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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

• Creating a solid business plan is important, as it helps:
• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% ( Harvard Business Study ).
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on common elements of an executive summary, including:

• A mission statement 
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

1.1 Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

1.2 Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

1.3 Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content: How to Write a Restaurant Mission Statement 

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.

2. Company description

This is where you carefully introduce the company in the restaurant business plan.

Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information.

Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description.

To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:

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].

Further reading

• How to Write a Great Restaurant Description

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market ? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

 Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

• How to Identify Your Restaurant’s Target Market (Expert Tips Included)

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up menu for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result. 

You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

7.1 Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

7.2 Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

• Why does restaurant location matter?

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more : How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems.

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section. We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

• Your Complete Guide to Restaurant Financing and Loans

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.

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.

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.

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

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.

Balance Sheet

Cash Flow Statement

  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.

Expert business plan and financial models

Restaurant Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

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.

Restaurant Business Plan

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

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.

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 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.

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).

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.

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.

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.

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

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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.

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.

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.

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.

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

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.

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

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.

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.

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…

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

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

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.

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.

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.

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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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

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.

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 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.

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.

Create a winning business plan with a strong marketing focus. Our Restaurant Business Plan Steps Graphic (👆 see above) is your visual guide, including key marketing strategies. Download or save for later and plan your path to success.

Whether you’ve enlisted a top-notch Marketing company or have a solid ready-to-go marketing plan, highlight your chosen path. Discuss the unique strengths of your selected agency and why they stand out, including their notable clients. Alternatively, showcase your in-house plan, leveraging social media, your website, and valuable media connections.

A well-crafted marketing plan holds the key to differentiating your restaurant and attracting customers. Prepare to tantalize taste buds and offer an exceptional dining experience. Stay in tune with the latest restaurant industry trends, leverage effective marketing tools, and optimize your online presence. 

Lastly, integrate a robust restaurant booking system to streamline reservations and enhance the overall customer experience. With these strategic elements in place, success is within your reach.

9. Financial Plan

Financial analysis is a crucial part of your restaurant’s business plan. It helps investors assess the profitability of your concept and whether it’s a worthwhile investment. In this section, you’ll outline how you plan to allocate your funds in the first year and provide projections for costs and revenues.

Here are the 🔑 key components to include:

Investment Plan: Explain the initial investment costs, such as kitchen equipment, furniture, employee wages, legal fees, marketing expenses, and working capital. This shows how you’ll use your funds effectively.

Profit and Loss Projection: Estimate your restaurant’s costs and sales figures in the profit and loss statement. Consider factors like the size of your establishment, your target market, and the existing competition in your chosen location.

Break-Even Analysis: Show investors the monthly revenue you need to achieve to cover all your expenses and reach profitability. This analysis considers overhead costs, operational expenses, and factors that may affect revenue fluctuations throughout the year.

Claim your FREE plan on resOS today! Ready to revolutionize your business management? Join resos.com for FREE and take control of your operations. ✅ Seamless calendar integration ✅ Customizable booking forms ✅ Automated reminders ✅ Real-time availability updates Don’t miss out! Sign up now at resos.com and experience stress-free scheduling. Your time is valuable, so claim your FREE plan today!

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How to Write a Restaurant Business Plan (+ 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.

10 minute read

helped business professionals at:

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, tip system , 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:

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 PowerPoint

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:

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!

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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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.

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!

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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.

LLC Formation

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.

On a similar note...

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

Makenna Crocker

10 min. read

Updated March 18, 2024

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

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.

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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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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Restaurant Business Plan Template

Written by Dave Lavinsky

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 aspiring restaurant 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 comprehensive 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.

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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 Restaurant : characterized by the fancy decor, a dress code, and high prices
• Casual Dining Restaurant : offers waiter/waitress service in a nice (but not overly fancy) atmosphere with moderate prices
• Fast Casual Restaurant : characterized by quality food (close to the quality of casual dining) but no waiter/waitress service in an accessible atmosphere
• Fast Food Restaurant : 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 restaurant businesses, 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 customer 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.

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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 provide have better customer service policies?
• Will you invest in a customer relationship management software to keep in touch with regulars?
• Will you implement a loyalty program that will encourage more visits?
• 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.

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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.

Free Restaurant Business Plan Template PDF

You can download our Free Restaurant Business Plan Template PDF and use our sample restaurant business plan to help you get started on your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Restaurant Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

Other Resources for Restaurant Owners

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

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

OR, Let Us Develop Your Plan For You

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.

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Writing a restaurant business plan.

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Introduction

If you're considering opening a restaurant, your first step should be writing a business plan. A well-written business plan can help you raise money, manage your restaurant and succeed. Here's what you need to know about writing one:

Executive Summary

An executive summary is a short but powerful document that can help you to get your point across quickly and effectively. Although it is usually the first section of a business plan, it should be the last piece written. It should be one page at maximum and clearly describe your business plan's critical points in a way that makes sense to anyone who reads it. The purpose of an executive summary is to convince potential investors or lenders that they will profit from investing in your restaurant idea, so avoid unimportant details or lengthy descriptions of how great your food tastes.

An excellent way to write an executive summary is by starting with an introduction paragraph that summarizes what the rest of your plan contains—this helps readers understand why they should continue reading further into the document. Then go into discussing why this particular project is worthwhile; why people need it. How will it benefit them? Next comes some background information about yourself: include any relevant experience or education related to running this business. Finally, end with future goals: where do you see yourself after opening the shop?

Here are some items to include in your restaurant business plan:

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Best covid-19 travel insurance plans, concept validation and business model testing.

Before you launch your business, it's important to validate your concept and test the viability of your business model. You can do this by conducting market research, talking with potential customers, and interviewing industry experts with similar business experiences. You can also test the viability of your plan by completing an "experience economy" analysis. That is, looking at ways people enjoy spending money on experiences rather than goods (such as dining out). For example, if people value experiences over material goods, opening a restaurant may be a good idea!

Labor Costs and Staffing Plan

Labor costs, including direct and indirect labor, are essential to your labor budget. Direct costs refer to wages paid directly to employees, while indirect expenses include benefits like healthcare coverage and payroll taxes. To calculate these figures, you'll need to estimate the number of full-time equivalents (FTE) positions you'll need and their average salaries. This calculation can be tricky because each restaurant has its unique staffing plan based on its size, location, cuisine type, and reputation among customers, not to mention any other factors that might affect staffing decisions (e.g., whether it's open 24/7).

The first step is deciding whether or not you want full-time staff or part-time workers who work only during peak times such as lunchtime rush hour or Friday night dinners out with friends at restaurants nearby yours. As tempting as it may seem, wait to write anything down until after reading through the following sections because several factors are explicitly related to determining how many people we'll need overall.

You want your menu to be focused and simple. Try to add only a few items, as too many menu items may confuse customers, making it difficult for them to choose what they want.

If there are any "signature" items on your menu, include them first when listing off your offerings so that people know what kind of food you serve before even stepping inside the restaurant. Also, incorporating local ingredients into these specialties will help build community spirit around supporting local businesses.

Site selection is a critical factor in your success. After conducting a comprehensive market study, the site selection is based on the data you discover to determine if your customers are in and frequent that area. David Simmonds, Founder and CEO of ResolutRE , a Commercial Real Estate firm in Austin, Texas, states: "More than ever, entrepreneurs opening a restaurant need to analyze what their own customers look like on paper (demographics, psychographics, etc.), so then when they are examining a market, they can find the highest concentration of their customers within that market. From that data, they are able to determine the number of restaurants that the market could support, and from there, create the blueprint for their expansion."

