Long hours, low pay, and a lot of stress cause many entrepreneurs to close shop after just a few years.
One reason for the high failure rate in this industry is that restaurant owners fail to treat their restaurant operation as a business from the very beginning.
Instead of having to comb through the entire restaurant business plan to get all the information, they can instead just look through the executive summary.
This is the part of the restaurant business plan where you fully introduce the company.
Regardless of how many friends have assured you it will be a success or how many countless hours you've spent coming up with the concept in your head, without properly planning for it your restaurant is doomed for failure. A restaurant business plan is the framework from which you can start to piece together everything from your restaurant management to menu design and develop your restaurant ideas into a reality.
Read on for everything you need to know about writing a restaurant business plan along with samples and tips.Many people dream of opening a restaurant and see it as an opportunity to turn a love for entertaining or cooking into a business.Unfortunately, for many restaurateurs, the reality of running a restaurant is not what they expected.They have no plan to deal with problems and unexpected expenses and don't understand the scope of the cost associated with opening a restaurant.One way to prevent these types of problems is to develop a well-written business plan. This is a business analysis, and it is where you get into more detail.Start this section with the name of the restaurant you are opening along with the location, contacts, and other relevant information.Also include the owner’s details and a brief description of their experience.Will the population base support another fine-dining establishment? This is also a good place to mention any close ties you have to local restaurant vendors, such as food supply companies or local farms that will give you a competitive edge. Again, following the example of the owner focusing on duties as the executive chef, who else will be part of the management team? For example, will there be a single general manager who reports to you with other managers—dining room, bar, business, etc.—reporting to her? The structure you choose is less important than actually choosing a structure that works for you and making it clear to investors that you do have a plan and understand how it will function effectively.What kind of ingredients will you be using, and how will that impact your pricing? For example, a liquor license is expensive and can be difficult to obtain in some markets. Many people opening a restaurant are not always experienced business professionals, so it often is a good idea to seek out a business partner with requisite experience or to hire a consulting firm that specializes in helping new restaurants get their operations off the ground and running.Take note of everything from their prices, hours, and menu design to the restaurant interior. The most important element to launching your restaurant is by far the menu. At this point you probably don’t have a final version, but for a restaurant business plan you should at least try to have a mock-up.Your investors are going to want to know how you plan to market your restaurant. Add your logo to the mock-up and choose a design that you can see yourself actually using.