A business plan is your roadmap for the future of the business. Not only does it provide direction, it requires you to consider all the pitfalls and opportunities of your prospective enterprise, well before you open its doors. It is your script of how the business ought to be. Without it you are unlikely to receive funding from anyone other than the most trusting or unsophisticated sources of financing.
In short, many restaurateurs agree that having a sound business plan was the single most important ingredient in making their new business a reality. So why do so many restaurateurs forsake this critical step, without which many entrepreneurs wouldn't even open a lemonade stand? Unfortunately, some operators don't understand how crucial a well-planned opening is to the success of their concept. For one, restaurateurs often want to get the ball rolling quickly.
Too many operators put all their planning into simply getting financed. They then want to open the doors as fast as possible to create cash flow. This article covers the essentials of preparing a restaurant business plan. For information specifically on preparing the financial projections, please go to " How to Create Realistic Financial Projections for Your New Restaurant ". Login Close Print Preview.
Skill Business Culture Systems. Stage Dreaming Opening Operating. View All Financial Resources. View All Growth Resources. 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? Write a brief overview of yourself and the team you have established so far. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.
Create a mood board that shows images related to the design and feeling of your restaurant. Planning on cooking in a wood-burning oven? Who is going to eat at your restaurant?
Address the micro and macro market conditions in your area. At a macro level, what are the local and regional economic conditions? At a micro level, discuss who your direct competitors are. The restaurant landscape is only getting more competitive. If not, convey that you have a solid plan in place to generate attention on your own through social media, your website, and media connections. This section should be short and sweet.
What type of business structure have you set up and why did you make that specific decision? You will need to work with an attorney to help you determine what business structure is best for you more tips in the full guide. She was a very helpful, experienced outside perspective for more than just legal matters.
Let your accountant guide you through this portion of your business plan. 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. The key projections you can expect to work on are:. Alison Arth is a hospitality consulting professional who partners with businesses to build long-term success through establishing culture, cohesive brand identity, team training, and internal systems.
To date, she has been involved in 13 restaurant openings. Learn more at www.
Last week marked the launch of How to Open a Restaurant, OpenTable’s complete digital guide to starting and growing a restaurant business. We partnered with hospitality consultant Alison Arth to share tips, stories, and best practices from the best in the business (think the groups of Daniel Boulud and Danny Meyer, plus restaurateurs .
Creating a restaurant business plan forces you to learn about all the different parts of restauranting, as well as your local competition and the local market. Plus, a business plan is essential for most new businesses seeking any kind of financing.
The restaurant business is a competitive industry with many variations. Therefore, it is important to know how to write a business plan for a restaurant or food business. Sample business plans are available from many online sources. How to Create a Winning Restaurant Business Plan Joe Erickson. Hard work, great food, and the will to succeed are not enough. You need proper training, established operational procedures, and a creative marketing plan, before you open. These may be more important to a successful opening than menu design or table and chair selection.
An overview of how to write an effective business plan for a new restaurant, including how to write an executive summary, what informaiton to include for your bank interview and how determine your profit and loss statements. How to Write a Restaurant Business Plan. A good business plan is important if you want to obtain a loan or other investment in your business. You may also need a solid restaurant business plan in order to lease a space for your business.