Turning a hobby of cooking or entertainment into a source of livelihood is the dream of many people and opening your own restaurant is the best way to make it happen. However, there is a lot of work behind being a restaurant owner, from long hours to low pay and of course lots and lots of stress. This often causes people to give up on their dreams and turn them off.
Why is a business plan necessary?
A big reason for the very high failure rate in the restaurant business is that people don’t treat it like a real business. People usually don’t plan to face problems like unexpected expenses, following market trends, etc. Some do not even understand the costs involved in opening such a business.
To avoid this problem, it is best to have a well-written business plan for your restaurant.
Create a business plan for your restaurant
You must adapt your business plan to your specific vision for the restaurant and its place in the local market. At first you can create a general business plan, but eventually you will need to structure it specifically for the restaurant industry and your plan for success.
1. Write a summary
Your business plan should have an outline that should answer questions such as: B. What niche will your restaurant occupy in the local restaurant market. Your investors need to know the type of restaurant (fine dining, fast food, sports bar, etc.). You must explain to him how you got into the market, what your name is, and where you will be placed if you have chosen.
You also need to communicate your own specific role in the company. There are many tasks that a restaurant performs simultaneously, such as: B. preparing menus, cooking meals, serving customers, managing finances and taking marketing steps to expand your customer base. You cannot be held responsible for any of this, so you should mention your partners here.
2. Describe your business
In this section you will find all the important details about your company, such as: B. Your location, your mission, your target customers, the types of food on your menu, what makes your restaurant unique, and why people come to your restaurant. In addition, it must also include your company’s legal name, ownership structure, business structure, and management team.
3. Marketing strategy development
Your marketing strategy should have three main components:
- Industry: Who will you serve? Senior citizen? Single professional? Their families and children? Tell your investors why your customer base is flocking to your new facility and not your competitors.
- Competition: Who are your competitors and how do you differentiate yourself from them? You may have mentioned this before, but here’s an in-depth explanation of the details. Remember, if you don’t offer something unique, you won’t get loyal customers.
- Marketing: How exactly do you market your restaurant? And most importantly: Who bears this responsibility? Let your investors know that you have hired an experienced food professional to help you climb the corporate ladder.
4. Naming Business Entities
In this section, you tell investors about your working hours and the number of employees you will hire. You also explain the benefits of your restaurant to potential customers, such as: B. Convenient location, vendors selling organic food, etc. They explain what gives your restaurant a competitive edge.
5. Management and Owner Statement
In this section, you should describe your management hierarchy in detail. Who will direct the show? Will one general manager report to you for the rest of your employees, or will they all report to you equally? You need to make sure that the management structure and functions are easy to explain to your potential investors.
6. Financial analysis
This section covers the projected growth of your restaurant. There should be a general starting budget, as well as an income statement that compares your expenses to the amount you expect to earn.
Investors need a realistic picture, so let them know that they will actually get a return on their investment. Spend some time in this section and try to accurately project your labor, food, and operating costs against the expected growth and sales of your restaurant.
Receiving External Help
Many of you who want to open a restaurant are not business professionals, so it’s a good idea to find a business partner who can handle this part of the business. If finding a partner is difficult, consider hiring a consulting firm that specializes in helping startup restaurant businesses.