how to create a business plan for restaurants

Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create a successful restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

What is a Restaurant Business Plan?

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.  

What are the Main Types of Restaurants?

There are many types of restaurant businesses which vary based on their service style. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types.

Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.  

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks or independent restaurant investors. Typically you will find a local bank and present your restaurant business plan to them. Most independent restaurant investors are in the restaurant business already and can be a valuable resource for advice and help with your business plan.

Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.  

Sample Business Plan for a Restaurant Owner

Below is a business plan example to help you create each section of a comprehensive restaurant business plan.

Executive Summary

Business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new business for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.  

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

A sample menu can be found in the Appendix of this business plan.

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.  

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.  

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and restaurant design, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.  

Customer Analysis

Demographic profile of target market.

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Customer Segmentation

The target audience for Bluehorn Restaurant & Steakhouse will primarily include the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each of our direct competitors is below.

Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose.  

Oak & Ore

Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired restaurant experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC

The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.  

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows:

Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media

Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options.  

SEO Website Marketing

Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks.  

Third Party Delivery Sites

Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.  

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire the entire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.  

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

  You can download our free restaurant business plan template PDF . This restaurant business plan template can be used to create a finalized business plan for your restaurant concept.

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How to Write a Restaurant Business Plan in 2024 (Free Template)

So you want to open a restaurant? Then you need a business plan.

A restaurant business plan is your roadmap to success. It outlines and forecasts every aspect of your restaurant’s operation and management —from menu design and location to financial planning and staff training. A comprehensive restaurant business plan demonstrates professionalism and a clear understanding of goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

Why is a strong business plan important? Because it turns your restaurant idea into reality. According to the National Restaurant Association , having a business plan increases your chances of success by preparing you for problems before they arise and attracting investors and partners.

Planning is the key to restaurant success. Without a plan, you risk being part of the 30% of restaurants that fail in the first year​. To make sure your restaurant succeeds, you can start by creating a business plan. Financial projections are a crucial component, helping to secure funding and plan for the future. Here’s how to get started.

The importance of a restaurant business plan 

Think of your business plan as your ultimate guide, showing business owners, stakeholders, and investors how you’re going to turn your vision into reality. It ensures nothing is overlooked as you grow your restaurant . When you’re deep in the chaos of construction, licensing, staffing, and other challenges, your business plan will keep you on track and focused. Without one, navigating the complex world of opening a restaurant becomes much tougher.

A solid business plan is also key to attracting investors. Most new restaurants need some outside capital from hospitality investors or silent partners. Before they invest in your dream, they need to see that you’ve got a solid, thought-out plan for success. Your business plan shows investors that you’ve considered every expense and every possible scenario. It provides a complete description of your strategy, highlights the experience and skills of your management team, and explains why and how it will succeed.

Every business should have a business plan, whether new or existing. Business plans help you focus on your goals and can help get back on track if you stray from them.

• How to write a restaurant business plan

Whether this is your first business plan or your 10th, using a template specifically designed for the restaurant industry can be incredibly helpful. Our restaurant business plan template includes all the necessary sections you need. You can download a customizable copy of the business plan template here.

Conducting a thorough market analysis to understand customer demographics and competition is crucial for the success of your restaurant. Keep reading to learn about the key elements that make a restaurant business plan successful.

Further reading

• How to Write a Restaurant Business Plan Executive Summary
• Your Complete Guide to Restaurant Financing and Loans
• How To Conduct a Restaurant Market Analysis
• Essential elements of a restaurant business plan

Design a branded cover page

Start with a branded cover page that showcases your logo, brand fonts, and all relevant contact information. This sets a professional tone and makes your business plan easily identifiable.

Write the executive summary

Begin your restaurant business plan with an executive summary . This section introduces and sums up your entire vision, making sure to grab the reader’s attention. It should make investors feel invested in your idea and eager to read more.

Key elements to include are your restaurant’s mission statement , proposed concept, how you’ll execute the plan, an overview of potential costs, and the anticipated return on investment. Describe your restaurant concept, detailing the type of food being served, service style, design elements, and unique features. This is also a great spot to highlight your business’s core values. A strong executive summary sets the tone for your business plan and helps attract investor interest.

Additionally, include a management team write-up to highlight the credentials and past experiences of your management team, demonstrating their ability to run a successful establishment.

A well-conceived mission statement can provide a guiding light to keep your restaurant moving in the right direction. It helps ensure that every decision you make and every interaction you have is in line with your core values and goals.

Create the company overview

In this section, you’ll lay out the foundational details of your restaurant. Start by introducing the basic information: the restaurant’s name, address, and contact details. Include information about the owner and their background, showcasing their experience and passion for the industry. This sets the stage for your business’s credibility.

Next, describe the restaurant’s legal standing and its short- and long-term objectives. This helps potential investors understand the structure and vision of your business.

Highlight your understanding of the local food industry with a brief market research summary. Explain why your restaurant will succeed in this market by demonstrating awareness of local dining trends and consumer preferences. Crafting your own restaurant business plan is crucial to showcase your dedication and strategic planning, learning from others' mistakes to ensure success.

Here’s a sample layout for this section:

Company description

Restaurant Name : [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

• How to Write a Great Restaurant Description

Include an industry analysis

First describe the current state of the market sector your restaurant will be in and the specific area you will be in. This should include local economic growth, existing restaurants, infrastructure projects, nearby businesses, residential areas and foot and car traffic counts.

To create an effective and professional business plan, it is important to study restaurant business plan samples.

1. Review your target market

The restaurant industry is competitive so you need to find your niche. What will make your restaurant different? Who will your restaurant attract and who will be your repeat customers? Describe your target market and compare it to the overall restaurant industry in terms of diner demographics, characteristics and behaviour.

2. Location analysis

Even if you don’t have a specific location yet, focus on the general area or city where you will be opening your restaurant and explain why. Include local economic growth, major events and nearby infrastructure projects. Compare the current market conditions to your target market to show the proposed location fits your ideal customer profile. Investors will be looking closely at this section to make sure the location is right for your concept.

3. Competitive analysis

Get into the competitive landscape around your proposed location. Detail the number of other restaurants in the area, especially those with similar concepts. Investors want to know what will make customers choose your restaurant over the competition. What will make your food and service stand out and what other advantages do you have, like longer hours? Use a competitive matrix to show you understand your niche in the market.

Put together a restaurant marketing plan 

The marketing section outlines how you’ll promote your restaurant before and after opening. Not sure where to start? Check out our guide here. A well-thought-out marketing plan is crucial to grow a successful restaurant and distinguish it from competitors.

Start by listing out specific tactics you’ll use pre and post-launch. Will you work with a PR manager? Launch a social media account to document the build-out and generate buzz. Share those details. If you already have a large social media following , make sure to mention it.

Once the restaurant is open , which channels will you use to keep the momentum going? Email marketing? Regular social media posts? Charity partnerships? Local TV and radio ads? Will you invest in customer relationship management software to keep in touch with regulars or implement a loyalty program?

This section should give a clear picture of your promotional strategy and how you plan to engage with potential customers from the start.

Outline your operation plan

Here’s how to outline your restaurant’s day-to-day operations once the doors open. Cover these key areas:

Clearly defining the service style of your restaurant, whether it is fine dining , quick-service, self-service, or another type, is important to ensure a consistent customer experience.

1. Staffing

Think about the positions you'll need and how many people you'll need for each role. What will make your place a fantastic workplace? Outline the pay for each position, how you'll recruit the right people, and what the hiring criteria will be.

2. Customer service policies and procedures

How will you ensure an exceptional and consistent guest experience every time? Detail your service values, policies, and procedures, and explain how you'll enforce or encourage them.

3. Restaurant point of sale and other systems

How will you keep track of sales and inventory, manage takeout and delivery, control labor, handle cash, process payroll, and accept various payment types? Cover the systems you'll use for all these tasks.

4. Suppliers

Where will you get your ingredients? Think about both one-time equipment purchases and items that need regular replenishment. Detail your plans for sourcing these essentials.

Nail down your financial game plan with first-year projections

The financial analysis usually wraps up your business plan, and it’s where investors really focus in. They want to see exactly how you’ll spend their money in the first year and how you expect costs and revenue to stack up. Make sure to hit these key points in this section.

1. Your investment plan

Here’s where you put in the initial investment and how you’ll use it in the first year. Think kitchen equipment, furniture, decor, payroll, legal fees, marketing, and a bit of working capital.

2. The projected profit and loss (P&L) statement

Since the business plan is done way before you open your restaurant you’ll need to make some educated guesses for your P&L statement. Estimate costs and sales based on your restaurant’s size, target market and the local competition. Use this P&L template and guide to dive deeper into P&L statements and create one for your future restaurant.

3. The break-even strategy

This is where you show investors how much monthly revenue you’ll need to cover all your overhead and operational costs. Remember there are always variable costs so highlight what you think those will be. How will you hit that revenue target during slow months?

4. Cash flow prediction

Your cash flow expectations hinge on your inventory purchases, staff size, payroll, and payment schedule. Some months will be better than others once your restaurant is up and running. This cash flow analysis will show investors that, based on your forecasts, your restaurant can sustain itself during leaner months without needing extra investments.

How to sell a restaurant idea and master your business plan presentation

Once your business plan is polished and ready, it's time to become its number one expert. Investors want to see that you know every nook and cranny of your business and are confident you can make it happen.

When you're ready, email your business plan to anyone in your network who might be interested in investing. With any luck, you'll get some interest, and investors will want to meet to discuss your restaurant.

Some investors might want a pitch presentation alongside the printed business plan. Use a professional template from Google Sheets or PowerPoint, and practice until you can nail the presentation without notes.

Be prepared for any questions—both the expected ones and those that come out of left field. If you don’t know an answer on the spot, it’s fine to say you’ll find out and get back to them quickly.

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals. Including a sample menu in the business plan is necessary to showcase planned dishes and prices, which helps in selling the restaurant concept to potential investors and customers.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

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How much profit does the restaurant make.

When it comes to restaurant profitability, the numbers can widely vary. On average, restaurants report profit margins between 3% and 5% annually.

Fast-food establishments often have lower margins but benefit from a high volume of customers and quick turnover rates. In contrast, fine dining venues, although charging higher prices, see fewer customers and slower turnover, which influences their profit margins differently.

Our research indicates that, regardless of the type of restaurant, the average monthly profit usually falls between $15,000 and $25,000.

How to open a restaurant without money?

Starting a restaurant can be a daunting task, especially when funds are tight. However, with some creativity and determination, you can turn your dream into a reality. Here’s how:

Innovate Your Restaurant Concept

Consider a unique, low-cost restaurant concept. Instead of a full-scale establishment, perhaps a pop-up restaurant or a delivery-only kitchen could better fit your budget. Flexibility in your concept can significantly reduce initial costs.

Seek Funding Alternatives

Traditional bank loans aren't the only option. Look for investors who believe in your vision or explore crowdfunding platforms like Kickstarter or GoFundMe . Sometimes, you can even find grants aimed at smal l business startups.

Leverage Online Platforms

Start by building a strong online presence. Create a website and utilize social media to attract and engage customers. Online marketing can be a cost-effective way to generate buzz and gather a customer base before you even open your doors.

Collaborate with Other Businesses

Partnerships can pave the way for mutual growth. Collaborate with food suppliers, local farms, or even other small businesses to share costs and resources. This strategy can also expand your network and increase visibility within your community.

Start Small: Food Trucks or Catering

Consider launching your concept through a food truck, catering service, or pop-up stand. These options require significantly less capital than a traditional sit-down restaurant and can help you build your brand and customer base.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

10 minute read

helped business professionals at:

Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology, such as restaurant POS systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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How to write a restaurant business plan

A small restaurant business plan is the roadmap you use to open a successful spot. As a first step to creating yours, ask your friends and colleagues to share restaurant business plan examples. Their restaurant business plan samples can inspire yours.

Once you’ve studied those examples, it’s time to start writing your own. No matter how much thought you’ve put into your concept or how many trusted colleagues have assured you of its greatness, you must write a restaurant business plan. It will prove the viability of your concept to potential investors and provide them with a clear and engaging answer to the question: “Why does the world need this restaurant?”

“The point of a business plan is to show that you’ve done your homework,” says Charles Bililies, owner of Souvla , a fine casual Greek restaurant in San Francisco that has received national acclaim since opening in the spring of 2014.

“You have to show any potential investor that you have an actual plan, you know what you’re talking about, it looks professional, and you’re not just screwing around.”

Quick links Branded cover Table of contents Concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials

1. Branded cover

Include your logo (even if it’s not finalized), the date, and your name.

2. Table of contents

A table of contents in a restaurant business plan provides an organized overview of the document’s structure and content. It typically appears at the beginning of the plan and lists the major sections and subsections with their corresponding page numbers.

The table of contents is important for several reasons. Firstly, it allows readers to quickly navigate through the plan, enabling easy access to specific sections of interest. Secondly, it helps in presenting a professional and well-structured document, showing that you have carefully organized your thoughts and ideas. It also improves readability and comprehension, as readers can easily locate and refer back to relevant information

3. Restaurant concept

Describe your restaurant concept and get the reader excited about your idea. Specify whether the restaurant will be fine dining or more casual. Include an executive summary and go into detail about the food you’ll be serving, inspiration behind your concept, and an overview of service style.

Define clearly what will be unique about your restaurant and include your mission statement. This section should include a market analysis that shows how your restaurant will be similar and different from competing restaurants.

4. Sample menu

The menu is the most important touchpoint of any restaurant’s brand, so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices that are based on a detailed cost analysis. This will:

• Give investors a clear understanding of your targeted price point
• Provide the info needed to estimate check averages
• Show the numbers used create financial projections for starting costs
• Show investors that you’ve done the homework
• Prove you can stay within a budget

This section is most relevant for:

• Fine-dining concepts
• Concepts that have a unique service style
• Owners who have particularly strong feelings about what role service will play in their restaurant.

It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service and restaurant hostess software designed to get guests on their way as quickly as possible, or will it look more like a theater, with captains putting plates in front of guests simultaneously?

If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

6. Management team

Write a brief overview of yourself and the team you have established so far. You want to show that your experience has provided you with the necessary skills to run a successful restaurant and act as a restaurant business owner.

Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full pitch deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant.

Whether you’re planning to cook in a wood-burning oven or are designing an eclectic front-of-house, be sure to include those ideas. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

8. Target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Once you’ve described them in detail, reiterate why your specific concept will appeal to them.

9. Location

There should be a natural and very clear connection between the information you present in the “Target Market” section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighborhoods.

Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there—make the connections clear. You want readers to be confident that your restaurant’s “ideal” diner intersects with the neighborhood(s) you’re proposing as often as possible.

If you don’t have a site , this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, freeway accessibility, outdoor seating , and other important details.

10. Market overview

Address the micro and macro market conditions in your area and how they relate to licenses and permits. At a macro level, what are the local and regional economic conditions?

If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss who your direct competitors are. Talk about what types of restaurants share your target market and how you’ll differentiate yourself.

11. Marketing and publicity

The restaurant landscape is only getting more competitive. Discuss your pre- and post-opening marketing plans to show investors how you plan to gain traction leading up to opening day, as well as how you’ll keep the momentum going.

If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media, your website , and media connections.

12. Specialists and consultants

List any outside contractors you plan to retain, such as:

• General contractor
• PR and marketing

Briefly explain the services they’ll be providing for you, why you chose them, and any notable accomplishments.

13. Business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with an attorney to help you determine what business structure is best for you.

“Step one: write a business plan. Step two: hire a good attorney. In addition to helping me build a smart, sustainable business structure, my attorney was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters,” says Charles Bililies.

14. Financial projections

Let your accountant guide you through this portion of your business plan. It is crucial that whoever you hire to help you with your finances has a wealth of restaurant experience (not just one or two places). They should be familiar with the financial specifics of starting a restaurant and know what questions to ask you.

Before creating realistic financial projections, your accountant will want to know:

• How many seats the restaurant will have
• What your average check will be
• How many covers per day you plan to do

Being conservative in these estimations is key. These three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasizes, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors.

The key projections you can expect to work on are:

• Pro forma profit and loss statement for the first three to five years of operation
• Break even analysis
• Capital requirements budget

Writing a comprehensive restaurant business plan is a crucial step towards opening a successful establishment. By seeking inspiration from examples, demonstrating your expertise, and addressing all the essential components, you can prove the viability of your concept to potential investors.

Remember, a well-prepared business plan demonstrates professionalism and a clear understanding of your goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

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Restaurant Business Plan: What To Include, Plus 8 Examples

• Business Growth & Management , Templates & Guides

Do you want to ensure the success of your new foodservice endeavor? Write a restaurant business plan.

In this article, the experts at Sling tell you why a business plan is vital for both new and existing businesses and give you tips on what to include.

Table Of Contents

What Is A Restaurant Business Plan?

Why is a restaurant business plan important, questions to ask first, what to include in an effective restaurant business plan, how to format a restaurant business plan, efficient workforce management is essential for success.

At its most basic, a restaurant business plan is a written document that describes your restaurant’s goals and the steps you will take to make those goals a reality.

This business plan also describes the nature of the business itself, financial projections, background information, and organizational strategies  that govern the day-to-day activity of your restaurant.

A restaurant business plan is vital for the success of your endeavor because, without one, it is very difficult — sometimes even impossible — to obtain funding from an investor or a bank.

Without that all-important starting or operational capital, you may not be able to keep your doors open for long, if at all.

Even if funding isn’t a primary concern, a business plan provides you — the business owner or manager — with clear direction on how to translate general strategies into actionable plans  for reaching your goals.

The plan can help solidify everything from the boots-on-the-ground functional strategy  to the mid-level business strategy  all the way up to the driving-force corporate strategy .

Think of this plan as a roadmap that guides your way when things are going smoothly and, more importantly, when they aren’t.

If you want to give your restaurant the best chance for success, start by writing a business plan.

Sitting down to write a restaurant business plan can be a daunting task.

As you’ll see in the What To Include In An Effective Restaurant Business Plan section below, you’ll need a lot of information and detail to ensure that the final document is both complete and effective.

