| The preparation of a strong and detailed business | | | | will allow for several months of operating costs |
| plan is essential for a restaurant business for | | | | when they calculate total start-up costs as |
| several reasons. Firstly, you will need it to be able | | | | revenue will be slow at first. |
| to convince others, such as bank managers or | | | | This is also a good part of the report to include |
| investors of the viability of your plans. Secondly, it | | | | details of how the restaurant startup will be |
| will be useful to you as the business owner as a | | | | funded and the sources of finance that you, as |
| place to compile your research findings, set goals | | | | the owner have available. |
| and to run some hypothetical scenarios about | | | | Location and Competition |
| how the business could run if things go better or | | | | Set out your reasons for wanting to locate your |
| worse than expected. Below we have outlined the | | | | restaurant in a specific location. Include details of |
| key components of a business plan for a | | | | all local competitors and how you propose to |
| restaurant start-up. | | | | differentiate your restaurant in a way so as to |
| Executive Summary | | | | allow you to stand out and compete with them. |
| This part of the report should only be about one | | | | You should be able to show that there is a local |
| page in length and should introduce the reader to | | | | market that is not being met by your |
| your proposal. Firstly you can set out your | | | | competitor's offerings and suggest ways of |
| personal background and why you are interested | | | | meeting this demand. It is helpful here to back up |
| in starting a restaurant. Secondly you should | | | | your reasoning with some demographic data or |
| include basic details of your proposal such as the | | | | market research. |
| location that you have or are looking for, the | | | | A Marketing Plan |
| theme or style of the restaurant, the kind of | | | | Marketing is one of the most important factors |
| food that you will serve, whether of not you will | | | | contributing to the success of a new restaurant. |
| be licensed and the type of clientele that you wish | | | | Discuss your target market in detail and how you |
| to target. | | | | plan on packaging an experience that suits their |
| Mission Statement | | | | tastes in the way of food, music, theme and |
| Take some time to describe the kind of business | | | | atmosphere. Give details as to how the dining |
| that you want to be in terms of your business | | | | experience that you create will be branded with a |
| philosophy and values. Think about what you really | | | | name and a logo and how you will live up to your |
| want to achieve, financially and otherwise. | | | | brands promises and reputation in a way that |
| Consider how you want to be perceived in the | | | | strengthens your brand over time. |
| eyes of your customers and by the local | | | | Talk about pricing and include a list of proposed |
| community. | | | | menu items with proposed prices. Consider how |
| Objectives | | | | your prices will compare with other restaurants in |
| Set out a timeline that highlights the goals that | | | | the area and how the value that you offer would |
| you have for the restaurant business in the short | | | | be comparable or better than what they have to |
| and medium term. Gauge your progress and | | | | offer. Estimate what the average customer will |
| success by setting a variety of targets such as | | | | spend at your restaurant. |
| daily and monthly gross sales, percentage of full | | | | Lastly, set out some methods that you feel could |
| restaurant capacity reached on a consistent basis, | | | | work well for adverting and promoting the |
| and how long it takes to get the first course on | | | | restaurant. |
| the table from the point that the order was | | | | Financial Analysis |
| taken for example. | | | | Set out some financial projections for your first |
| Ownership Structure, Management and Employees | | | | three years in business. Estimate monthly cash |
| List any people that have an ownership stake in | | | | flows coming in and out of the business and set |
| the business and their respective interests. Also | | | | these out in a spreadsheet. Change your figures |
| set out a management plan so that there are no | | | | to allow for a variety of different scenarios in the |
| arguments when it comes to making decisions if | | | | case that things go worse or better than |
| there is more than one owner. Estimate the | | | | expected. You will then have a fair idea of how |
| number of employees that will be needed initially | | | | profitable your restaurant will be if it runs |
| and set out a schedule to hire more as the | | | | according to your plans. |
| restaurant grows in popularity. | | | | Entrepreneurs would be crazy to open a |
| Start-up Requirements and Operating Costs | | | | restaurant in the U.S. in the 21st century without |
| Set out a comprehensive list of everything that | | | | a well thought through and researched business |
| will be needed for the restaurant to start as | | | | plan. A business plan will help your restaurant to |
| planned. Try to think of every little detail as you | | | | get started off right, avoid unnecessary mistakes |
| compile a list of equipment, building renovations, | | | | and to consistently proceed in the direction that |
| other supplies and compliance costs. You also | | | | you need to go to ensure that your long term |
| need to estimate the amount that is needed for | | | | goals are met. |
| monthly operating costs and some entrepreneurs | | | | |