Planning on cooking in a wood-burning oven? Step one: write a business plan. Concept, describe your restaurant concept and get the reader excited about your idea. If you dont feel that service is a noteworthy component of your operation, address it briefly in the concept section. Your business plan will be the road map from which your new restaurant develops. Define clearly what will be unique about your restaurant. The strongest business plans always include all or most of the components described below.
The following is an excerpt from the complete guide How to Open a Restaurant. This will give investors a clear understanding of your targeted price point, provide the first building block to figuring out average check estimations needed to create financial projections, and show investors that youve done the homework needed. It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guests service experience. It contains the same food and beverage templates and information you see here, but with additional guidance to help you develop the perfect plan. It is crucial that whoever you retain to help you with your financials has a wealth of restaurant experience (not just one or two places as they should be familiar with the specifics of restaurant finances and know what questions to ask you. Go into detail about the food youll be serving, inspiration behind your concept, and an overview of service style. Read the full guide here. A well-vetted accountant with restaurant experience will know exactly what youll need to have prepared to show investors. Ideally, once you have described the strong suit of every member of your team, youll be presenting a full deck.
Put the sections that you feel would be most compelling to someone whos never met you first: the Management Team section if youre coming from high-profile establishments, for example. If restaurants are doing poorly, explain why yours wont; if restaurants are doing well, explain how youll be able to compete in an already booming restaurant climate. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed). Market overview, address the micro and macro market conditions in your area and the impacts of local restrictions due to covid. You have to show any potential investor that you have an actual plan, you know what youre talking about, it looks professional, and youre not just screwing around. Your sample menu should also include prices that are based on a detailed cost analysis. There should be a natural and very clear connection between the information you present in the Target Market section and this one. Marketing and publicity, the restaurant landscape is only getting more competitive. Charles advises that first- time restaurateurs read a bunch of different business plans for other restaurants and technology and retail companies to get a better sense of layout options, writing styles, and clarity of concept. In addition to helping me build a smart, sustainable business structure, my attorney was also a great resource for reviewing my business plan because shes read thousands of them.
Start cooking up your business plan with our library of foodie-themed sample plans or build a more modern plan to easily manage your restaurant, bar, or cafe with. List any outside contractors you plan to retain, such as: Accountant, attorney, architect, designer, general contractor, pR and marketing. Briefly explain the services theyll be providing for you, why you chose them, and any notable accomplishments. Create a mood board that shows images related to the design and feeling of your restaurant. You want readers to be confident that your restaurants ideal diner intersects with the neighborhood(s) youre proposing as often as possible.
She was a very helpful, experienced outside perspective for more than just legal matters. Sample Business Plans, everybodys got to eat and theres still plenty of niche aspects of food and beverage business for entrepreneurs to explore. If an extensive wine program is an integral part of what youre doing, will you have a sommelier? Design, incorporate some visuals. At a micro level, discuss who your direct competitors are. Step two: hire a good attorney. What your business plan should cover. Photos of materials and snippets of other restaurants that you love that are similar to the brand youre building are also helpful. Dont assume that potential investors will be familiar with the areas youre discussing and who works or lives theremake the connections clear. 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).
Before creating realistic financial projections, your accountant will want to know approximately how many seats youre planning on having, what your average check will be, and approximately how many covers per day you plan. Business structure, this section should be short and sweet. You probably wont have a specific site identified at this point in the process, but you should talk about viable neighborhoods. The point of a business plan is to show that youve done your homework, says Charles Bililies, owner. Will your restaurant have counter service designed to get guests on their way as quickly as possible, or will it look more like theater, with captains putting plates in front of guests simultaneously? Target market, who is going to eat at your restaurant? Lou Guerrero, Principal at Kross, Baumgarten, Kniss Guerrero, emphasizes, Youll get a lot of accountants that tell you that theyve done a couple of restaurants, but you have to choose someone that has a deep expertise in what youre doing. Branded cover, include your logo (even if its not finalized the date, and your name. So if you think you have the makings of the next top chef, developed a secret whiskey recipe that will blow peoples minds, or even have a better way of doing delivery, you may want to enter the food and beverage business.
Locally sourced, organic, farm-fresh, delivery, craft, pick a buzz-word and theres an opportunity there. Talk about what restaurants share your target market and how youll differentiate yourself. Financials, let your accountant guide you through this portion of your business plan. Sample menu, the menu is the most important touchpoint of any restaurants brand, so this should be more than just a simple list of items. Once youve described them in detail, reiterate why your specific concept will be appealing to them. At a macro level, what are the local and regional economic conditions? Being conservative in these estimations is key as these three data points will be used as the basis for figuring out whether your concept is financially feasible. If youre going to retain a PR/marketing company, introduce them and explain why youve chosen them over other companies (including some of their best-known clients helps). Souvla, a fine casual Greek restaurant in San Francisco that has received national acclaim since opening in the spring of 2014.