Instead of starting with word one, it is hugely beneficial to answer a number of general questions first.

These questions will help you narrow down the information to include in your plan so the composition process feels less difficult.

The questions are:

• What problem does the business’s product or service solve?
• What niche will the business fill?
• What is the business’s solution to the problem?
• Who are the business’s customers?
• How will the business market and sell its products to them?
• What is the size of the market for this solution?
• What is the business model for the business?
• How will the business make money?
• Who are the competitors?
• How will the business maintain a competitive advantage?
• How does the business plan to manage growth?
• Who will run the business?
• What makes those individuals qualified to do so?
• What are the risks and threats confronting the business?
• What can you do to mitigate those risks and threats?
• What are the business’s capital and resource requirements?
• What are the business’s historical and projected financial statements?

Depending on your business, some of these questions may not apply or you may not have applicable answers.

Nevertheless, it helps to think about, and try to provide details for, the whole list so your finished restaurant business plan is as complete as possible.

Once you’ve answered the questions for your business, you can transfer a large portion of that information to the business plan itself.

We’ll discuss exactly what to include in the next section.

In this section, we’ll show you what to include in an effective restaurant business plan and provide a brief example of each component.

1) Executive Summary

You should always start any business plan with an executive summary. This gives the reader a brief introduction into common elements, such as:

• Mission statement
• Overhead costs
• Labor costs
• Return on investment (ROI)

This portion of your plan should pique the reader’s interest and make them want to read more.

Fanty & Mingo’s is a 50-seat fine-dining restaurant that will focus on Sweruvian (Swedish/Peruvian) fusion fare.

We will keep overhead and labor costs low thanks to simple but elegant decor , highly skilled food-prep staff, and well-trained servers.

Because of the location and surrounding booming economy, we estimate ROI at 20 percent per annum.

2) Mission Statement

A mission statement is a short description of what your business does for its customers, employees, and owners.

This is in contrast to your business’s vision statement which is a declaration of objectives that guide internal decision-making.

While the two are closely related and can be hard to distinguish, it often helps to think in terms of who, what, why, and where.

The vision statement is the where of your business — where you want your business to be and where you want your customers and community to be as a result.

The mission statement is the who , what , and why of your business — it’s an action plan that makes the vision statement a reality

Here’s an example of a mission statement for our fictional company:

Fanty and Mingo’s takes pride in making the best Sweruvian food, providing fast, friendly, and accurate service. It is our goal to be the employer of choice and offer team members opportunities for growth, advancement, and a rewarding career in a fun and safe working environment.

3) Company Description

In this section of your restaurant business plan, you fully introduce your company to the reader. Every business’s company description will be different and include its own pertinent information.

Useful details to include are:

• Owner’s details
• Brief description of their experience
• Legal standing
• Short-term goals
• Long-term goals
• Brief market study
• An understanding of the trends in your niche
• Why your business will succeed in these market conditions

Again, you don’t have to include all of this information in your company description. Choose the ones that are most relevant to your business and make the most sense to communicate to your readers.

Fanty & Mingo’s will start out as an LLC, owned and operated by founders Malcolm Reynolds and Zoe Washburne. Mr. Reynolds will serve as managing partner and Ms. Washburne as general manager.

We will combine atmosphere, friendly and knowledgeable staff, and menu variety to create a unique experience for our diners and to reach our goal of high value in the fusion food niche.

Our gross margin is higher than industry average, but we plan to spend more on payroll to attract the best team.

We estimate moderate growth for the first two years while word-of-mouth about our restaurant spreads through the area.

4) Market Analysis

A market analysis is a combination of three different views of the niche you want to enter:

• The industry  as a whole
• The competition your restaurant will face
• The marketing  you’ll execute to bring in customers

This section should be a brief introduction to these concepts. You can expand on them in other sections of your restaurant business plan.

The restaurant industry in our chosen location is wide open thanks in large part to the revitalization of the city’s center.

A few restaurants have already staked their claim there, but most are bars and non-family-friendly offerings.

Fanty & Mingo’s will focus on both tourist and local restaurant clientele. We want to bring in people that have a desire for delicious food and an exotic atmosphere.

We break down our market into five distinct categories:

• High-end singles
• Businessmen and businesswomen

We will target those markets to grow our restaurant  by up to 17 percent per year.

Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you’ll serve in as much detail as possible.

You may not have your menu design complete, but you’ll likely have at least a handful of dishes that serve as the foundation of your offerings.

It’s also essential to discuss pricing and how it reflects your overall goals and operating model. This will give potential investors and partners a better understanding of your business’s target price point and profit strategy.

We don’t have room to describe a sample menu in this article, but for more information on menu engineering, menu pricing, and even a menu template, check out these helpful articles from the Sling blog:

• Menu Engineering: What It Is And How It Can Increase Profits
• Restaurant Menu Pricing: 7 Tips To Maximize Profitability
• How To Design Your Menu | Free Restaurant Menu Template

6) Location

In this section, describe your potential location (or locations) so that you and your investors have a clear image of what the restaurant will look like.

Include plenty of information about the location — square footage, floor plan , design , demographics of the area, parking, etc. — to make it feel as real as possible.

We will locate Fanty & Mingo’s in the booming and rapidly expanding downtown sector of Fort Wayne, Indiana.

Ideally, we will secure at least 2,000 square feet of space with a large, open-plan dining room and rich color scheme near the newly built baseball stadium to capitalize on the pre- and post-game traffic and to appeal to the young urban professionals that live in the area.

Parking will be available along side streets and in the 1,000-vehicle parking garage two blocks away.

7) Marketing

The marketing section of your restaurant business plan is where you should elaborate on the information you introduced in the Market Analysis section.

Go into detail about the plans you have to introduce your restaurant to the public and keep it at the top of their mind.

Fanty & Mingo’s will employ three distinct marketing tactics to increase and maintain customer awareness:

• Word-of-mouth/in-restaurant marketing
• Partnering with other local businesses
• Media exposure

We will direct each tactic at a different segment of our potential clientele in order to maximize coverage.

In the process of marketing to our target audience, we will endeavor to harness the reach of direct mail and broadcast media, the exclusivity of the VIP party, and the elegance of a highly trained sommelier and wait staff.

8) Financials

Even though the Financials section is further down in your restaurant business plan, it is one of the most important components for securing investors and bank funding.

We recommend hiring a trained accountant  to help you prepare this section so that it will be as accurate and informative as possible.

Fanty & Mingo’s needs $250,000 of capital investment over the next year and a half for the following:

• Renovations to leased space
• Dining room furniture
• Kitchen and food-prep equipment
• Liquor license

Projected profit and loss won’t jump drastically in the first year, but, over time, Fanty & Mingo’s will develop its reputation and client base. This will lead to more rapid growth toward the third and fourth years of business.

Most entrepreneurs starting a new business find it valuable to have multiple formats of their business plan.

The information, data, and details remain the same, but the length and how you present them will change to fit a specific set of circumstances.

Below we discuss the four most common business plan formats to cover a multitude of potential situations.

Elevator Pitch

An elevator pitch is a short summary of your restaurant business plan’s executive summary.

Rather than being packed full of details, the elevator pitch is a quick teaser of sorts that you use on a short elevator ride (hence the name) to stimulate interest in potential customers, partners, and investors

As such, an effective elevator pitch is between 30 and 60 seconds and hits the high points of your restaurant business plan.

A pitch deck is a slide show and oral presentation that is designed to stimulate discussion and motivate interested parties to investigate deeper into your stakeholder plan (more on that below).

Most pitch decks are designed to cover the executive summary and include key graphs that illustrate market trends and benchmarks you used (and will use) to make decisions about your business.

Some entrepreneurs even include time and space in their pitch deck to demonstrate new products coming down the pipeline.

This won’t necessarily apply to a restaurant business plan, but, if logistics permit, you could distribute small samples of your current fare or tasting portions of new dishes you’re developing.

Stakeholder Plan (External)

A stakeholder plan is the standard written presentation that business owners use to describe the details of their business model to customers, partners, and potential investors.

The stakeholder plan can be as long as is necessary to communicate the current and future state of your business, but it must be well-written, well-formatted, and targeted at those looking at your business from the outside in.

Think of your stakeholder plan as a tool to convince others that they should get involved in making your business a reality. Write it in such a way that readers will want to partner with you to help your business grow.

Management Plan (Internal)

A management plan is a form of your restaurant business plan that describes the details that the owners and managers need to make the business run smoothly.

While the stakeholder plan is an external document, the management plan is an internal document.

Most of the details in the management plan will be of little or no interest to external stakeholders so you can write it with a higher degree of candor and informality.

After you’ve created your restaurant business plan, it’s time to take steps to make it a reality.

One of the biggest challenges in ensuring that your business runs smoothly and successfully is managing  and optimizing  your team. The Sling  app can help.

Sling not only includes powerful and intuitive artificial-intelligence-based scheduling tools but also many other features to help make your workforce management more efficient, including:

• Time and attendance tracking
• Built-in time clock
• Labor cost  optimization
• Data analysis and reporting
• Messaging and communication
• And much more…

With Sling, you can schedule faster, communicate better, and organize and manage your work from a single, integrated platform. And when you use Sling for all of your scheduling  needs, you’ll have more time to focus on bringing your restaurant business plan to life.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com  today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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Want to Open a Restaurant? Here's a Step-By-Step Guide This guide provides all the information you need to open and operate a successful restaurant.

By Laura Tiffany Edited by Melissa Malamut

Key Takeaways

• Profit margins are thin for restaurants; make a detailed business plan that accounts for every dollar.
• Investing in experienced servers and cooks will pay off in the long term.
• Pick a service style and food concept and let those decisions dictate your decor, menu and ambiance.

Opinions expressed by Entrepreneur contributors are their own.

Starting and opening a new restaurant is an exciting venture that can be both a rewarding and challenging experience. It takes work, however. Opening a successful restaurant requires a strong business plan, an understanding of the local market, an eye for the right location and staff, permits and business licenses, inventory and supplies management, appealing menus and more.

If it's your first time, you'll need to look beyond the grand opening and strategize for generating a cash flow that allows you to do more than just break even. Still, with the right guidance, you can make your dreams of owning a successful restaurant come true. This guide will give you all the information you need to start and open a restaurant. It will cover everything from creating a new business plan to setting up operations and marketing your restaurant. By following this guide step by step, you can open a restaurant that will attract customers for years to come.

What's Inside

Target markets

Restaurant service styles, selecting a food concept, steps to opening your own restaurant, working in a restaurant.

• Safety regulations

Restaurant startup resources

Breaking into a new market is a challenge, and no single food-service operation has universal appeal. Many newer entrepreneurs have trouble accepting this fact, but it's impossible to capture 100% of the market. When you try to please everyone, you end up pleasing no one. So focus on the five or 10% of the target market that you can get — and forget about the rest.

With that said, who's eating at restaurants? Let's look at the main market categories of food-service business customers:

• Generation Z The youngest consumers represent about 20% of Americans and make up the first digitally native generation. Born between 1997 and 2012, Gen Zers grew up with smart phones, and many are socially minded – embracing the crossover of commerce and mental health, for example. And if you want their attention, act fast: young consumers are quicker to tune out ads than older generations.
• Millennials This generation was born between 1980 and 2000. Millennials account for more than three times as many people as Generation X, and they're a prime target for a food-service business. This generation often opts for fast-food and quick-service items, with about 25 percent of their restaurant visits going to burger franchises , followed by pizza restaurants at 12 percent.
• Generation X Generation X is a label applied to those who were born between 1965 and 1980. This group is known for strong family values. While earlier generations strove to do better financially than their parents, many Gen Xers are focused on their children. They are concerned with value, and they favor quick-service restaurants and midscale operations that offer all-you-can-eat salad bars and buffets. To appeal to this market group, offer a comfortable atmosphere that focuses on value and ambience.
• Baby boomers Born between 1946 and 1964, baby boomers make up the second-largest segment of the U.S. population, after millennials. Prominent in this generation are affluent professionals who can afford to visit upscale restaurants and spend money freely. Many boomers are becoming grandparents, making them a target of restaurants that offer a family-friendly atmosphere and those that provide an upscale, formal dining experience.
• Empty nesters This group consists of older Gen X and seniors (people in their early 50s to about age 64). Empty nesters typically have grown children who no longer live at home, and their ranks will continue to increase as Gen X grows older and their children leave home. With the most discretionary income and the highest per-capita income of all the generations, this group typically visits upscale restaurants. They are less concerned with price and are more focused on excellent service and outstanding food. Appeal to this group with elegant surroundings and a sophisticated ambience.
• Seniors The senior market covers the large age group of people age 65 and older. Generally, the majority of seniors are on fixed incomes and may not often be able to afford upscale restaurants often, so they tend to visit family-style restaurants that offer good service and reasonable prices. "Younger" seniors are likely to be more active and have more disposable income than "older" seniors, but the group typically appreciates restaurants that offer early-bird specials and senior menus with lower prices and smaller portions, since their appetites are less hearty than those of younger people.

Restaurants are classified into three primary categories: quick-service, midscale and upscale. Quick-service restaurants are also known as fast-food restaurants. These establishments offer limited menus of items that are prepared quickly and sold for a relatively low price. In addition to very casual dining areas, they typically offer drive-thru windows and take-out service.

When people think of fast-food restaurants, they often think of hamburgers and french fries, but establishments in this category also serve chicken, hot dogs, sandwiches, wraps, salads, pizza, fresh seafood, grain bowls and foods from other regions.

Midscale restaurants, as the name implies, occupy the middle ground between quick-service and upscale restaurants. They offer full meals but charge prices that customers perceive as providing good value with plenty of special offers . Midscale restaurants offer a range of limited and full-service options. In a full-service restaurant, patrons place and receive their orders at their tables; in a limited-service operation, patrons order their food at a counter and then receive their meals at their tables. Many limited-service restaurants offer salad bars and buffets.

Upscale restaurants offer full table service and do not necessarily promote their meals as offering great value; instead, they focus on the quality of their cuisine and the ambience of their facilities. These are the places that find themselves on a list of trip ideas for tourists looking for great food from a renowned chef. Fine-dining establishments are at the highest end of the upscale restaurant category and charge the highest prices.

Restaurant patrons want to be delighted with their dining experience, but they don't necessarily want to be surprised. If you're anticipating a family-style steakhouse (based on the name or the décor of the establishment) but find yourself in a more formal environment with a bewildering — and pricey — gourmet menu, the surprise may keep you from enjoying the restaurant. Concepts let patrons know in advance what to expect, and they provide some structure for how to operate restaurants. Here are some of the more popular restaurant concepts:

• Seafood Quick-service seafood restaurants generally offer a limited range of choices, often restricted to fried seafood. Midscale and upscale seafood restaurants offer a wider selection, prepared in ways other than fried, such as baked, broiled and grilled. Seafood can be a risky area on which to focus, as prices are always changing, and many kinds of seafood are seasonal. Also, quality can vary tremendously. When shopping for seafood, make sure the items are fresh and meet your standards of quality. If you are not happy with what a distributor offers, your customers won't be, either.
• Steakhouses Steakhouses are part of the midscale and upscale markets. Midscale steakhouses are typically family-oriented and offer a casual environment with meals perceived as good values. In terms of décor, comfort is emphasized and Western themes are popular. Upscale steakhouses offer a more formal atmosphere and may serve larger cuts of meat that are of better quality than those served in midscale restaurants. Upscale establishments also charge higher prices, and their décor may be similar to that of other fine-dining establishments, offering guests more privacy and focusing on adult patrons rather than families.
• Family-style restaurants As the name implies, these establishments are geared toward family fun, and the often-reasonable prices also appeal to seniors. They offer speedy service and their menus are designed to satisfy a broad range of customers, from children to seniors. Family-style restaurant prices may be higher than those at fast-food restaurants, but these establishments provide table service to compensate. The décor of family-style restaurants is generally comfortable, with muted tones, unremarkable artwork and plenty of booths and wide chairs. Booster seats and highchairs for children are readily available.
• Casual-dining restaurants These establishments appeal to a wide audience, providing a variety of food items — appetizers, salads, main dishes, desserts. Casual-dining restaurants offer comfortable atmospheres with midrange prices. Many center on a theme that's incorporated into their menus and décor. You may need to get your liquor license, depending on what you plan to serve.
• Global cuisine These restaurants enjoy a significant share of the U.S. restaurant market. They range from quick-service places with limited selections to upscale eateries with a wide variety of menu items. Their menus typically include Americanized versions of global dishes with unique flavors, as well as more authentic food. The three most popular kinds of these food styles are Italian, Chinese and Mexican. Other popular types include Indian, Thai, Caribbean, Cuban, French, German, Japanese, Korean, Greek, Turkish and Vietnamese.
• Pizzeria You have two primary choices when starting a pizzeria. One is a to-go restaurant in a modest facility with a pizza- and beer-forward menu, limited seating and a self-service atmosphere. The other is a full-service pizza restaurant with a menu that features not only a variety of pizzas, beer and wine, but also Italian entrees (spaghetti, ravioli, lasagna), side dishes (including salads) and a few desserts. The foundation of a pizzeria is the pizza, of course. If you don't know how to make a good pizza, hire someone who does. Invest in top-quality ingredients and preparation methods, and make every pizza as if you're going to eat it yourself.
• Sandwich shop/delicatessen One reason sandwich shops are so successful is because they enjoy high profit margins. Sandwich shops and delicatessens can also change their menus quickly and easily adapt to current tastes. In the wake of the pandemic, when many regular customers no longer worked from offices, delis have also incorporated delivery and catering into their business models. Most sandwich shops serve only sandwiches, possibly with some side dishes or desserts. A delicatessen usually offers a more extensive menu, including sandwiches, prepared meats, smoked fish, cheeses, salads, relishes and various hot entrees.
• Coffeehouse With Americans consuming more than 140 billion cups every year, coffee is the country's most-popular beverage (not counting water, of course). People frequent coffeehouses and espresso bars for a variety of reasons: to meet with friends, to do work, for a quick lunch, for an afternoon perk or simply to start each morning with a great cup of Joe. The most successful coffeehouses have heavy foot traffic and high-volume sales. Many will serve between 200 and 300 cups per day, despite having limited floor space and modest seating capacity. Profit margins for coffee and espresso drinks are extremely high — after all, you're dealing with a product that's more than 95 percent water. At the same time, the average cup of coffee costs around $3, so you need volume to reach and maintain profitability. Besides specialty roasted coffee by the cup, most coffeehouses also have espresso-based drinks (cappuccinos, lattes, etc.), assorted teas, bottled water and fruit juices, along with an inviting assortment of baked goods, a selection of desserts and coffee beans by the pound.
• Bakery With competition from supermarkets that have in-store bakeries, "bread-only" retail bakeries have almost disappeared from the United States. Bakeries today usually offer cakes, scones, bagels and coffee drinks, and sometimes even offer full dining menus, including sandwiches, hot entrees, beer and wine. Consumers love fresh bakery goods, but the market is extremely competitive. As you develop your particular bakery concept, you'll need to find a way to differentiate yourself from other bakeries in town.

