Restaurant Growth Strategies for Short and Long-Term Growth

restaurant growth strategies

1. Hire smartly and put together an efficient team

2. reward customer loyalty, 3. attract new customers with first-time promos, 4. bring in new technologies, 5. make connections among local businesses and influencers, 6. have a constant social media presence, 7. advertise your restaurant offline, 8. make customer experience a priority, 9. offer consistency, but don’t be afraid to shake things up, 10. motivate customers to spend more.

With a discouraging success rate, restaurants are one of the most challenging businesses to lead to success. However, don’t let that rate scare you. While there is no magic formula that guarantees restaurant success, there are some things you can do to give your restaurant the head start it needs. Let’s have a look at these restaurant growth strategies for steady growth over time.

10 Restaurant Growth Strategies for a Successful Business

The success of every business starts with the team behind it. So, it should be no surprise that one of the top restaurant growth strategies involves employee acquisition and retention. Don’t treat the hiring process lightly, and take your time until you find people who will integrate well into the team and help you grow your restaurant.

If every person does their job right, your restaurant will run like a well-oiled machine. Customers will be served the moment they walk through the door, they won’t have to wait for someone to buss their table, and they’ll get their food as and how they ordered it.

Don’t forget that your employees also need your support for things to run smoothly. Ensure they’re not overworked and implement technology that will make their job easier whenever possible.

Related: 12 Restaurant Management Tips for Happy Employees & a Successful Business

Expanding restaurants are successful for many reasons. One of the chief ones is that they know how to get repeat customers. According to a Bain & Company study , the average repeat customer spends 67% more during their 31st to 36th months frequenting that business than in months 0 to 6.

Shortly put, repeat customers spend more money than new customers . This means you need to encourage second purchases and reward customers who’ve been with you for a while, so you don’t lose them to the competition.

You can easily do this by offering regular promotions, discounts, and special offers. Encourage customers to sign up for your newsletter for exclusive loyalty rewards, and they’ll be sure to stick around.

You might also like: 12 Restaurant Newsletter Ideas That Will Convert & Engage

Even if returning customers spend more, that doesn’t mean you shouldn’t be focusing on attracting new customers as well. The key to long-term success is to bring in new foodies constantly.

What better way to do that than with a first-time promo? Whether it’s a 15% discount, a free dessert, or a 1+1 deal, this freebie will encourage them to give your restaurant a chance.

First-time promos work exceptionally well with online ordering too. If you want to convert some of your existing brick-and-mortar customers to online ordering customers, invite them to place their first order online with an exclusive first-time promo.

Accelerated by the COVID19 pandemic, restaurant technology has seen a boom in the last year and a half. As a restaurant owner, you have to learn how to expand your food business with the help of new technologies like food delivery and QR codes.

Implementing an online ordering system won’t just help you boost your sales now . It will also ensure continued sales even when your restaurant can’t operate as usual, as it happened during this most recent world crisis.

QR codes are another innovation more and more restaurants are using. They allow customers to simply scan the code to see the menu and place the order .

Watch the video below to learn how to create a free QR code menu for dine-in in just a few easy steps.

For you to be a fixture of the community for the long haul, your growth strategy has to include making friends among other businesses and local influencers. Even if you don’t get anything out of it initially, it’s a good idea to establish a relationship. A simple mention of a business you like on social media can be enough.

Remember when Burger King urged people to order from McDonald’s to support their employees during the pandemic? We’re not saying you should outright promote your competitors, but think along those lines when promoting other local businesses.

The same goes when approaching food influencers in your area for restaurant growth strategies. Get in touch and propose mutually beneficial partnerships or even just introduce yourself with a discount. They’ll be sure to remember you fondly.

I don’t think I need to tell you that you should have an account for your restaurant on most social media platforms. It has become clear in recent years that social media is an excellent promotional tool for any business.

What I want to tell you, though, is that you should find your voice and create a social media presence that is instantly recognizable as your restaurant . From the things you post to how you interact with your customers, building brand recognition will contribute to your success.

Be consistent with what and how often you post. Don’t disappear from your social media for weeks in a row. Post often, and most importantly, post things that will engage your customers like questions, polls, contests, or giveaways.

As effective as social media is, don’t forget about offline restaurant growth strategies as well. These tactics will never get old. Here are some ideas to put your restaurant on the map:

  • Print flyers promoting your food delivery service and distribute them around the neighborhood
  • Organize events at your restaurant
  • Send out press releases when you launch a new service or menu item
  • Invite local artists to perform at your restaurant
  • Inquire about food and music festivals where you could serve your food

Read more: Back to Basics: 10 Offline Marketing Ideas for Restaurants

Every customer that leaves your restaurant should be satisfied and eager to come back for more. That is the mark of excellent customer service. Ensure every step of the customer journey is perfect, from their first interaction with the waiter to how you handle their feedback.

Speaking of feedback, this is something you should take very seriously. Welcome feedback and use it as a way to improve your dishes and services. Encourage people to leave you reviews on social media or websites like Yelp and TripAdvisor.

Most importantly, reply to all reviews promptly, be they good or bad. It shows you care about making your customers happy when people inevitably browse through your online reviews when looking for a place to eat.

You might also like: How to Respond to Negative Restaurant Reviews to Increase Brand Loyalty

There’s nothing wrong with consistency as long as it works. For instance, if your signature pizza is a regular best-seller, it would be silly to change the recipe or remove it from the menu. However, menu expansion and experimentation can have their perks.

Every once in a while, revitalize your menu by adding new dishes or putting a twist on existing ones. Offer limited-time menu items to build excitement and motivate customers to “get it while it’s hot.”

Learn how to strike up a balance between staple things that will make regulars feel at home and new things that will surprise and excite people who visit you for the first time.

Naturally, both short-and-long-term restaurant growth ultimately relies on profit. Luckily, there are a few easy things you can do to get customers to spend more without them feeling like you’re taking advantage of them.

