, such as overhead, labor, and food costs.

When writing your restaurant business plan, be sure to consider the person that's going to be reading it and the information they're most interested in. But, also keep in mind that your business plan will be a reference for you to follow throughout the process of opening your new restaurant, and fill it will information that is not only helpful to potential investors, but also you and your management team.

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Friendly’s plans a comeback after decades of decline

The CEO of the chain’s parent company says a new menu, store renovations and social media savvy moves are breathing new life into the retro brand.

Aneurin Canham-Clyne's headshot

Sherif Mityas,  who joined Friendly’s parent company  BRIX Holdings as CEO in 2022,  is confident the chain is poised for a revival.  

The nearly 90-year-old brand has been shrinking for a long time. Its unit count peaked around 850 in 1996, according to the Boston Business Journal , at a time when its growth strategy was hasty, rather than responsible, according to Mityas. It is now down to around 100. But Mityas predicts the chain will return to net unit growth next year and pursue a strategy of sensible growth focused on profitability after that. 

The changes the chain has made, including remodels and menu updates, have led to double-digit growth in same-store sales and in traffic are helping drive franchisee interest, Mityas said. 

The chain is opening stores in new markets, like Orlando , Florida, and is preparing to expand to parent company Brix’s home state of Texas .

“We're probably going to be net even this year, because we're going to open a couple of stores and will probably close a couple. Next year the anticipation is we'll be up by three to four stores,” Mityas said

Mityas spoke to Restaurant Dive about Friendly’s turnaround plans, its growth strategy and how it’s capitalizing on its long brand history.

Editor’s note: This interview has been edited for brevity and clarity. 

RESTAURANT DIVE: What development deals does Friendly’s have in the works?

Sherif Mityas: We've got about half a dozen interested groups across the South. We're seeing a lot of opportunity and interest in Friendly’s from Florida through to Texas and in places like Georgia, and the Carolinas where we already have a couple of stores. 

Texas is obviously a very big market, with a growing economy, the eighth-largest in the world, and there's a lot of opportunities to bring the Friendly's brand here.

What do you think makes Friendly’s attractive to franchisees in the South?

First is brand recognition. We've had so many transplants into Texas, and the number of Fortune 500 headquarters that have moved into Texas is pretty extraordinary. A lot of folks that grew up in the Northeast and along the Eastern seaboard now live here and miss it. 

I get emails almost every other day from folks that are asking, “When is Friendly’s coming to Texas?”

The second thing is there's very few concepts that really marry sit-down, family casual Americana food, with ice cream. Thirty percent of our sales come from the ice cream side. You don't really find that combination in a number of other competitors. There's really an opportunity in the economic model for franchisees.

Are you offering any development discounts? 

A lot of the new growth, at least initially, is going to come from our existing franchisees and their networks. In fact, the newest store in Orlando is an existing franchisee that decided to build another one.

We're knocking the initial franchise fee of $30,000 in half. And we're also giving a 0% royalty rate for the first six months and 3% royalty for the subsequent six months. And then 6% royalty starting year two.  

For new franchisees we offer identical incentives. 

What are the average unit volumes at Friendly’s?

Our average unit volumes now are north of $2 million. You've got the small kind of stores that have been [operating] for a long time, as well as some of the newer ones that we've remodeled. Some of our stores do north of $3.5 million to $4 million. But the average is a little over $2 million and growing. We've had positive comps now for the last four quarters, and year-to-date, very positive.

What’s driving those positive comps? 

Traffic. We didn't take any price this year. We are comping over price increases from the year prior that everyone took when supply chain and labor increased. We held the line this year. And so we are seeing increased traffic and increased frequency, as well, from our tests.

How did you manage to lift traffic and same-store sales by double-digits year-over-year?

It was a combination of a few things. One is we completely redesigned our menu. 

We took the best parts of the menu in terms of the nostalgic items that everyone expects to be on a Friendly’s menu and we added relevancy. We added items that are new, unique, and taste great. We've upgraded some of the ingredients and really created more of a craveable opportunity for folks to come and try out Friendly’s, both on the food side as well as some of our great new desserts and ice cream sundaes.

Second, we updated the restaurants. We’re an 89-year-old brand. And so the opportunity for us to create a newness inside the restaurant — from a design perspective, from an experience perspective — really helps people see that not only is Friendly’s alive, but they're relevant again. 

We spent a lot of time, from a marketing perspective, creating more connections to a new set of guests. We had guests that were basically grandparents. They were there with their parents, and now they are with their kids. 