Your plan should describe your ideal location . Your chosen location must be close to your target market and similar businesses, such as restaurants or cafes. The site should also have high foot traffic and be accessible by car, bike, and public transportation. Simmonds goes on to say: "Analytics reinforces or disputes instincts. It is a necessary part of the expansion process, whether the restauranteur has 1 unit or 37.

Marketing Strategy

When developing your business plan, think about the marketing strategy you will use. Your plan should consider and explain the following marketing tactics:

• Advertising: You can use print or online ads on social media sites like Facebook and Instagram. Also, consider running commercials on local television stations.
• Public relations: This can include writing articles about your restaurant in local newspapers or magazines, hosting events at your restaurant (such as wine tastings), speaking at community events like Chamber of Commerce meetings with other business owners in the area, participating in charity events related to foodservice industries like Feeding America—the possibilities are endless! The idea is to get people talking about what makes YOU unique so they think of YOU first when ready for their next dine-out experience!
• Social media: Let's face it—most millennials don't even pick up the phone anymore; they prefer texting over talking face-to-face because it feels intimate somehow, and guess what? By interacting directly with customers through social media platforms like Facebook Messenger or WhatsApp (which allows users from all over the world access 24 hours per day, seven days per week), we can offer immediate customer service support during high-demand times such as weekend brunch hours without having employees sitting idle during slow periods throughout weekdays when traffic drops off significantly due the lack of demand generated elsewhere.

Profit and Return on Investment Analysis

• Profit is the difference between your sales revenue and your costs. To calculate it, you need to know the following:
• Sales revenue (how much money you expect to make from selling food)
• Cost of goods sold (the cost of ingredients and supplies)
• Other operating expenses (including labor, rent, and utilities)

The reader of your business plan should be able to find these numbers in your budgeting worksheet and financial projections spreadsheet.

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 projected profit and loss statement. The projected profit and loss statement (P&L) shows how much revenue comes in, what expenses are incurred, and what profits are made over time. In addition, the P&L shows all revenue sources, including but not limited to sales of food/alcoholic beverages and income from private parties. It must also project all costs associated with operating the restaurant, such as Cost of Goods (raw materials) and salaries for employees - these include both front-of-house roles such as waiters or bartenders, as well as back-of-house roles like chefs who prepare food during off hours so it can be served fresh upon opening each day - cleaning supplies needed throughout each week, etc., depreciation costs associated with long term assets such as ovens that wear down over time and waste of unused food product.

Multi-Year Projections of Revenue and Costs

Accurate projections are the key to a successful business plan. They help you to understand how much money you will make and how much you will need to make it happen. Projections also help with understanding what your costs will be.

For example, if I were starting a restaurant today and wanted my business plan projections for opening day and going out one, three, and five years.

Then I would look at similar restaurants that serve similar foods, noting their prices, portion sizes, and any specialties they offer, such as breakfast all day or lunch specials every Friday during football season. This research of other restaurants will give you a basis for your projections. Include the documentation of this research in the narrative of the plan.

A Business Plan Is Your Road Map To Success.

A business plan can help you raise money by demonstrating that you have a viable idea for a restaurant. In addition, investors want to see that others are interested in investing in your vision, so they'll be more likely to give you money if they see other investors involved with it as well. An excellent example is when an investor wants to invest but only if another investor does first; this way, both parties feel comfortable investing because they know someone else believes in the project enough to put their own money into it too!

A well-written business plan helps manage restaurants by giving owners information about how much money will be coming in over time, so there aren't any surprises when bills come due every month - which could lead businesses into trouble if left unchecked."

This article has given some insights into how to write a business plan for opening a restaurant. Do your research and learn other aspects of good business plan writing. I know that it can be a lot of work, but I also know that the payoff is worth it. Not only will you have a better understanding of what it takes to open up shop and run it successfully but also potential investors will be more likely to fund your project if they see that you've done your research. And remember: don't be afraid to ask other restaurant owners for help or advice; many of them have been where you are now.

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A Restaurant Business Plan Beginner's Guide + Examples

Are you planning to open a restaurant? Crafting a well-structured business plan is the key to transforming your culinary vision into a successful reality.

Think of this plan as a roadmap that guides your business toward its goals and demonstrates its potential to investors.

A comprehensive business plan is vital for securing funding, attracting customers, and achieving long-term success in the competitive restaurant industry.

To illustrate what a strong plan looks like, we have created a fictional restaurant, complete with hypothetical figures and information for demonstration purposes only.

Understanding the Basics of a Restaurant Business Plan

A restaurant business plan is a detailed document that explains everything about your restaurant's business structure, including the menu, target market, financial projections, and marketing strategy.

Essentially, it acts as a blueprint for your restaurant.

It can be seen as a roadmap to help you launch and run your restaurant. It keeps you organized and focused.

It also shows potential investors and lenders that your idea can work. A good business plan is key for getting funds and finding the right partners.

The Purpose and Importance of a Business Plan for Restaurants

In the ever-changing restaurant industry, having a strong business plan is the key to success. It shows your vision, strategies, and goals.

This plan gives you a clear direction for your restaurant and gets you ready for the grand opening !

A good business plan explains your restaurant’s mission statement and what makes it special to potential investors.

It also includes your financial projections, showing how your idea can be profitable and sustainable.

This is important to get funding and to attract investors who believe in what you are doing.

A business plan also helps you spot possible challenges before they happen. It forces you to think carefully about your target market, competition, and operational logistics.

This way, you can reduce risks and increase the chances of success.

What You Need to Get Started

As a new business owner, writing a restaurant business plan is an important step. You need a clear idea of what you want to do and know the basics.

Start by defining what your restaurant will be about.

Think about who your target audience is and what special dining experience you want to offer.

Look at practical details like the service style you will use, the atmosphere you want to create, and what hours your restaurant will be open.

Make an outline of your menu, focusing on the dishes that will attract your target market. Research the kitchen equipment you will need and the costs so everything runs smoothly from the start.

Lastly, include details about your management team. Show their experience and skills.

A strong team can build trust with potential investors and increase the credibility of your business plan.

Gathering Market Research and Competitive Analysis

Understanding your target market is very important for a restaurant to succeed. Doing good market research will help you find out who your ideal customers are. You can learn about their likes and eating habits.

Look at demographics, income levels, and food trends in your area. This way, you can adjust your menu and services to fit their needs.

Next, do a detailed analysis of your competitors. Find out what restaurants are near you.

Check their menus, prices, and target audience. Look at what they do well and where they struggle.

Think about what unique things you can offer to stand out.

By knowing both your competitors and your target market, you can improve your restaurant concept, menu, and marketing strategy.

This helps you stand out in a busy market. Remember, having a clear target market and a unique selling point is key to bringing in and keeping customers.

Crafting Your Restaurant's Concept and Brand Identity

Now that you have finished your market research and examined competitors' strategies, it’s time to create your restaurant concept and build a strong brand identity.

This is where your cooking ideas can really shine.

Think carefully about what your target market likes, what the local food scene is like, and what you enjoy doing.

Do you want a relaxed neighborhood bistro, a fancy restaurant, or a unique theme? The choice is yours!

A clear concept helps shape your menu, décor, and brand's overall feel.

Defining Your Restaurant Concept and Theme

Your restaurant concept is the main part of your business. It shapes how customers feel when they dine with you.

Clearly outline what type of restaurant you want. Is it a casual café, a lively sports bar, or a fancy fine-dining place? Create a unique dining experience that makes you stand out.