Among the main restaurant growth strategies that will increase your average check is:

  • Recommending drinks, appetizers, and desserts since most customers will already probably order a main course.
  • Upselling (encouraging add-ons like an extra topping to their burger) and cross-selling (encouraging extras like a glass of wine that would go well with a cheese platter).
  • Selling bundles that a family or a group of friends can share.

Read more: How to Increase the Average Check in a Restaurant

As a restaurant owner/manager, you should concern yourself with both short-time and long-time growth. The restaurant industry can be a competitive market, so you have to be on your toes at all times. Include these restaurant growth strategies into your small restaurant business plan for steady growth over a long period. Consider collaborating with a digital hospitality agency to skyrocket your growth.

photo of GloriaFood blog writer Laura-Andreea Voicu

Laura-Andreea Voicu is an experienced content writer with a knack for marketing and SEO. She creates guides and resources designed to help restaurants grow their presence online and boost sales.

She has been featured on the Oracle Food and Beverage Blog and wrote for Search Engine Journal , Clutch , Sender , Venngage , Quickbooks , and many more.

Find me on LinkedIn .

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Cooking up extraordinary growth for restaurants during a downturn

When customers stockpiled groceries and stayed at home during the darkest days of the COVID-19 pandemic, restaurant businesses suffered. Stoves went cold and chairs were stowed atop tables. Restaurant insolvency rates skyrocketed globally, and many countries in Europe maintained restrictions on restaurants for more than a year. The pandemic reshaped the industry with a once-in-a-century disruption.

The pressure facing restaurants has yet to abate, as the sector brims with new channels and new cost pressures. Supply chain woes, rising rents, labor market imbalances (the doubling of wage rate growth is often the number-one challenge cited by restaurants), and soaring inflation (at its highest rate since the 1970s) are all altering restaurant economics. Meanwhile, consumer attitudes are in flux, and a digital revolution is changing the way business is done.

About the authors

This article is a collaborative effort by Will Almquist, David Fuller, Gizem Günday , Jen Henry , and Gage Wells, representing views from McKinsey’s Retail Practice.

On delivery apps, small but quick-moving brands are now routinely outperforming larger, more entrenched players—despite being a fraction of the size offline. Virtual brands can be instantly conjured nationwide, hitting peak sales velocities within a few months of their launch. New loyalty programs are attracting more members in one year than their predecessors managed to accumulate over the course of a decade. The heat keeps turning up.

This uniquely challenging environment represents an opportunity: restaurant companies that seize this open-ended moment to innovate and grow can set themselves apart for years to come. Our research tells us—across the board—that making bold, strategic decisions during times of uncertainty  can be a winning play. 1 Michael Birshan, Ishaan Seth, and Bob Sternfels, “ Strategic courage in an age of volatility ,” McKinsey Quarterly , August 29, 2022. In this article, we demonstrate how important profitable growth is for restaurants, and then detail the eight ingredients that comprise a recipe for extraordinary growth. How restaurant companies balance these eight ingredients, and how quickly they mobilize around an integrated growth agenda, could determine their future trajectories.

Profitable growth is the main dish

Generating growth within the consumer sector is never easy. But McKinsey research has shown that growth—especially profitable growth—is imperative for meeting the high expectations of consumer sector investors . 2 “ The growth triathlon: Three pathways to extraordinary growth in the consumer sector ,” August 17, 2022. Profitable growth is, and will remain, the North Star.

Achieving long-term growth outperformance is elusive for chain restaurant companies. McKinsey analysis of same-store sales growth among a representative sample of 55 chain restaurant brands finds that only 18 were able to outperform the average of their peers for the majority of the ten-year period from 2012 to 2021. Only eight of those brands—or 15 percent—managed to outperform the average of their peers in at least nine of those ten years. And only one brand beat the average of its peers’ same-store growth every year during that time frame.

While growth is difficult to sustain, it is generously rewarded. In examining 15 major publicly traded restaurant companies 3 Includes restaurants that were publicly traded from 2016 to 2021 and for which we could find reliable same-store sales data. —ranging widely across different segments (quick service to full service) and cuisine types (chicken to pizza)—it becomes evident that same-store sales growth serves as a strong indicator for investor returns (Exhibit 1). From 2016 to 2021, there was a more than 80 percent correlation between the annualized same-store sales growth of each of these company’s largest restaurant brands and that company’s annualized total shareholder returns (TSR). Delivering one or two quarters of same-store sales growth didn’t necessarily move the TSR needle—even in the near term—but sustained same-store growth over the period proved critical for consistent TSR success.

Growth alone, however, is still not enough. Accretive growth—meaning growth accompanied by increasing margins—is the special sauce that puts the dish over the top. Large, publicly held restaurant brands 4 Defined as restaurant brands that had at least $100 million in revenue in 2016 and were continuously public from 2016 to 2021. that drove at least 6 percent year-over-year revenue growth from 2016 to 2021 while increasing EBIT margins enjoyed a nearly fourfold larger TSR boost than those that grew just as fast but with shrinking EBIT margins (Exhibit 2). Illustrating the disproportionate effect of profitable growth: moderately growing companies that still managed to expand margins achieved more TSR growth than did fast-growing companies with shrinking margins.

In seeking profitable growth, there are three avenues that any consumer sector company should explore : strengthen the core of the business (the most developed categories and markets); expand into adjacencies (through innovation or acquisition, in either new categories or new geographies); and ignite breakout businesses (mobilizing resources behind big, disruptive bets).

Triple growth and the eight ingredients

Restaurant businesses can apply the eight ingredients for growth to the three growth pathways in different combinations. Building new revenue streams—for instance, by launching a first-party delivery app—can help strengthen a company’s core business. Restaurant development could mean bolstering the core (through optimizing a company’s current array of locations) or enabling adjacencies (through expansion into new geographies). Data-driven marketing might be used to enhance a core, push into promising adjacencies, or unlock a disruptive breakout business.

Specific to the world of restaurants, we have identified eight granular areas of focus that will help maximize those triple-growth pathways in the coming years (see sidebar, “Triple growth and the eight ingredients”). These eight “ingredients” for growth fall into two categories: “front of house” components that engage with consumers to boost revenue and “back of house” components that improve efficiency and reduce costs to provide the foundation and fuel for growth.