We did an event with the pop-up restaurant group Chain in Los Angeles. We sold out 500 tickets with that group in a minute-and-a-half. So we created this awareness that Friendly’s is not only back, but it's cool again. 

We did a great promotion with the Jonas Brothers. They created their band sitting in a Friendly’s restaurant. We partnered with them and sponsored their concert. They co-created a sundae to put on our menu and allowed us to talk with them.

Friendly&#x27;s Fries n&#x27; Ice Cream Dipper is a big scoop of ice cream on a bed of fries.

What makes a menu item relevant in 2024?

There is this return to comfort food. Friendly’s has always been known for their melts and burgers. 

How do you make a burger relevant, or fun, or Instagrammable? Well, we created the Cheese Skirt Burger. Imagine this huge fried piece of cheese that sits on a burger. That is Instagrammable .  It creates something new and unique, but also tastes great.

We talked to a lot of our guests and started to think about how do you take something that has always been there, like a melt or a burger, but put a little unique twist on it.

Something we just launched is our French Fry Sundae. You always used to have the hack where you could dip your french fries into your shakes. Now, we actually have a sundae now with ice cream scoops sitting on a bed of French fries. It’s phenomenal. 

The menu overhaul took a good year. We wanted to take our time. We did a lot of testing. But now we're really comfortable where it is. And it's obviously working for us.

When it comes to restaurant remodels, how did you change the stores while retaining that historical brand identity?

On the design side, we took some of those old elements that were there that people know from Friendly’s and updated them from a color perspective. In certain cases, we changed the mural to add more fun, more recency, to some of our old units, and added more pastels. Think about an ice cream shop and a Neapolitan color scheme.

All the ice cream counters at Friendly's used to be behind the counter. No one could see the ice cream. You ordered it at the table and the server would bring it to you. We've now opened up the ice cream counter. As you're going to your table, you can see all the ice creams.

At the newest restaurant we have in Orlando, not only are all the ice creams there, we created a Fribble wall — Fribbles are our shakes. You can see the ice cream. You can see all the toppings in different candy bins. Kids can go off and design their own shakes.

It's about bringing ice cream and the candy and the Willy Wonka feel that we have, on our sweet side of the menu, bringing that in front of the guests so that they can interact with the sweetness of Friendly’s.

So we've got about 20% of the chain that's gone through the full remodel. There's another 20% that are halfway through. The rest are slated for the next six to 12 months.

What’s your future target pace for development?

We'd like some measured growth, but at least five to seven restaurants per year.

I think the ideal size is, given the geographies that we believe are available and attractive for this brand, somewhere between 250 and 300 restaurants.

That would take a while. 

For the next three to five years, [this will be] done at that pace that I mentioned. I hope to accelerate that, especially with more multi-unit operators that want to develop larger regions of the country. But this is not about trying to plant flags. This is about growth that is positive from a unit economic and franchisee profitability perspective.

We really want to ensure we're not repeating the sins of the past, to be very transparent with you. Friendly’s used to have 800 restaurants. And that was more of a land grab. We don't want to do that again. We want to grow, we want to grow sensibly, we want to grow where it makes sense and we want to grow profitably.

Recommended Reading

  • Friendly’s parent promotes Sherif Mityas to CEO By Aneurin Canham-Clyne • Nov. 16, 2022

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Business | Sheetz plans second location in Warren

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Planners approve site plan for gas station and convenience store on Mound Road

Sheetz received approval for a second Warren location. (Courtesy of Sheetz)

The new 24-hour Sheetz is planned for the southeast corner of the intersection where the Victory Inn restaurant and bar and Skip’s Auto Care currently stand.

Previously, Sheetz announced it was building a location on Van Dyke Avenue in Warren at the site of the long-closed Pampa Lanes bowling alley. The company is also set to open in Eastpointe, Macomb Township and Chesterfield Township in Macomb County and in a number of other locations around metro Detroit.

Victory Inn owner Beverly Suida speaks at the Aug. 19 Warren Planning Commission meeting.(PHOTO SCREENSHOT CITY OF WARREN)

Chaldean American Chamber of Commerce project manager Sharkey Haddad spoke on behalf of his members who own gas stations and convenience stores in the area. Haddad has spoken at other planning commission and city council meetings around town in opposition to Sheetz.

“Ask your residents how many gas stations and convenience stores with liquor are needed on the same road,” said Haddad. “Competition is good for any local economy, but how can any small business compete fairly against a giant corporation like Sheetz?”

Victory Inn owner Beverly Suida told the Planning Commission her restaurant is not closing and that per her lease agreement with the property owner, the establishment will be open for business until Aug. 1, 2027.

