Blog > Management

How to Write a Restaurant Business

Plan in 2023 (Step by Step Guide
with Templates)
Updated June 14, 2023

Author Saif Alnasur

Reviewed by Nezar Kadhem

Have you decided to open a restaurant? Has it been something you've thought
of doing for years and are finally in a position to make it happen?

Regardless of how much time you've spent conceptualizing your idea and
researching the industry, without proper planning, your restaurant is doomed for
failure.

That's where a restaurant business plan comes in. A restaurant business plan is
a framework that guides you to plan and forecast every element of restaurant
management and operations; from menu design, location, financials, employee
training, and a lot more, and helps develop your restaurant ideas into a reality.
:
 Read on for everything you need to know about writing a restaurant business
plan along with samples and tips.

Key Takeaways

Consider using a restaurant consultant or SWOT analysis

tools/templates.

Well-executed SWOT analysis aids strategic decision-making

and long-term success.

A comprehensive restaurant business plan is essential and

should include a well-defined concept that outlines the type
of cuisine, ambiance, and unique selling proposition (USP) of
the restaurant.

Conducting thorough market research to understand the

target market, including demographics, preferences, and
needs, is crucial for tailoring the restaurant's offerings and
marketing efforts.

Developing a strong marketing strategy, including branding,

online presence, advertising, and promotions, is vital for
attracting customers and building a loyal customer base.

Realistic financial projections, including revenue, expenses,

and profit margins, should be included to evaluate the
feasibility and profitability of the restaurant, along with
contingency plans.

Detailed operational plans, such as the restaurant's layout,

staffing, inventory management, and customer service, are
crucial for ensuring smooth operations and efficient
management.

Analyzing the competitive landscape, including direct and

indirect competitors, helps identify opportunities and
challenges and develop strategies to stay ahead in the
:
 challenges and develop strategies to stay ahead in the
market.

An effective executive summary providing an overview of the

restaurant's concept, market opportunity, marketing strategy,
financial projections, and the team is crucial for attracting
potential investors or partners.

>>Download our free restaurant business plan template to get started now

Why is a restaurant business plan important?

Many new restauranteurs fail to put together a well-thought-out restaurant

business plan because the process can be a bit difficult and time-consuming.
But without a proper restaurant business plan, you're shooting in the dark
without an aim. It's unlikely that you would be able to secure an investor to help
fund your restaurant dream without a proper plan. And even if you do, the lack
of proper planning, regulations, and forecasts will set your restaurant up for
failure. 

Your restaurant business plan is what is going to map out how you plan on
turning a profit from your business as well as where your restaurant fits into the
saturated market and how you plan on standing out.

A little time and pain early on are worth the reward of a successful restaurant in
the long run.
:
 The 11 key steps a restaurant business plan should
include

A good business plan varies from restaurant to restaurant and takes into
account factors like style of restaurant, target market, location, etc. If you're
new to the restaurant game, the idea of creating a business plan can be
daunting. To help you get started, we have highlighted the key elements you
need to include when writing a restaurant business plan. 

Depending on who you are presenting your business plan to, you can change
the order of the sections to reflect priority.

Here are the main components of a restaurant business plan

1. Executive Summary

2. Company Description

3. Market Analysis

4. Menu

5. Employees

6. Restaurant Design

7. Location

8. Market Overview

9. Marketing

10. External help

11. Financial Analysis

1. Executive summary

A restaurant business plan should always begin with an executive summary. An

executive summary not only acts as the introduction to your business plan but
also a summary of the entire idea.
:
 The main aim of an executive summary is to draw the reader (oftentimes an
investor) into the rest of your business plan.

Common elements of an executive summary include:

Mission statement (learn more about how to write a good mission statement
here)

Proposed concept

Execution

A brief look at potential costs

Expected return on investments

An executive summary is imperative for those looking to get investors to fund

their projects. Instead of having to comb through the entire restaurant business
plan to get all the information, they can instead just look through the executive
summary.