Front-of-house ingredients include the following:

  • data-driven marketing
  • revenue growth management
  • store development, footprints, and formats
  • new revenue streams

Back-of-house ingredients include the following:

  • restaurant operations
  • enterprise organization and operating model
  • technology and analytics

Front of house: Consumer-facing ingredients to boost revenue

Consumer preferences are shifting. Inflation is provoking new approaches to pricing. Much of the world is rapidly embracing digital channels and engagement. Restaurant companies that are slow to adapt to these developments could be left behind. These consumer-facing ingredients in our recipe for growth can help restaurants set the pace.

Data-driven marketing

The fundamentals of marketing in the restaurant sector remain unchanged: companies must create a brand purpose and mission, identify critical moments within customers’ journeys, and then target and engage those customers to encourage repeat business. Old standbys of a strong brand, clear value proposition, new menu items, strong advertising, and constant measurement aren’t going away soon.

What’s new is that digital marketing has opened countless novel pathways for engagement, while also necessitating different kinds of knowledge, capabilities, and tactics. Customer research and targeting powered by digital tools have advanced at lightning speed—often fueled by an agile operating model. Successful chains’ investments in these realms have helped them to generate traffic, conversion rates, and repeat purchases. For example, PizzaExpress launched a “Spin to Win” campaign that leveraged dynamic customer segmentation to offer a range of personalized promotions to customers through social media. The brand saw an 11 percent uplift in revenue over 18 weeks, adding more than one million opt-ins to its customer database. Marketing mixes will continue to shift toward digital channels that allow consumers to be routed directly into a brand’s own digital ecosystem—encountering platforms where they can join loyalty programs, receive hyperpersonalized offers, or immediately order food.

Many of the largest restaurant brands launched new loyalty programs in 2020 and 2021, keener than ever to establish and deepen relationships with their customers. Successful loyalty programs  translate directly into financial results, often encouraging both larger order sizes and greater order frequency from program members. These programs can funnel customers into brands’ first-party delivery businesses, which offer the brand higher margins than it receives from orders conducted through third-party delivery services.

The pizza category, led by Domino’s, has been a long-time loyalty success story. But a new digital loyalty program by McDonald’s garnered 26 million customers to sign up within a year after it launched in 2021. And in the first quarter of 2022, Starbucks became the first nonpizza chain to realize more than half of its sales from loyalty members—with Panera Bread not far behind, riding the success of its new subscription-based program.

Revenue growth management

Spurred by cost pressures resulting from inflation, many brands have increased prices to improve unit economics. Responding to near-term pressure is part of the answer. But this traditional, cost-driven approach fails to capture the full opportunity presented by a holistic revenue-growth-management  (RGM) program. Holistic RGM strategies involve multiyear plans that create long-term value by harmoniously coordinating not just pricing but also other elements, such as promotions and product offerings. RGM must balance the short-term need to protect profitability with the longer-term goal of broad value creation.

A brand that embraces strategic price-setting and price architecture will identify the products, stores, and day parts with the lowest price sensitivity. But it will also carefully calibrate the price of each item based on that item’s role—whether it is, for example, a core traffic driver or a premium add-on—and flexibly adjust based on hyperlocal dynamics of specific neighborhoods. Pricing  can be used to differentiate a brand from its competitors or to encourage specific customer behavior. Strategically built price architecture (in which prices are coordinated with each other in nuanced ways to achieve broader goals) can encourage customers to trade up to more expensive items, establish the right positioning vis-à-vis a competitor, and create welcoming entry price points that help recruit new consumers.

A coffee brand, for example, might focus its price increases on smaller-size beverages as a means of encouraging customers to trade up to larger sizes. Meanwhile, a burger brand, noting that the buyers of its more economically priced offerings are the most price sensitive, might choose instead to raise prices on premium offerings—or build a new ultrapremium tier—to minimize the need for price increases at the lowest price tiers. A company might even adjust prices based on the channel a customer comes through (since customers have demonstrated a willingness to pay for convenience), or vary its pricing in different stores depending on localized demographic factors or the nature of that area’s competition.

As customer-level data improves (aided by digital marketing and loyalty programs), promotions can be increasingly personalized. Each potential customer can be presented with a different, perfectly tailored deal—a process that’s eased when offers are made through digital channels. A lapsed customer, for example, might be given incentive to return, while a brand loyalist might be induced to try a new item. Over time, through analysis of results, these offers can be made with pinpoint accuracy.

During the pandemic, many restaurant brands were forced to simplify their menus or to engineer new menu items around supply chain shortages. Some of these efforts, initiated out of necessity, resulted in improved profitability and kitchen efficiency—thereby proving, once again, the value of menu optimization and innovation . Menus should be frequently reviewed, accounting for customer, operational, financial, and supply chain factors. Limited-time offers of special items can serve as auditions for regular menu spots or be used to stir up seasonal excitement. Popeyes Louisiana Kitchen’s chicken sandwich is a quintessential innovation success story, helping to restore buzz to the brand: sales growth resulted across the Popeyes menu, driving $400,000 in added sales per restaurant between 2019 and 2020. 5 Danny Klein, “Thanks to chicken sandwich, Popeyes is making $400K more per restaurant,” QSR Magazine , February 12, 2021.

Store development, footprints, and formats

Restaurants are expanding the range of store formats they employ, tailoring different formats to different locations. In many cases, they reduce store footprints and redesign layouts to be more conducive to pickup and delivery than to in-store dining. Some go a step further, opting for delivery-only “ghost kitchens” that eliminate the storefront altogether. One ghost kitchen can cook food for multiple (in some cases, virtual) brands, opening up markets that would not have been viable for a single-brand play.

Chipotle Mexican Grill has pioneered another form of footprint reduction: the “Chipotlane” allows car-side pickup through a window but without the menu boards, speakers, or—most important—the frequent delays of a traditional drive-through. Customers order ahead digitally and then enjoy an average pickup time of less than 30 seconds. Chipotlanes boast up to 20 percent higher sales volumes than traditional Chipotle stores. 6 Alicia Kelso, “Chipotle hits its 500th Chipotlane milestone,” Nation’s Restaurant News , November 16, 2022.

