Coming from a family that owns a restaurant business, from small individual eateries, to big resorts ideal for family holidays, I have always been interested in this field and everything to do with it. This could be either because I love food, or because while growing up, I have helped out in this business. Whatever it maybe, it gave me the idea to help out my family with a business plan.
Elements of a Restaurant Business Plan
A typical restaurant will have these elements:
Description - In the description you will talk about what kind of restaurant it is going to be, whether it is a small-time one or a medium one. It also talks about what kind of food will be served and the location. Besides this, this section should also include:
- Mission statement
- Development status
- Future plans
Industry Analysis - here you will talk about the restaurant industry. We all know that this industry is a growing one and at the same time, one that is highly competitive. This is because more and more people are relying on restaurants to provide them with their daily food, because of lack of time and hectic schedule. You can also talk about:
- How the industry is in this day and age, its revenue on an average, and other statistics.
- Future trends and opportunities for growth
Products and Service - this is where you discuss what sort of service and products are going to be a part of your business. Are you going to be a self-service restaurant, a fast food joint, a fine dining restaurant, or a family style casual restaurant? Will you be dealing with take-out and home delivery too? These things are important. Other than these, details include:
- Menu
- Production of food
- Service
- Future growth
Target Market - here you mention what kind of clientele you are looking to target, this will be your target market. Are you catering to families, teenagers, people on the move, or social butterflies? This will depend on your type of restaurant and cuisine. Here you have to be completely sure of the demographics you will be catering to. In this section, you also have to talk about:
- The location and customers therein
- The kind of customers you hope to attract
- Future market trends
Competition - like they say, "keep your friends close and your enemies closer", we are not talking about enemies here, but competition. Healthy competition is good for every business; it keeps the venture fresh and on its toes. Just like any other business, you should always know about the competition. This section should also include:
- Profile of competitors
- Strategy to deal with competition
Marketing and Sales Strategy - Each and every business should have a strategy regarding marketing and sales efforts. This is important more so for a restaurant business, because you need to know how to attract clientele and how to publicize the new venture. In this section, you should give a detailed report on:
- Penetration in the market
- Strategy used for marketing
- Future plans and strategies relating to marketing
Operations - this is where you will discuss the actual operations of the business. What should be included is:
- Office space and facilities
- Operating hours and days
- Employee induction, training, and scope of duties
- Systems
- Production of food
- Catering and delivery details
Management - this is where you will be talking about the kind of management, the management style, and should also include:
- Principals and core employees
- Incentives, compensations, and salaries
- Board of directors
- Consultants
- Future management
- Management structure and style
- Ownership and share holding
Future Development - here you talk about how you expect the restaurant to grow and develop, it could be in a five-year plan or however else it suits you. Key points should be:
- Long-term goals
- Strategies for growth and development
- Evaluation of any and all risks
Drafting this plan isn't going to be easy. It is a detailed job, requiring extensive study. Make sure you go through your plan at least 10 times before you actually start working on it.
Best of Luck!