Think about the vibe you want. Will it be warm and welcoming, lively and energetic, or classy and romantic?

Your theme should match your target market and fit well with your menu.

A clear restaurant concept not only invites customers but also helps you make choices about your menu, your place's appearance, and your marketing.

It’s the base for building your brand identity.

Creating a Unique Selling Proposition (USP)

Creating a unique selling proposition (USP) is very important in the restaurant industry.

Your USP shows what makes your restaurant unique. Consider your restaurant concept, service style, or special menu items that will attract your target audience.

A clear USP helps attract potential customers and can catch the eye of investors, too.

Make sure your USP matches your overall mission and values. This helps you make a strong impression on your customers.

Writing Your Restaurant Business Plan (Step by Step)

Now that you have your idea, brand, and unique selling point ready, it is time to create your business plan.

A clear plan helps you organize your thoughts. It also shows your vision to potential investors in a simple way.

Follow these steps to make sure you include all the important parts of a great restaurant business plan.

Remember to support your statements with solid research and realistic financial projections.

Step 1: Executive Summary and Company Description

Start with a clear executive summary. This should explain your restaurant's idea, the target market, and key financial points.

This part of your plan should capture the reader's attention right away.

Executive Summary Example: Harvest Bistro

Harvest Bistro is an innovative, farm-to-table restaurant located in the heart of downtown Maplewood, targeting health-conscious diners, families, and local food enthusiasts. With a mission to provide fresh, sustainably sourced dishes that celebrate the rich flavors of seasonal ingredients, Harvest Bistro aims to create a unique dining experience that combines delicious cuisine with a commitment to the community and the environment.

Concept and Vision Our vision is to establish Harvest Bistro as a premier dining destination known for its exquisite menu, warm ambiance, and strong community ties. The concept revolves around simple yet sophisticated dishes crafted from locally sourced ingredients, featuring an ever-changing seasonal menu that keeps guests excited and engaged. We aim to build a loyal customer base by delivering exceptional service and memorable dining experiences.

Market Opportunity Maplewood is experiencing a renaissance in culinary culture, with a growing demand for restaurants that prioritize sustainability, local sourcing, and healthy dining options. Our target audience includes young professionals, families, and eco-conscious diners seeking high-quality, responsibly prepared meals. With the nearest comparable farm-to-table establishment located over 30 miles away, Harvest Bistro has a unique opportunity to capture a significant share of the local market.

Unique Selling Proposition Harvest Bistro differentiates itself through its commitment to sustainability and community involvement. We partner with local farmers and artisans to source fresh, organic ingredients, ensuring that every dish we serve supports the local economy and reduces our carbon footprint. Our menu will feature creative dishes that highlight seasonal produce, offering both vegan and gluten-free options to cater to diverse dietary preferences. Additionally, we plan to host monthly farm dinners, local wine pairings, and cooking classes, fostering a sense of community and engagement.

Management Team The restaurant will be led by experienced restaurateur Jane Mitchell, whose 15 years in the industry include the successful launch and management of three award-winning eateries. Our Executive Chef, Michael Anderson, brings a wealth of knowledge and creativity, having honed his craft at several Michelin-starred restaurants across the country. Together, they are committed to making Harvest Bistro a beloved local dining destination.

Financial Projections With an initial investment of $500,000, Harvest Bistro is projected to generate $1.2 million in revenue by the end of Year 1, with a net profit margin of 18%. Our five-year financial forecast indicates steady growth, driven by strategic marketing efforts, a robust loyalty program, and continued community engagement. By Year 3, we aim to achieve an annual revenue of $1.8 million and a net profit margin of 22%.

Conclusion Harvest Bistro is poised to become a standout dining destination in Maplewood by offering an exceptional farm-to-table experience that aligns with the values and preferences of today's discerning diners. With a passionate management team, a unique market position, and a clear plan for growth, we are confident in our ability to create a thriving business that contributes positively to our community and the environment. We invite you to join us on this exciting journey to redefine what it means to dine locally and sustainably.

Next, give a detailed company description. Talk about your restaurant's mission, vision, and values.

Include background information about the restaurant owners and main management staff, and highlight their experience and knowledge in the industry.

Clearly state your restaurant's legal structure. Is it a sole proprietorship, partnership, or corporation? This section should offer a full view of your restaurant's identity and the main factors behind it.

Step 2: Menu Design and Offerings

Your menu is very important for your restaurant. It needs careful design and good choices.

Make a sample menu that shows what your restaurant is about and what food you want to serve. Think about pricing, where you get your ingredients, and any dietary needs.

Highlight your signature dishes. These dishes should show off what your chef can do and the different flavors you provide.

Whether your place is for casual dining or fine dining or has a special theme, make sure your menu attracts customers and matches your brand.

Here are some points to think about when making your sample menu:

• Theme and Cuisine: Your menu should fit with your restaurant's idea and the type of food you serve.
• Pricing Strategy: Look into what others charge and find a price that is both good for business and competitive.
• Visual Appeal: A good-looking menu makes the overall dining experience better.

Step 3: Market Analysis and Target Audience

A good market analysis is very important. It helps you understand your competition and find your target audience.

Look into the age, dining trends, and income levels in your area.

This will help you find your ideal customer.

Create a clear profile of your target audience. Include their age, dining choices, and how much they spend. Use this information to shape your menu, marketing plan, and business strategy.

Having a clear target audience helps you change what you offer and how you communicate. This makes your marketing more effective and helps you attract the right customers.

Example Market Analysis: Harvest Bistro

Industry Overview The farm-to-table movement is a growing trend in the restaurant industry, driven by consumers' increasing desire for fresh, locally sourced, and sustainably produced food. According to the National Restaurant Association, the demand for farm-to-table dining experiences has increased by 14% annually over the past five years, reflecting a shift toward healthier eating habits and environmental awareness. This trend is particularly pronounced among millennials and Gen Z diners, who prioritize sustainability, transparency, and community impact when choosing where to eat.

Local Market Insights Located in downtown Maplewood, Harvest Bistro is strategically positioned to capitalize on these industry trends. Maplewood is a vibrant, rapidly growing community with a population of over 45,000 residents. The city boasts a median household income of $78,000, and a significant portion of its residents fall within the 25-45 age demographic—key segments that align with our target market of young professionals, families, and eco-conscious consumers.

Maplewood has recently seen an influx of new businesses and a surge in interest in local culture, art, and dining. With a thriving downtown area that hosts numerous community events, farmer’s markets, and a popular annual food festival, there is a strong appetite for unique dining experiences that emphasize local flavors and sustainable practices. However, despite this growing demand, there are currently no farm-to-table restaurants within a 30-mile radius, presenting a significant opportunity for Harvest Bistro to fill this market gap.

Target Market Segmentation Our target market can be segmented into three primary groups:

Young Professionals (Ages 25-40): Comprising approximately 35% of Maplewood’s population, this group is characterized by a disposable income and a penchant for dining out. They value high-quality, innovative cuisine and are attracted to restaurants that reflect their values, such as sustainability and community engagement.

Families (Parents Ages 30-50, with Children): Representing about 25% of the local market, families are increasingly seeking out dining options that are both kid-friendly and health-conscious. Harvest Bistro’s welcoming atmosphere, combined with menu options that cater to a variety of dietary preferences (including gluten-free and vegan choices), positions us as an attractive option for family dining.

Eco-Conscious Consumers (All Ages): This group, which includes both younger and older demographics, prioritizes sustainability and ethical consumption. They are highly likely to support businesses that share their values, especially those that emphasize locally sourced ingredients, environmental responsibility, and community involvement. This segment is estimated to make up 15-20% of the Maplewood dining market.

