The restaurant business is highly competitive.
The food and hospitality industry is one of the most competitive industries in business. There were an estimated 900,000 restaurants and other food-service operators in the United States in 2010. With so many restaurant and fast-food options, the restaurant competition is endless, even for the simplest restaurants. Identifying a strategy to beat the competition, as well as developing strong price points and an attractive marketing strategy, are keys to success in this industry. The restaurant business plan helps to organize this information to provide you with a written path to your restaurant's success.
Instructions
1. Begin your business plan by providing a general description of your business. Include the name of your restaurant, along with your restaurant's mailing address and contact information if you have settled on a location. Provide the legal description of your business, such as sole proprietorship, partnership or limited liability company. List the names of each owner, his contact information and a brief description of each owner's professional experience.
2. Identify the managers and employees of your restaurant. Determine the number of departments your business will need to run efficiently, such as the kitchen, wait staff and reception. List the functions of each department manager. Ascertain how many part-time and full-time employees the restaurant will need and list the costs of each employee and manager.
3. Identify the foods and services that your restaurant will provide. Provide the hours and days that your restaurant will operate and include holiday hours as well. List the furniture, fixtures and equipment that the restaurant will require. Decide if these items will be purchased, leased or rented and provide the cost for each. Include information on the suppliers and vendors your restaurant will regularly use. List the inventory and products that you will obtain from those vendors, the costs of those items and the methods of delivery.
4. Determine how much space your restaurant will need and identify a desirable location. Provide information on the cost of the location as well as the expenses that are required to maintain the location, such as utilities and taxes. List any licenses or local zoning requirements that need to be met and the costs for each.
5. Develop a strong marketing plan for your restaurant. Research the local restaurant market. Analyze your restaurant's competition. Identify your restaurant's strengths and weaknesses and compare them to those of your competition. Decide on your target demographics. Explain the strategies that your business will use to overcome the challenges of your competition.
6. Determine a price for each menu item and service that the restaurant provides. Create your prices so that they are competitive while helping to meet your break-even point. Determine the methods that your restaurant will use to advertise. Identify your target market and explain how you will generate and retain your customers.
7. Create financial statements for your restaurant. Include a personal financial statement for each owner. Follow these statements with a balance sheet, income statement and cash-flow statement for the business. Make realistic assumptions to forecast your break-even point.
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