Tips for Writing a Successful Restaurant Business Plan
If you are a restaurateur, this post is for you. If you are a restaurateur who hates writing a business plan, then this post is DEFINITELY for you. You are spectacular at what you do, and you are passionate about food. I know this is a lot of work for you to read this blog, but you will be glad you did. Whether you’ve graduated from a culinary school or just developed a secret recipe in your kitchen, you will need to create a business plan to make sure you have covered all the bases.
Running a successful restaurant can be challenging, but the results will fulfill your dreams provided you are committed to conceptualizing your business plan. A business plan for opening your own restaurant must include your vision, market and competitive analysis, and the ways you plan to position yourself in your target market. Opening a restaurant is a dream for many people. At the end of the day, it’s all about turning their passion into a business venture. Unfortunately, for many restaurateurs, the reality of running a restaurant is not what they expect. Long hours, cash flow issues, finding the right staff, financing the equipment, and a lot of stress cause many restaurants to shut down just after a few years.
One reason for the high failure rate in the restaurant industry is that the owners often fail to treat their restaurant as a business from the very beginning. They have no plan in place to deal with unexpected expenses, and they don’t understand the true hidden costs associated with opening a restaurant.
By writing a Restaurant Business Plan, you show investors or lenders that you have a clear contingency plan for handling any problems that may arise. Besides, it also serves as a road map for the owners to track their success. There are a few key points to consider when drafting a restaurant business plan that determines whether the plan is a success. So, let’s look at some of the top things to include to ensure you set yourself up for success.
In any successful restaurant business plan, you will need to lay out a clear concept for the business with potential investors, partners, and your team. The business plan should clearly outline the type of service, and whether this is a casual or fine dining restaurant for example. The restaurant service choice will then have a massive impact on the overall concept of the business. It’s worth mentioning ideas for the restaurant design in the business plan, with clear visuals to capture the reader’s attention. This is your chance to shine in front of your readers, potential investors, landlords, or future staff about your restaurant.
Restaurant Sample Menu
When writing a business plan for a new restaurant business, it’s important to include a breakdown of the sample menu on offer. This is where you will highlight the food and drink options that will be available which are key to drive the business success. Restaurants are only as good as their menu; they are the core element of the business and its brand. This is an opportunity to highlight your restaurant’s brand through its menu, so it’s worth including enticing menu descriptions and images. The goal is to get your sample menu for the business plan as close to the finalized menu as possible.
Defining your target market will help prospective investors understand how lucrative their investment could be. Your chosen location could be a good indication of your target market. Next, you can add the specifics of the group of consumers – in your case, diners – whom you wish to attract to your restaurant. How your business will capitalize on existing trends, how your pricing structure compares to that of the other restaurants in the area, and how your restaurant will fulfill an untapped “dining niche” in the market. Your target market also depends on demographics, psychographics, and behaviour of potential customers. Once you have a clear idea of your target market and the customers you aim to attract, you can start working on bringing your idea to life.
Restaurant Team Members
A successful restaurant business plan should provide a clear breakdown of the restaurant team members from the servers to restaurant management. It’s worth mentioning how many employees there are and how many will be needed for day-to-day operations. Any potential investor will be looking to see who will be running the business and how they will implement the business plan.
The readers would also want to see how your restaurant is expected to perform financially. For the financial projections, you will need the anticipated start-up cost of the restaurant – this list is often long. If you’re looking for investors, they would want to see the breakdown of where the money will be spent. This section includes projected income statements, balance sheets, and cash flows, and break-even analysis.
“If you want to be an entrepreneur, it’s not a job, it’s a lifestyle. It defines you. Forget about vacations, about going home at 6 pm – last thing at night you’ll send emails, first thing in the morning you’ll read emails, and you’’ wake up in the middle of the night. But it’s hugely rewarding as you’re fulfilling something for yourself.” -Niklas Zennstrom, founder of Skype and Kazaa
Hire a Business Plan Writer
Business Plan Writers are professionals who are experienced in writing business plans for a wide range of entrepreneurs including restaurateurs. They can write the plan in a way to ensure you cover all the important points about your business to entice investors and lenders. The chances of a successful restaurant business and business plan are dramatically improved by choosing to hire a business plan writer to help with accurate business planning.
These tips are a great starter guide to help you with your business plan. For more information about my in-depth business plan writing service, contact me here, and I’ll be happy to answer any questions you may have.