Starting a new restaurant or a bar requires thorough planning that must be embodied in your business plan. Business plans are essential if you want your upcoming establishment to succeed, not just a good concept. In essence, a business plan is your written vision of the business you are planning to start. The plan must demonstrate how you understand and address the crucial aspects of running a food service business. Below we will discuss the significant elements of a comprehensive business plan.
What you should include in a restaurant business plan.
There are several key areas that every effective business plan must address in order to help you achieve the goals.
- Executive Summary
- Mission Statement
- Company Description
- Comprehensive Market analysis
- Marketing strategy
- External Help
Always start your business plan with a clear and sound executive summary. An executive summary acts both as an introduction to your business and plan and as a summary of the entire business vision. Address the following elements in an executive summary:
- Business concept
- Mission statement
- Financial projections
This part of your plan is imperative if you are looking to draw the attention of potential investors.
A mission statement is often confused with a vision statement. While a vision statement is a broad picture of where you see your business and your customers, the mission statement is a detailed roadmap of how to achieve the vision. Use your mission statement to describe what your restaurant or bar will do for its employees and customers.
In this portion of your business plan, you should introduce your establishment to the reader. Include all the pertinent information related to your company.
- Bar or restaurant location
- Legal standing
- Owner’s details
- Short- and long-term goals
- Describe the niche in which you will operate
- Market study
Since each business is unique to a degree, you may include other essential details.
Comprehensive Market Analysis
Use this section of your business plan to demonstrate your understanding of the industry and how your restaurant should perform. Focus on the state of the industry in general, what are the main challenges restaurants are facing at the moment? What can be done to overcome those challenges?
You are also expected to analyse the competition and how you attempt to overcome it. Mention the main strengths of your upcoming restaurant briefly and describe them in detail in the later sections.
Every food or drink serving establishment needs a menu; this is the portion of your business plan where you will describe the food in the greater of detail. Even if your menu is not complete at this point, you should present the backbone of the dishes you will offer.
Be sure to cover pricing in your sample menu. The prices will show your cost analysis to investors. Smart menu engineering can increase your profits in the long run and raise your chances of success.
This section of the business plan should thoroughly describe the chosen location and how it falls in line with your target market projections. If you don’t have a precise location at the moment, you should present several potential locations to choose from. Experienced investors will scrutinise your choice, and if you manage to find a perfect spot for your restaurant, you will gain their trust more easily.
Considering the daring completion among restaurants these days, you should dedicate a significant portion of your planning to marketing strategy. This section of the business plan should detail what marketing channels you will use to reach your target audiences. You should account for both the promotional campaign before your restaurant swings into full action and for day-to-day marketing.
Be sure to cover all main marketing channels: email marketing, social media, Google for business, etc. Having a solid marketing mix will significantly raise your chances of attracting and retaining customers.
Financial analysis may be an essential part of your restaurant business plan. It is advised that you hire a professional accountant to help develop a viable and solid financial analysis, before engaging in financial planning, prepare rough estimates of food cost and rent price. Numerous online services may help you with the basics of financial planning.
In most cases, you will require a lot of assistance with your restaurant business. Use this section to mane companies and business partners who will ensure your operations. You can name restaurant supplies providers with enough experience on the market as a good indication of your commitment.
We have covered all the fundamentals of a solid restaurant business plan. Yet, as you work on your plan do not forget to adhere to a few general advice that will improve the overall impression:
- Strong Vision. Make sure that your business plan is attractive to potential investors. Your vision should be as unique as possible.
- Actions. Restaurant business plan, much like any other plan, should be actionable. The theory is great, but if you cannot act upon your vision – you will have a difficult time succeeding.
- Formatting advice. Lastly, you should format your business plan clearly and concisely, making it easy to read and comprehend.
With a good business plan at hand, you can proceed to open up a new restaurant!