For major brands eager to expand beyond core markets, international franchising can be an important development lever. But expanding in haste—with international franchisees that vary widely in quality and commitment—can lead to lower per-store revenue and an elevated store closure rate. Brands that successfully expand internationally prioritize a small number of countries and work closely with franchise partners to understand the local market prior to entry. This kind of collaboration can sometimes result in significant changes to menus, recipes, and positioning—preserving the essence of the brand while adapting to fit local tastes.

New revenue streams

While building a thriving first-party delivery business isn’t easy, it is a quickly scalable way to create a new revenue stream. Many brands initially launch first-party delivery by partnering with an app provider (such as Olo, which focuses on consolidating orders into one place) to create an ordering interface before outsourcing the delivery itself to a white-label service (such as DoorDash Drive). Even brands with first-party delivery forces sometimes use white-label services to provide surge capacity or reduce expenses.

Consumers’ use of third-party deliver y services has of course ballooned, with several major platforms experiencing growth of well more than 100 percent between 2019 and 2021. Total gross order value from just the five major delivery app players exceeded $125 billion in 2021, according to McKinsey analysis. Savvy restaurants have negotiated hard with third-party platforms to secure lower commission rates (compared with smaller chains or independents), more prominent placement, preferred access to customer data, and even dedicated delivery capacity.

Some brands have generated new revenue streams through at-home consumption via catering offerings or sales of consumer packaged goods (CPG). Retail sales of packaged Starbucks products reached 300 million global customer occasions per week—aided by the addition of new products in categories such as teas and creamers. Tim Hortons is another retail success story, growing its CPG business sixfold since 2014 and adding hundreds of millions of dollars of top-line revenue.

Back of house: Operational ingredients to improve efficiency and fuel growth

Sourcing costs have exploded, wages have climbed, and it’s become trickier to hire and retain workers. Meanwhile, customers now expect zippy service through a multitude of channels. These behind-the-scenes ingredients in our growth recipe respond to current challenges by improving efficiency, rethinking labor models, and applying technology to every corner of a business.

Input costs such as the price of livestock, chickens, and unprocessed feedstuffs have risen by up to 40 percent above prepandemic levels. EBITDA margins have been squeezed, as many major brands only partially pass on their cost increases to consumers.

Simplified menus—designed with careful consideration regarding the necessary mix and volume of ingredients—can be a first step toward reducing sourcing costs. Some restaurants are taking this one step further and reengineering products to match what is available and can be cost-effectively sourced through their supply chains. Orders from suppliers can generally be consolidated and firmly bargained (through, if appropriate, multiround competitive negotiations). Usage of materials such as paper and plastic can be ruthlessly scrutinized, and chain-wide procurement teams  can weigh in on sourcing decisions around expenses such as utilities and building maintenance. Careful attention should be paid to building resilient, sustainable supply chains and a portfolio of diversified suppliers.

Restaurant operations

Improving the operational efficiency of stores can involve efforts such as eliminating food waste, optimizing staff scheduling, and increasing the speed and accuracy of customer order fulfillment. Restaurants need to streamline digital delivery orders, in-car pickups, and drive-through operations—all channels that exploded during the pandemic and remain here to stay. Efficiency improvements can reduce expenses while responding to customer needs.

Rising labor costs and frequent worker shortages—coupled with rapid advancements in technology—are making automation one potential route to operational efficiency, allowing employees to be redeployed to higher-value activities. Robot cooks are finding their way into the kitchens of pizza chains, where they help to automate the pizza-making process from start to finish. 7 “Robotic pizza makers grab larger slice of restaurant automation pie,” PYMNTS, August 9, 2022. Some automation approaches help with front-of-house, consumer-facing operations: Chili’s has experimented with rolling robots that can help seat guests and deliver food to tables, while many restaurants allow customers to order and pay using computer kiosks. And in 2021, McDonald’s entered a strategic partnership with IBM to automate drive-through lanes by using AI to understand customers’ spoken orders. 8 Amelia Lucas, “McDonald’s enters strategic partnership with IBM to automate drive-thru lanes,” CNBC, October 27, 2021.

Some companies are contemplating new ways to optimize what happens on-site versus off-site and are looking for innovative solutions to simplify kitchen operations. For instance, cheese for menu items might be sliced off-site, while the on-site kitchen is treated mostly as a place to assemble finished items.

Enterprise organization and operating model

There are substantial rewards for companies that develop excellent enterprise models. An effective enterprise model instills a culture that rallies behind the organization’s central guiding principles. It then wisely prioritizes, allocating resources toward functions and teams that offer the greatest opportunity and highest returns. An operating model can make or break critical initiatives that require the full enterprise to push in unison.

An operating model can make or break critical initiatives that require the full enterprise to push in unison.

Choosing a specific model can incur trade-offs. Starbucks and Domino’s both employ models that combine the US market with global operations, which boosts efficiency but can encourage US-centric thinking that’s less suited to other markets. Yum! Brands manages its international operations through a separate organization, which helps it tailor strategy to locations but dilutes the benefits of scale. Grouping several brands under one umbrella—as Yum! has done with KFC, Pizza Hut, and Taco Bell—allows sharing of resources and expertise across the organization. Bundled brands can also leverage their collective buying power to lower costs. Consolidation through mergers and acquisitions will be a trend to watch as cost pressures continue.

Some companies are increasingly deriving enterprise-level advantages from their HR departments. An exceptional HR team can support labor attraction and retention, strategically identify superlatively talented personnel, and create a winning corporate culture. In some cases, HR teams’ responsibilities even extend to recruiting, onboarding, and talent-managing franchisee leaders.

Technology and analytics

Data and technology platforms have become invaluable assets for restaurant companies. Industry leaders have invested technology platforms designed to power efficient and automated operations, to encourage customer engagement, and to optimize commercial decisions. Edge computing and connected devices such as sensors enable operators to standardize processes, increase speed, and reduce waste. Powerful customer analytics platforms enable leading players to maximize customer retention, frequency, and average order size through marketing and promotional activities, while lowering customer acquisition costs through improved targeting. Using advanced-analytics tools—powered by scalable databases that often operate in the cloud—a brand can continuously assess outcomes and readjust based on results or predictive models.

