Need to Write a Restaurant Business Plan Sample? Here’s What You Need to Include

If you’re about to open up a restaurant then you need to have a restaurant business plan properly written. You probably have a pretty good idea of some or perhaps most of the things you need to include in your plan, but there are probably some things you don’t know you should include. So let’s take a look at what you need to include when you write a restaurant business plan sample.

Overall you need to include five bigger topics in your plan. These five topics are an Executive Summary, History and Position to Date, Market Research, Business Strategy and Operations.

The first thing you need to do when you write a restaurant business plan sample is to write an Executive Summary. In the Executive Summary there are a few issues you need to address. These issues include: a description of the company, a mission statement, products and services you will offer, a financial forecast, and financing requirements. All of this information will help lay the foundation for what your restaurant will do and how you plan to do it.

The next issue you need to write about is History and Position to Date. This will take things a step further and lay even more of a foundation while including more details. While writing this part of your plan you should include: the company’s mission, the management teams and key personnel, services (more in depth), a company history, guarantees and warranties you’ll offer, and your business structure.

The third part of the business plan is arguably the most important. This will help you predict how successful your business will be and how you can make your restaurant as successful as possible. This part should include: economic and social factors, competitive environment, long-term opportunities, geographic area, customer description, target customers, market definition, market opportunities, competitive analysis, competitive advantages, competitive positions, and potential future competition. All of this information should be researched and then analyzed thoroughly. The answers you’ll get during this part will be invaluable to the future success of your restaurant.

The fourth topic you need to address while writing your restaurant business plan is your business strategy. This part should outline exactly how you will attract customers and how you plan to keep them coming back. The topics you should address during this part are: customer incentives, advertising and promotion, sales and marketing, and commission. The information you include in this part will directly lead to how well your restaurant is going to be doing.

Finally you want to outline your operations. This final part will include the specifics of how your business will be run on a daily basis. This part should include things like: how many employees you’ll have, what type of employees you’ll have, what you’ll serve, how you want your menus to look, etc. Basically anything that goes into the daily operation of your business needs to be addressed in this final part.

If you plan to open a restaurant then you need to have a restaurant business plan properly done. Your plan should include the broad topics of Executive Summary, History and Position to Date, Market Research, Business Strategy, and Operations.

Updating Your Business Plan

Business plans are not static documents. Rather, they are dynamic documents that change often. Keeping your business plan up-to-date can be a critical factor in both your ability to raise capital and your ability to execute on the opportunity at hand.

There are many parts of a business plan that need periodic updates. Sections that most commonly need to be modified include the milestones, competition, management team and financials sections.

Milestones: What milestones has your business achieved since the last version of the business plan was prepared? Showing investors that your company continues to execute on the opportunity and meet milestones is a key way to gain an investment.

Competition: Particularly in emerging markets, the competitive landscape changes rapidly. It is common for new ventures to enter the market and established companies to extend business lines into it. Updating the competitive section of the business plan is critical to letting management and investors understand the new landscape and adapt accordingly.

Management team: As companies add management team members, it is important to update the plan with their bios. A fuller management team is a positive sign to investors that the company is poised for success.

Financials: Business plan financials often have a plethora of assumptions such as customer penetration rates, prices, margins, etc. As a company begins to execute on its opportunity, it is able to replace the assumptions with real figures. Making these substitutions in the financial model is critical in understanding the cash flow needs of the venture. Misunderstanding financial needs is a key reason why some companies fail.

Strong management teams know the importance of their business plan and update their plans constantly to make sure their focus and action plan is always crystal clear. Likewise, they recognize the importance of sharing their updated plans with investors and management team members to keep everyone in synch.

Why Write a Restaurant Business Plan?

Lack ideas on what vital information to incorporate in a business plan? Confused on how to do it right? If so, you are not alone because thousands of neophyte entrepreneurs who plan to open a new business lack ideas on how to begin the task.

Starting or opening a new restaurant or fast-food chain is not as easy as you think because of the numerous factors you need to consider to become successful. Apart from hiring the needed manpower and purchasing the needed equipment and supplies, you need to have a restaurant business plan. If you are looking for insights and ideas on how to write a business concept, you can read the article below.

Writing a business plan is the first step in opening a restaurant and increasing your chance to succeed in the competitive sector. A business concept is not merely notes that serve as a reference on how you cook a particular recipe, but it is a document that details your goals, missions, time schedules, actions, results and growth. It serves as your ticket to get additional funding and fighting stiff competition.

Regardless of the size, the type of business and your intent of opening a business, every business enterprise needs a business plan. You need it to assess your viability in the sector where you want to penetrate. It gives you an overview of the firm’s future and assesses the sufficiency of your funds to get you through until you begin to make a profit. As your firm grows and becomes successful, you need to update your plan to reflect new challenges, new business strategies and business projections.

Importance of a business plan to restaurants:

  • It is needed to stay competitive and to survive the competitors.
  • It is needed to get additional funding from financial institutions, shareholders and investors.
  • It increases the chances of becoming successful in the competitive industry.
  • To attract new investors.
  • To attract new customers, retain existing customers and establish customer loyalty.
  • To assess its potential of expanding to new areas.

If you lack ideas and information on how to write a restaurant business plan, you can always hire a professional business planner to do the job. You can also surf the Internet and choose from the numerous existing business templates found online.

Before you decide to use a ready-made restaurant business template, you need to know its advantages and disadvantages.

Pros:

A good restaurant business plan template can help you organize your thoughts. It serves as a benchmark and guidelines on what steps you need to follow. It can be a decent method to start your planning process.

Cons:

It is not the best method to complete your business concept because you still need to do extensive research to know other components of a business plan, such as financial analysis, competitive advantage and industry forecast.

Basic components of a restaurant business plan:

  • Executive summary
  • Company description
  • Industry analysis
  • Products & related services
  • Target market
  • Competition
  • Sales plan
  • Marketing strategies
  • Operations
  • Management & ownership
  • Financial aspect
  • Exit strategy
  • Exhibits appendices

Now that you know the significance of business plan and its basic components, you can now kick-start your business concept.