Restaurant Business Plan 101 – THESE Should Be Part of Your Plan!
by Abdul Aziz Mondal Business Planning Published on: 17 March 2021 Last Updated on: 07 October 2024
If you own a restaurant – or are planning on opening a restaurant in the near future – you know that the entire industry is just rearing to return to full speed. You need the right restaurant business plan in place for it to fly!
The pandemic years hit restaurant owners – or aspiring ones – hard. The COVID-19 pandemic has forced us to question things we once took for granted.
For that reason, whether you are planning to reopen your restaurant to total capacity or are finally getting ready to open your new restaurant, you want to ensure you have the best business plan possible.
That’s why we at GetJollyJobber.com have broken down the top things to keep in mind when picking those you work with to establish a restaurant business plan.
Let’s get started!
Top Things to Keep in Mind When Picking a Planning Partner
You need the right team or individuals before you set the restaurant business plan in motion. You can do it all alone, but it is good to have support from people who have experience.
So, here’s how you can pick the right planning partners for your restaurant! Check out the list:
Require Real-World Experience
No matter who you are hiring to join your team, if you plan on finding real-world success with your restaurant business plan, you will need to hire people with real-world experience.
Find people from the top down who talk and walk the walk.
You should ask for their portfolios to see who they have worked with in the past, what they did, and how successful they were in the position.
Do Your Research
There is nothing wrong with depending on portfolios and resumes to get the most information about a potential team member, but you should also do a fair amount of online snooping.
It might seem strange to Google the name of each person you are thinking of working with, but this is the kind of work you must do to ensure that everyone will bring positivity to the project going forward.
Don’t forget to check social media pages to ensure they are genuinely what they claim to be!
Make Sure They Have What It Takes For Your Project
A restaurant designer, consultant, or chef might be perfect for one project but horrible for another! You need to ask two critical questions about each option regarding your project in particular:
- What areas of your business currently need the most assistance?
- Does the person you are thinking of hiring have the skillset and experience necessary to overcome those areas and take your business to the next level?
After answering both questions, you can establish precisely what kind of person you seek.
Things To Make Part of Your Business Plan!
The following things should be on the agenda when you’ve finalized the dream team to help you with the restaurant business plan!
#1 Restaurant Concept & Its Menu!
This is one of the critical steps in launching your restaurant. You must decide on a concept that will be attractive to your customers. Depending on the location and thoroughness of your analysis, you should be able to pick the idea that will make your restaurant unique!
Next comes the menu that the concept will inspire. You may name the dishes based on the idea or have unique recipes relevant to it.
Either way, curating a menu that’s both unique and true to the concept will be exciting for a collaborative discussion. Once you’ve nailed the dishes and drinks as per the target market, you must discuss the pricing.
The pricing should consider the following:
- Cost of ingredients
- Customer willingness to pay, and
- Competition
All of these will be crucial in deciding the core of your restaurant.
#2 Target Market Analysis
This is another one of the critical elements of your restaurant business plan. This target market research will help you know your customer’s preferences like the market and competitor analysis.
This should include their characteristics such as gender, age, eating habits, income, and other relevant data.
This thorough analysis will help you differentiate your restaurant from existing eateries in the chosen location.
This will also enable you to know what the target audience is currently choosing and decide your restaurant’s service. This can be done with the planning partner you selected, as they can project the idea’s longevity and success in the long run.
There is always time for renovation as trends change – but you must have the audience wanting to return for more.
#3 Funding Requirements
The funding requirements for your eatery are the most essential part of your restaurant business plan. To sustain the business, you must have enough funding options to help you make decisions confidently.
Be it the quality of produce, the staff (number and experience), or other expenses that depend on the funding. The restaurant business plan must outline the funding requirements if you are asking for funding.
This is where you will specify whether you want equity or debt and the terms you’d like to be applied. Things such as the time your funding request will cover. The details of this funding request will also include:
- Funding for paying salaries.
- Buying necessary equipment.
- The bills that it will cover until revenue increases.
You should also describe how you can use the funds in future strategic plans – selling the business or paying off debt.
#4 Financial Projections
The funding request should also include the financial projections that help convince the reader (probable investor) that your business is stable. This shows the investor that they will see financial success with the plan that’s in place for the future.
If Already Established:
The restaurant business plan should include balance sheets, income, and cash flow statements for the last 3-5 years. The prospective financial outlook will help the investors see how far your vision goes and what potential it holds.
Add a prospective financial outlook for the next five years – for the first year, be specific and add monthly or quarterly projections. Use visual aids such as graphs or charts to tell the financial story.
This will be helpful for visualization of the plan if your investors are visual learners. They can better understand your vision and be convinced to invest.
Accio Profits!
That was all about a restaurant business plan to help you reach your financial goals soon! Opening a restaurant is a fascinating and challenging endeavor. Every restaurant that becomes a success does so because of the people behind it.
Ensuring you are filling your team with the best possible options is the best way to achieve your goals and beyond!
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