Cross-functional teams can be organized around both the front-of-house tech products and services that consumers interact with and the underlying, back-of-house platforms that make it all possible. Getting this right is critical for success and often propels adoption of agile methods in organizational areas outside of technology. Maintaining a robust core tech infrastructure, building out advanced data and analytical capabilities, and staying at the forefront of emerging technological trends will be imperative for growth.

Yesterday’s restaurant winners are not guaranteed tomorrow’s success. We expect the next decade to feature continued fragmentation across the sector. Significant value is at stake—and accelerating performance during a volatile moment could pay dividends for years to come. This moment presents a unique opportunity for brands to lift their trajectories by stirring these eight ingredients into their recipes for growth.

Will Almquist is an associate partner in McKinsey’s Atlanta office, David Fuller is an associate partner in the Chicago office, Gizem Günday is a partner in the London office, Jen Henry is a partner in the Charlotte office, and Gage Wells is a consultant in the Washington, DC, office.

The authors wish to thank Philip Behn, Rob Cain, Bo Finneman, Dan Gertsacov, Brian Lepley, Steve Lubow, Katherine Mattox, John Moran, Valerie Skinner, and Sarah Touse for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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Choosing to grow: The leader’s blueprint

  • Restaurant Growth

This handbook explains how to grow a restaurant, based on the first-hand experience of thousands of restaurants over the last 3 years.

Key takeaways

  • To grow a restaurant effectively, it's important to focus on direct customer relationships and online presence, reducing reliance on third-party delivery apps.
  • Realistic growth expectations for well-managed restaurants with direct ordering are about 3-4% monthly, translating to 36-48% annually.
  • Improving marketing, growing a base of regular customers, and encouraging direct orders are key strategies for surpassing baseline growth expectations.

This handbook explains how to grow a restaurant.

I’ve built this guide using firsthand data from two incredible sources: the Owner.com team’s 27 years of direct restaurant experience, and the real performance of thousands of our restaurant partners over the last 12 months.

This guide isn’t a compilation of random strategies or marketing theories.

What I’m going to cover in this guide is what’s actually working RIGHT NOW for restaurants all over the country — from mom and pop diners to local chains to nationally renowned establishments.

This is a 4-part guide, where we’ll cover the following:

  • Direct Online Ordering
  • Restaurant Marketing
  • Restaurant Promotion

Let's get started.

Who Should Read This?

This guide is written specifically for restaurant owners and managers who are looking for a tangible, proven process to grow revenue and increase net profit at an existing restaurant.

The steps and strategies in this handbook have been created and improved through active participation with thousands of our restaurant partners. Their hard work, persistence, and willingness to experiment through a very tumultuous period in this industry is the only reason we’ve been able to put together such an effective restaurant growth process at Owner.com.

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Methodology: Restore Your Direct-to-Customer Relationships

The last decade has seen a ton of huge changes for restaurants.

To begin with, restaurants have found themselves increasingly dependent on the internet to get in front of new customers, and many restaurants still struggle to create an online presence that can achieve this effectively.

Tech platforms like GrubHub, DoorDash, and UberEats came into the picture claiming to solve this problem by putting restaurants in front of customers on their popular apps. The cost? 30% commissions and the loss of customer data.

To make matters worse, a global pandemic closed down in-person dining for nearly a year, making delivery a much larger percentage of restaurant business and forcing more dependence on the tech platforms that were eating their margins and removing their direct customer relationships.

That’s where we are today.

And that’s why our methodology is very simple: restore your restaurant’s direct relationships with its customers.

The process I’ll walk you through in this handbook will help you take back full control of your customer relationships and online presence, turning 3rd party delivery apps into optional marketing tools, channeling every new customer into your loyalty program, and allowing you to keep your full profits on every order.

How Much Can Your Restaurant Grow?

Let’s start by setting a realistic expectation for growth.

How much can your restaurant grow?

A well managed restaurant business with excellent food and service, regular marketing, and a loyal base of regulars ordering directly from the restaurant can expect to grow around 3-4% month over month, which is 36-48% per year.

Every restaurant, location, cuisine, concept, etc. varies wildly, so there’s really only so much we can take away from this average, but it provides a good baseline in evaluating your restaurant’s past, current, and future growth.

Here’s what the last year of growth has looked like for SaMo’s Oaxaca , one of our restaurant partners in Santa Monica, California.

restaurant business growth plan

The restaurant grew 47% over the course of the year, going from $6,393 in direct online ordering sales in April 2021 to $9,425 in April 2022.

restaurant business growth plan

While this is, of course, a very successful year of growth for any restaurant, it falls within the standard range of what we expect to see when a restaurant is taking intentional measures to improve their marketing, drive direct orders, and build a stable base of regulars.

This next example from our partner Talkin’ Tacos is well outside the usual range of growth and shows what’s possible when things go well and the owners leverage growth into opening new locations.

restaurant business growth plan

This restaurant business has grown 88% in just 10 months, going from $14,565 in sales in July 2021 to $27,381 in April 2022.

restaurant business growth plan

In both of these examples, the restaurants highlighted are hitting all the criteria I mentioned at the beginning of this section. These are well managed restaurant businesses with excellent food and service, regular marketing, and a loyal base of regulars ordering directly from the restaurants.

Most restaurants do not meet that criteria. Even restaurants with an amazing reputation often struggle in one of the following areas:

  • Being consistent with marketing
  • Growing their base of loyal regulars
  • Getting regulars to order directly versus through 3rd party apps

If you are struggling in any of these areas, making a change can result in month-over-month growth well over the 3-4% baseline.

This is why improving in each of these areas is a standard part of the onboarding process we take new restaurant partners through here at Owner.com .