Find the concept that best suits you

Before you can begin any serious business planning, you must first decide what specific segment of the food-service industry you want to enter. Your own personality and tastes will dictate whether you choose to open a commercial bakery, a coffee cart, a fine-dining restaurant or another type of operation. Then, once you've decided what business suits you, it's essential to figure out the niche you'll occupy in the marketplace.

Related: The Top Full-Service Restaurant Franchises in 2024

For example, are you an early riser, or do you prefer to stay up late and sleep late? If you like — or at least don't mind — getting up before dawn, your niche may be a bakery or a casual breakfast-and-lunch operation. Night owls are going to be drawn to the hours required for bar-and-grill type restaurants, fine-dining establishments and even pizzerias.

Do you like dealing with the public, or are you happier in the kitchen? If you're a people person, choose a food-service business that gives you plenty of opportunity to connect with your customers. If you're not especially gregarious, you'll probably lean more toward a commercial type of business, perhaps a bakery or even a catering service, where you can deal more with operational issues than with people.

Some other types of questions to ask yourself include: Do you have a passion for a particular type of cuisine? Do you enjoy a predictable routine, or do you prefer something different every day? Are you willing to deal with the additional responsibilities and liabilities that come with serving alcoholic beverages?

As you do this self-analysis, think about your ideal day. If you could be doing exactly what you wanted to do, what would it be? Once you've decided on the best niche for you as an individual, it's time to determine if you can develop a niche in the market for your food-service business.

There's no perfect recipe for opening a successful restaurant, but there are proven actions that will get your business off the ground and help you start feeding customers . Follow these steps when opening a restaurant:

1. Write a business plan

Armed with practical experience, you're ready to put together your business plan — the most critical element of your restaurant. Map out everything on paper before you buy the first spoon or crack the first egg.

When you're writing a business plan you should include:

• A clear definition of your concept
• A description of your market
• Your menu and pricing
• Detailed financial information, including data on your startup capital (amount and sources) and your long-term income and expense forecasts (including operating costs such as kitchen equipment and food costs)
• A marketing plan including target customers
• Employee hiring
• Training and retention programs
• Detailed plans that outline how you'll deal with the challenges restaurateurs face every day (including health department compliance, customer experience and expansion)
• An exit strategy

A well-crafted business plan is the cornerstone of any successful restaurant. It's best to have it professionally written, but if you're short on cash, you can also draft a document yourself. Just be sure that your plan is comprehensive and as accurate as possible. Include realistic projections, research data (such as current industry trends) and thorough analyses of the competition. Because restaurant margins are so thin, it's also smart to detail every single cost you might encounter — down to the price of napkins, ice, internet , glassware and cooking oil. No matter what you decide, your business plan should be a living document that you update and refine as your restaurant evolves.

2. Fund your business

How much money you need to start depends on the type of business, the facility, how much equipment you need, whether you buy new or used, your inventory, marketing and necessary operating capital (the amount of cash to carry you until your business starts generating profits). It's easy to spend hundreds of thousands of dollars starting a restaurant, but it's not essential. For instance, when Borealis Breads owner Jim Amaral started his first bakery in Maine, he rented a space that had been a commercial bakery and came complete with mixers, benches, ovens and other equipment. He was able to start with just $10,000 he'd borrowed from family and friends, and used that primarily for inventory.

Regardless of how much you need, you will definitely need some cash to start your food-service business. Here are some suggestions of where to go to raise your startup funds :

• Your own resources Do a thorough inventory of your assets. People generally have more assets than they realize, including savings accounts, retirement accounts, equity in real estate, recreation equipment, vehicles, collections and other investments. You may opt to sell assets for cash or use them as collateral for a loan.
• Family and friends The logical next step after gathering your own resources is to approach friends and relatives who believe in you and want to help you succeed. Be cautious with these arrangements; no matter how close you are with the person, present yourself professionally, put everything in writing, and be sure the individuals you approach can afford to take the risk of investing in your business.
• Partners Using the "strength in numbers" principle, look around for someone who may want to team up with you in your venture. You may choose someone who has financial resources and wants to work side by side with you in the business. Or you may find someone who has money to invest but no interest in doing the actual work. Be sure to create a written partnership agreement that clearly defines your respective responsibilities and obligations. And choose your partners carefully — especially when it comes to family members.
• Government programs Take advantage of the abundance of local, state and federal programs designed to support small businesses. Make the Small Business Administration (SBA) your first stop, but be sure to research other programs, too. Underrepresented groups and veterans should check out special financing programs designed to help them get into business. The business section of your local library is a good place to begin your research.
• Banks and other lending institutions Despite the general mood of tight credit, many banks are still willing to make small-business loans . They may even be more open now as they seek to increase their loan portfolios.
• Be prepared with a business plan and financial projections These help prove your concept and show lenders you are serious about your business. Also, compare rates from multiple lenders, and don't forget to factor in closing costs and other fees.
• Venture capitalists and angels If you have a capital-intensive concept with proven profitability potential, venture capitalists or angel investors may be willing to provide the funding you need for a stake in your business.

As you can see, there are many ways to get the capital you need to get your restaurant off the ground — you just need to be organized, prepared and willing to do your research.

3. Choose a location

Depending on where you start your food-service business and the particular type of business you choose, you can spend anywhere from $2,000 to $12,000 on monthly rent. That doesn't include outfitting a kitchen or renovating the space, which can cost tens of thousands of dollars.

Related : The Best States to Start a Business .

Not every food-service operation needs to be in a retail location, but many do. For those relying on retail traffic, here are some factors to consider when deciding on a restaurant location :

• Anticipated sales volume How will the location contribute to your sales volume?
• Accessibility to potential customers Consider how easy it will be for customers to get into your business. If you are relying on strong pedestrian traffic, consider whether or not nearby businesses will generate foot traffic for you.
• The rent-paying capacity of your business If you've done a sales-and-profit projection for your first year of operation, you will know approximately how much revenue you can expect to generate, and you can use that information to decide how much rent you can afford to pay.
• Restrictive ordinances You may encounter unusually restrictive ordinances that make an otherwise strong site less than ideal, such as limitations on the hours of the day that trucks can legally load or unload.
• Traffic density With careful examination of food traffic, you can determine the approximate sales potential of each pedestrian passing a given location. Two factors are especially important in this analysis: total pedestrian traffic during business hours and the percentage of people likely to patronize your food service business.
• Customer parking facilities The site should provide convenient and adequate parking, as well as easy access for customers.
• Proximity to other businesses Neighboring businesses may influence your store's volume, and their presence can work for you or against you.
• History of the site Find out the recent history of each site under consideration before you make a final selection. Who were the previous tenants, and why are they no longer there?
• Terms of the lease Be sure you understand all the details of the lease, because it's possible that an excellent site may have unacceptable leasing terms.
• Future development Check with the local planning board to see if anything is planned for the future that could affect your business, such as additional buildings nearby or road construction.
• Appearance It's important that the building or site be attractive and inviting in order to draw customers.

Once you've chosen a location, it's time to nail down the particulars of your food-service business.

4. Create a menu

As you put together a plan for your food-service business, stay up-to-date on the "it" foods of the moment, but don't go chasing fads or trends. Let these inform your menu, rather than dictate it. At the same time, be sure to keep the kids in mind as you plan your selections. If families are a key part of your target market, you'll want a range of four or five items in smaller portions that youngsters will enjoy. While most restaurants still offer fixed kids' meals, you might consider allowing your young diners to choose among a selection of nutritious options.

Your menu should also indicate what dishes can be prepared to meet special dietary requirements, and be sure to offer alternative protein options for vegans, vegetarians and pescetarians (with these noted on the menu).

Though menu variety has increased over the years, menus themselves are growing shorter. Busy consumers don't want to read a lengthy menu before dinner; dining out is a recreational activity, so they're in the restaurant to relax. Keep your number of items in check and menu descriptions simple and straightforward, providing customers with a variety of choices in a concise format. It also makes things easier in the kitchen: fewer recipes to memorize, fewer ingredients to source, etc. The simpler the menu, the easier it'll be to turn crazy dinner rushes and make it through particularly stressful services.

5. Hire employees

One of the biggest challenges — for businesses in all industries — is a lack of qualified labor. As the food-service industry continues to grow, the demand for workers in an already diminished labor pool is also increasing. Finding qualified workers and rising labor costs are two key concerns for food-service business owners .

Related: How to Know When to Hire Your First Employee

The first step in developing a comprehensive HR program is to decide exactly what you want someone to do. The job description doesn't have to be as formal as one you might expect from a large corporation, but it needs to clearly outline the job's duties and responsibilities. It should also list any special skills or other required credentials, such as a valid driver's license and clean driving record for someone who is going to make deliveries for you.

Next, you need to establish a pay scale. You should do research to find out what the pay rates are in your area. You'll want to establish a minimum and maximum rate for each position. You'll pay more even at the start for better qualified and more experienced workers. Of course, the pay scale will be affected by whether or not the position is one that is regularly tipped. Your payroll costs, including your own salary and that of your managers, should be about 24 to 35 percent of your total gross sales.

Every prospective employee should fill out an application — even if it's someone you already know, and even if that person has submitted a detailed resume. A resume is not a signed, sworn statement acknowledging that you can fire the person if he or she lies about his or her background; the application, which includes a truth affidavit, is. The application will also help you verify the applicants' resumes, so you should compare the two and make sure the information is consistent.

Here are some tips to help you find and keep great people:

• Hire right Take the time to thoroughly screen applicants. Be sure they understand what you expect of them. Do background checks. If you can't do this yourself, contract with an HR consultant to do it for you on an as-needed basis.
• Create detailed job descriptions Don't make your employees guess about their responsibilities .
• Understand wage-and-hour and child labor laws Check with your own state's Department of Labor to be sure you comply with regulations on issues such as minimum wage (which can vary depending on the age of the workers and whether they're eligible for tips), and when teenagers can work and what tasks they're allowed to do.
• Report tips properly The IRS is very specific about how tips are to be reported; for details, check with your accountant or contact the IRS .
• Provide initial and ongoing training Even experienced workers need to know how things are done in your restaurant. Well-trained employees are happier, more confident and more effective. Plus, ongoing training builds loyalty and reduces turnover. The National Restaurant Association can help you develop appropriate employee training programs, and groups such as The LEE Initiative run programming to promote healthy kitchen environments.

There are several categories of personnel in the restaurant business: manager, cooks, servers, busboys, dishwashers, hosts and bartenders. When your restaurant is still new, some employees' duties may cross over from one category to another. For example, your manager may double as the host, and servers may also bus tables. Be sure to hire people who are willing to be flexible in their duties.

Standard restaurant roles

Manager The most important employee in most restaurants is the manager. Your best candidate will have already managed a restaurant or restaurants in your area and will be familiar with local buying sources, suppliers and methods. You'll also want a manager with leadership skills and the ability to supervise personnel while reflecting the style and character of your restaurant.

To get the quality of manager you want, you'll have to pay well. Depending on your location, expect to pay a seasoned manager $50,000 to $60,000 a year, plus a percentage of sales. An entry-level manager might earn $40,000 to $45,000 but won't have the skills of a more experienced candidate. If you can't offer a high salary, work out a profit-sharing arrangement — it's an excellent way to hire good people and motivate them to build a successful restaurant. Hire your manager at least a month before you open so they can help you set up your restaurant.

Chefs and cooks When you start out, you'll probably need three cooks — two full time cooks and one part time. Restaurant workers typically work shifts from 10 a.m. to 4 p.m. or 4 p.m. to closing. But one lead cook may need to arrive early in the morning to begin preparing soups, bread and other items to be served that day. One full-time cook should work days, and the other evenings. The part-time cook will help during peak hours , such as weekend rushes, and can work as a line cook during slower periods, doing simple preparation. Cooking schools can usually provide you with leads to the best in the business, but look around and place ads online before you hire. Customers will become regulars only if they can expect the best every time they dine at your restaurant. To provide that, you'll need top-notch cooks and chefs.

Salaries for chefs and cooks vary according to their experience and your menu. Chefs command salaries significantly higher than cooks, averaging $55,000/year. You may also find chefs who are willing to work under profit-sharing plans. You can pay part-time cooks on an hourly basis; check around for the going rate in your area.

Servers Your servers will have the most interaction with customers, so they need to make a favorable impression and work well under pressure. There are two times of day for wait staff: very slow and very busy. Schedule your employees accordingly. The lunch rush, for example, starts around 11:30 a.m. and continues until 1:30 or 2 p.m. Restaurants are often slow again until the dinner crowd arrives around 5:30 or 6 p.m.

Because servers in most establishments earn a good portion of their income from tips, they're usually paid minimum wage or just over it. When your restaurant is new, you might want to hire only experienced servers so you don't have to provide extensive training. As you become established, however, you should develop training systems to help both inexperienced employees and veteran servers understand your philosophy and the image you want to project.

6. Market and promote your restaurant

Every business needs a marketing plan , and your food-service business is no exception. As you consider various marketing vehicles, consider the loyalty program. Research conducted by the National Restaurant Association found that 78% of customers are more likely to visit a restaurant where they can earn loyalty points.

Word of mouth and earned media are also strong ways to earn business, so make the foundation of your marketing program an absolutely dazzling dining experience that customers will want to talk about and repeat. Ask every new customer how they found out about you, and make a note of this information to track how various marketing efforts are working. You can then decide to increase certain programs and eliminate those that aren't working.

A key question for restaurant owners is this: Do your marketing materials — menus, signs, table tents, social media posts, ads and other items — send an accurate message about who you are and what you do?

The first step in creating a complete marketing package is to know your market, and it's not enough to gather demographic information once. Markets change, and food-service businesses that don't change their marketing strategies with population shifts are missing out on a lot of opportunities. Next, consider every element in your facility — the parking lot, interior decorations, printed items, etc. — to make sure they contribute to your marketing message.

One cheap and easy way to promote your food-service business is by building a presence on social media and giving away gift certificates, such as dinner for two or a free pizza. After all, promotions are one of the 7 Ps of marketing . Post weekly specials, host contests, engage with followers and give patrons a behind-the-scenes look at running your business — cooking tips, kitchen hacks, signature recipes. You can also connect with local social media influencers to visit your restaurant and post the delicious results (food videos are especially popular on platforms such as Instagram and TikTok).

Consider donating coupons and gift certificates to be used as door prizes at professional meetings or for nonprofit organizations to use as raffle prizes. Just be sure every coupon or gift certificate clearly identifies your business name, location, hours of operation and any restrictions on the prize. Some other promotional methods you can try include local event or sporting team sponsorships, discount coupon books, frequent-dining clubs, menu promotions and contests.

7. Choose an efficient layout

Layout and design are major factors in your restaurant's success. As you factor it into your startup costs, you'll need to take into account the size and layout of the dining room, kitchen space, storage space and office. Typically, restaurants allot 45 to 65 percent of their space to the dining area, approximately 35 percent to the kitchen and prep area, and the remainder to storage and office space.

Dining area This is where you'll be making the bulk of your money, so don't cut corners when designing your dining room. Visit restaurants in your area and analyze the décor. Watch the diners. Do they react positively to the décor? Is it comfortable or are people shifting in their seats throughout their meals? Note what works well and what doesn't.

To accommodate the different groups of customers, use tables for two that can be pushed together in areas where there is ample floor space. This gives you flexibility in accommodating both small and large parties. Place booths for four to six people along the walls.

Production area

Too often, the production area in a restaurant is inefficiently designed, resulting in a poorly organized kitchen and less than top-notch service. Keep your menu in mind as you determine each element in the production area. You'll need to include space for receiving, storage, food preparation, cooking, baking, dishwashing, production aisles, trash storage, employee facilities and an area for a small office where you can perform daily management duties.

Arrange your food production area so that everything is just a few steps away from the cook. Your design should also allow for two or more cooks to be able to work side by side during your busiest hours.

Dealing with customers and playing the role of elegant host are only part of a restaurateur's many duties. Food-service business operators spend most of their time developing menus; making sure their operation is in compliance with a myriad of local, state and federal regulations; ordering inventory and supplies; managing personnel; creating and implementing marketing campaigns; completing a wide range of paperwork; and performing other administrative chores. There are fun aspects of working in restaurants, but starting, running and growing a food-service business is also hard work.

Regardless of the type of food-service business you intend to start, successful restaurateurs agree that the best preparation for owning a restaurant is to work in someone else's first. Doing so will give you significant insight into the realities and logistics of the business. Think of it as getting paid to be educated. Certainly you should read books and take courses, but you should also plan to work in a restaurant for at least a few years doing as many different jobs as possible. And if you're not actually doing the job, pay attention to the person who is — you may find yourself doing it when your own restaurant is unexpectedly shorthanded.

Ideally, you should work in a restaurant similar to the type you want to open. You might find you don't like the business or realize you're more suited to a different type of operation. Regardless, you'll learn a lot — about the industry and yourself.

"As soon as I started working in a restaurant, I realized this was my passion," says restaurateur Scott Redler. "When you have a busy restaurant, and you're watching everything happen as it should, it's just a wonderful feeling of satisfaction."