Competitive Landscape While Maplewood has a variety of dining options, from casual eateries to fine dining, there is currently no direct competitor offering a dedicated farm-to-table experience. Nearby restaurants that focus on local cuisine do not emphasize sustainable sourcing or seasonal menus to the extent that Harvest Bistro will. This lack of direct competition provides a unique opportunity for Harvest Bistro to establish itself as the leading choice for customers seeking fresh, locally sourced meals.

Our closest indirect competitors include a few upscale bistros and casual dining establishments that serve locally inspired dishes, but none offer a comprehensive farm-to-table concept. Harvest Bistro will distinguish itself with its commitment to local partnerships, an ever-changing seasonal menu, and community-focused events such as cooking classes and farm dinners.

Market Potential and Demand The Maplewood dining market is growing, with an estimated annual growth rate of 5%. Given the increasing consumer preference for healthier, sustainable dining options, we project strong demand for Harvest Bistro’s offerings. According to recent surveys, 72% of Maplewood residents are interested in supporting local businesses that prioritize sustainability, and 64% express a willingness to pay a premium for fresh, locally sourced food. This data indicates significant market potential for a restaurant like Harvest Bistro.

Sales Forecast Based on our target market analysis and competitive landscape, we estimate capturing 8-10% of the local dining market in our first year, translating to approximately 24,000 diners. With an average check size of $50, our revenue forecast for Year 1 is $1.2 million. We anticipate growth of 10-15% annually as we build our brand and customer loyalty through strategic marketing and community engagement.

Conclusion The market analysis indicates a strong opportunity for Harvest Bistro to establish itself as the go-to farm-to-table restaurant in Maplewood. With minimal direct competition, a favorable local demographic, and growing consumer demand for sustainable, locally sourced dining experiences, Harvest Bistro is well-positioned to thrive in this dynamic market. By leveraging our unique value proposition and actively engaging with the community, we aim to capture a significant share of the local dining market and achieve steady growth over the next five years.

Step 4: Marketing and Sales Strategies

To build a successful business, start by outlining a clear marketing plan designed to attract and retain customers.

Consider incorporating grand opening deals to generate initial interest and excitement. Utilize social media advertising and local ads to increase your visibility and reach within the community.

Focus on connecting with your target audience in meaningful ways. Create excitement by sharing attractive food pictures and announcing special deals on social media platforms.

Engage with food bloggers and local influencers to expand your reach and build credibility.

It's essential to regularly monitor and adjust your marketing efforts based on the results you observe and the feedback you receive from customers.

This proactive approach ensures that your strategies remain effective and responsive to market demands.

Step 5: Organizational Structure and Management Team

Outline how your restaurant is organized. Define the roles and responsibilities for your team. Talk about the skills and experience of your management team. Show how they can lead and run a successful restaurant.

Investors look for a strong team in charge. If some key positions are still open, describe what your perfect candidates would be like and what skills they should have.

Example Organizational Structure: Harvest Bistro

Harvest Bistro’s organizational structure is designed to ensure efficient operations, exceptional customer service, and a dynamic workplace environment that fosters creativity and collaboration. The team is composed of experienced professionals who bring a diverse range of skills and a shared passion for delivering a unique farm-to-table dining experience. Below is an outline of the key roles and responsibilities within our team, along with a brief overview of the skills and experience of our management team.

Key Roles and Responsibilities

Owner/General Manager: Jane Mitchell

• Responsibilities: Jane oversees all aspects of Harvest Bistro’s operations, including financial management, marketing, staffing, and customer satisfaction. She is responsible for setting strategic goals, managing budgets, and ensuring that the restaurant adheres to its mission of providing a sustainable, farm-to-table dining experience. Jane also cultivates partnerships with local farmers and vendors, aligning sourcing with the restaurant’s seasonal menu.
• Skills and Experience: Jane brings over 15 years of experience in the restaurant industry, having successfully launched and managed three award-winning eateries. Her expertise includes business development, team leadership, and strategic planning. Jane’s strong network within the culinary community and her passion for sustainable practices make her uniquely qualified to lead Harvest Bistro to success.

Executive Chef: Michael Anderson

• Responsibilities: Michael is responsible for designing the menu, managing the kitchen staff, and ensuring the consistent quality of all dishes served. He oversees inventory management, food sourcing, and kitchen safety protocols. Michael collaborates closely with local farmers and suppliers to create seasonal dishes that reflect the restaurant’s farm-to-table ethos.
• Skills and Experience: With over a decade of experience in some of the nation’s top Michelin-starred restaurants, Michael is known for his creativity, culinary innovation, and commitment to sustainability. His deep understanding of farm-to-table cuisine and his ability to create compelling, seasonal menus make him an ideal fit for Harvest Bistro.

Front-of-House Manager: Samantha Lewis

• Responsibilities: Samantha is in charge of all front-of-house operations, including managing the host, waitstaff, and bar teams. She ensures that every guest enjoys a welcoming and memorable dining experience. Samantha is also responsible for staff training, scheduling, customer service, and maintaining the restaurant’s ambiance and decor.
• Skills and Experience: Samantha has over eight years of experience managing front-of-house operations in high-end dining establishments. She is highly skilled in customer relations, team training, and conflict resolution. Her strong leadership and communication skills ensure a cohesive team environment and excellent customer service.

Sous Chef: David Martinez

• Responsibilities: David assists the Executive Chef in menu planning, food preparation, and kitchen management. He supervises line cooks, manages food quality control, and ensures adherence to health and safety standards. David also plays a crucial role in creating daily specials and implementing new recipes.
• Skills and Experience: David has five years of experience as a sous chef in both fine dining and casual eateries. His expertise lies in efficiently managing kitchen operations and ensuring the highest quality in food preparation. He is passionate about sustainable cooking and locally sourced ingredients, aligning perfectly with Harvest Bistro’s mission.

Marketing and Events Coordinator: Emily Wong

• Responsibilities: Emily is responsible for developing and executing marketing strategies, managing social media accounts, and planning special events such as farm dinners, wine pairings, and cooking classes. She works closely with the General Manager to promote Harvest Bistro’s unique offerings and build a loyal customer base.
• Skills and Experience: Emily has a background in digital marketing and event management, with over six years of experience in the hospitality industry. Her creative marketing campaigns and strong community engagement skills will help elevate Harvest Bistro’s brand presence and attract new customers.

Head Bartender: Tom Richardson

• Responsibilities: Tom manages the bar operations, including drink menu creation, inventory control, and staff training. He ensures that all beverages are prepared to the highest standards and develops signature cocktails that complement the seasonal food menu.
• Skills and Experience: With over ten years of experience as a mixologist and bar manager, Tom is known for his innovative drink creations and his ability to provide a memorable bar experience. His understanding of local flavors and dedication to sustainability align with the restaurant’s overall philosophy.

Line Cooks, Hosts, Waitstaff, and Support Staff

• Responsibilities: These team members are critical to daily operations, ensuring efficient kitchen prep, welcoming service, and a seamless dining experience for all guests. Line cooks are responsible for food preparation under the guidance of the Executive Chef and Sous Chef. Hosts and waitstaff handle guest seating, order taking, and customer satisfaction.
• Skills and Experience: Each staff member is trained in their specific roles, with an emphasis on teamwork, customer service, and product knowledge. Many have previous experience in similar roles and are enthusiastic about contributing to Harvest Bistro’s mission.

