How to Write a Restaurant Business Plan
Would you like to know how to write a restaurant business plan? Read on to learn everything that you need to know on the subject.
And, by the way, the same principles apply if you are writing a business plan for a coffee shop, pubs, bars, wet sales and food venues or any service industry based business. If you are in South Wales and want a local Accountant or further afield in the UK and want a remote-based Accountant, Hayvenhursts can offer our expert knowledge of the service industry to your existing business or new venture.
It has been hard for the hospitality industry in the past few years. Closure due to the pandemic and supply chain issues have meant a tenth of Britain’s restaurants have vanished. So how do you make sure your new venture or existing business does not become a statistic?
One way is with thorough planning, starting and ending with a written plan. Below, we discuss how to write a restaurant business plan for your new eaterie.
Why Do You Need a Business Plan?
It is no secret that a well-made business plan is difficult and time-consuming. The truth is that if it isn’t, you probably have not gone into enough detail. You need a business plan for a number of reasons.
If you need to secure the financing, it is a solid document that shows how your money will be used. Crucially, it should tell the lender that it can be repaid.
On a personal level, the business plan helps you get an objective look at what you will be doing. It can show up major problems that need addressing or critical flaws. This does not have to put you off but can spark changes and actions that will safeguard your business plan later down the line.
An executive summary is the start of any business plan and summarises the entire idea and concept. Many people choose to write this last. This is because they have time to refine and tighten ideas as they produce the restaurant business plan itself.
Summaries should include a mission statement, execution, and a brief overview of costs. To end, they should also have a return on the investment, particularly if you are seeking funding. Don’t go into too much detail, as this can be done later in the document.
What differs is that a restaurant business plan should include a few extra features here. It is a great idea to hammer home your concept here. Include a logo, talk about what makes your restaurant different, and the concept behind the food served.
One part of this can be a sample menu. Even though it may not be the exact one you have at the opening, it can showcase what you care about. Make sure it matches the graphical style of your business and is a faithful mock-up, not just written in text.
The company overview is the place where you can get a little more specific about your business. Talk about what type of restaurant it will be, either fast food, fine dining, etc. After this, give the name of the business.
You’ll then want to put the location. This is important, as a restaurant can live and die based on the correct placement. Tie this into the target demographic you are hoping to attract.
Finally, discuss the legal entity of the business. Name the owners and briefly talk about any experience they have in hospitality.
Team and Management
Arguably, the team you build will be more important in a restaurant than any other business. The chef and front-of-house staff have a huge impact on how the business works and is perceived.
Start with the management, discussing who will be in charge of certain roles. You should note any prior experience going into more depth than before. Make sure you also put down the ownership percentage for each person who has a stake in the business.
The market analysis is the part where you will need to do the most research. You may even need to employ a company to do this for you, so you have quality data to back up your claims. You can divide it into two distinct parts.
Start with industry analysis. How is your type of restaurant faring in the current climate? Is growth expected over the coming years?
After this, look at the local competition. Discuss other similar ventures and explain what makes your restaurant different. Do you have alternative prices, opening hours, or food on offer?
Marketing and Sales
Without marketing, no one will even know your restaurant exists. In a crowded marketplace, you also need to show how you are going to be different and stand out. If you are hiring a third party to do your marketing, don’t be afraid to say this in the business plan, and make sure you praise their brilliance and say what plan they have provided for you.
Specialists and Consultants
Write down any outside assistance you will be hiring. Don’t view this as a weakness. These sections show you know your limitations and when to bring in others.
This can include anything from marketing specialists to accountants and architects. Costs for them can be included in the next section. You may also want to include external companies that will impact your business, such as food delivery services.
When you write a restaurant business plan, financials will be the hardest to get right. This is because, at the end of the day, you just don’t have concrete evidence. The greatest of the restaurant business plan writing tips is to be honest, and transparent.
This is slightly easier if you have been in business already. Show previous financial statements, including profit and loss, the balance sheet, and cash flow.
If you are starting up, provide a general startup budget. Include projected profit, loss, revenue, and cash flow. If you have any debts or liabilities in the business, then state them here.
When looking for funding, state how much you are asking for and what it will do. Place a valuation of the company and projected revenue that will arise as a result of the investment.
Business Growth Plan
Of course, if you have an established business or have delivered on your business plan it is likely that you are now planning for business growth. In this post, we establish how to focus and deliver growth in your business.
How to Write a Restaurant Business Plan
Now you know how to write a restaurant business plan, start early. Do a second draft upon completion, rechecking your facts and figures. Follow it by getting an impartial third party to look over it for you.
Hayvenhursts Chartered Accountants are here to help your new venture. We can concentrate on managing your finances so you can grow your business.
From our offices in Cardiff, Hayvenhursts offer a personal and professional service focused on the needs of each individual customer, business or family across South Wales and the whole of the UK.
Our service and reputation are built on our ability to understand your business plans for the short, medium and long term to ensure we are by your side and can support you when you need us. Contact us here to book an appointment and join our client family.