“The Victory Inn is not closing and will continue to be operating as usual,” Suida said during the Aug. 19 Warren Planning Commission meeting. “I just wanted to make it known that this plan cannot move forward until 2027 because that is when the agreement is for.”

The Victory Inn was opened in 1946 by Alphonse DeLamielleure, father of former NFL guard Joe DeLamielleure, and is known for its hardwood smoked barbeque fare.

Sheetz Engineering Permit Manager David Bruckelmeyer said his company is working with the property owner who in turn is working with his tenants to ensure the project moves forward at some point in the future. If necessary, Bruckelmeyer said his company will ask for an extension of the site plan approval in order to extend it past the two-year window that is in place.

“The property owner at this point is interested in redeveloping the property,” Bcuckelmeyer said. “That is why it came to market and why we were able to get under contract.”

Planning Commission Chair Warren Smith urged Sheetz representatives to communicate with area residents and businesses and listen to their concerns regarding the project.

“I’m hearing all of the complaints and that is a little bit of a concern,” said Smith. “You heard the opinions of the residents and the business owners here, and if there is anything you can do to alleviate some of the issues they are concerned about, we would really appreciate that.”

Bruckelmeyer said Sheetz chose the location because the zoning fits with the site plan and that he and other representatives of the company are working with the Chaldean American Chamber of Commerce to iron out their differences.

“Sheetz is in the early stages of bringing a store location to the intersection of 12 Mile and Mound Road in Warren,” said Nick Ruffner, Sheetz public relations manager. “This area of Warren is a popular traffic route, and we are excited to provide our brand of convenience to these potential customers.”

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business plans for a restaurant

Today's LNP e-Newspaper

  • August 25, 2024

A rendering of a typical restaurant for Dairy Queen which is making plans for a new location in Mount Joy. 

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Dairy Queen features its signature Blizzard, a thick, soft-serve ice cream combined in a cup with cookie pieces, candies or other mix-ins. 

Dairy Queen planned for Mount Joy would be 4th Lancaster County location

business plans for a restaurant

  • Aug 23, 2024

Plans are being made for a new Dairy Queen in Mount Joy that would take a spot next to Advance Auto Parts on the eastern edge of the borough.

The proposed Dairy Queen Grill & Chill at 400 E. Main St. would have seating for 46 as well as a drive-thru, according to plans recently reviewed by the Lancaster County Planning Commission . The proposal for the new Dairy Queen was submitted by Red Flag Day LLC, which also has franchise Dairy Queen locations in York County.

No one from Red Flag Day or Dairy Queen responded to requests seeking comment on the planned Mount Joy Borough restaurant

Dairy Queen features a menu of burgers and fries as well as cones, sundaes and its signature Blizzard, a thick, soft-serve ice cream combined in a cup with cookie pieces, candies or other mix-ins.

Dairy Queen operates some 7,500 franchise locations in 20 countries, including three locations in Lancaster County. Dairy Queen is a subsidiary of Berkshire Hathaway Inc. which is led by Warren Buffet.

Anytime Fitness opens gym in shopping center near Mount Joy

Petén guatemala restaurant opens in mount joy with traditional guatemalan dishes, mochi & tea lounge opens in manheim twp. with bubble tea, japanese-inspired doughnuts, wingstop to open restaurant in east hempfied twp.; 2nd lancaster county location for chicken wing franchise.

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‘real housewives of atlanta’s porsha williams honors former bravo star londie favors at memorial: “rest well beautiful queen londie”, chick-fil-a hatches plans for streaming service as reality tv comes home to roost.

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business plans for a restaurant

EXCLUSIVE : Chick-Fil-A is moving aggressively into the entertainment space with plans to launch a slate of originals for its own streaming platform.

Deadline understands that the fast-food firm has been working with a number of major production companies, including some of the studios, to create family-friendly shows, particularly in the unscripted space. It is also in talks to license and acquire content.

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Brian Gibson, who has worked on series including History’s Top Gear remake and Fox’s adaptation of The X Factor, is leading the programming charge and has been in talks with various producers.

Chick-Fil-A, known for its fried chicken sandwiches, is the latest company outside of the entertainment industry to move into making its own originals. It joins the likes of Lyft, which has produced shows such as Lucky Lyft, a game show hosted by Bob The Drag Queen, and Airbnb, which previously produced documentary Gay Chorus Deep South that aired on MTV.

Chick-Fil-A, which operates over 3,000 restaurants in the U.S., has previously produced content for its own site before including Stories of Evergreen Hills , a series of short, animated films. It has also diversified into other areas such as making children’s puzzles and games under its Pennycake brand.