Redler has worked in restaurants for more than four decades, first opening a Chinese fast-food joint at the age of 26. That venture failed within eight months, after which Redler went to work for a large restaurant company, where he eventually advanced to the position of senior vice president and oversaw 15 operations. But he still yearned for his own place, so he developed the concept that became Timberline Steakhouse & Grill in Kansas (which he sold in 2011). He recognized that the fast-casual segment was gaining momentum, so he created Freddy's Frozen Custard, which offers hot dogs, hamburgers and custard. Freddy's Frozen Custard is now a franchise operation with more than 500 stores in 36 states.

Most regulatory agencies will work with new operators to let them know what they must do to meet the necessary legal requirements. Your state's general information office can direct you to all the agencies you'll need to be concerned with.

Starting and opening a restaurant can be an exciting, rewarding, and sometimes overwhelming experience. When done correctly, the benefits will far outweigh any anxieties that may come along with it. With proper planning and research, you will have the necessary tools to make your dream of owning a successful eatery a reality.

• Start Your Own Restaurant and More by Rich Mintzer and the Staff of Entrepreneur Media : Entrepreneur's official guide describes the ins and outs of starting and running a successful restaurant, pizzeria, coffeehouse, deli, bakery or catering service. Packed with tips on how to keep your restaurant growing and healthy, the book answers most commonly asked questions and covers the essential business basics.
• National Restaurant Association (NRA) : Founded in 1919, the NRA is the leading business association for the restaurant industry. Its site offers access to an information service and library, various publications and industry research. It also provides networking opportunities and training, and emphasizes the ways in which local restaurants can contribute to their communities.
• National Restaurant Association (NRA) Educational Foundation : This nonprofit organization is dedicated to fulfilling the NRA's educational mission. The site offers classes for professionals and listings of U.S. food safety laws and training requirements. Where available, county and municipal requirements are also listed.
• SCORE : To get some practical, real-world advice, contact SCORE and ask to speak with small business counselors who owned or managed a restaurant. Find offices or counselors in your area by visiting the website.
• Women's Foodservice Forum (WFF) : The WFF is dedicated to providing women in the food-service industry with the resources to succeed. It offers leadership development programs, market research and a regional partnership program for networking. The site also provides answers to FAQs, advice and a community of peers.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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Restaurant Business Plan Template: Grow Your Business the Right Way

By Homebase Team

Planning the best way forward for your new restaurant can be a daunting task. Whether you’re living the dream of opening your own restaurant or reworking your existing concept, a restaurant business plan template takes a ton of stress out of writing a business plan.

In this article, we walk you through how to create a restaurant business plan so you’re not stranded in a quagmire of confusing priorities and too many ideas. Even better, we’ve created a free restaurant business plan template to form the operational foundation as you put one together! As you follow through our guide, feel free to download, customize, and reference our template to help you put your restaurant on the path to success.

To start, let’s go through all the ways a written business plan helps shape your restaurant, and why it boosts your business’s chance of success.

What is a restaurant business plan?

A restaurant business plan is a written document that lays out an overview of a restaurant, its objectives, and its plans for achieving its goals.

A business plan is a necessary tool for restaurants of all kinds and sizes. It can be a handful of pages long or much more detailed. A well-written restaurant business plan not only helps you organize your ideas, it’s also a key part of getting investor funding .

Why you need a business plan. 

Creatively, opening a new restaurant can be incredibly exciting. But it’s also super complicated. From licenses to equipment to building a team, each phase needs a lot of attention to detail.

Before you jump in, it’s important to shape your plan of attack, organizing your business ideas into a clear, concise narrative that an outsider could easily understand. A business plan is an essential part of this, as it  helps you:

Set short- and long-term goals.

A restaurant business plan not only shows how your business will operate in its early stages—it also shows what steps it’ll need to follow as time goes by. Setting both your short and long-term goals at the outset makes you more likely to achieve them. Short-term goals may include meeting current staffing needs, while long-term goals may include five-year growth forecasts and the steps involved to get there.

Understand your resource needs.

Going through the exercise of writing a restaurant business plan is as important as having the finished document in front of you. As you organize your thoughts, your resource needs—from the amount of capital you need to raise all the way down to the equipment you need to find—will take shape. 

Reduce potential risks.

Sadly, some 60% of restaurants fail within the first year of opening. One of the main reasons? A failure to plan. Your business plan will help you plan for most challenges at your restaurant before they come up, keeping you on the right side of that number.

Some of the risks your restaurant faces might include:

• Crowded market.  One key component of your business plan is conducting market research. How will you ensure your restaurant stands out?
• Supply chain issues.  Especially if your eye is toward growth, you need to know how to affordably, reliably, and sustainably keep your restaurant stocked—long-term. Why not track supply strategies as part of your business plan?
• Health and safety.  Are you compliant with health regulations? How will you know? Your business plan is one great place to outline compliance protocols, keeping you and your team informed.

Develop a marketing strategy.

As you do your market analysis and figure out your ideal customer, the ways you’ll promote your business will get clearer. The more specific you are with your market research, the easier and more effective your marketing efforts will be.

Build your team.

Your business plan helps you see who you’ll need on your team and which roles you’ll need to fill first . For investors, your business plan is a document showcasing everyone’s collective experience, personalizing your restaurant in their eyes and packing a professional punch. This can include everyone from your head chef to your star hostess. Make it clear how you’re filling your hospitality niche!

Share your vision.

Whether you’re using your business plan to secure startup funding or need additional capital after you’ve already opened, your restaurant business plan shows an investor or lender exactly why they should get behind you. Your business plan should detail where you began (or hope to begin), where you are now, and where you intend to go—as well as how.

The 9 elements of a strong restaurant business plan.

Your restaurant business plan will be unique to your restaurant’s vision. But all good business plans hit standard points, and whoever reads yours will expect to see certain elements. As you develop and finalize your ideas, here are nine key elements your business plan should include. 

1. Executive summary

A strong restaurant business plan begins with a strong executive summary. This is a sharp, concise overview of your restaurant—and your  best opportunity to grab people’s attention.

Here’s where you communicate, in a nutshell, what kind of restaurant you want to run. Which demographic will you be targeting? Why is your business something the community wants or needs? Especially if you’re asking for financing, include a snapshot of your financial information and growth plan as well. 

Your executive summary should briefly lay out:

• Your mission statement. Why are you starting this restaurant now, in this location? 
• Your idea. What’s the concept of this restaurant?
• Your plan of execution. What are your key steps to making this concept work?
• Your potential costs. What are your expected expenses?
• Your anticipated ROI. How much do you expect your restaurant to make?

Many investors will make a split-second decision off of the executive summary alone. It might be all they’re going to read, so make every word count.

2. Company description

Now it’s time to let your creativity out and give your restaurant concept life. Give a more detailed description of your concept that lets your passion for what you’re creating come through. 

Flesh out all the other details of your proposed restaurant, including your restaurant’s:

• Style of cuisine
• Any unique selling points or differentiators that will make customers choose you—for instance, aesthetic or celebrity chef
• Service style
• Restaurant name (or at least ideas)
• Size, seating style, and capacity
• Location ideas— or the location you’ve scouted or secured
• Ambiance ideas, including décor, lighting, and music
• Operating hours
• Other service offerings, like whether you’ll offer delivery or takeout, delivery guarantees, catering, and any retail products you plan to sell
• Legal structure (e.g., sole proprietorship, LLC) 
• Existing management and their roles, including yours
• Experts or advisors you’ve brought on board

3. Market analysis

Present the research you’ve done on your target market. Make a couple of buyer personas to represent your future customers, explaining:

• Where your target customers live
• Their income levels
• Their dining-out and/or ordering-in pain points (e.g., lack of late opening hours, lack of family friendliness)
• How often they dine out or order in

Go through which other restaurants already have a customer base in your area, then explain why people will choose your restaurant over others. 

4. Sample menu

Even at the business plan stage, menu engineering is crucial. The specific menu items you’re likely to serve—the biggest thing that will set you apart—should shine through with descriptions that are short, clear, and evocative. If you have an executive chef already, this is a great area for them to add input.

Use language that will get people excited about trying your offerings. Hire a designer or use an online program to create your own mockup using the same colors, fonts, and design elements as the rest of your branding. 

5. Business structure

Dive deeper into your business structure (sole proprietorship, partnership, LLC, etc.) and organizational management. Show what your different employee positions will be (co-founders, managers, servers) to give a sense of your team’s makeup. An organizational chart can be helpful here.

Investors won’t expect you to have your entire team on board at this stage, but you should have at least a couple of people firmed up. For the roles that are already filled, including your own, summarize your collective experience and achievements. Bullet points work well, or some people choose to go into more detail with full resumes for the executive team or critical team members.

6. Restaurant design and location

Long before you sign a lease, make sure that your new offering will outshine existing ones nearby. In this section of your business plan, explain why your chosen location, or the ones you’re narrowing down, are going to be an effective space for your target market.

Consider things like:

• Neighborhood demographics
• Foot traffic
• Labor costs
• Accessibility

Hand in hand with location, your restaurant’s interior design—both in its floor plan and its ambiance—is also crucial to your business’s viability. Come up with a captivating restaurant design that communicates your theme and matches your cuisine, creating a memorable customer experience. Decide how many tables you’ll be serving, and plan out any outdoor seating.

Touch on things like:

• Team uniforms
• Flatware and glassware

7. Marketing strategy

How do you plan to market your restaurant? Your plan for grabbing customers’ attention is vital to getting diners through the door, especially at the beginning before word-of-mouth advertising has taken off.

What kind of offers will you provide? Will you have promotional events, direct mail, or a social media strategy ? Go through your planned marketing campaigns and explain how each of them will help secure your target market. 

8. Takeout and delivery options

If you’ve decided to have takeout and delivery at your restaurant—pretty important for most target markets—decide whether you’ll use your own drivers or a professional fleet like Uber Eats or DoorDash.

Show how you’ll provide the smooth digital experience your customers will expect. Decide if and how your website will come into play, bearing in mind that in 2023, 40% of consumers preferred to order directly from the restaurant website .

9. Financial projections

Your restaurant’s projected budget need to be solid, especially if you’re using your business plan to get startup funds. Without a budget, investors have no way of knowing if your business is a good investment or when it will become profitable.

One way to make sure your projections are rock solid is to hire an experienced accountant with expertise in running restaurants. Make sure you’re keeping track of market research, planned costs , and projected income. Show how investor funds will be used and whether you’ll be putting up collateral to get a loan. You’ll also score bonus points with a sales forecast for the next five years. Make sure to include a break-even analysis!

One free restaurant business plan template, coming up. 

As the team behind Homebase , we know how much there is to consider when you’re starting a new restaurant. We’re proud to be an all-in-one partner for thousands of restaurants large and small—helping make everything from staffing, to scheduling, to team communication easier for business owners.

And we know that your restaurant business plan is a high-stakes document. That’s why we created our free restaurant business plan template to make sure nothing gets overlooked.

Check out our free, downloadable template to get your ideas into shape, get started on your restaurant journey—and get investors excited to jump on board with you. 

Download your restaurant business plan template for free: Restaurant business plan + free template PDF

Stop chasing down phone numbers with our built-in team communication tool. Message teammates, share updates, and swap shifts — all from the Homebase app.

Restaurant business plan template FAQs

What is the basic planning document for a successful restaurant.

The basic planning document for successful restaurants is a restaurant business plan. A restaurant business plan lays out a restaurant’s long and short-term goals and its plans for achieving those goals. Restaurant planners use it both to finetune their ideas and to secure investor funding.

How to write a restaurant business plan.

When writing a restaurant business plan, include an executive summary, a detailed restaurant description, market analysis research, a sample menu, a breakdown of your business structure, the design and location of your restaurant, your planned takeout and delivery options, your marketing strategy, and your financial projections.

What makes a business plan template for restaurants different from a standard business plan?

A restaurant business plan template differs from a standard business plan by including things like menu engineering, interior design, kitchen operations, front-of-house management, takeout and delivery offerings, and location analysis, which are unique to the food service industry.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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How to Write a Winning Restaurant and Bar Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be beneficial for restaurants and bar s that want to improve their strategy or raise funding.

A well-crafted business plan outlines your company’s vision and documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every restaurant and bar owner should include in their business plan.

Download the Ultimate Bar Business Plan Template

What is a restaurant and bar business plan.

A restaurant and bar business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Restaurant and Bar Business Plan?

A restaurant and bar business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Restaurant and Bar Business Plan

The following are the critical components of a successful restaurant and bar business plan:

Executive Summary

The executive summary of a restaurant and bar business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your restaurant and bar  
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your restaurant and bar. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your restaurant and bar company, mention this.

You will also include information about your chosen restaurant and bar business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a restaurant and bar business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the restaurant and bar industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a restaurant and bar business’ customers may include office workers who are looking for a place to have after-work drinks or families who are looking for a kid-friendly restaurant for dinner. 

You can include information about how your customers decide to buy from you and what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or restaurant and bar services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your restaurant and bar business via word-of-mouth or by partnering with another business.

Operations Plan

This part of your restaurant and bar business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. 

Examples of milestones for a restaurant and bar include reaching $X in sales. Other examples include expanding to a second location or launching a new menu.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your establishment. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs and the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Restaurant and Bar

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Restaurant and Bar

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup restaurant and bar .

Sample Cash Flow Statement for a Startup Restaurant and Bar

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your restaurant and bar . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written restaurant and bar business plan is a must for any business owner. It’s a great tool for attracting investors and keeping the company focused.  

Finish Your Bar and Restaurant Business Plan in 1 Day!

Blog Restaurant Management

How to Create a Restaurant Business Plan

April 23, 2023 — -->Cloudwaitress -->

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Knowing how to create a restaurant business plan is the first step toward turning your culinary dream into reality. Starting a restaurant can be a rewarding but challenging endeavour. And a well-crafted business plan serves as a roadmap for your restaurant’s success.

To create a restaurant business plan, focus on target market analysis, competitor analysis, menu design, and location selection. Develop a marketing strategy, outline your operational structure, and provide detailed financial projections.

Seek professional advice to ensure accuracy and feasibility. Consider your restaurant’s team, customer service policies, and supplier contingencies to strengthen your plan.

This blog post will discuss the critical components of comprehensive restaurant business plans. And it will provide you with valuable insights and guidance to help you establish and grow your business in the competitive food industry.

What is a restaurant business plan?

A restaurant business plan is a comprehensive document outlining your vision, goals, and strategies for launching and running a successful restaurant. Serving as a roadmap, it ensures that your dream of owning a restaurant becomes a reality.

A well-crafted plan should be detailed enough for anyone, including potential investors, to understand your vision and intended steps toward success.

Business plans can vary in structure and length, from a single-page lean startup plan providing a high-level overview to an extensive document covering every aspect of your concept. As your restaurant grows and evolves, update and expand your business plan accordingly.

The primary purpose of a business plan is to establish your intentions and direction. It helps define your unique selling points, market positioning, target audience, and marketing strategies. Moreover, a robust plan is invaluable for securing business loans or attracting investors.

Creating a business plan for a restaurant minimizes risks. And it sets your venture up for success, demonstrating thorough research and consideration of your restaurant concept, increasing the likelihood of long-term success in the competitive foodservice industry.

Why is a restaurant business plan necessary?

Learning how to create a restaurant business plan is crucial for ensuring the success of your eatery. Aspiring restaurateurs need to pay more attention to its importance. Moving forward without one can lead to costly mistakes and hinder your venture’s success. A comprehensive plan serves multiple purposes:

How to create a restaurant business plan

The following is a detailed, step-by-step guide on how to create a restaurant business plan. Each section represents a crucial portion of any good restaurant business plan, and none should be omitted. However, including additional sections may be beneficial.

1. Presentation

The first impression of your restaurant business plan starts with a visually appealing cover page that displays your brand identity. To create a professional and memorable cover, follow these guidelines:

• Logo: Include your logo on the cover, even if it is not yet finalized, as it represents your brand and sets the tone for the document.
• Date and contact information: Display the date your business plan was created or last updated, along with your name, business address, phone number, and email address, for easy accessibility.
• Brand fonts and colours: Utilize your brand’s fonts and colour palette to create a cohesive and consistent look throughout the document, reinforcing your brand identity and enhancing visual appeal.
• Professional presentation: Ensure your business plan is professionally printed and bound, with a high-quality cover that showcases your brand’s logo, fonts, and colours, reflecting your attention to detail and commitment to presenting a polished, well-thought-out plan.

2. Executive summary

The executive summary is vital to your restaurant business plan, providing a concise overview of your concept and vision. It introduces your business plan and captures the most essential information for potential investors or partners.

Ensure your executive summary captures your restaurant’s essence and generates interest in your project.

When learning how to create a restaurant business plan, ensure you include these critical elements in your executive summary:

• Mission statement: Articulate your restaurant’s goals, objectives, and core values to convey your purpose and driving force.
• General company information: Offer details about your company, including founding date, team roles, and locations.
• Category and offerings: Describe your restaurant’s category, cuisine, and reasons for your choices.
• Context for success: Highlight past successes or financial data supporting your growth and profitability potential.
• Financial requests: Outline plans and goals for investment or financing and any funds already secured.
• Future plans: Share short and long-term visions, detailing goals for the next one, three, and five years.

Write the executive summary last to draw important highlights from each section, ensuring a comprehensive overview.

After writing, read it independently to confirm it provides a clear, high-level view of your restaurant’s current state and future vision. Make it engaging and informative enough to encourage readers to explore the rest of your plan.

3. Restaurant description

The restaurant description section introduces your company and provides a comprehensive overview of your vision. Engage and inform readers by showcasing your unique concept and critical success factors.