Leadership and Management Capabilities

The management team at Harvest Bistro is uniquely qualified to run a successful restaurant, given their diverse backgrounds and extensive experience in the industry.

Jane Mitchell’s strategic vision and leadership skills, combined with Michael Anderson’s culinary expertise, set the foundation for a restaurant that is both innovative and operationally sound.

Samantha Lewis’ strong front-of-house management ensures an exceptional customer experience, while Emily Wong’s marketing acumen drives brand visibility and engagement.

Together, this team has a proven track record of success in the restaurant industry, with a deep understanding of both the business and creative aspects of running a farm-to-table dining establishment.

Their combined skills and experience provide the leadership needed to build a thriving, community-focused restaurant that meets both its financial goals and its mission to promote sustainability.

Having a united and experienced team is important. It helps with smooth operations, great customer service, and the overall success of your restaurant.

Step 6: Operational Plan and Logistics

Develop a clear plan for how your restaurant will operate every day. This plan should include details on how to choose vendors, manage inventory, and create staff schedules.

Having a good operational plan will help things run smoothly and use resources wisely.

Example of Vendor Selection & Management

At Harvest Bistro, vendor selection is critical to maintaining our commitment to fresh, locally sourced, and sustainably produced ingredients. We will establish partnerships with local farmers, artisanal producers, and sustainable suppliers who align with our values and can provide consistent, high-quality products. Our vendor selection process will involve:

• Research and Networking: We will research local farms and suppliers within a 50-mile radius and attend local farmers' markets and food fairs to identify potential vendors.
• Quality Assessment: Potential vendors will be evaluated based on the quality of their produce, sustainability practices, and reliability. We will visit farms and facilities to inspect production methods and ensure that all partners meet our standards for organic and ethical farming.
• Pricing and Contracts: Negotiations will focus on establishing fair pricing and building long-term relationships. We will create contracts that outline delivery schedules, payment terms, and quality standards.
• Diversity and Backup: We will work with multiple vendors for each product category to ensure a steady supply and mitigate risks associated with crop failures or supply chain disruptions.

You should also create a layout of your restaurant's floor plan. This should show seating capacity, how the kitchen is organized, and how customers will move around.

This visual aid will help potential investors see your space and understand how it works.

Logistics play a key role in running a successful restaurant. Making processes easy, ensuring deliveries are on time, and keeping inventory levels just right will help reduce waste and increase profits.

Step 7: Financial Projections and Funding Requirements

Financial projections are a critical component of your business plan.

Provide detailed financial statements, including projected income statements, balance sheets, and cash flow statements for the next three to five years.

Clearly state your funding requirements and how you plan to utilize the funds.

Whether you're seeking investors, loans, or a combination, transparent financial projections are crucial for securing funding and demonstrating your business acumen.

Sample Financial Projections Template for Harvest Bistro

 The following provides a comprehensive overview of our anticipated financial performance over the next three to five years, including detailed income statements, balance sheets, and cash flow statements.

Projected Income Statements (Profit and Loss Statements)

• Total Revenue: $[Amount]
• Cost of Goods Sold (COGS): $[Amount]
• Gross Profit: $[Amount]
• Operating Expenses: $[Amount]
• Net Profit: $[Amount]

(Continue for Years 3-5)

Projected Balance Sheets

• Current Assets: $[Amount]
• Fixed Assets: $[Amount]
• Current Liabilities: $[Amount]
• Long-term Liabilities: $[Amount]
• Equity: $[Amount]

Projected Cash Flow Statements

• Cash Flow from Operating Activities: $[Amount]
• Cash Flow from Investing Activities: $[Amount]
• Cash Flow from Financing Activities: $[Amount]
• Net Cash Flow: $[Amount]
• Net Cash Flow: $[Amount] (Continue for Years 3-5)

These financial projections are based on our expected growth, market trends, and strategic plans to increase revenue and manage costs effectively. They provide a roadmap to ensure Harvest Bistro remains financially sound and profitable over the coming years.

Legal and Regulatory Considerations

Navigating the legal rules is very important for a restaurant business. You need to follow all local, state, and federal rules about food service, health, safety, and hiring workers.

It is a good idea to talk to a lawyer and a business advisor. They can help you get the right licenses, permits, and insurance.

Following these rules keeps your business safe from legal problems and helps create a safe space for employees and customers.

Food Service Licenses & Permits

Getting the right food service licenses and permits is a must for any restaurant that wants to operate legally.

The rules can change depending on where you are and what type of business you have, so it's important to do your research.

You should reach out to your local health department and other important offices to find out what specific licenses and permits your restaurant needs.

Common requirements might include food handler's permits for your staff, a business license, and a food establishment permit.

Staying compliant with these regulations is an ongoing task. You should regularly check your licenses and permits to ensure they are current and meet the latest standards.

Compliance with Health and Safety Regulations

Health and safety rules are very important in the restaurant industry. You should know the local and national food safety rules . This includes how to handle, store, and clean food properly.

You need to set up a complete food safety training program for all your staff. Make sure they understand and follow all the steps. Inspect your facilities and equipment regularly to keep everything safe and clean.

Following health and safety rules protects your customers from getting sick from food.

It also helps to protect your reputation and lowers the chance of expensive legal problems.

Implementing Technology in Your Restaurant Business

In today's world, technology is very important for improving how restaurants run and how customers feel.

There are tools like point-of-sale (POS) systems and platforms for online ordering. These tools help restaurants to work better and faster.

Using technology can help you improve your operations, understand your customers better, and reach more people.

Point of Sale (POS) Systems and Management Software

Choosing the right point of sale (POS) system and management software is very important for your restaurant.

A good POS system can help process orders faster, keep track of sales data, and manage inventory.

Management software can make work easier by automating things like employee schedules and payroll.

Using these tools well can improve customer service and make your restaurant more efficient.

This can increase profit and make customers happier. Picking the right POS system can really affect your earnings and help your operations run smoothly.

Leveraging Online Ordering and Delivery Platforms

In today’s economy, it is important to offer online ordering and work with delivery platforms to grow your customer base.

Make sure your website and mobile app provide an easy online ordering experience.

Customers should be able to quickly look at your menu and place orders.

Partner with trusted delivery services to reach more people and take advantage of the rising trend in food delivery. When selecting your partners, consider carefully delivery fees and commissions.

By providing online ordering and delivery, you meet the changing needs of customers.

This also helps you reach more people, increase the number of orders, and may raise your revenue.

Frequently Asked Questions

How can i determine the best location for my restaurant.

Finding the right place requires looking at foot traffic and how easy it is to get there for your target market. You should also consider how close it is to local businesses and check out the competitors in that specific location. Thorough market research is important to help you make a smart choice.

What are the most effective marketing strategies for a new restaurant?

Effective marketing strategies use social media, work with local partners, and create engaging content that targets your market. You might also want to talk to industry experts for help. It is important to check and adjust your marketing efforts regularly.

How do I create realistic financial projections for my restaurant?

Making financial projections means predicting sales and considering expenses like food, labor, and other costs. Talking to a trained accountant can help you create a complete budget. This includes a predicted profit and loss statement, as well as realistic financial goals, especially for your important first year.

Wrapping it Up

In summary, a clear restaurant business plan is very important for your restaurant's success. It helps you explain your idea, know your market, and make a practical financial plan.

By using a step-by-step method from this guide, you can create a plan that shows what makes your restaurant special and different from others in the restaurant industry.

Remember to use technology and follow legal rules; these are important aspects to consider. If you need more help or advice in creating your restaurant business plan, feel free to contact us.

Good luck with your restaurant!