One source told Deadline that it was a positive move for the reality TV industry, which has been struggling in recent years, and another source added it was a good opportunity, comparing it to branded content. Chick-Fil-A declined to comment.

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Kemerovo Oblast—Kuzbass

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Kemerovo Oblast—Kuzbass is situated in southern central Russia. Krasnoyarsk Krai and Khakasiya lie to the east, Tomsk Oblast to the north, Novosibirsk Oblast to the west, and Altai Krai and the Republic of Altai to the south-west. Kemerovo was founded in 1918 as Shcheglovsk. It became the administrative centre of the Oblast upon its formation on 26 January 1943. The city is at the centre of Russia’s principal coal mining area. In 1998 Tuleyev signed a framework agreement with the federal Government on the delimitation of powers, which was accompanied by 10 accords aimed at strengthening the regional economy. The Oblast’s main industrial centres are at Kemerovo, Novokuznetsk, Prokopyevsk, Kiselyovsk and Leninsk-Kuznetskii. Kemerovo Oblast’s agriculture consists mainly of potato and grain production, animal husbandry and beekeeping. The Oblast is the largest producer of coal among the federal subjects, and a principal producer of steel.

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business plans for a restaurant

ASIA HALL, Novokuznetsk - Restaurant Reviews & Info - Tripadvisor

IMAGES

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  2. Business Plan For A Restaurant Templates: How To Write & Examples

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  3. FREE 20+ Sample Restaurant Business Plan Templates in Google Docs

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  4. 21+ Free 32+ Free Restaurant Business Plan Templates

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  5. Startup Restaurant Business Plan Sample Pdf

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  6. Free Restaurant Business Plan Excel Template

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COMMENTS

  1. How to Write a Restaurant Business Plan in 2024 (Free Template)

    2. The projected profit and loss (P&L) statement. Since the business plan is done way before you open your restaurant you'll need to make some educated guesses for your P&L statement. Estimate costs and sales based on your restaurant's size, target market and the local competition.

  2. Restaurant Business Plan Template & Example

    The funding will be dedicated for the build-out and restaurant design, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below: Restaurant Build-Out and Design - $100,000. Kitchen supplies and equipment - $100,000.

  3. 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 ...

  4. Restaurant Business Plan: What To Include, Plus 8 Examples

    5) Menu. Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you'll serve in as much detail as possible. You may not have your menu design complete, but you'll likely have at least a handful of dishes that serve as the foundation of your offerings.

  5. How to write a restaurant business plan

    A small restaurant business plan is the roadmap you use to open a successful spot. As a first step to creating yours, ask your friends and colleagues to share restaurant business plan examples. Their restaurant business plan samples can inspire yours. Once you've studied those examples, it's time to start writing your own.

  6. How to Write a Restaurant Business Plan (+ Examples)

    6 actionable steps to distill your restaurant business plan: Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan. Conduct thorough market analysis: Dive deep into your target market and competitors.

  7. Restaurant Business Plan Template & PDF Example

    The Plan. Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of the restaurant's business concept, market ...

  8. How to Write a Small Restaurant Business Plan

    Download your free small restaurant business plan template. If you're ready to start a restaurant, you can download our free small restaurant business plan template from our library of over 550 sample business plans. Get started today, and discover why businesses that plan grow 30% faster than those that don't. More restaurant business plan ...

  9. How to Write a Restaurant Business Plan [with Sample]

    A restaurant business plan is a document that outlines the various aspects of your restaurant business. It can be used to secure funding from investors or keep track of your progress as you develop your business. A business plan should include information on your target market, competition, business model, marketing strategy, and financial ...

  10. How to Write a Restaurant Business Plan (+Free Template)

    Your restaurant business plan should also include a sneak peek at how things will run once you're open. This includes a sample menu and an overview of service and staffing plans. The sample menu should be based on actual cost analysis and include pricing. Detailing your pricing gives prospective investors a sense of the type of restaurant you ...

  11. Restaurant Business Plan Template [Updated 2024]

    This section of your restaurant business plan should have two key elements as follows: Everyday short-term processes include all of the tasks involved in running your restaurant such as serving customers, procuring supplies, keeping the restaurant clean, etc. Long-term goals are the milestones you hope to achieve.

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

    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.

  13. How to Write a Restaurant Business Plan in 2024 (Free Template)

    Potential restaurant investors will look at this section of the business plan carefully to make sure that the market in the proposed location aligns with the ideal customer profile. 3. Competitive Analysis. This section is where you dig deep on sharing which other businesses exist around your proposed location.