Here’s that same restaurant, SaMo’s Oaxaca, but now we’re looking at the 6 months after the restaurant began using Owner.com to take direct, commission-free orders (pickup and delivery) and run automated marketing campaigns.

restaurant business growth plan

In just 6 months, the restaurant grew 173%, going from $2,109 in sales in Sep 2020 to $5,760 in Feb 2021.

restaurant business growth plan

Here’s the same timeline for Talkin’ Tacos.

restaurant business growth plan

Most of their growth came during that first six month period marketing into our direct-order system. The business grew 74% through that window, going from $14,565 in sales in July 2021 to $25,300 in Dec 2021.

restaurant business growth plan

While both of these examples show exceptional early growth, we actually see an average growth of more than 50% during the 3-6 month period after restaurants begin using Owner.com to:

  • Consistently run marketing to get in front of new customers
  • Consistently run marketing to re-engage previous customers
  • Get regulars ordering commission-free through the website

But outside of commission-free delivery, you don’t need our platform to do these things. In this restaurant growth handbook, I’m going to teach you our entire bag of tricks and show you exactly what we do to help restaurants grow their online sales so significantly and so quickly.

You can implement nearly everything that I’m going to teach you on your own, but I think there’s a pretty good chance that you’ll prefer to have our platform do it for you automatically. Over 98% of restaurants that have tried us out for 90 days are still with us to this day.

Regardless, having an effective online ordering system in place is non-negotiable.

Who is Adam Guild?

restaurant business growth plan

My name is Adam Guild (that’s me on the left with my co-founder Dean Bloembergen), and if you look me up in Google, you’ll find that I’ve helped thousands of restaurant owners grow their businesses, that I was named on the Forbes 30 Under 30 list, and that I was inspired to launch Owner.com after helping my mom save her own small business.

Over the last two years, our vision to help restaurant owners take back control from big tech has attracted over $25,000,000 in investment from Marcus Lemonis, Kimbal Musk, and other leading investors in the restaurant industry.

But most importantly, if you ask the restaurant owners I’ve worked with over the last two years, they’ll tell you I’m the guy who got on the phone with them in March 2020 and asked what I could do to help them save their businesses as dining rooms were shut down and their livelihoods were put at risk. Many of them will also tell you that I’m the guy who has helped them double their revenue over the last year and save hundreds of thousands in fees.

Click here if you want to hear some of their stories.

This handbook is the result of their hard work, and I’m excited to share it with you and help you reach your goals as a restaurant owner.

Next Page: Direct Online Ordering

Having an effective ordering system is priority #1 if you are serious about growing your restaurant business in the post pandemic era.

On the next page of this restaurant growth handbook, we detail the 10 most critical components of a restaurant's online ordering system and why these components are so vital to driving restaurant growth today.

Click here to go to page #2: Direct Online Ordering.

restaurant business growth plan

About the author

Adam Guild

Adam Guild is the CEO of Owner, a restaurant marketing platform that makes online growth easy for restaurants.

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How to Write a Restaurant Business Plan

Sally Lauckner

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .

While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.

We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.

restaurant business growth plan

Why you shouldn’t skip a restaurant business plan

First-time restaurateurs and industry veterans alike all need to create a business plan when opening a new restaurant . That’s because, even if you deeply understand your business and its nuances (say, seasonal menu planning or how to order correct quantities), a restaurant is more than its operations. There’s marketing, financing, the competitive landscape, and more—and each of these things is unique to each door you open.

That’s why it’s so crucial to understand how to create a business plan for a restaurant. All of these things and more will be addressed in the document—which should run about 20 or 30 pages—so you’ll not only have a go-to-market strategy, but you’ll also likely figure out some things about your business that you haven’t even thought of yet.

Additionally, if you’re planning to apply for business funding down the line, some loans—including the highly desirable SBA loan —actually require you to submit your business plan to gain approval. In other words: Don’t skip this step!

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to write a restaurant business plan: Step by step

There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than others, for example, or you might find that there’s a logical order that makes more sense than the one in the restaurant business plan example below. However, this business plan outline will serve as a good foundation, and you can use it as a restaurant business plan template for when you write your own.

Executive summary

Your executive summary is one to two pages that kick off your business plan and explain your vision. Even though this might seem like an introduction that no one will read, that isn’t the case. In fact, some investors only ask for the executive summary. So, you’ll want to spend a lot of time perfecting it.

Your restaurant business plan executive summary should include information on:

Mission statement: Your goals and objectives

General company information: Include your founding date, team roles (i.e. executive chef, sous chefs, sommeliers), and locations

Category and offerings: What category your restaurant fits into, what you’re planning to serve (i.e. farm-to-table or Korean), and why

Context for success: Any past success you’ve had, or any current financial data that’ll support that you are on the path to success

Financial requests: If you’re searching for investment or financing, include your plans and goals here and any financing you’ve raised or borrowed thus far

Future plans: Your vision for where you’re going in the next year, three years, and five years

When you’re done with your executive summary, you should feel like you’ve provided a bird’s eye view of your entire business plan. In fact, even though this section is first, you will likely write it last so you can take the highlights from each of the subsequent sections.

And once you’re done, read it on its own: Does it give a comprehensive, high-level overview of your restaurant, its current state, and your vision for the future? Remember, this may be the only part of your business plan potential investors or partners will read, so it should be able to stand on its own and be interesting enough to make them want to read the rest of your plan.

Company overview

This is where you’ll dive into the specifics of your company, detailing the kind of restaurant you’re looking to create, who’s helping you do it, and how you’re prepared to accomplish it.

Your restaurant business plan company overview should include:

Purpose: The type of restaurant you’re opening (fine dining, fast-casual, pop-up, etc.), type of food you’re serving, goals you have, and the niche you hope to fill in the market

Area: Information on the area in which you’re opening

Customers: Whom you’re hoping to target, their demographic information

Legal structure: Your business entity (i.e. LLC, LLP, etc.) and how many owners you have

Similar to your executive summary, you won’t be going into major detail here as the sections below will get into the nitty-gritty. You’ll want to look at this as an extended tear sheet that gives someone a good grip on your restaurant or concept, where it fits into the market, and why you’re starting it.