The following elements should be included in your restaurant description:

• Basic information: Provide your restaurant’s name, location, contact details, and owner’s information with a brief overview of their experience.
• Legal standing and goals: Describe your restaurant’s legal structure and outline short and long-term objectives.
• Market study: Offer a concise analysis of the regional food industry, demonstrating market trends and why your restaurant will succeed.
• Concept and mission statement: Detail your restaurant’s concept, cuisine, service style, and unique features, incorporating your mission statement to convey core values and vision.
• Management and roles: List key management team members, their roles, and any advisors or consultants supporting your venture.
• Service style and ambiance: Describe the service style, restaurant size, seating capacity, décor, music, and general ambiance.
• Operating hours: Specify the days and hours of operation.
• Peripheral services: Mention additional offerings like retail products, delivery, takeout, or catering options.
• Unique selling points: Highlight aspects that set your restaurant apart, such as locally sourced ingredients or special guarantees.
• Physical space: Discuss plans for the restaurant’s layout, including design elements, lighting, and seating arrangements.
• Brand identity: Describe the emotions and atmosphere your brand will evoke and how this will be reflected in décor, colour scheme, and online presence.

4. Target market analysis

Understanding your target market is critical for defining your niche and differentiating your restaurant from the competition. In this section, describe the demographics you plan to cater to and why your concept appeals to them.

Consider including the following to create a comprehensive target market analysis as you investigate how to create a restaurant business plan:

• Target market definition: Describe the specific audience you intend to serve, including age, income level, occupation, and other relevant demographic characteristics.
• Buyer personas: Develop detailed personas representing your ideal customers, incorporating their lifestyles, dining habits, preferences, and pain points, to tailor your restaurant’s offerings and services.
• Market appeal: Explain why your restaurant concept is attractive to your target audience and how it addresses their specific needs and preferences.
• Competitive landscape: Acknowledge the competitive nature of the industry, highlighting unique features and strategies that set your establishment apart from others in your target market.
• Customer behaviours: Discuss your target market’s dining habits, including dining frequency, preferred times, and special requests or preferences (e.g., dietary restrictions, quick service).

5. Competitor analysis

A thorough competitor analysis is essential to understand the competitive landscape and identify opportunities for differentiation. In this section, examine your competitors, pinpoint their strengths and weaknesses, and explain how your restaurant will stand out.

To conduct a practical competitor analysis, consider including the following:

• Competitor identification: List similar restaurants in your area, considering factors such as pricing, hours of operation, menu offerings, and ambiance.
• Strengths and weaknesses: Analyze each competitor’s strengths and weaknesses, focusing on customer reviews, reputation, menu variety, service quality, and marketing efforts to identify market gaps and areas for your restaurant to excel.
• Differentiators: Highlight unique features and strategies that set your restaurant apart, such as innovative menu items, exceptional service, extended operating hours, or a distinctive atmosphere.
• Industry overview: Provide a brief overview of the restaurant industry in your area, including trends, challenges, or opportunities that may impact your business, emphasizing your restaurant’s unique value proposition.
• Competitive matrix: Use a competitive matrix to visually compare your restaurant’s offerings and services with competitors, helping you and potential investors quickly identify your competitive edge.

6. Overview of the market

In this section, you will comprehensively analyze the restaurant market, focusing on micro and macro factors that can impact your business. By showcasing your understanding of the industry, its trends, and potential challenges, you will demonstrate to investors that your restaurant is well-positioned for success.

We recommend including the elements in your market overview when learning how to create a restaurant business plan:

• Industry information: Begin by discussing the restaurant industry as a whole, including its size, growth trends, and recent developments. Consider factors such as changing consumer preferences, demographic shifts, and emerging dining concepts that may affect your business.
• Market share potential: Estimate the potential market share your restaurant can capture and explain how your presence will impact the market. Be sure to mention any barriers to entry or growth that you foresee and outline your strategies for overcoming these challenges.
• Market pricing: Detail your pricing strategy and explain how it compares to your competitors and other restaurants in the market. Highlight any unique pricing structures or offers you plan to implement to attract and retain customers.
• Local and regional economic conditions: Analyze the economic climate in your area and discuss how it may influence your restaurant’s performance. Address both positive and negative trends and explain how your restaurant will adapt to these conditions.

7. Sample menu

A well-crafted sample menu provides insight into your culinary offerings and sets the tone for your establishment’s ambiance and brand identity. To create a compelling and appealing sample menu, consider the following aspects:

• Menu design: Reflect your restaurant’s brand and concept in your menu design, incorporating your logo, theme-appropriate elements, and consistent colours and fonts. Seek assistance from a professional designer or use online resources if needed.
• Pricing: Base menu prices on a detailed cost analysis, demonstrating your understanding of your budget and ability to offer competitive prices.
• Menu descriptions: Craft short, evocative descriptions tailored to your target audience, using language and terminology that resonates with them.
• Menu psychology: Apply principles such as using simple numerals without dollar signs. And avoid dots or dashes between menu items and prices. Use design elements to highlight profitable items and guide customers through your offerings.
• Collaboration with your chef: Work closely with your chef to develop a menu showcasing your restaurant’s unique selling points and culinary expertise, ensuring your offerings cater to your target customer base and stay true to your concept.

8. Restaurant location

Choosing the right location is vital to your restaurant’s success. And it’s an essential part of discovering how to create a restaurant business plan. This section outlines ideal or potential locations and describes factors making them suitable for your business.

• Potential locations: Mention areas you’re considering and explain their suitability, highlighting demographics, nearby attractions, and factors attracting your target market.
• Connection to target market: Establish a link between the “Target Market” section and your preferred location(s), ensuring alignment with your ideal customer base.
• Site selection criteria: List essential criteria for selecting a location, including square footage, parking, outdoor seating, foot traffic, accessibility, and proximity to complementary businesses.
• Market analysis: Conduct a thorough market analysis, including demographic statistics, local industry, economic outlook, traffic counts, and residential or business populations. Utilize resources for detailed, accurate data.
• Comparison to target market characteristics: Assess the viability of your restaurant in the chosen location by comparing market conditions with your targeted characteristics.
• Points of interest and nearby businesses: Describe surrounding neighbourhoods, attractions, and area businesses contributing to your restaurant’s success, such as popular attractions, complementary establishments, or residential areas.
• Location details: Provide specific information about each potential site, including square footage, floor plans, design, and parking availability. And include other relevant information to visualize your restaurant in each location.

9. Marketing strategy

A well-planned marketing strategy is essential in the competitive restaurant industry. Outline your marketing approach, including pre-and post-opening buzz generation and ongoing efforts.

• Cloudwaitress ordering system: By driving all customers to order via Cloudwaitress, a direct ordering platform for cost-effective order automation, you’ll be saving your business money and setting yourself up for success.
• Pre-and Post-Opening Marketing: Describe your plan to gain traction before and after the launch, mentioning PR/marketing companies or independent promotions through social media, websites, and media connections.
• Positioning: Explain how you’ll present your restaurant, establish a unique brand identity, and stand out in the market.
• Promotion: Detail marketing tools, tactics, and platforms, such as social media, email marketing, events, and partnerships.
• Sales: Describe strategies to drive sales for specific items and additional revenue streams like catering.
• Advertising: Consider print and online ads, social media, and local TV and radio commercials.
• Public Relations: Outline PR efforts, including local newspapers, magazines, events, and community involvement.
• Social Media: Highlight plans for customer engagement on social media platforms for customer service and promotion.
• Community Involvement: Explain building goodwill and loyalty through community events, charities, and supporting local organizations.
• Building Business Relationships: Describe forging strategic partnerships with local businesses, hotels, and other establishments to boost visibility and revenue.
• In-house Marketing: Discuss plans for in-house promotions, such as table tents, menu inserts, suggestive sales, and loyalty programs.
• Web-based Marketing: Detail strategies for website, internet, and social media promotion, online discount programs, and user review management.

10. Restaurant team & operational structure

The success of your restaurant relies on a strong team and a well-defined operational structure. This section outlines key personnel, their expertise, and daily functioning.

• Team Introduction & Experience: Introduce essential personnel, mention renowned experts, and highlight their relevant work experience and achievements.
• Organizational Structure: Present an organizational chart, list key staff positions, and describe the staffing plan, including recruitment strategy and hiring criteria.
• Customer Service & Staff Training: Outline customer service policies, staff training programs, employee handbooks, and tools for ensuring exceptional guest experiences.
• Point of Sale & Systems: Detail plans for POS and systems to manage sales, inventory, labour, cash control, payroll, and payment processing.
• Suppliers & Business Structure: Identify sources for essential purchases and explain your chosen business structure and the reasoning behind it.
• Management, Operations & Systems: Discuss management team, hours of operation, location advantages, supplier relationships, and systems for smooth operations, such as operating manuals.
• Daily Operations & Customer Service: Summarize day-to-day operations, job functions, ordering and receiving, menu production, service, safety procedures, and maintenance. Detail plans for maintaining service standards and handling customer complaints.
• Supplier Contingencies: Explain backup plans for replacing key suppliers or dealing with product shortages, ensuring a resilient operational structure.

11. Financials and projections

The financials and projections section provides a comprehensive overview of the financial aspects of your venture. Consider engaging a professional accountant with restaurant experience for accurate estimates and projections.

• Investment Plan: Outline the initial investment sought and allocation of funds in the first year, including equipment, furniture, payroll, legal fees, marketing, and working capital.
• Projected Profit and Loss (P&L) Statement: Create a P&L statement based on educated guesses, considering factors like size, target market, and competition. Utilize an interactive P&L template.
• Break-Even Analysis: Present a clear break-even analysis, showing monthly revenue needed to cover expenses, accounting for variable costs, and plans for generating required revenue during slow months.
• Expected Cash Flow: Analyze anticipated cash flow, considering factors like inventory purchases, staff size and payroll, and payroll schedule to reassure investors of sustainability during less prosperous months.
• Multi-Year Projections of Revenue and Costs: Provide accurate projections based on market research and actual expenses, looking at one, three, and five-year benchmarks. Be realistic and conservative in estimates.
• Financial Plan: Present a detailed financial plan, including a projected profit and loss statement, capital requirements budget, and break-even analysis.

Include Cloudwaitress in your restaurant business plan

Don’t overlook the importance of a reliable point-of-sale (POS) and delivery system when creating a restaurant business plan. Cloudwaitress offers a comprehensive suite of features that streamline your operations and enhance the customer experience.

The platform caters to various customer preferences with versatile order types and ensures a smooth ordering process. These include pickups, deliveries, dine-in, room service, and table bookings.

Cloudwaitress’ advanced order management system allows you to accept orders anytime. You can also track order fulfillment and automate wait times, ensuring an efficient workflow.

The platform also offers a seamless ordering experience, with features like order history, express check-out and real-time customer order receipts. And its delivery management tools enable you to optimize your delivery operations. These tools allow for accurate delivery wait times, delivery zoning, customizable pricing, and more.

Incorporating Cloudwaitress into your restaurant business plan will set your establishment up for success. Its powerful features make it the ultimate partner for your restaurant’s POS and delivery needs.

Wrapping up how to create a restaurant business plan

Learning how to create a restaurant business plan is essential for attracting investors and securing funding. It’s also a vital tool for guiding your venture toward success.

If creating a business plan from scratch seems overwhelming, you could always start with a restaurant business plan template. You could also view a restaurant business plan example to better understand what should be included.

Consider seeking professional advice and feedback from experienced restaurateurs, accountants, or consultants to ensure the accuracy and feasibility of your plan. With dedication and careful planning, you can make your dream of owning a thriving restaurant a reality.

Check out more restaurant business resources:

• 6 Best Restaurant POS Systems
• 5 Best Food Delivery Apps
• 25 Best Restaurant Website Designs

How to Create a Menu for Your Restaurant

How often should i update my restaurant business plan.

Update your business plan annually or when significant changes occur, such as new competition, market shifts, or significant operational adjustments.

What role does market research play in creating a restaurant business plan?

Market research helps you understand your target audience, competition, and industry trends, enabling you to make informed decisions and create a viable business plan.

How can I make my restaurant business plan more appealing to investors?

Present a clear, concise plan with realistic financial projections, a strong marketing strategy, and a unique selling proposition that sets you apart from competitors.

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How to write a comprehensive restaurant business plan

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Are you considering opening a new restaurant , adding a virtual restaurant , or pivoting your restaurant’s business strategy to adapt to the shifting restaurant industry? Make sure you take the time to build a restaurant business plan. Why?

• Business plans are like professional road maps — they literally lead the way to success
• They’re critical if you’re looking for investors and need to outline your restaurant’s current wins and future revenue potential
• They help you foresee challenges before they arise, so you can sidestep some catastrophes and be better prepared for the others

Some 26% of restaurants fail within a year of opening, and failure to plan is one of the primary reasons those restaurants close. Create a business plan, and you’re setting yourself up to be on the right side of that statistic.

Here’s how to do it.

What is a restaurant business plan?

Before you learn how to write a business plan , it’s crucial to understand what a business plan is — and what it isn’t.

The goal of a business plan is to create a guide that helps you navigate each stage of launching and running your business. That plan should also be comprehensive and articulate enough that a total stranger, for instance an investor, could read through it and easily understand your vision, your goals, and how you intend to turn your restaurant dream into a reality.

Business plans come in a variety of structures and they can be as short as a single page or long enough to bind into a booklet. You may want to start with a lean startup plan that focuses on a high-level take on your strategy, then follow up with a more detailed plan that elaborates on key points and offers investors more information.

In short, your business plan should communicate everything you have and plan to put into your restaurant to ensure ongoing success.

11 elements every restaurant business plan should include

Your restaurant and mission statement should be unique to your business and your vision, but that doesn’t mean you have to start completely from scratch. Crafted by industry experts and packed with insider knowledge, the Grubhub Restaurant Business Plan template is your step-by-step guide to whipping up a winning business strategy. Take a look at our editable business plan template to start planning your restaurant. However you write it, your finalized business plan should include seven key sections.

1. Executive summary

This is a brief summary of your company, why it’s something the community wants or needs, and why it will be successful. Many different types of restaurants speak to various demographics, and it’s important to know  what kind of restaurant you want to run . Are you opening a quick-service deli focused on takeout sandwiches and ready-to-eat salads? Or are you going to be the first tapas restaurant in a city eager for more variety?

If you’re using your business plan to ask for financing, the SBA recommends including financial information and high-level growth plans in your executive summary, too. Your executive summary should include:

• Mission statement: A concise description of your restaurant’s purpose
• Proposed concept: The summary or outline of the restaurant idea
• Execution: How you plan to make this proposed concept work
• Potential costs: A brief overview of expected exprenses
• Anticipated ROI: How much the restaurant is expected to make

Think of your summary as your opportunity to capture your reader’s attention. Many investors will make a split-second decision based on the executive summary alone — if this section is all they’re going to read, make every word count.

2. Company description

Now it’s time to launch into a more detailed description of the company, including its  vital differentiator(s) , target audience, and any other factors that could sway investors like experts you’ve brought on board as advisors or a location you’ve already scouted or secured.

You’ll want to include the legal structure of the business, explaining whether you’re a sole proprietorship, LLC, etc., and list out existing management and their roles (including your own).

Now comes the fun part: Writing out a description of your concept. This is where you can let your creative side come out, showcasing your passion for what you hope to create and using plenty of adjectives to engage your readers and give your concept life. You’ve already decided what  type of restaurant  you’re opening, now flesh out all the other details:

• Service style (counter vs. sit-down, casual vs. fine dining, etc.)
• Restaurant size and seating capacity
• General ambiance, including décor and music
• Options for styles of seating, lighting, and other fixtures
• Operating hours
• Style of cuisine
• Peripheral service offerings such as retail products, delivery/takeout, and catering
• Unique selling points such as using produce grown on an adjacent farm or a 30-minute lunch guarantee to serve the area’s office workers better

3. Target market analysis

Detail your target market, using buyer personas to indicate who you see being your primary customer and what their dining habits might look like. These personas should include information on where target customers live, their income levels, their pain points (do they hate long waits or want restaurants that are open later?), and how often they dine out or order in.

The more specific you are during this step of the process, the easier it will be to create marketing to reach them.

4. Sample menu

If you’re a new restaurant, including a sample menu is the only way investors will know what you plan on serving. It’s not enough to say you’re going for “rustic Italian,” as that could mean different things to different people. Chances are your menu is your key differentiator, or at least part of it — otherwise, why will customers choose you over tried-and-true competitors already offering similar dishes?

Collaborate with your chef and keep the core tenets of  great menu design  in mind:

• Know your audience and tailor your design and descriptions to your target customer base — a college crowd eager for drink deals and shareable eats will be more interested in pictures and flashy pricing than diners looking for a white tablecloth experience
• Menu descriptions should be short but evocative — choose words that help customers understand exactly what they’ll be eating and get them excited about trying it (for example, say “succulent tea-smoked duck with anise-scented plum sauce” rather than “duck with plum sauce”)
• Refer to menu psychology when determining and placing pricing, sticking to simple numerals (no dollar signs) placed to the right of the menu item with no dots or dashes in between
• Use that same psychology to guide customers through your offerings, using call-out boxes and bold text to highlight more profitable items
• View your menu as an extension of your restaurant branding , using the same colors, design elements, and fonts

5. Organizational management

While you’ve touched on your organizational structure and management earlier on in your business plan, now you’ll explain  your business structure  and share a more comprehensive look at your team. An organizational chart can be helpful, as is a summary of your collective experience. Some people include a bullet list of the team’s top achievements that’s easy to scan and digest. This section should include any employe positions you will need to fill and a plan for how you will train these employees .

In addition to listing out co-founders, managers, servers, etc., you can attach resumes from your executive team or critical players like a well-known mixologist that’s helping you develop your cocktail program.

6. Restaurant design

Restaurant interior design is crucial for your customer’s experience. The ambiance and floor plan impact how they perceive your business and whether it’s a good enough place to eat at. In fact, even the color of the walls and types of flooring can impact people’s moods and how they feel while in your restaurant.

Come up with a restaurant design that matches your theme and cuisine. This is also the time to plan out any patio seating , and decide on how many tables can you can serve.

7. Location

You may already have a specific location picked out or even have a building purchased. If so, this section is less of a concern for you. It’s important to ensure that your location is going to benefit you rather than hurt your business. If you still need to find the right space to host your business, the location you end up choosing should be in line with your target market and be an easily accessible place for them to eat.