  14. How to Write a Restaurant Business Plan in 2024

    State your mission and vision: Your mission statement reflects your restaurant's core purpose, while the vision paints a picture of its future. Outline your objective: Define the goals for your new business. Provide a financial overview: Offer a brief insight into the financial state of your business. 2.

  15. Writing A Restaurant Business Plan

    Financial Plan. The financial plan is the most critical part of your business plan. It should clearly show how much money you need to start, run and grow your restaurant. You will need to show a ...

  16. How To Start A Restaurant In 2024

    2. Blueprint for Success: Drafting Your Restaurant's Business Plan. What's behind every successful restaurant? A meticulously crafted business plan. Your restaurant's business plan isn't a ...

  17. 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 ...

  18. Everything You Need to Write a Restaurant Business Plan

    Begin with your executive summary. Your executive summary should present the tl;dr of your business plan. Think of it like the back cover of a novel. This is where you boil down the tightest possible description and pitch for your establishment, drawing from all the other facets of your business plan. As you continue developing your business ...

  19. Restaurant Business Plan

    Restaurant Business Plan Template. Table of Contents. Your restaurant business plan is going to be a long document. Depending on the nature of your restaurant, your business plan could be anywhere from 10 to 50 pages - so your readers will need to find sections easily. This is where a table of contents comes in. It'll look something like this:

  20. How to Write a Restaurant Business Plan

    Restaurant Business Plan Sample Breakdown. Below is an in-depth look at each section of a restaurant business plan, what information you should include, and how to write them. 1. Executive Summary. The executive summary is a brief overview of all the information contained in your restaurant business plan. A strong executive summary is essential ...

  21. Friendly's plans a comeback after decades of decline

    Sherif Mityas, who joined Friendly's parent company BRIX Holdings as CEO in 2022, is confident the chain is poised for a revival. The nearly 90-year-old brand has been shrinking for a long time. Its unit count peaked around 850 in 1996, according to the Boston Business Journal, at a time when its growth strategy was hasty, rather than responsible, according to Mityas.

  22. Sheetz plans second location in Warren

    Victory Inn owner Beverly Suida told the Planning Commission her restaurant is not closing and that per her lease agreement with the property owner, the establishment will be open for business ...

  23. Dairy Queen planned for Mount Joy would be 4th Lancaster County

    Plans are being made for a new Dairy Queen in Mount Joy that would take a spot next to Advance Auto Parts on the eastern edge of the borough. The proposed Dairy Queen Grill & Chill at 400 E. Main ...

  24. Chick-Fil-A To Launch Its Own Streaming Service

    EXCLUSIVE: Chick-Fil-A is moving aggressively into the entertainment space with plans to launch a slate of originals for its own streaming platform.. Deadline understands that the fast-food firm ...

  25. Novokuznetsk, Kemerovo-Oblast-Kuzbass's monthly weather planner

    Planning an event far into the future for Novokuznetsk, Kemerovo-Oblast-Kuzbass? MSN Weather provides an accurate 10 day outlook for the coming month as well as precision historical weather data ...

  26. Red Lobster bankruptcy proceedings to see 23 restaurant closures

    Red Lobster is exercising its right to reject leases at locations it says are unprofitable, according to an Aug. 22 court filing.. The seafood restaurant chain's May 19 Chapter 11 bankruptcy ...

  27. Kemerovo Oblast—Kuzbass

    Kemerovo Oblast—Kuzbass is situated in southern central Russia. Krasnoyarsk Krai and Khakasiya lie to the east, Tomsk Oblast to the north, Novosibirsk Oblast to the west, and Altai Krai and the Republic of Altai to the south-west.

  28. Kemerovo Oblast

    Kemerovo Oblast — Kuzbass, also known simply as Kemerovo Oblast (Russian: Ке́меровская о́бласть) or Kuzbass (Кузба́сс), after the Kuznetsk Basin, is a federal subject of Russia (an oblast). Kemerovo is the administrative center and largest city of the oblast. Kemerovo Oblast is one of Russia's most urbanized regions, with over 70% of the population living in its ...

  29. ASIA HALL, Novokuznetsk

    Save. Share. 13 reviews. #22 of 219 Restaurants in Novokuznetsk ₹₹ - ₹₹₹, Chinese, Japanese, Asian. Kirova, 55 Mall Citi Moll, Novokuznetsk 654080 Russia. +7 384 332-03-33 + Add website + Add hours Improve this listing. See all (9) There aren't enough food, service, value or atmosphere ratings for Asia Hall yet.