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Moscow's culinary opportunities: How to open a restaurant

Having a nice family-style restaurant in the Russian capital with a flavor of your home country is a popular business option for many expats. But it’s not as easy as it might seem. Here are a few things to consider for potential restaurant-owners.

Thinking it through

First and foremost, one should make sure that owning a restaurant, even a small one, is really something you would like to do. As any kind of business, it takes a significant amount of time and money to manage and develop. “Success in public catering requires hard work, without weekends or holidays,” Ilias Iliadis, owner of Pita&Suvlaki Greek restaurant in Moscow, told Russia Beyond. “It is not as hard to open a place as running it.”

One will need to learn everything about every aspect of a business, from legal, fire and sanitary requirements to managing business partner relationships and hiring experienced staff. “There are many difficulties in this sphere, so you need to be totally in love with what you do to be successful,” says Radomir Krajinovic, owner of Serbian restaurant Optimist.

The number of national cuisine restaurants have grown in Moscow over the last few years.

Market trends

As we noted previously, the economic crisis had led to many Russians cutting back and, as a result, there has been a growth in interest in developing fast food outlets.

Yet, the general dynamic for restaurants is toward growth: According to Poster company 2017 review of trends in the restaurant business, healthy eating, vegetarian food, open kitchen format, craft beer, food trucks (mobile cafes), and regional cuisine are becoming more popular in Moscow. The number of restaurants and bars grow and they compete for custom by offering special deals and interesting dining formats.

“Over the last few years the number of national cuisine restaurants have grown,” says Krajinovic. ”Yes, the crisis has led to fewer people visiting us, but we are still doing well - we are opening a new restaurant soon.”

Iliadis’s venture is also experiencing growth: He opened his first café in city center in 2014 – now he has opened a second restaurant and a third one is on the way.

Of course, setting up a firm without back is impossible. “To open a small restaurant or a cafe one would need 5 million rubles ($87,160),” Vladimir Shalaev, a lawyer at BMS Law Firm, told Russia Beyond. Iliadis confirms this figure. “In our case it was a year before it paid off. Our small restaurant became popular quickly so we had to find a bigger place,” he adds.

“The biggest part of what you’ll need to pay is rent. It is very expensive here,” Krajinovic says. “Other things depend on what one wants. A home-style restaurant might require from seven to 10 million rubles of investment which will pay off in two years.”

Russian banks also offer business loans. “You need to have 30 percent of the necessary investment for the new project and the bank will cover the remaining 70 percent,” says Igor Glukhov, deputy director of Credit Department of RosEvroBank.

If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.

Legal aspect

The procedure of setting up a legal entity is no different for a foreigner than for a Russian national. “You need to gather all necessary documents to register a firm: Passport, various papers, a receipt of registration fee payment; foreign citizens need to provide a certified passport translation as well,” Shalaev said.

Of course, just registering a company will not be enough. You need to get a license for selling alcohol, rent a place for your café, add it to the commercial register, then get all necessary permits from sanitary and fire inspections, as well arrange for garbage disposal, Shalaev added.

“The legal framework is very similar to that in Greece,” Iliadis says. “The Russian requirements gradually develop to European standards. Of course, like in Greece, there are still some outdated rules, such as having a separate room for peeling potatoes, but inspectors don't take it seriously. No one terrorizes you every day without reason. If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.”

Krajinovic, who has been running his restaurant since 2012, agrees. “There are no problems. If you follow all the necessary requirements and use fresh products, no one will bother you asking for money,” he says. “A good thing here is that 3-4 months after starting a business you know how much tax you will need to pay, as opposed to Europe, where the percent might change. Here we pay 15-20 percent of our profits.”

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Restaurants

Moscow has developed a reputation as a “foodie” town, thanks to a local community of chefs and restaurateurs who regularly introduce new concepts and creations. From down-home comfort food to continental cuisine, you’ll have a variety of choices for any meal.

A&W | All American Food

1317 S Main St., Moscow, ID 83843

(208) 882-2301

Applebee’s Grill + Bar

105 Warbonnet Dr., Moscow, ID 83843

(208) 883-4821

Arby’s

150 Peterson Dr., Moscow, ID 83843

(208) 882-4223

Bucer’s | Coffehouse & Pub

201 S Main St., Moscow, ID 83843

(208) 596-0887

Buffalo Wild Wings

1710 W Pullman Rd., Moscow, ID 83843

Café Artista

218 S Main St., Moscow, ID 83843

(208) 882-1324

512 S Washington St., Moscow, ID 83843

(208) 882-1154

Corner Club

202 N Main St., Moscow, ID 83843

(208) 882-2915

Dominos Pizza

317 W. 6th St. Suites 105 & 106, Moscow, ID 83843

(208) 883-1555

Forty Two Bar Kitchen

2012 S Main St., Moscow, ID 83843

(208) 882-3344

Gambino’s

308 W 6th St., Moscow, ID 83843

(208) 882-9000

(208) 907-1013

2002 S Main St., Moscow, ID 83843

(208) 310-4427

Humble Burger

509 S. Main Street., Moscow, ID 83843

(775) 600-2874

Hunga Dunga Brewing Co.