Before you sign a lease, it’s a good idea to check out the other competition in your area. If you found the perfect building for your pizzeria but it’s next to another popular pizza shop, it may be hard to convert customers to your cheesy creations. You want to enter a market where you can grab diner’s attention with new offerings rather than rival existing ones.

8. Marketing plan

With so many restaurants vying for customers’ attention, marketing is extremely important for getting diners through the door (or onto your website). Crafting a marketing plan for your restaurant gives you a blueprint for all potential advertising and outreach. Promotional events, social media, and paid ads are just some ways you can help get your restaurant off the ground, and investors will be very interested to hear what you have planned.

9. Takeout and delivery

Having reliable delivery and takeout services is pretty important for most target audiences. In fact, 51% of consumers said if they cannot order delivery or takeout from a restaurant, they probably won’t visit them for dine-in as often. Offering off-premise dining options will increase your order volume and customer base.

If you’re hoping to have takeout and delivery capabilities at your restaurant, Grubhub makes it easy . Whether you want to use your own drivers or our professional fleet, we offer :

• Grubhub Delivery: Our fleet of Grubhub Drivers pick up and deliver orders to your customers’ doors. We coordinate and pay the delivery drivers — all you have to do is provide the food.
• Supplemental Delivery: Utilize our delivery fleet of 300,000 drivers to widen your customer base.
• Self Delivery: Use your own drivers to deliver Grubhub orders to diners. You have full control over delivery and fees, but benefit from Grubhub online ordering.
• Pickup: Set up a Grubhub account to accept pickup and deliver orders from your customers, letting you reach new customers and increase sales.

10. External providers

To make your restaurant a reality, you’ll likely need a bit of help. Make a list of any external companies or software you plan to use or hire to get your restaurant up off the ground. This could be accountants who you wish to balance your books or designers who can help make your design dreams a reality. This list may also include outside suppliers for your food and beverages. Who is it that you want to partner with when it comes to receiving your raw ingredients and materials? Do you want to source locally or use a distant distributor? Whoever it is that you want to potentially work with, write them down!

Luckily, when you join Grubhub you not only do have your food delivery and pickup service partner chosen, you can also simplify your order and menu management using Grubhub for Restaurants’ easy technology integration . Our tech integrations allow orders to come from the Grubhub app or Grubhub.com directly to your kitchen. Plus, you can create a customized online ordering site with Direct . Encourage customers to place a commission-free order right from your restaurant’s website.

11. Customer service policies and procedures

As a business owner, you want to give your customers a five-star experience at your restaurant. Creating customer service policies and procedures will help ensure that your staff create a great dining experience for your customers. Have a blueprint for how certain situations will be handled and what you’ll do if problems arise. For example, if a customer has an issue with the food, your entire staff should know how to handle the circumstance and what to say to the diner. Then, ensure that your staff is all on the same page about your expectations for them and consistently utilize the same guidelines and approach.

12. Financial projections

Finally, it’s time to address the financial side of your business, especially if you’re using your business plan to acquire startup funds or additional capital after you’re already operational.

If you’re pre-launch, your projections are just that: guesses. But these guesses should be based on market research, actual expenses, and projected income, culminating in a five-year look at everything from estimated revenue to capital expenditure budgets.

If your business is up and running, you’ll include actual financial records such as cash flow statements and your P&Ls, ideally for the last five years. Use colorful charts and graphs to highlight financial wins and make it easier for investors to gauge your company’s financial health quickly.

If you’re asking for funding, specify how those funds will be used and whether you have collateral you’re able to put up to secure a loan.

Start writing your own restaurant business plan

Now that you understand the various steps for creating a strategic restaurant business plan , it’s time for you to create your own. Download our Restaurant Business Plan template to draft your restaurants’ operational foundation. Use this as a playbook for you to refer back to whenever you make business decisions.

Once you get your business plan off the ground, consider partnering with Grubhub. Platforms like Marketplace can make it easier than ever to capture the attention of new customers and reinvigorate relationships with existing customers by offering quick-click access to ordering and stress-free pickup or delivery.

Ready to reach millions of hungry customers? Sign up for  Grubhub for Restaurants  today!

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How to Write a Restaurant Business Plan

Set your restaurant up for long-term success

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Many people dream of opening a restaurant, seeing 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. Long hours, low pay, and a lot of stress cause many entrepreneurs to close up shop after a few short years.

One reason for the high failure rate in this industry is that restaurant owners fail to treat their restaurant as a business from the very beginning. They have no plan to deal with problems and unexpected expenses, and they don't understand the true costs associated with opening a restaurant.

One way to prevent these types of problems is to develop a well-written business plan. By writing a restaurant business plan, you show investors or lenders you have a clear contingency plan for handling any problems that arise.

What a Plan Can Do for You

A restaurant business plan needs to be structured like most business plans, but the details need to address your specific vision for a restaurant and its place in your local market. Start with the same general components of a standard business plan, then gear it specifically to the restaurant industry and your plans of succeeding in that industry.

Executive Summary

This overview needs to introduce your entire business plan with a couple of key broad strokes: What niche will your restaurant fill in the local dining market, and what role will you specifically play?

Make it clear to the reader (a potential investor) what kind of restaurant you will be. From fast-casual and sports bars to fine dining or ethnic cuisine, there are all kinds of restaurants. Let the investor know how you'll fit into the market, including the name of your restaurant and its location.

Be clear about your role in the business as well. Restaurants are multilayered operations. Menus must be built, food must be cooked, finances must be managed, customers must be served, and marketing efforts need to expand your clientele. One person trying to do all that would be overwhelmed, so include your partners in your executive summary. If you haven't found the perfect partners yet, explain the roles that you intend to eventually delegate to partners. If you're an experienced chef with a plan for a fine dining restaurant, for example, then make it clear to readers that your primary role will be in the kitchen and you'll hire experienced professionals to handle other key roles.

Company Description

This business analysis offers a first look at all your key business details. Where will you be located? What's your mission? Who are your target customers? What kinds of dishes will make up your menu? What sets your restaurant apart from other options in the area? Will the population base support another establishment like yours?

You'll also want to include basic details like your company's legal name, business structure, ownership, and management team. Keep everything high-level here, and save the deep details for later in your plan.

Market Analysis

This is often referred to as a marketing strategy, and there are three key components. Know how to address the specifics of your plan within each one.

• Industry : Who will you be serving? Is your restaurant going to cater to the older retired generation at lunchtime? Single professionals at dinner? Families with young children? Explain your customer base and why they are going to flock to your new restaurant instead of your competitors. You'll have touched on this in your executive summary and company description, but this is where you need to dig into the details of the local restaurant community and show how you fit.
• Competition : Who is your competition, and how will you distinguish yourself? Again, you'll have touched on this already, but use this section of your business plan to dig deeper into the details. Loyal customers at established restaurants aren't likely to change their dining habits unless your menu, atmosphere, or approach somehow sets itself apart from what everyone else is doing. Show your reader that you understand—in detail—what other restaurants are doing and how you're going to be different.
• Marketing : What methods do you plan to use to promote your restaurant ? Perhaps more importantly, who will be handling this? Following the example of the owner focusing on the kitchen, someone with experience promoting and marketing restaurants should be in charge and have a plan. Let investors know you've brought a local food-scene expert on board for that purpose, and explain their marketing plan.

Business Operations

Also known as the products or services section, this is where you tell investors about your hours and how many employees you plan to hire. It's also where you explain the benefits of your establishment for customers, such as its convenient downtown location or its proximity to the local interstate exit.

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. For example, a liquor license is expensive and can be difficult to obtain in some markets. Here, you can explain to investors that you've hired a consultant who specializes in negotiating and purchasing liquor licenses to handle that aspect of your business.

Management and Ownership

Who is going to helm the ship? Who will cover the aspects of the business you can't? Beyond ownership, explain your management hierarchy, as well. For example, will managers for specific areas—dining room, bar, business, etc.—report to a general manager who then reports to you? Or, will everyone report to you equally? The structure you choose is less important than having one that works for you. You also want to ensure that the function of the structure is easy to explain to your investors or lenders.

Financial Analysis

Here, you want to list the projected growth of your new restaurant. You should include a general start-up budget, as well as a profit and loss statement that projects how much are you going to spend versus how much you are going to make.

Lenders and investors want to see that they are going to get a return on their investment, so give them a picture—and be realistic—of how that's going to happen. Put the work in to accurately project your labor and food costs, along with other operational costs, and compare those against the expected sales growth of your restaurant. A detailed financial plan will provide a road map for evaluating how your business is doing each year.

Outside Help

Many people opening a restaurant are not experienced business professionals, so it's a good idea to seek out a business partner with requisite experience. If you can't find a partner, consider hiring a consulting firm that specializes in helping new restaurants get their operations off the ground. At a minimum, enlisting a professional who knows how to write a business plan will ensure you've got a good chance of enduring those first tumultuous years.

How to make a Restaurant Business Plan

Every restaurateur has started their restaurant journey with a restaurant business plan.

It is essential to have a strong, clear, and detailed restaurant business plan to outline the concept and structure of your future restaurant.

While you have spent countless hours planning and visualizing your restaurant, investors and other business partners don't yet know what your restaurant is all about; This is the opportunity to show you have a clear plan of action to get your restaurant started. The Restaurant business plan reflects everything from your possibilities, to your potential, to your limitations. It is a map that tells us where to go and predicts your chances of success in this industry. Although there are no formulas for making one, there are some variables that are indispensable when it comes to creating a restaurant business plan. Here is the most basic step-by-step guide to starting a restaurant with the best future prospects:

Business profile/initial analysis

A first logical step is to determine the restaurant's characteristics with the greatest-possible detail. It is the starting point for developing the project afterwards.

✔️ The type of business you wish to market: Family, traditional, specialised, a macro restaurant, a franchise, a small bistro, a tapas bar, etc.

✔️ The type of cuisine you wish to serve: fresh market cuisine, signature dishes, creative cuisine, traditional cuisine from a region, international cuisine, green-friendly cuisine, vegan cuisine, etc.

✔️ A profile of your potential customers: Women, men, generation Z , families, couples, executives, tourists , students, etc.

✔️ The location and its characteristics: What type of area is it, why are you interested in this place, what are its advantages, large influx of people or quiet area, business and office district or a leisure and recreational neighborhood...

By determining this information, you can know the nature of the business that you are going to set up at its core and from there, tweak its characteristics to increase its chances of success .

Profile of the industry/market analysis

The second basic step would be to observe your restaurant's direct and indirect competitors and the behaviour of the general market that you seek to enter , especially with regard to the characteristics of your business.

✔️ Market potential: Your cuisine is an industry trend or is a type of business with many economic prospects, or is appealing to different types of customers, etc.

✔️ Market limits: Complicated weather in the area, a saturation of similar restaurants, the low purchasing power of customers in the area...

✔️ The competition's potential: They use quality products, have very accessible prices, a very creative and varied offering or a very specialised and personalised offering, a good reputation or a long history in the area...

✔️ The competition's limits: All restaurants serve the same thing, scant digital marketing activities, recurring complaints about certain dishes, lack of space, uncomfortable decorations, they lack the technological tools for management, service delays, etc...

Using this analysis, you can incorporate elements to your initial restaurant profile and improve it. For instance, if you determine that the majority of your competitors have bland or unattractive decoration, you already know that having very comforting and more modern decoration would be a very strategic move.

This also holds true if you determine that customers demand certain types ingredients in your market; you would already know that including them in your menu would be ideal.

Marketing plan

Using all the previous information, you can take the next step, which is a bit more complex and consists of defining the bread and butter that will sustain your restaurant and its launch.

✔️ Verify the restaurant's production capacity: At this point, you must determine how many diners you can serve per day and how many meal services will be carried out per day and week based on the location's space and the production capacity that you can handle for your market launch.

✔️ Create the food selection: Now you can design a debut menu that is delicious, attractive and above all profitable, not very extensive nor simple, and that includes the right dishes to satisfy the taste buds of your potential clientele. We also must define the type of ingredients that you will use, the level of quality and freshness, the type of provider and an estimate of the cost of carrying out this menu.

✔️ Define the ambiance and facilities: What type of environment do you wish to create? At this point, it is very important to determine if you already have a location and what its potential is, or if you have an empty space and need to do a full overhaul. For instance, if you consider sustainable facilities or certain types of materials, you need to create a cost estimate for this renovation.

✔️ Determine a communication strategy: Which channels will you use to promote your business? Which measures will you take for the launch? How will you advertise your offering? Social media, specialised websites, search engines, flyers, alliances with businesses in the industry and, of course, whether these measures will be carried out by a marketing agency or professional along with an estimate of how much you would need to initially invest in it.

Financial plan

You have arrived at the most crucial step out of all the ones you will take for the restaurant business plan. It implies taking into account all the costs and profits that you will forecast for your business. In this step, you will determine the following:

✔️ Type of company: Will you start a company with various partners or a company with various employees, or will the owner register as a self-employed worker conducting a business activity? What will be the legal format of the business and, particularly, which type of taxes and legal contributions must you take into account to add to your calculations.

✔️ Management plan: At this point, you will quantify the number of the employees needed to begin, an estimate of salaries according to the market, the necessary equipment, machinery, tools, technical equipment and their cost, as well as the remaining operations for opening the restaurant every day.

✔️ Initial investment and upfront expenses: With all the previous information, you can now determine how much money you would need to begin and what will be your fixed and variable costs for the period that you specify. It is very important to consider the industry's constant changes and any variable that could destabilize your plan.

✔️ Sales percentage: Here you will determine how much to charge for your culinary experience and, based on this information, how much in sales do you need to make within a time period to cover the initial investment and operational expenses in principle.

✔️ Profitability estimate. Finally, with all these forecasts, you can know when you will begin to see profitability within your timeline by putting into practice this business plan. The most important thing is to achieve a high occupancy rate and manage fixed and variable costs well to ensure continuous benefits.

Quite a task! Have you ever drafted such a plan before?

Keep in mind that this is a summary of the most essential things to consider when creating a restaurant business plan. It is a highly complex project that naturally grows based on the business. In any case, we hope that it serves as a guide to get you started!

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Restaurant Business Plan

The National Restaurant Association (NRA) recently released its restaurant industry report. It revealed that the industry has grown by 4% since last year, reaching the market worth of USD 899 billion for this year. For entrepreneurs who aim to open up a restaurant , whether fast food, fine dining, family restaurant, or other types, now seems like a good time to do so. If you are among these businessmen, then guarantee your startup or small business’s success with a restaurant business plan. There’s no need for you to look for good examples of business plans elsewhere because we have a complete list ready for you below! What’s more? They cover all areas that must be considered in restaurant management. These areas include the target market, pricing strategy, SWOT analysis , market analysis , and financial agenda. To know more, read our article below!

What is a Restaurant Business Plan?

A restaurant business plan is a process document that highlights the operational and financial ambitions of a restaurant business idea, as well as the strategies on how to achieve them. Susan Ward, in her article entitled “Why You Should Write a Business Plan,” cited five reasons why a business plan is essential for entrepreneurs . First, it ascertains any business idea’s viability. Second, it increases the chances of new businesses to become successful. Third, it helps businessmen acquire capital. Fourth, it gives stakeholders more control over the planning phase. Lastly, it lures many investors. Whether these thoughts are true or not, we all know that having a plan on how to open up a restaurant is better than having none.

What is the Best Example of Restaurant Business Plan?

Here is an Example of a Restaurant Business Plan:

Best Examples of a Restaurant Business Plan:

An exemplary restaurant business plan should be comprehensive, well-structured, and tailored to the specific concept and market of the restaurant. Here’s a detailed explanation of what constitutes an ideal restaurant business plan:

Executive Summary

• Concept Overview: For example, a farm-to-table restaurant focusing on organic, locally sourced ingredients.
• Mission Statement: A clear, compelling statement, e.g., “To provide fresh, healthy, locally sourced meals in a sustainable and community-focused environment.”
• Key Information: Location, ownership, unique selling propositions, and anticipated opening date.

Company Description

• Restaurant’s Background: A story about the inspiration behind the restaurant, possibly inspired by local farming traditions.
• Goals: Clear objectives, like becoming the leading organic eatery in the area within three years.
• Target Market: A specific demographic, such as health-conscious families and environmentally-aware diners.

Market Analysis

• Industry Insights: Current trends in the organic dining sector and how they apply to the local area.
• Demographics: Detailed analysis of the local population, focusing on health trends and income levels.
• Competitive Analysis: Assessment of local competitors, with strategies to offer something unique, like exclusive organic dishes.

Menu and Services

• Menu Details: A draft menu showcasing organic, seasonal dishes with innovative recipes.
• Additional Services: Details on catering, special events, and partnerships with local farms and businesses.

Marketing and Sales Strategy

• Marketing Tactics: Strategies like community events, partnerships with local businesses, and a strong social media presence.
• Sales Projections: Realistic goals based on market research, with strategies for both slow and peak periods.

Management and Staffing Plan

• Management Team: Bios of key team members, highlighting experience in the organic food industry and local community engagement.
• Staffing Details: Plans for hiring chefs, servers, and support staff, with a focus on experience in organic restaurants.

Operational Plan

• Daily Operations: Outline of the sourcing, preparation, and service processes, emphasizing efficiency and sustainability.
• Facility Requirements: Description of the ideal location, kitchen layout, and environmentally-friendly equipment.

Financial Analysis

• Startup Expenses: Detailed budget for setting up the restaurant, including eco-friendly renovations and organic certification costs.
• Revenue Forecast: Projected earnings based on market analysis, with various scenarios.
• Expense Breakdown: Monthly operating costs, including sustainable packaging and fair wages.
• Profit and Loss Projection: Estimated profitability over the first few years, considering seasonal variations.

Funding Requirements

• Capital Needs: Total funding required, with a plan for its allocation.
• Funding Sources: Potential investors, grants for sustainable businesses, and loan options.
• Supplementary Materials: Market research data, sample menus, and marketing materials.

This example illustrates a business plan for a farm-to-table, organic restaurant. The key to an effective business plan lies in its specificity to the restaurant’s concept and its comprehensive nature, covering every aspect from the concept to operational and financial planning.