Team and management

Barely anything is as important for a restaurant as the team that runs it. You’ll want to create a section dedicated to the members of your staff—even the ones that aren’t yet hired. This will provide a sense of who is taking care of what, and how you need to structure and build out the team to get your restaurant operating at full steam.

Your restaurant business plan team and management section should have:

Management overview: Who is running the restaurant, what their experience and qualifications are, and what duties they’ll be responsible for

Staff: Other employees you’ve brought on and their bios, as well as other spots you anticipate needing to hire for

Ownership percentage: Which individuals own what percentage of the restaurant, or if you are an employee-owned establishment

Be sure to update this section with more information as your business changes and you continue to share this business plan—especially because who is on your team will change both your business and the way people look at it.

Sample menu

You’ll also want to include a sample menu in your restaurant business plan so readers have a sense of what they can expect from your operations, as well as what your diners can expect from you when they sit down. This will also force you to consider exactly what you want to serve your diners and how your menu will stand out from similar restaurants in the area. Although a sample menu is in some ways self-explanatory, consider the following:

Service : If your brunch is as important as your dinner, provide both menus; you also might want to consider including both a-la-carte and prix fixe menus if you plan to offer them.

Beverage/wine service: If you’ll have an emphasis on specialty beverages or wine, a separate drinks list could be important.

Seasonality: If you’re a highly seasonal restaurant, you might want to consider providing menus for multiple seasons to demonstrate how your dishes (and subsequent purchasing) will change.

Market analysis

This is where you’ll begin to dive deeper. Although you’ve likely mentioned your market and the whitespace you hope to address, the market analysis section will enable you to prove your hypotheses.

Your restaurant business plan market analysis should include:

Industry information: Include a description of the restaurant industry, its size, growth trends, and other trends regarding things such as tastes, trends, demographics, structures, etc.

Target market: Zoom in on the area and neighborhood in which you’re opening your restaurant as well as the type of cuisine you’re serving.

Target market characteristics: Describe your customers and their needs, how/if their needs are currently being served, other important pieces about your specific location and customers.

Target market size and growth: Include a data-driven section on the size of your market, trends in its growth, how your target market fits into the industry as a whole, projected growth of your market, etc.

Market share potential: Share how much potential there is in the market, how much your presence will change the market, and how much your specific restaurant or restaurant locations can own of the open market; also touch on any barriers to growth or entry you might see.

Market pricing: Explain how you’ll be pricing your menu and where you’ll fall relative to your competitors or other restaurants in the market.

Competitive research: Include research on your closest competitors, how they are both succeeding and failing, how customers view them, etc.

If this section seems like it might be long, it should—it’s going to outline one of the most important parts of your strategy, and should feel comprehensive. Lack of demand is the number one reason why new businesses fail, so the goal of this section should be to prove that there is demand for your restaurant and show how you’ll capitalize on it.

Additionally, if market research isn’t your forte, don’t be shy to reach out to market research experts to help you compile the data, or at least read deeply on how to conduct effective research.

Marketing and sales

Your marketing and sales section should feel like a logical extension of your market analysis section, since all of the decisions you’ll make in this section should follow the data of the prior section.

The marketing and sales sections of your restaurant business plan should include:

Positioning: How you’ll describe your restaurant to potential customers, the brand identity and visuals you’ll use to do it, and how you’ll stand out in the market based on the brand you’re building

Promotion: The tools, tactics, and platforms you’ll use to market your business

Sales: How you’ll convert on certain items, and who/how you will facilitate any additional revenue streams (i.e. catering)

It’s likely that you’ll only have concepts for some of these elements, especially if you’re not yet open. Still, get to paper all of the ideas you have, and you can (and should) always update them later as your restaurant business becomes more fully formed.

Business operations

The business operations section should get to the heart of how you plan to run your business. It will highlight both internal factors as well as external forces that will dictate how you run the ship.

The business operations section should include:

Management team: Your management structure and hierarchy, and who is responsible for what

Hours: Your hours and days of operation

Location: What’s special about your location that will get people through the door

Relationships: Any advantageous relationships you have with fellow restaurateurs, places for sourcing and buying, business organizations, or consultants on your team

Add here anything you think could be helpful for illustrating how you’re going to do business and what will affect it.

Here, you’ll detail the current state of your business finances and project where you hope to be in a year, three years, and five years. You’ll want to detail what you’ve spent, what you will spend, where you’ll get the money, costs you might incur, and returns you’ll hope to see—including when you can expect to break even and turn a profit.

Financial statements: If you’ve been in business for any amount of time, include existing financial statements (i.e. profit and loss, balance sheet, cash flow, etc.)

Budget: Your current budget or a general startup budget

Projections: Include revenue, cash flow, projected profit and loss, and other costs

Debt: Include liabilities if the business has any outstanding debt or loans

Funding request: If you’re requesting a loan or an investment, lay out how much capital you’re looking for, your company’s valuation (if applicable), and the purpose of the funding

Above all, as you’re putting your financials together, be realistic—even conservative. You want to give any potential investors a realistic picture of your business.

Feel like there are other important components but they don't quite fit in any of the other categories (or make them run too long)? That’s what the restaurant business plan appendix section is for. And although in, say, a book, an appendix can feel like an afterthought, don’t ignore it—this is another opportunity for you to include crucial information that can give anyone reading your plan some context. You may include additional data, graphs, marketing collateral (like logo mockups), and more.

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The bottom line

Whether you’re writing a restaurant business plan for investors, lenders, or simply for yourself and your team, the most important thing to do is make sure your document is comprehensive. A good business plan for a restaurant will take time—and maybe a little sweat—to complete fully and correctly.

One other crucial thing to remember: a business plan is not a document set in stone. You should often look to it to make sure you’re keeping your vision and mission on track, but you should also feel prepared to update its components as you learn more about your business and individual restaurant.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

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A comprehensive restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design, location, financials, employee training, and a lot more.

Crafting a solid business plan is important, as it helps:

  • Transform your restaurant ideas into reality.
  • Boosts entrepreneurial success by 16% (Harvard Business Study) .
  • Equips you to navigate challenges before they arise.
  • Attracts potential investors.