333 N Jackson St., Moscow, ID 83843

(208) 596-4855

2010 S Main St., Moscow, ID 83843

(208) 874-8007

Jack Jack’s Diner

203 W 3rd St., Moscow, ID 83843

(208) 883-8250

1320 S Mountain View Rd., Moscow, ID 83843

(208) 669-1743

Jimmy John’s

529 S Jackson St., Moscow, ID 83844

(208) 883-3278

Karma Indian Cuisine

Eastside Marketplace

1420 S Blaine St. Suite #19-20, Moscow, ID 83843

(208) 301-5117

1400 S Blaine St., Moscow, ID 83843

(208) 882-8363

La Casa Lopez

415 S Main St., Moscow, ID 83843

(208) 883-0536

LocoGrinz Hawaiian BBQ

113 N Main St., Moscow, ID 83843

(208) 883-4463

106 N Main St., Moscow, ID 83843

(208) 882-2268

212 S Main St., Moscow, ID 83843

(208) 883-8221

Maialina Pizzeria Napoletana

602 S Main St., Moscow, ID 83843

(208) 882-2694

1404 W Pullman Rd., Moscow, ID 83843

(800) 244-6227

862 Troy Rd., Moscow, ID 83843

(208) 882-1953

Mikey’s Greek Gyros

527 S Main St., Moscow, ID 83843

(208) 882-0780

Mingles Bar and Grill

102 S Main St., Moscow, ID 83843

(208) 882-2050

710 W Pullman Rd., Moscow, ID 83843

(208) 504-0280

Moscow Alehouse

226 W 6th St., Moscow, ID 83843

(208) 882-2739

Moscow Bagel & Deli

310 S Main St., Moscow, ID 83843

(208) 882-5242

Moscow Brewing Company

630 N Almon St., Moscow, ID 83843

(208) 596-4058

Moscow Elks #249

3080 ID-8, Moscow, ID 83843

(208) 882-3015

Moscow Food Co-op

121 E 5th St., Moscow, ID 83843

(208) 882-8537

Nectar Restaurant & Wine Bar

105 W 6th St., Moscow, ID 83843

(208) 882-5914

One World Café

533 S Main St., Moscow, ID 83843

(208) 883-3537

Palouse Juice

1420 S Blaine St. #24, Moscow, ID 83843

(208) 310-6692

Panda Express

1932 W Pullman Rd., Moscow, ID 83843

(208) 882-8880

Papa Murphy’s Take’N’Bake Pizza

524 W 3rd St., Moscow, ID 83843

(208) 883-9508

Paradise Grill and Café

1902 W Pullman Rd., Moscow, ID 83843

(208) 882-5660

Patty’s Mexican Kitchen

450 W 6th St., Moscow, ID 83843

(208) 883-3984

1429 S Blaine St., Moscow, ID 83843

(208) 882-0444

Pizza Perfection

428 W 3rd St., Moscow, ID 83843

(208) 882-1111

Qdoba Mexican Grill

1970 W Pullman Rd., Moscow, ID 83843

(208) 892-8569

1896 Pullman Rd., Moscow, ID 83843

(208) 596-4041

Red Star Coffee

1046 W Pullman Rd., Moscow, ID 83843

(208) 892-8007

Seasons Public House

1516 W Pullman Rd., Moscow, ID 83843

(208) 882-0550 Ext 333

Shari’s Restaurant and Pies

121 Warbonnet Dr., Moscow, ID 83843

(208) 882-1971

Sisters Cookie Company

610 N Almon St. Suite 130, Moscow, ID 83843

(208) 596-9690

Slice Taphouse

125 E 2nd St., Moscow, ID 83843

1930 W Pullman Rd., Moscow, ID 83843

(208) 882-2163

1320 S Blaine St., Moscow, ID 83843

(208) 883-0713

402 W 6th St., Moscow, ID 83843

(208) 892-2080

307 W 3rd St., Moscow, ID 83843

(208) 883-3841

866 Troy Rd., Moscow, ID 83843

(208) 882-3238

401 W 6th St., Moscow, ID 83843

(208) 882-8226

Tapped – Taphouse & Kitchen

210 S Main St., Moscow, ID 83843

(208) 596-4422

The Bean Farm

503 Troy Rd., Moscow, ID 83843

(425) 861-7864

The Breakfast Club

501 S Main St., Moscow, ID 83843

(208) 882-6481

Thomas Hammer Coffee Roasters

710 S Deakin St., Moscow, ID 83844

(208) 885-6600

Wendy’s

1030 W Pullman Rd., Moscow, ID 83843

(509) 326-6333

Young’s Alley

304 W 6th St., Moscow, ID 83843

(208) 301-7888

1222 W Pullman Rd., Moscow, ID 83843

(208) 883-0678

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Breakwater Management may acquire Tender Greens and Tocaya

Tgi fridays loses control of most of its assets, two companies learn the hard way that running restaurants is difficult, pinstripes warns of staff cutbacks after a challenging quarter, kamala harris pledges to help more restaurants and other small businesses get off the ground, red lobster set to exit bankruptcy after court approval.

A judge on Thursday approved Red Lobster’s Chapter 11 bankruptcy plan, clearing the way for the seafood chain to be sold to a group led by Fortress Investment Group.

The Orlando-based casual-dining company filed for bankruptcy in May with liabilities of between $1 billion and $10 billion, capping a tumultuous period of sales declines, losses and leadership turnover. Before and during the bankruptcy proceedings, Red Lobster closed more than 100 struggling restaurants across the country and now stands at 544 locations. 

One of the industry’s most well-known brands, Red Lobster will look to get back on track under its new owner, which last week named a new chief executive for the chain, former P.F. Chang’s CEO Damola Adamolekun. 

Calling it a “great day for Red Lobster,” Adamolekun in a statement said the company has a plan to reinvigorate the brand with the help of $60 million in new funding from its investors.

“Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the company's more than 30,000 team members across the USA and Canada,” Adamolekun said.

New York-based Fortress, along with co-investors TCW Private Credit and Blue Torch, was the stalking-horse bidder in Red Lobster’s sale process and won the bidding after no other buyers came forward. It offered approximately $375 million, which included $275 million in debt and $100 million in debtor-in-possession financing, for the chain, according to bankruptcy documents. The deal is expected to close before the end of the month.

Fortress has some restaurant experience. An affiliate, SPB Hospitality, owns Krystal, Logan’s Roadhouse and about a dozen other mostly full-service concepts, many of which were acquired out of bankruptcy. Red Lobster will become Fortress’ biggest restaurant holding by far, with more than $2.1 billion in sales last year, according to Technomic data.

Red Lobster has changed hands several times since it was founded in 1968 by legendary restaurateur Bill Darden. It was acquired by General Mills in 1970 and spun off as part of the newly created Darden Restaurants in 1995. In 2014, Darden sold it to private-equity firm Golden Gate Capital. Two years later, Golden Gate sold a 25% stake in Red Lobster to Bangkok-based seafood company Thai Union Group. In 2020, Thai Union and a consortium of investors called the Seafood Alliance bought the remainder of the chain.

Red Lobster stagnated after the sale from Darden to Golden Gate, with sales and unit count largely unchanged from 2014 to 2019.  After an initial bounce-back from pandemic lockdowns, the chain struggled with rising costs and falling traffic. In an effort to turn the tide, Thai Union last year launched an all-you-can-eat shrimp deal that led to heavy losses. In January, it announced that it was exiting its investment in the chain.

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Red Lobster Receives Court Approval of Chapter 11 Plan; Nears Exit of Bankruptcy

Under Chapter 11 plan, Red Lobster will be acquired by RL Investor Holdings LLC, an entity backed by Fortress Investment Group

As part of the Chapter 11 plan, RL Investor Holdings LLC will acquire the Red Lobster® restaurant chain from the Company. RL Investor Holdings LLC is an entity created by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”), alongside co-investors TCW Private Credit and Blue Torch. The acquisition is anticipated to close before the end of September.

On completion of the acquisition, Damola Adamolekun will become the CEO of the Red Lobster restaurant chain, and Jonathan Tibus, who has served as the Company’s CEO during the reorganization, will step down from the role and leave the Company.

“This is a great day for Red Lobster,” said Mr. Adamolekun. “With our new backers, we have a comprehensive and long-term investment plan – including a commitment of more than $60 million in new funding – that will help to reinvigorate the iconic brand while keeping the best of its history. Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the Company’s more than 30,000 team members across the USA and Canada. I want to thank Jonathan Tibus and his team for their stewardship, and look forward to welcoming them as frequent Red Lobster guests.”

Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian Provinces.

Jonathan Tibus added, “I’m proud of what Red Lobster has achieved during this restructuring – the Company will emerge from Chapter 11 stronger financially and operationally, and with new backers who are resolutely focused on investment and growth. I’m incredibly grateful for the support we’ve received from our team members and diners, and from so many of our landlords and vendors throughout this process. I’m looking forward to cheering on Red Lobster as an ardent fan in the years ahead.”

About Red Lobster restaurant chain

Red Lobster is the world’s largest and most-loved seafood restaurant company, headquartered in Orlando, Fla. With a proud heritage, Red Lobster is focused on serving the highest quality, freshly prepared seafood that is traceable, sustainable, and responsibly sourced. To learn more about Red Lobster, including locations and menu options, please visit RedLobster.com or find us on Facebook , X , Instagram , Threads , or TikTok .

Contact: [email protected]

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Court Says Red Lobster Can Swim Out of Bankruptcy and Restructure

The seafood restaurant chain, now weighed down by $300 million in debt, gets the green light to exit chapter 11 protection under a ceo with a plan to recapture its past glory..

Red Lobster, the seafood chain that filed for  Chapter 11  protection in May with debts of around $300 million, appears to have finally ended its prolonged run of intensely bad luck. A court approved the  restructuring plan  designed to lift the casual dining restaurant out of bankruptcy and back onto solid financial footing. Additionally, its recently appointed CEO, Damola Adamolekun, is also getting considerable attention with his project for restoring the 56-year-old company to its former glory.