2. Company description

This is the part of the restaurant business plan where you fully introduce the
company. Start this section with the name of the restaurant you are opening
along with the location, contacts, and other relevant information. Also include
the owner’s details and a brief description of their experience.

The second part of the company description should highlight the legal standing
of the restaurant and outline the restaurant’s short and long-term goals. Provide
a brief market study showing that you understand the trends in the regional
food industry and why the restaurant will succeed in this market.

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided
into three parts.

3.1 Industry analysis

What is your target market? What demographics will your restaurant cater to?
:
 What is your target market? What demographics will your restaurant cater to?
This section aims to explain your target market to investors and why you believe
guests will choose your restaurant over others.

3.2 Competition analysis

It's easy to assume that everyone will visit your restaurant, so it is important to
research your competition to make this a reality. What restaurants have already
established a customer base in the area? Take note of everything from their
prices, hours, and menu design to the restaurant interior. Then explain to your
investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your
restaurant. How will your marketing campaigns differ from what is already being
done by others? How do you plan on securing your target market? What kind of
offers will you provide your guests? Make sure to list everything.

4. Menu

The most important element to launching your restaurant is the menu. Without
it, your restaurant has nothing to serve. At this point, you probably don’t have a
final version, but for a restaurant business plan, you should at least try to have a
mock-up.

Add your logo to the mock-up and choose a design that you can see yourself
actually using. If you are having trouble coming up with a menu design or don’t
want to pay a designer, there are plenty of resources online to help.

The key element of your sample menu though should be pricing. Your prices
should reflect the cost analysis you’ve done for investors. This will give them a
better understanding of your restaurant’s target price point. You'll quickly see
how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly

introduces the owners of the restaurant with some information about each. This
:
 introduces the owners of the restaurant with some information about each. This
section should fully flesh out the restaurant management team.

The investors don’t expect you to have your entire team selected at this point,
but you should at least have a couple of people on board. Use the talent you
have chosen thus far to highlight the combined work experience everyone is
bringing to the table.

Free Restaurant Business Plan

Template
The only business plan you'll ever need.

Download now

6. Restaurant design

The design portion of your restaurant business plan is where you can really
show off your thoughts and ideas to the investors. If you don’t have professional
mock-ups of your restaurant rendered, that’s fine. Instead, put together a mood
board to get your vision across. Find pictures of a similar aesthetic to what you
are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include
everything from restaurant software to kitchen equipment. 

7. Location

The location you end up choosing for your restaurant should definitely be in line
with your target market. At this point, you might not have a precise location set
aside, but you should have a few to choose from.

When describing potential locations to your investors, you want to include as

:
 When describing potential locations to your investors, you want to include as
much information as possible about each one and why it would be perfect for
your restaurant. Mention everything from square footage to typical
demographics.

8. Market overview

The market overview section is heavily related to the market analysis portion of
the restaurant business plan. In this section, go into detail about both the micro
and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant
difficult, and how you aim to counteract that. Mention all the restaurants that
could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to
know how you will get word of your restaurant to the world. The marketing and
publicity section should go into detail on how you plan to market your
restaurant before and after opening. As well as any plans you may have to bring
a PR company on board to help spread the word.

Read more: How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any
external companies or software you plan on hiring to get your restaurant up and
running. This includes everything from accountants and designers to suppliers
that help your restaurant perform better, like POS systems and restaurant
reservation systems. Explain to your investors the importance of each and what
they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial
section. We would recommend hiring professional help for this given its
importance. Hiring a trained accountant will not only help you get your financial
:
 importance. Hiring a trained accountant will not only help you get your financial
estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier on the
accountant. He/she will want to know how many seats your restaurant has,
what the check average per table will be, and how many guests you plan on
seating per day.

In addition to this, doing rough food cost calculations for various menu items
can help estimate your profit margin per dish. This can be achieved easily with a
free food cost calculator. 

Restaurant business plan template

Ready to get started? Download our free restaurant business plan template to
guide you through the process.

Free Restaurant Business Plan

Template
The only business plan you'll ever need.

Download now

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