13+ Restaurant Business Plan Examples

1. restaurant business plan.

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Size: A4 & US

2. Restaurant Business Plan Outline

3. Food Restaurant Business Plan

4. Sample Restaurant Business Plan

5. Restaurant Business Plan for Investors

6. Restaurant Business Plan To Get A Loan

7. Restaurant Business Plan Inventory

8. Small Restaurant Business Plan Sample

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9. Breakfast Restaurant Business Plan

Size: 605 KB

10.  Business Plan for Restaurant Example

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11. Restaurant Business Plan Example

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12. Executive Summary for Restaurant Business Plan

13. Restaurant Business Plan Sample

Size: 332 KB

14. Business Plan for Restaurant Example

How to Write a Business Plan for a Restaurant?

Writing a business plan for a restaurant involves detailed planning and clear articulation of your concept, market strategic plan , and financial projections. Follow these step-by-step guidelines to create a comprehensive and effective plan.

Here is a step-by-step guide:

Step 1: Executive Summary

• Concept Description: Clearly define your restaurant’s concept, including the type of cuisine, ambiance, and unique selling propositions.
• Mission Statement: Craft a mission statement that encapsulates the essence and goals of your restaurant.
• Key Details: Provide basic information such as the proposed location, ownership details, and the expected date of operation commencement.

Step 2: Company Overview

• Restaurant’s Background: Share the story or inspiration behind your restaurant.
• Business Objectives: Outline specific, measurable, achievable, relevant, and time-bound (SMART) goals.
• Target Market: Identify your primary customers – who they are and why they would choose your restaurant.

Step 3: Market Analysis

• Industry Overview: Analyze the restaurant industry, particularly in your proposed location, including trends and forecasts.
• Target Market Demographics: Detail the specific demographics of your target audience, like age, income level, dining preferences.
• Competition Analysis: Assess direct and indirect competitors, their strengths and weaknesses, and how your restaurant will stand out.

Step 4: Menu Design and Service Offering

• Draft Menu: Outline a preliminary menu. Include a range of offerings while maintaining focus on your unique concept.
• Service Style: Describe the type of service (e.g., fast-casual, fine dining) and any additional services like catering or delivery.

Step 5: Marketing and Sales Strategy

• Marketing Plan: Develop strategies for promoting your restaurant, including branding, advertising channels, and promotional activities.
• Sales Strategy: Outline how you will generate and grow sales, including pricing strategy and customer loyalty programs.

Step 6: Operational Plan

• Daily Operations: Describe the operational workflow of the restaurant, from supply chain management to customer service.
• Facility Needs: Detail the physical requirements of your restaurant, including location, size, kitchen equipment, and dining area layout.

Step 7: Management and Organizational Structure

• Management Team: Introduce your management team, highlighting relevant experience and skills.
• Staffing Plan: Outline your staffing requirements, including kitchen staff, servers, and administrative personnel.

Step 8: Financial Projection and Analysis

• Startup Costs: Provide a detailed breakdown of startup expenses, including kitchen equipment, renovation costs, and initial inventory.
• Revenue Projections: Estimate your revenue for the first few years. Be realistic in your assumptions.
• Expense Forecast: Include an itemized list of ongoing operational expenses.
• Profit and Loss Projection: Showcase a projected profit and loss statement, highlighting when your restaurant is expected to break even.

Step 9: Funding Requirements

• Capital Needs: Clearly state the total amount of capital required to start and sustain the restaurant until it becomes profitable.
• Funding Plan: Identify potential sources of funding, such as loans, investors, or personal savings.

Step 10: Appendix

• Supporting Documents: Attach any additional documents like detailed market research, sample menus, or architectural plans for the restaurant.

Creating a well-structured business plan is critical for the success of your restaurant. It serves as a blueprint for your business and is essential for securing funding and guiding your restaurant towards its goals.

Ghost Restaurants

Zombies, werewolves, and other creepy creatures are truly spine-chilling and, at the same time, fascinating. However, they have nothing to do with ghost restaurants. Ghost restaurants also go by the name virtual restaurants or cloud kitchens. They are food service industry players that only cater to to-go orders. Mostly, the main candidates in their respective  target market worksheets are the people who want to taste restaurant-made dishes but are too busy to visit one. For business-minded individuals, such a business idea is very convenient. Aside from a very low startup capital, its marketing is mainly done online. Speaking of online marketing, you can check out our Online Marketing Guide For Your Startup .

How To Organize a Restaurant Business Plan?

Creating a company business plan for your dream restaurant is surely complicated. Aside from making sure to follow the standardized document flow, you also have to write their corresponding details in a concise manner. To save you time from researching the document’s standard composition, we have provided you with an outline of the necessary steps below.

1. Present the Executive Summary:

The business plan executive summary is where you give out the main points of your process document . These points should be written briefly yet thoroughly. In addition, this part is the very first section of all business plans. However, many of the technical writers prefer writing them last.

2. Propose Business Opportunity:

After presenting the executive summary , you can advance your idea of a profitable restaurant. This section should answer what market needs will the business be providing to the consumers. Furthermore, the complete target market analysis , SWOT analysis , competitive analysis , and their results should also be included in this section.

3. Layout Implementation Procedures:

Once you have successfully proposed the details of your restaurant idea, lay out the full specifications of how to achieve the business’s sustainability and profitability. To do this, you have to create a marketing and sales plan that comes with restaurant sales and marketing strategies.

4. Mention Stakeholders:

Restaurants, just like other businesses, are composed of many stakeholders, such as sales manager, marketing manager , financial manager, and many more. To completely know who to include, you should check out our stakeholders analysis and questionnaire examples.

5. Advance Financial Draft:

In this last step, you have to know what finance essentials for a small business are. Moreover, it is in this part where you have to project plan your restaurant’s annual budget . Additionally, this part is very useful when you are trying to convince a prospective investor. By giving them an overview of your business idea’s estimated cash flow, they can better decide whether to invest in your proposal or not.

How Do You Define a Restaurant’s Concept in a Business Plan?

Define a restaurant’s concept by detailing its cuisine type, service style, unique selling propositions, and overall customer experience vision.

What Should Be Included in a Restaurant Market Analysis?

Include industry trends, target market demographics, competitor analysis, and customer preferences in a restaurant’s market analysis.

How to Create a Marketing Strategy for a Restaurant?

Create a marketing strategy focusing on brand positioning, advertising channels, promotional tactics, and customer engagement plans.

What Financial Projections are Needed in a Restaurant Business Plan?

Financial projections should include startup costs, revenue forecasts, cash flow estimates, and profit and loss projections.

How Do You Determine the Staffing Needs of a Restaurant?

Determine staffing needs based on restaurant size, service style, and operational requirements, including kitchen and front-of-house personnel.

What are the Key Components of a Restaurant Operational Plan?

Key components include daily operations, supply chain management, facility layout, equipment needs, and health and safety protocols.

How to Identify Funding Requirements for a Restaurant?

Identify funding requirements by calculating total startup costs, operating expenses, and cushion funds for unforeseen expenses.

What Makes a Restaurant Business Plan Successful?

A successful restaurant business plan is realistic, detailed, adaptable, and customer-focused, with clear financial and operational strategies.

Why is a Business Plan Important for a Restaurant?

A business plan is vital for a restaurant to define its direction, secure funding, manage operations effectively, and strategize for growth and profitability.

How much does it cost to open a new restaurant?

In the Restaurant Owner’s survey, it was found out that small-scale restaurants can be achieved with only USD 175,000. On the contrary, large-scales will need an approximate amount of USD 750,500. These give us the average start-up cost of USD 375,500.

How to Create a Financial Plan for a Restaurant?

To create a financial plan, estimate startup costs, project revenues and expenses, and forecast profit and loss to ensure financial feasibility and sustainability.

What to Include in a Restaurant Marketing Plan?

Include branding strategy, target market analysis, promotional tactics, social media plans, and customer retention strategies in a restaurant marketing plan.

Which city in the United States is the best place to open a new restaurant?

By far, Cedar Park, Austin is the best place in the United States to start a restaurant. History has it that the restaurants’ growth from 2002 to 2007 marked 107.89%. This is because of the continuous growth in the residential population. Today, the growth of the two groups still continues.

Conclusion:

Planning is very essential for a business. Abraham Lincoln even uttered the saying, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Business planning is deemed very important for various reasons. Based on what was mentioned above, such preparation makes the creation of a business and its management more convenient. Moreover, its product, the business plan, is very important in obtaining the necessary financial means to support business ideas. When it comes to organizing such a document, it was established that it won’t be easy. But by following the standard format, making one won’t be much of a hassle.  In conclusion, providing a business plan , especially for your restaurant, comes with challenges. And, it takes the right article to overcome such challenges through examples and insightful guidelines.

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How to Design a Restaurant Floor Plan, Layout and Blueprint

Check out these restaurant floor plan examples and learn all about how layout contributes to making a restaurant as efficient and profitable as possible.

Allie Van Duyne Author

Allie Van Duyne

Allie worked in fast food kitchens before joining Toast and now DoorDash, writing about the future of the restaurant industry.

Restaurant Floor Plan Templates

Use these restaurant floor plan templates to get inspired as you map, or reimagine, the layout and space setup for your restaurant.

The right layout of seating, bar, and kitchen locations have a massive impact on both your employee and guest experiences — as well as your restaurant's efficiency and profitability.

For guests: You want to provide a layout that is welcoming and aesthetically pleasing for their dining experience. 

For employees: You want to maximize efficiency, removing any obstacles to their ability to do their jobs easily and quickly.

Many states will require you to submit a floor plan as a part of your restaurant’s business plan before they’ll issue a restaurant permit for the construction of a new establishment. That means that before a single hammer has been lifted or sink plumbed, you'll need to have an approved restaurant floor plan.

What is a Restaurant Floor Plan?

A restaurant floor plan is a map of your restaurant’s physical space, encompassing all of the elements of your establishment. This includes the dining area, waiting area, kitchen, prep areas, storage, and bathroom, and how they fit into your space together. 

A restaurant floor plan should include:

The kitchen

Kitchen elements like refrigerators, stoves, and other large appliances

Tables and chairs

The entrance

The waiting area

The bar area

The restrooms

Your staff area or backroom

Outdoor seating

Your restaurant POS system and payment systems

Emergency exits

Square footage

You can design it yourself, using restaurant floor planning software such as SmartDraw , ConceptDraw , or CadPro to create a customized floor plan. 

Or you might opt to work with an interior design studio, leaving the process to professionals who know how to maximize space and create an appealing interior concept.

There is no one right approach, because for restaurant floor plans, one size never fits all. But there is one goal all restaurateurs share: to delight guests.

“People these days are not just looking for good service, good food, and a good ambiance, but they're looking for an experience. And the way we define experience is something that really activates all of your senses: smell, sound, sight, touch, taste. Being able to trigger all of the senses is the key to making you stand out.”

Dala al-fuwaires on the garnish podcast, owner of house of form interior design firm.

As you move through the process of opening a restaurant  and begin to envision your restaurant’s layout, try to answer the following from your customers' point of view:

•  What would it feel like to walk through? 
• To sit down? 
• To order a meal? 
• What experience are you delivering to your diners?

Restaurant Layouts and Social Distancing Safety Guidelines

Flexibility is key to being able to adhere to COVID-19 guidelines, while also being able to reimagine or revert your space to what it looked like pre-COVID. 

In the age of COVID, the CDC requires restaurants to make adjustments to maintain safety for customers and staff. Restaurants are currently asked to:

Maintain at least 6 feet of space between tables. 

Are encouraged to offer take-out options, drive-through, delivery, and curbside pickup. 

Use technology like texting, apps, and more to minimize crowding in restaurant waiting areas. 

Construct physical barriers between dining groups when possible.

Provide ample space with distancing for restaurant staff to take breaks, eat, and drink.

Accessibility in Restaurant Floor Plans

Above all, you want your floor plan to be compliant with all building codes and be accessible and welcoming to all guests.

“Restaurants are typically designed for their average customer, their typical customer," Restaurant architect Justin Alpert told us. "What we don't want to do is exclude customers who have accessibility challenges.”

Adhering to building codes is the bare minimum , Alpert said. Even if you have to forego one table in favor of making your dining room easier to navigate in a wheelchair, he added, it’s the right thing to do.

How to Create a Restaurant Blueprint and Floor Plan

Floor plans can get pretty elaborate, tailored to fit permitting requirements as well as your own brand and aesthetics. To create a floor plan yourself, you can use any of the following software:

Floor Plan Software

ConceptDraw

And whether or not you're DIYing your floor plan or working with a pro, keep the following best practices in mind.

Restaurant Blueprint Design Best Practices

Allow space for your guests to wait to be seated

Create a space for your staff where they can take comfortable breaks

Depending on how food is delivered or served, create a natural flow for food to be served and think about how the kitchen connects to your end patrons

Create inclusive seating options

Consider lighting, theme, and ambiance

Factor in your payment system and POS system and how your staff will access them

Offer outdoor seating

Create a plan for social distancing in your restaurant

Now, we'll walk through the parts of a restaurant and how they factor into your floor plan.

1. Restaurant Kitchen Floor Plan

Floor-plan considerations are critical for kitchen staff: a well-laid-out kitchen will increase efficiency, reduce accidents, and increase overall staff happiness. 

Below is an example from CadPro of a restaurant kitchen floor plan that includes space for goods receiving, inventory, dry storage, prep, cooking, dishes, a bathroom, and a staff changing room. 

The cooking area is set up in a square, and the space is open, so cooks can communicate with each other while preparing meals. 

The best kitchen designs minimize the chance for cooks to bump into each other and will reduce the time it takes to run a plate to where a server will pick it up. It should also include all the essential restaurant equipment and supplies .

2. The Waiting Area Floor Plan

It's easy to completely overlook the waiting area, or add it as an afterthought where diners are squeezed into a small area while waiting for a table, or they're blocking the way of servers or other diners.

But don't make that mistake, because the waiting area offers a great opportunity to show next-level hospitality. 

For example, one simple way you can show your restaurant’s commitment to the guest experience is by implementing a free coat check.

“Restaurant operators can sacrifice a great deal of storage and sales opportunity, or the ability to open the room up more for bar seating. But at the end of the day, the coat check adds to the hospitality, even if only in the winter,” said Richard Coraine, senior managing partner of business development and consulting for Union Square Hospitality Group . Coraine helped implement coat checks in Gramercy Tavern in New York.

Another simple guest-centric option is to place a host in the waiting area whose job it is to keep guests happy and at ease as they wait for their table, as Giovanni’s Restaurant in Copperas Cove, Texas has done. The right host must be an expert at reading body language and facial expressions of guests, and (if your restaurant can accommodate it), the host should know when to offer a drink or a free appetizer if the wait grows long or if the guests seem restless. 

3. The Full-Service Bar Floor Plan

Your full-service restaurant might also have a bar that doubles as a waiting area and allows you to serve more people. Below is an example of Bahama Breeze Island Grille’s floor plan for private dining. The full facility fits 152 people seated, and 300 for cocktail or standing room.

The more tables you have, of course, the more difficult it can be for servers and bartenders to navigate the space. Odd Duck in Austin, TX found a solution in Toast Go , a handheld restaurant POS system , which allows servers to split checks, take orders, take payment, and collect guest feedback right at the table or the bar. 

4. The Dining Room Floor Plan

The dining room is arguably the most important part of the restaurant. Your dining room should be inviting, but intimate; spacious, yet welcoming. No matter how large the dining area might be, it should never feel cavernous to your guests. 

How big should a restaurant dining area be? 

Total Food Service suggests that the dining area should take up 60% of the total area of a restaurant; the kitchen and prep areas should equal 40%.

You’ll also need to determine how much space you want to allocate for each guest based on maximum occupancy. This will be different for various types of restaurants, but Total Food Service suggests the following. (Of course, these suggestions apply to non-COVID times; see COVID guidelines above from the CDC.)

Fine Dining: 18-20 square feet

Full-Service Restaurant Dining: 12-15 square feet

Counter Service: 18-20 square feet

Fast Food: 11-14 square feet

‏Banquet: 10-11 square feet

For example, a space of 5000 square feet will have a dining area with 3000 square feet and a kitchen of 2000 square feet. With 200 seats, the restaurant would provide roughly 15 square feet per seated guest.

It’s crucial to allow guests some elbow room. In post-COVID times, SeatingExpert.com suggests leaving at least:

18 inches between each occupied chair

42-60 inches between each square table

24-30 inches between corners of diagonal tables

In a study by Cornell University’s School of Hotel Administration , at a New York City fine-dining restaurant, researchers found that parties at closely spaced tables spent less per minute than those at widely spaced tables. Patrons seemed uncomfortable when freestanding tables were set as close as 17 inches apart and were more comfortable when the distance was closer to a yard apart.

The answer? Offer many different styles of seating at your restaurant, whether in benches, booths, diagonal seating, deuce tables, small tables, or banquet-style tables. Osteria La Spiga  in Seattle, Washington does a great job of varying their seating options, below. Incidentally, this setup is also best for accommodating guests with disabilities . 

5. The Restrooms Floor Plan

A clean bathroom signals a clean establishment throughout, and it shows that you care about your guests. In many restaurants, the bathroom layout — like the waiting area — is also an afterthought. But more than 80% of consumers say they would avoid a restaurant with a dirty or poorly maintained restroom, according to a survey by  Zogby International . 

Make sure your bathrooms are easy to access — without requiring guests to wander through the kitchen or requiring staff to wander through the dining room to use them. 

The example below is from design software AutoCAD . In it, the bathrooms are tucked away in the corner, by the back office. And there are two, including one that’s large enough for wheelchair access. 

6. Staff Quarters / Back Room Floor Plan

“Back of house” doesn’t just apply to the kitchen — it’s important to think about all your employees’ space when designing a restaurant floor plan. Servers, sous chefs, hostesses, bartenders, bussers, barbacks, and all your staff will need a place to either gear up for a shift or unwind during a break. The staff quarters are also an ideal place to post your weekly or monthly schedule, leave announcements for staff, train new staff members, or hold pre-shift meetings.

