3 in 4 people believe that going to a restaurant with friends or family is a better use of their time than cleaning or cooking at home (source). Therefore, a business in the restaurant industry definitely has a high chances of success. However, you cannot start it without preparing a good restaurant business plan at first.
What are the secrets of a successful restaurant business plan? In the previous article How to write a restaurant business plan? – part 1 on this topic, we analyzed six main restaurant marketing questions and presented the main core of a well-organized strategy. Let’s take a look at 5 important elements of restaurant business plan now.
1. Summary (description of your restaurant business idea)
The first 1-4 pages of every restaurant marketing plan should include a well-planned introduction. It should be a summary of the whole business (main idea, strengths, weaknesses, costs, expected revenue, competition analysis, target group, etc.).
Details are not too important here. Just put key information which is crucial for the success of your business.
As you can see, this part of the document consists of many different questions. This is the reason why you should write it at the very end. Some people will read only this part of the document so, it should be very clear and appealing.
2. Market and competition analysis
At this point, you need to take a look at a bigger picture – the entire business environment which you are about to enter. In order to properly understand the market, focus on three main things:
Find your target group and create a customer profile
Even the best restaurant marketing idea will not work without customers. Use available statistics and reports to learn as much as you can about the demographic structure, preferences, and habits of people in the local community. For example, a city with a college would be the perfect place for a restaurant which targets young people.
Analyze where your potential customers live, work, and study. Next, choose the location which will be the most convenient for most of them.
Opening a pizzeria next to an already existing Italian restaurant could clearly be a bad idea. Make sure that your business has something special which will enable you to overcome the competition.
3. Operating and investment costs
Investment costs include, among others: kitchen equipment, staff clothing, elements of restaurant marketing – logo, menu, website, music and liquor license. Operating expenses: the team of workers, products needed for meals preparation.
4. Financial forecast
If you hope to receive a loan or some grants, a restaurant business plan will probably have a deceive role. You will have to analyze the chances of success and present them in a convincing way. Moreover, remember to also figure out what you will do if things don’t go as planned in the future.
It is also important to regularly check whether your financial calculations check out when the business already functions.
5. Sensitivity analysis
Sensitivity analysis may help you establish what will happen to your restaurant in case of a negative scenario – for instance, if the whole restaurant management team quits or sales drop by 20 percent.
Thanks to this, you will be better prepared if a crisis appears. Your team will be able to recover more quickly and without unnecessary stress.
Would you like to learn what the next five elements of a successful restaurant business plan? Read more about them in the next article.
According to Original Review, Americans pay more and more for their food experiences at many different restaurants. They currently spend almost 50 percent of their total food expenses on eating out (compared to just 25 percent in 1955).
Do you want to offer hungry customers a brand new restaurant to enjoy? Go for it – just remember to start with creating a professional restaurant marketing strategy.