What is a business plan for a small restaurant?
October 23, 2019
For laying out any brand new restaurant business plan, one needs to have a clear, unconfused idea of your restaurant. A small restaurant business plan outlines the future development and growth of your restaurant business. Based on a business plan, a business proposal is written, which is usually shared with outside parties like investors and bank authorities. Thus, restaurant business plan must be structured in a logical, and feasible manner. The plan must be sustainable in the long run. Moreover, it is required so that you can well understand what your restaurant is about, where you plan to take it in future, and how you plan to achieve these goals. One should consider all ups and downs while written down a business plan.
Any business plan for a small restaurant should ideally include pointers mentioned below.However, before you get onto actual planning of a restaurant business plan, first-time restaurateurs should read a bunch of different business plans to get a better sense and understanding of layout options, writing styles, and clarity of concept.
Your restaurant business plan should start with an overview of your restaurant concept. The concept acts as a primary introduction to your business. This is a gateway to your restaurant business plan, and thus it must be just as right. So, write in detail about the food you will be serving, the inspiration behind your concept or theme, and an overview of your service style. It is crucial to stand out among your competitors. define clearly to them what will be so unique about your restaurant. Concept of the restaurant business should cover your mission statement, a review of your restaurant legal structure and ownership, a brief history of the restaurant, and future plans. 2.The layout of the restaurant:
For any business plan for a small restaurant, specifying design/format is a must. This is nothing but a layout of your place, which will cover how you optimize the space to proffer the best ambience setting for people to sit for hours and work, have a gala time with loved ones, and/or find their own pace. Additionally, apart from the ambience, creativity matters too. The place should be creative, classy, and well-planned to utilize the maximum of the space in a productive way. The layout of the restaurant should be in sync with the concept/theme.
Designing a menu is the most important aspect of any restaurant or hotel. More than ambience and creativity, the delicious and unique menu is what people will be keen on. Thus, it has to be more than just a list of items you will be serving, and it also has to compliment the theme of your restaurant. Your menu should thus be priced based on a detailed cost analysis. If you serve excellent food, your restaurant will be able to survive the competition. Moreover, this will give investors a clear understanding of your targeted price point. Your menu should be also be based on the availability of fresh local produce you will be procuring. While designing a sample menu, it is usually advised not to go for recipes that require hard to procure ingredients.
Service is always the most powerful way of conveying your approach to hospitality to investors by explaining details of guests’ service experience. Service basically should include questions such as will the restaurant have counter service or will it more of a theatrical style? If wine is an integral part of the meals you serve, will have a sommelier? You should thus a type of restaurant service from the following: Tabled hotel (TDH)—a menu where multi-course meals with only a few choices are charged at a fixed total price, Table d hotel—customers may order any of the separately priced menu items available; and Silver service—serving food at the table. For a great service, you will thus the following staff:
•Kitchen staff: Cooks, assistants, prep staff, pantry, washing staff. For bars, you will also need bartenders.
•Service staff: Waiters, orders takers, counter staff, delivery staff, cleaning, housekeeping, security.
•Management staff: Restaurant manager, chef, cashier, storekeeper, purchase manager.
Another significant challenge is to find the right staff to manage your restaurant. Restaurants and hotels are always labour-intensive. Staff is the backbone of your restaurant and thus they need to be treated with the utmost care. Finding the right, well-trained staff is not the only challenge, there are other factors too, such as the number of employees needed, complete recruitment process, job descriptions, and training manuals.
Knowing your customer beforehand helps a lot. Once you know your target clientele, their spending patterns, likes and dislikes, their purchasing power, and monetary limits, you can serve them better, as per their expectations. Industry analysis including location analysis, target clientele analysis, and competition analysis is thus very important while writing a business plan for a small restaurant.
Choose your location wisely, because the location is entirely important for understanding market conditions in that particular area. Your location should be easily accessible, have a parking lot, Google-map friendly, and ideally, be near vendors and suppliers.
8.Marketing and publicity: Discussing your pre- and post-opening marketing plan to show investors how you plan to gain traction is important. For a successful restaurant business plan, it is advisable to go for a professional PR or marketing company to best plan the publicity campaigns. If this is not budget-friendly, you can always generate attention through social media, website, and media connections.
For the business plan for a small restaurant, capital management comprises your financials, investment, and generate ROI. You also need to allocate funds to operating expenses, fixed expenses, marketing, and other departments of your restaurant. Moreover, you need to mention how long you will support the system and when you expect to break even. Additionally, you need to set up a contingency fund for unforeseen events.