In the example below from BrightHub , the staff quarters are right outside the dining room area and right next to the kitchen. The room is well located and has a door, so employees can easily have a quick, private conversation. 

7. Payment Station & POS System Floor Plan

Ben Kaplan of Barbara Lynch Gruppo  describes a restaurant’s POS system as “the heartbeat of your restaurant.” Similarly, the location of your POS in your restaurant can dramatically affect your business's efficiency. 

You may need several POS terminals at different areas: one for the bartenders, one for the hosts, and one for the servers, as well as kitchen display screens for the kitchen staff. Or you may choose to minimize the amount of technology visible in your dining area and opt for one terminal hidden away from guests.

To minimize staff running back and forth between the payment station and their tables, you can implement handheld point of sales , allowing guests to order, pay, sign, tip, and even rate the restaurant experience at the table.

The example below is from designer Raymond Haldeman who worked with La Fusion Lounge in Philadelphia, PA, where there are two POS stations at either side of the bar, so multiple bartenders aren’t bumping into one another.

8. Outdoor Areas Floor Plan

Your restaurant may have an outdoor patio or outdoor seating on the street – if you do, great! Because a well-set-up patio can increase gross profits by an incredible 65% . 

The ideal location for a patio is close to the kitchen and dining room, so servers don’t have to walk very far in between. The example below from Acapulco’s Mexican Restaurant in Denver, CO has a patio in the back of the restaurant, with round seating. The patio has seven tables and is close to the dining room and the bathrooms.

Acapulco’s Mexican Restaurant by EVStudio

9. The Entrance Floor Plan

Diners frequently choose not to visit a restaurant based solely on its exterior. Conversely, they can be lured on looks alone. Before a server even greets a single guest, you should ensure that your restaurant invites them inside.

Think of your restaurant exterior like a billboard: designed to attract fast-moving visitors, said Ilan Dei, of Ilan Dei Studio in Venice, CA.   

Dei, who designed the exteriors of the 12-unit Lemonade  restaurant chain in Los Angeles, told   Restaurant Development + Design Magazine , that while all of the Lemonades are modern, cafeteria-style stores, they all needed a slightly different application of the billboard philosophy. 

For example, some are in malls that enjoy generous foot traffic, while others are drive-by locations that needed to appeal from the street. In the latter locations, he installed floor-to-ceiling windows, allowing drivers to glimpse the stylish, inviting interiors from a distance. 

Several common design elements tie all the restaurants together, including a customized door handle designed to look like two lemon wedges. These fun touches aids in brand recognition and create a memorable customer experience.

10. Emergency Exits Floor Plan

All restaurant floor plans must be created with emergencies in mind. Floor plan software SmartDraw  gives the following example of a floor plan with its paths of egress marked in red. 

How to Choose a Restaurant Floor Plan

Now that you’re familiar with the areas in a restaurant you need to focus on and some inspirational examples of restaurant layouts, it’s time to think through what will work for your establishment. 

When choosing a restaurant floor plan, consider:

How much space do you have? Consider the dimensions above and leave extra space for guests to move in the space comfortably.

Where do you want to invest the most space?

Add backup plans for your restaurant design to include social distancing measures if needed.

Is your restaurant accessible?

Will you have a full bar?

Map it Out and Change it Up

Once your new floor plan has been built and implemented, it's always a good idea to keep checking in with how functional it is. Changing things up is always an option, especially when it comes to seating arrangements. Test different layouts and talk to your regulars about what worked and what didn't to find the best floor plan for your unique restaurant.

Related Restaurant Resources

• Bar Floor Plans
• Cafe Floor Plans
• Nightclub Floor Plans
• Coffee Shop Floor Plans
• Bakery Floor Plans
• Small Restaurant Floor Plans
• Ice Cream Shop Floor Plans
• Juice Bar Floor Plans
• Sports Bar Floor Plans
• Food Truck Floor Plans
• Pizzeria Floor Plans
• Brewery Floor Plans

Learn how a better point of sale system can help you run your restaurant.

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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Re-FRESH Program

The Revitalization of Food Restaurants and Establishments to Stabilize Holistically (Re-FRESH) Program supports brick and mortar businesses negatively impacted by the COVID-19 pandemic.

Our goal is to create stability amongst small food businesses, restaurants, bakeries, coffee shops, taverns, and bars. 

Over the course of eight months, Program participants create a plan to reactivate their business, creating goals to recover from pandemic setbacks. Our office provides wrap-around support services through our technical assistance partners, such as: 

• Working one-on-one with a business coach,
• offering support and resources
• creating comprehensive marketing plans

Have questions? Contact:

Apply Today

• Notice of Accommodations

About the Program

Eligible businesses include food businesses, restaurants, bars, taverns, and juice shops. We prioritize businesses that are located in low-to-moderate-income communities. Businesses must meet the following criteria to be eligible:

• must employ 30 or fewer individuals, including the business owner
• must earn no more than $3 million in annual revenue
• declines in revenues or business closures due to the pandemic
• greater difficulty accessing credit than prior to the pandemic
• increased costs to starting the business due to the pandemic
• lost expected startup capital due to the pandemic
• must have a commercial or mobile space in the City of Boston (home-based businesses are not eligible)
• If deemed necessary by the Small Business office, must complete the necessary Re-FRESH Program workshops/trainings.
• must be in Good Standing with the City of Boston, with no back taxes owed on property, personal property, or motor excise

Businesses can receive up to $15,000. Small Business may award full funding, partial funding, or no funding.

• Second round grant application launch: (To be determined)
• Info session: (To be determined)
• Second round application deadline:  (To be determined)

Apply for the Second Round

Application requirements  .

Businesses must submit a complete application by (to be determined).

Businesses should be prepared to provide the following documents: 

• Valid certificate of occupancy (as appropriate)
• Valid business certificate from the City of Boston OR your 2023 or 2024 annual report for your Massachusetts state-registered corporation
• Budget template provided in application
• Letter of community support from a neighborhood or community group (OPTIONAL)
• Copy of 2023 IRS filing for business tax
• Valid Supplier ID

Submit Application

Please note that funds cannot be used for owner's salary but can be used for employees' salaries

General Program Policies

• Grant funds must be used only in association with business establishments located within the city of Boston
• Grant funds are awarded to a business, not to an individual
• Applicants should read the full terms and conditions of this grant
• Food businesses in Qualified Census Tracts will be prioritized, but all are welcome to apply

Round One Awardees

The first round of awardees received grants ranging from $2,500 to $13,000. They represent 18 neighborhoods. Awardees are as follows:

• ADK Sandwich Shop
• Ariana Restaurant
• Blue Mountain Jamaican Restaurant
• Bonne Chance Cafe
• Bono Restaurant and Catering
• BRASIL BRAZIL
• Butterfly Falafel
• CAFE CORNER
• Cafe Iterum
• Cape Verde Taste
• Caramelo Bakery & Cafe
• CHARLIE'S SANDWICH SHOPPE
• Chill on Park
• Comfort Kitchen
• CRISPY DOUGH PIZZERIA
• Don Tequeno y Dona Arepa
• DORA TAQUERIA
• Drydock Cafe
• Huong Que Vietnamese Restaurant
• Las Delicias Colombianas 2
• Las Palmas Restaurant
• Love Art Sushi
• Madhouse Cafe
• MAXINE'S ON SAINT JAMES
• Mexicali Sushi Bar
• MI PUEBLITO ORIENT HEIGHTS
• Mi Pueblito Restaurant
• Montecristo
• North Street Grille
• Oasis Restaurant
• Papi's Stuffed Sopapillas
• PeKa Restaurant
• Perros Paisas
• Pizzeria Rustico
• Restaurante Cesaria
• rinconcito salvadoreno
• Roundhead Brewing Company
• Savvor Restaurant and Lounge
• Solid Ground Cafe
• spicy world
• Sweet Kingdom
• Tacos Calleteco
• TERTULIAS CAFE
• The Jamaican Hummingbird Restaurant
• The Koji Club
• Top Mix Bar & Kitchen
• Tu Metapan Restaurant
• Vasquez restaurant
• We Grow Microgreens
• Wens Noodle
• Woodys Grill & Tap

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Money blog: Policy tweak could save you £295 on car insurance

Welcome to the Money blog, your place for personal finance and consumer news and tips. Leave a comment or your Money Problem/consumer dispute (don't forget to leave a contact number/email) in the box below.

Thursday 11 July 2024 08:28, UK

• Common trick could save you £295 on car insurance
• Water bills to rise by average 21% over next five years, regulator rules
• Economy records better than expected 0.4% growth in May
• Unloved savings account offering some of the highest rates

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• Further reading: Ian King answers your questions on what Labour government means for your personal finances

Ask a question or make a comment

By James Sillars , business reporter 

Faltering expectations for imminent interest rate cuts are playing out in financial markets today.

The pound is at a four-month high versus the dollar at $1.28.

That has been largely put down to remarks by Bank of England rate-setter Huw Pill, the Bank's chief economist, that the timing of the UK's first rate cut was an "open question".

He spoke up just 24 hours after another member of the monetary policy committee ruled out personal support for a reduction on 1 August.

Jonathan Haskel said too many stubborn inflationary pressures remained.

As such, financial markets now see only a 50/50 chance of a rate reduction to 5% from 5.25% at the next Bank meeting.

The chance of a cut had stood at 60% at the start of the week.

The pound has lifted as higher interest rates are generally supportive of a domestic currency.

Elsewhere, the FTSE 100 has opened to a flat calm - up just a couple of points at 8,000.

A big focus for investors this morning was the interim decision by water regulator Ofwat on what suppliers could charge their customers over the next five years.

To give you some idea of the reaction, shares in United Utilities and Severn Trent opened up by around 2%. Those of Pennon, the company behind South West Water, were up by more than 6%.

Water companies in England and Wales have been told they will not be allowed to impose the hikes to bills they have demanded, the industry regulator has said in an interim verdict on their business plans for the next five years.

Ofwat declared that it was minded to slash, by a third, the combined increases that the 16 companies had submitted.

It left the average bill, the watchdog said, set to rise by £19 a year or 21% over the period.

Read our report here ...

Meanwhile, more compensation, possible refunds and new customer panels have been announced as part of the government's "initial steps" towards ending what it describes as the crisis in the water sector.

You can read this story here ...

The appearance of finer weather helped the economy recover some lost ground in May, according to official figures that were better than expected.

The Office for National Statistics (ONS) recorded gross domestic product growth of 0.4% in the month, compared with its earlier determination of  zero growth during April .

A poll of economists by Reuters had pointed to a 0.2% increase for monthly gross domestic product in May.

On a quarterly basis, the UK's interest rate-driven recession of the second half of 2023 ended at the start of this year as the  Bank of England  ended its rate hiking cycle which was designed to cool inflation by choking demand in the economy.

Read our full story here ...

A common trick could get your car insurance down by £295.

Motorists aged between 25 and 34 save that figure on average by adding an experienced driver to their policy, Compare the Market has found. 

Even younger drivers aged 18 to 24 - who often face the highest premiums - could also make big savings, an average of £281.

The typical premium for those aged between 18 and 24 is £2,140 - but adding a named driver brings that down by 15% to £1,859. 

You can check how much you could potentially save in the table below...

In order for your policy to be valid though, all named drivers must use the car. 

The cost of car insurance usually declines by adding an experienced driver to the policy, as insurers typically take both motorists' information into consideration when determining the premium, based on the car being shared.

If you add an additional driver and they do not use the vehicle, this can be considered as a type of insurance fraud called fronting. 

If you are caught fronting, your policy could become invalid and you could face criminal prosecution. 

Julie Daniels, motor insurance expert at Compare the Market, said the price of insurance had increased by 19% in the past year. 

Germany's property industry is headed for a "bitter" crisis, the country's largest landlord has warned. 

Higher interest rates have been hammering the property sector in Europe's largest economy, and could see several companies go bust in the near future, it is claimed.

Rolf Buch, chief executive of Vonovia, warned the country is "going to see an extreme number of bankruptcies over the next few months, maybe over the next few years". 

"We're already seeing them today. It is going to be bitter," he said. 

Meanwhile, renters are facing fierce competition for flats and Mr Buch said the market for these is "going to get worse". 

The sector had previously seen a boom due to low interest rates and a strong economy, but this changed when rising inflation forced the European Central Bank to swiftly raise borrowing costs. 

The industry is now calling on the German government to intervene.

The ECB cut its main deposit rate from 4% to 3.75% last month but bank president Christine Lagarde has indicated that benign economic developments mean further interest rate cuts are not urgent, with a robust labour market and resilient wage growth.

For Savings Guide this week, Savings Champion research and development manager  Daniel Darragh gives us the lowdown on the best notice accounts on the market right now... 

Notice accounts have seen a rally in recent times, with rates on the rise.

Some of these accounts are offering some of the highest rates outside of regular savings accounts. OakNorth's 95-Day Base Rate Tracker, paying 5.37% AER, and Vanquis's 90 and 60-Day accounts, paying 5.35% and 5.30% AER respectively, even beat any fixed-rate term accounts currently available.

A relatively unloved and often overlooked area of the savings market, notice accounts tend to offer higher rates than easy access accounts due to their restrictions on access, but they have greater flexibility of access than a fixed-term bond.

As the name suggests, notice accounts require you to give notice to access your money without a penalty. Usual notice periods range from 30 to 120 days, although there are some accounts on the market that require six months or even a year's notice. 

While you need to give the required notice to access your cash on the majority of notice accounts, some will allow immediate access with a penalty equivalent to the notice period - although this is now less common. This penalty can be taken from the capital if insufficient interest has built up prior to access, so it's important to plan carefully as you could end up with less money than you put in.

It's also important to note that unlike fixed-rate bonds, notice accounts pay a variable rate of interest so are subject to fluctuations in rates over time. This is particularly pertinent given the speculation that the Bank of England is considering cutting interest rates in the coming months, which may well be passed onto savers in variable rate accounts by the underlying provider.

In the case of notice accounts, when rates decrease, the amount of notice given to customers varies from provider to provider. Some providers will give customers the full notice period, plus x number of days, before any rate reductions take effect – in essence, allowing clients to give notice and withdraw their funds from the account before the new, lower rate takes effect. 

Other providers may only give a set amount of days, less than the notice period itself, which means that, even if you were to give notice on the day you were informed of the rate drop, your money would be subject to the lower rate for at least part of the notice period. As there is no hard and fast rule on this, it is important to check the terms and conditions of the account so you know what situation you will be in if or when rates start to fall.

For some people, not being able to access their money immediately is important to help them to resist dipping into their savings and it could also be a good way of getting a higher return on money that you know you will not need straight away – so could be a serious consideration for many cash savers.

The Danish capital might not be what comes to mind when you think of a cheap holiday - but if you're willing to help the community, you can earn yourself freebies and discounts. 

Under a new scheme being trialled, visitors to Copenhagen can claim anything from a free lunch or glass or wine to a free kayak rental. 

They can earn these freebies by completing tasks such as litter picking, travelling by public transport, cycling or volunteering in an urban garden. 

The CopenPay scheme is being trialled from 15 July until 11 August. 

Twenty-four attractions in the city are signed up to take part, including the Museum of Copenhagen - where you can claim a free coffee if you've walked there, travelled by bike or used public transport. 

On certain dates, you can earn a free one-hour GoBoat cruise around the city, or a 45-minute free bike ride with Donkey Republic. 

Officials have said if the trial is deemed a success, CopenPay could be rolled out throughout the year.

Yesterday it was the cost of tea that was on the rise, now it seems coffee isn't safe from imminent price hikes either... 

Caffeine lovers have been warned that the price of a cup of coffee could keep increasing for at least another year. 

Industry giant Lavazza said "very challenging headwinds" meant UK prices will not drop until the middle of 2025 at the earliest.

Poor harvests in Brazil and Vietnam, geopolitical conflict and supply chain disruption have all contributed to costs reaching record levels, said the group's chairman, Giuseppe Lavazza.

On Monday, prices reached an all-time high of £3,356 a tonne.

"We have never seen such a spike in price as the trend right now," said Mr Lavazza.

For consumers, this has meant the price of a 1kg bag of beans has already risen by 15% in a year. 

Mr Lavazza said this could increase by 20% to 25% over the next 12 months.

Meanwhile, a flat white at the firm's flagship cafe in London now costs £3.50 to take away or £5.50 to have in.

"We have faced very, very strong headwinds. I don't see any reason why coffee prices will go down," Mr Lavazza added. 

The UK retail coffee market is worth £1.3bn, growing by 3.9% year-on-year and driven by price inflation of 3.8%, according to Nielsen figures. 

Yesterday, the Indian Tea Board warned average tea prices could rise by up to 20% after extreme weather caused poor harvests. 

In the last week of June, the typical price of Indian tea leaves rose to more than £2 per kg, it said. 

You can read more about that here ... 

The UK's biggest supermarket chain has told customers its Express stores across England will close at 7.30pm instead of the usual 10pm or 11pm if the Three Lions reach the final of the Euros. 

It said the decision had been taken to allow its staff to get home or to the pub in time for kick-off at 8pm. 

Employees who do not want to watch the match will be paid as normal, it said. 

Stores will be open as normal the following morning. 

England are playing the Netherlands this evening in the semi-finals. 

If they get through, they will face Spain in the final - and will have the chance to become the first England men's team to win a major tournament since the World Cup in 1966. 

HSBC is increasing the amount it will lend for most mortgages.

At the same time, the bank is ditching its 65% and 80% loan-to-value offers.

The maximum amount of money that can be borrowed on an 85% LTV has risen the most, ballooning by 150%.

Here are the changes in full:

• 95% LTV: From £500,000 to £570,000
• 90% LTV: From £550,000 to £750,000
• 85% LTV: From £750,000 to £2m (or £1m for flats)
• 75% LTV: From £2m to £3m
• 70% LTV: Increased to lending over £3m

"This could make the difference between someone being able to buy the property they want or need, or having to compromise by buying a smaller property with fewer bedrooms, or maybe in an area that is outside the catchment area of their preferred school for their children," said Chris Pearson, HSBC UK's head of intermediary mortgages.

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