Launching a restaurant requires a lot of hard work but this is also an incredibly satisfying way to earn a living if you are passionate about what you do. It is crucial to put together a solid business plan before you get started on this journey. Here are five elements that should be present in your business plan to improve your chances of succeeding.
Mission and objectives
This is a crucial element of your business plan because it defines the identity of your brand and states your purpose as a business owner. Ask yourself what kind of restaurant you would like to run and where you see your business going in five years from now. You could for instance make launching a franchise one of your priorities or focus on offering an optimal dining experience in a small and cozy setting.
Summary of funding and assets
The purpose of this summary is to show what you have so far and what you still need to acquire in order to launch a successful business. You should list the different sources of funding you have secured as well as the amount available for funding. List all the assets you have acquired so far and create a separate list for the assets you still need to purchase.
This section of your restaurant business plan is about listing all the recurring expenses you will have to meet. This includes rent, utilities, salaries and of course produce. It is important to accurately calculate how much you will have to spend on monthly recurring expenses and pay your suppliers since these expenses will determine how much you need to earn in order to turn a profit.
Pricing and profits
Pricing is about figuring out what you will charge for the food and services you offer. Pricing should be calculated in function of how much you will have to earn in order to operate your restaurant. You should also include some estimates for the profit you will turn in. This section of your business plan should also include some strategies you could use if you are not generating a profit, for instance lowering your prices to increase volume or raising your profits to earn more for each patron.
As a restaurant owner, you will be in direct competition with other establishments in the area. These other restaurants might be more affordable and more people will be familiar with these establishments. Identify who your main competitors will be, in function of how close they are to your restaurant and the type of food they serve. Identify the strategies you can use to beat the competition, including pricing, offering something other restaurants do not have and using marketing to draw attention to your restaurant.
There are many other elements that need to be included in the business plan for your restaurant. Look at the samples of business plans used by restaurant owners to get a better idea of how to put together a solid business plan.