The latest development  in Red Lobster's  efforts to rebound from bankruptcy came Thursday, when a  business court cleared  the restructuring plan tabled by RL Investor Holdings, which will pump $60 million in the chain's bid to work back to profitability. That effort is being backed by a collective of creditors led by Fortress Investment Group, which has previously bought hospitality companies like Twisted Tenders, Logan's Roadhouse, Krystal, and Old Chicago Pizza & Taproom. Its strategy for returning Orlando-based Red Lobster to profitability focuses on improved food, more effective and economical restaurant operations, and enhanced service and employee engagement.

If it succeeds, the turnaround would a dramatic one .  Reportedly the  largest U.S. seafood  chain for much of the 1990s and 2000s, Red Lobster lost nearly 30 percent of its previous customer base since the pandemic, when many diners never returned following temporary closures. The continued sales slump culminated in last year's huge $23 million loss--nearly half of which came from the  $11 million deficit  of its disastrous move to make its $20 all-you-can-eat shrimp promotion a fixed menu item.

Earlier this year, the outlook appeared so bleak that Red Lobster's principal owner, Thai Union, decided to take a $530 million writeoff just to walk away from the seemingly doomed investment.

Under the newly approved rescue plan, however, things look a bit brighter. 

Awaiting the court's greenlighting of Fortress Investment's restructuring project, an interim management team shuttered nearly 130 unprofitable locations and sold off their assets. As a result, Red Lobster will now re-emerge 20 percent smaller, operating 544 restaurants in 44 states. Its objective is to recapture its former magic of providing quality food and top service at affordable, yet profitable prices. 

Leading that effort is 35-year-old Adamolekun, the subject of a  Wall Street Journal  portrait Friday. A native of Nigeria who lived in Zimbabwe and the Netherlands before being brought to the U.S. aged 9 by his neurologist father, Adamolekun's biography seems  written for Hollywood .

After using a $10,000 prize from a high school debate contest to finance his first stock portfolio--and feed his budding interest in finance--the then-16-year-old Adamolekun was encouraged by his Maryland football coach to keep playing the sport at one of the top colleges the youth longed to attend. After sending a highlight reel from his best games--along with his impressive academic records--to several elite schools, Adamolekun wound up accepting an offer from Brown University, where he played free safety.

As an undergrad and also while attending Harvard Business School for his MBA, Adamolekun joined campus investment clubs and started networking with financial sector professionals. They included hedge fund manager John Paulson, who in 2017 offered the recent graduate a job. When Paulson took a controlling stake in stumbling Asian restaurant chain P.F. Chang's in 2019, the  Journal  said, he tapped Adamolekun to serve on its board. The next year, the precocious  manager was named CEO.

"He got the chain to invest in digital ordering and to-go dining before the pandemic, capacities that paid off massively for the chain after Covid-19 closed its dining rooms," the  Journal  wrote. "P.F. Chang's sales fell 21(percent) to $700 million in 2020 from the year prior... but rebounded to $933 million in 2021, above pre-pandemic levels. The 225-unit chain's sales have stayed roughly steady since."

After stepping away from the P.F. Chang's CEO job last year as the company's priorities shifted to the follow-through phase of recovery, Adamolekun joined private equity firm Garnett Station Partners. While there, he was recruited by Fortress Investment, which asked if he'd be interested devising a rescue and renaissance plan for Red Lobster. He did, and quickly got to work on that.

As part of his research into Red Lobster, the  Journal  said Adamolekun ate in dozens of its restaurants across the nation, taking stock of what still worked, what didn't, and what could be revived and made better. Under the restructuring project he's drawn up for the chain, Adamolekun told the paper he plans to "slim down its menu, as he did at P.F. Chang's," and start paying employees "higher wages in some markets to reduce turnover." 

Whether that will allow Red Lobster to rebound, much less recapture its past success, remains to be seen. But in announcing the court's approval of the bailout, Adamolekun voiced a decidedly optimistic outlook for the company's future.

"This is a great day for Red Lobster," he said in a press release on the restructuring approval. "With our new backers, we have a comprehensive and long-term investment plan--including a commitment of more than $60 million in new funding--that will help to reinvigorate the iconic brand while keeping the best of its history. Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the Company's more than 30,000 team members across the USA and Canada."

Meaning, there could be profitable days ahead once again for the chain and its crab legs, popcorn shrimp, and Cheddar Bay Biscuits--even if all-you-can-eat shrimp is almost certain to remain banished from Red Lobster's menu as an unpleasant memory of its troubled past.

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Red Lobster sale and reorganization plan approved by federal judge

After months of dozens of restaurant closings and headlines about “endless shrimp” woes, Red Lobster is poised to soon exit from Chapter 11 bankruptcy protection.

A U.S. bankruptcy judge on Thursday approved the casual seafood chain’s reorganization plan and sale to a lender group led by asset manager Fortress. The green light arrives under just four months after Red Lobster filed for bankruptcy protection as it pursued a sale, following years of mounting losses and dwindling customers while it struggled to keep up with competitors.

At the time of filing in May, Red Lobster’s leadership shared plans to “simplify the business” through a reduction of locations. The Orlando, Florida, chain shuttered dozens of its North American restaurants in recent months — both leading up to and during the bankruptcy process. That includes  more than 50 locations  whose equipment was put up for auction just days before the Chapter 11 petition, followed by dozens of additional closures throughout the bankruptcy process.

Red Lobster said Thursday that it expects to operate about 544 locations across the U.S. and Canada upon emerging from bankruptcy. That’s down from 578 disclosed as of May’s filing.

Under terms of the acquisition, which is expected to close at the end of September, the chain will continue to operate as an independent company.

The chain will also get a new CEO — Damola Adamolekun, former chief executive of P.F. Chang’s.

Adamolekun was appointed to head RL Investor Holdings, the newly formed entity acquiring Red Lobster, by Fortress last week. In a statement Thursday, Adamolekun said that Red Lobster “has a tremendous future” and thanked Jonathan Tibus, who will leave the company and step down as CEO, for his leadership during the bankruptcy process.

Red Lobster’s purchaser is also providing additional funding to help the Orlando, Florida-based chain get back on its feet post-emergence. Adamolekun said the company’s long-term investment plan includes a commitment of more than $60 million in new funding.

Red Lobster has seen multiple ownership changes over the course of its 56-year history. The chain was founded back in 1968 by Bill Darden, who sold Red Lobster to General Mills in 1970. General Mills later went on to form Darden Restaurants , which owns Olive Garden and other chains. Darden Restaurants was spun off from General Mills in 1995.

Darden Restaurants later sold Red Lobster to a private equity firm in 2014.  Thai Union Group , one of the world’s largest seafood suppliers, first  invested in Red Lobster in 2016  and upped its stake in 2020 — but announced its intention to exit its minority investment earlier this year.

When announcing plans to divest in January, CEO Thiraphong Chansiri said the COVID-19 pandemic, industry headwinds and rising operating costs from Red Lobster had resulted in “prolonged negative financial contributions to Thai Union and its shareholders.” It reported a $19 million loss from Red Lobster for the first nine months of 2023.

While not the sole reason, among sources of loss were — yes — those endless shrimp. Last year, Red Lobster significantly expanded the iconic all-you-can-eat special. But customer demand overwhelmed what the chain could afford. Thai Union leadership later noted that the deal’s $20 price tag wasn’t making enough money.

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

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