Are you preparing to open up your dream restaurant?
Good for you! Now, how can you avoid being part of the 60 percent of new restaurants that fail within the first year? Or the 80 percent that shut their doors within the first five years?
Those numbers are high, but that doesn’t mean they’re inevitable. You can be successful if you take the right measures.
Creating a fleshed-out restaurant business plan is one of the most significant things you can do in the beginning stages to make sure your doors stay open. This shows potential investors you should be a contender for their money. It also gives you something to reference as you grow and scale up your business.
Here, we highlight the primary considerations when creating your business plan. Keep reading to see how you can beat the odds and serve up greatness in your community.
Write an Executive Summary
First, notice the word summary—an executive summary is a quick overview that includes
- A compelling introduction on what your restaurant intends to do
- Your core strengths, such as unique partnerships
- Your marketing plan
- How your restaurant is going to stand out—as in, why customers should visit you, and not the restaurant down the block
Your summary isn’t your business plan. It’s what will entice people to read your business plan. So, keep it short, concise, and relevant to your restaurant.
Describe Your Restaurant Concept
At this point, you’ve likely defined your restaurant concept. Now it’s time to describe it for your investors.
Is it casual, fine dining, a buffet, a café? What is the theme, the restaurant’s name, the design of the menu? What will the ambiance and decor be like?
If you’ve yet to come up with a concept, consider things like your chef’s inspiration, your customer base/target demographic, your ideal service style, and more.
Conduct Industry Analysis
Your potential investors need to know that you’ve researched within your niche. How does your business stand up in comparison to others in your industry? What are the potential threats or opportunities?
Conducting industry analysis gives you a much-needed competitive edge. Knowing your industry inside and outside will help you achieve success and avoid failures that plagued other restaurants before you. This analysis gives you and your investors confidence in your concept.
Explain Your Sales Goals
The finance section of your restaurant business plan is arguably the most important. After all, money is the thing that will make or break you—and investors want to know they’re making a smart decision by signing over a check to you.
How are you planning to manage sales, expenses, transactions? Are you utilizing programs like a Quickbooks desktop, or are you planning to hire an accountant or bookkeeper?
Additionally, what’s the average check going to be? What are your food costs? How much are you paying your managers, servers, executive chefs, and the like?
All these things need to be thoroughly considered and outlined in your business plan. It’s helpful to hire professional help during this step.
Serve Up a Winning Restaurant Business Plan
Do you want a taste of success?
If so, it all begins with your plan. This is your opportunity to research every facet of your future business. It lays the groundwork for you as a company and gives your potential investors detailed data to observe.
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