“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.” - Charles Bililies, owner of Souvla

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

restaurant business growth plan

A step-by-step guide to writing a restaurant business plan

Embarking on a restaurant venture is an exciting prospect filled with endless possibilities.

However, the key to transforming your culinary dreams into reality lies in the foundation of a well-crafted restaurant business plan.

This guide will walk you through creating a winning restaurant business plan , from defining your niche to seeking expert advice.

So, are you ready to cook up some success?  Let's get started. 

Essential components of a restaurant business plan

A well-structured restaurant business plan typically consists of the following key components:

  • Executive Summary

Company Description

  • Market Analysis
  • Restaurant Design
  • Market Overview
  • External help
  • Financial Analysis

Delving into each section

Now, let's take a closer look at each section of your restaurant business plan and explore the key elements to consider:

1. Executive summary

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

  • 80% of venture capitalists say they read the executive summary first.
  • 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
  • A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as 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.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on c ommon elements of an executive summary, including:

  • A mission statement  
  • Proposed concept development
  • Cuisine selection
  • The overall execution
  • The potential costs
  • Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

Further reading

  • How to write a restaurant executive summary

Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

  • cozy, intimate bistro
  • bustling quick-service deli
  • fast-casual restaurant
  • fine dining establishment

Your concept should reflect your passion and expertise in the industry.

With a broad range of options, it’s critical to scrutinize your target market and pinpoint the most suitable choice considering their preferences and your capabilities.

When planning your restaurant design, keep in mind that it should effectively complement your chosen theme and cuisine.

Additionally, consider the potential for patio seating and the involvement of your management team in making these critical decisions.

A well-thought-out concept will not only set the stage for an unforgettable dining experience but also pique the interest of potential investors.

Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

  • Market demand
  • Expertise and passion
  • Ingredient availability
  • Competition
  • Profitability
  • Cultural fit
  • Seasonality

Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

From regional delicacies to innovative fusion dishes, understanding what’s popular and in demand can help you tailor your offerings to the desires of your target audience.

By thoroughly analyzing the market and adapting to evolving tastes, your restaurant can remain relevant and successful in the long run.

Crafting a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

  • Identify the purpose of the restaurant.
  • Contemplate the brand’s image.
  • Account for the target audience.
  • Incorporate company values.
  • Ensure brevity and comprehensiveness.

Related content:  How to Write a Restaurant Mission Statement  

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.

By articulating your restaurant’s unique values and vision, you’ll create a strong foundation upon which to build a thriving and successful business.

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 overview or 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 most independent restaurant investors will succeed in this market.

Here's an example of the page layout:  

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].

Short-term Goals:

  • Generate [Amount] in revenue within the first year of operation.
  • Achieve a [Percentage] customer satisfaction rating within the first six months of operation.

Long-term Goals:

  • Expand to a second location within five years.
  • Become a recognized leader in the regional food industry.

Market Study:

The regional food industry is experiencing a number of trends, including:

  • An increasing demand for fresh,  local ingredients.
  • A growing interest in ethnic cuisine.
  • A preference for casual dining experiences.

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?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

  Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

By staying abreast of current habits and trends, you can anticipate the needs and desires of your target market and tailor your restaurant’s offerings accordingly.

This forward-thinking approach will not only help you stay competitive but also foster long-term success in the ever-changing restaurant landscape.

  • How to find your restaurant's target market

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, 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 service style to 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 in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

The most important element to launching a successful 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 section should fully flesh out the restaurant's business plan and 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.

Download our free restaurant business plan  It's the only one you'll ever need. Get template 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 settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, its not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. Go into as much detail as possible - including everything from square footage to the demographics of the area.

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

Foot traffic and accessibility

Foot traffic and accessibility are essential factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

It’s also important to consider the competition in the area and assess whether your restaurant can stand out among existing establishments.

By choosing a location with strong foot traffic and accessibility, you’ll be well on your way to creating a thriving restaurant that appeals to your target market.

Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

8. Market overview

The market overview section is heavily related to the market research and 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 other 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 next marketing strategy 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 other potential investors about 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 own financial projections and 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 for 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. 

  • Important restaurant metrics to track

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.

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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Saif Alnasur

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.

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Restaurant Business Plan

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.

Man looking at charts on a wall for his restaurant business plan

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.

Empty fine-dining 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.

Man on laptop writing a restaurant 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.

Man mapping out a restaurant business plan

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

Taking notes on restaurant business plan

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.

restaurant menu board

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

Chef working in a restaurant

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.

working on restaurant business plan

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.

Sling app for managing a restaurant business plan

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…

Sling's scheduling feature

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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Long-term strategies to help restaurants grow

Maintaining a competitive edge in the foodservice landscape is no easy task. As any restaurant operator can confirm, succeeding in the modern marketplace requires constant innovation and the ability to  capitalize on the latest trends . This is especially true amid the pandemic.

Here are a few strategies for restaurants   to keep business moving forward through the next year and beyond.

Invest in staff

Staff is the most vital component of a restaurant’s continued growth and ability to adapt. From the moment guests step in the door, their experience is dictated largely by the restaurant’s team. Proper training is essential to maintain the quality of these experiences, but training sessions should also be future-focused. Tie training to changes in your menu, changes in sanitation best practices, changes in trends surrounding customer preferences and even to  new technologies  the business will be utilizing. Be aggressive in deciding what training to apply and the restaurant will be better for it.

Embrace continuous innovation

A restaurant’s innovative opportunities can take on several different forms, from new menu ideas that service market trends to cocktails that give the business a unique identity and set the restaurant apart. Innovation doesn’t need to end there, however. Revamping the very look and feel of a restaurant can give the business a more modern vibe, and is a great way to keep the aesthetic of a brand prominent in every capacity. This is especially true given this year’s disruption in service. As things go back to normal—or as restaurant operators implement lasting changes, rebranding or revamping to reflect those changes can be helpful in refreshing diners’ memories of past experiences there. Make sure to include events or promotions as part of those innovations. If an event supports the brand’s identity and is sure to bring customers through the door, there’s really no reason not to pursue it actively.

Capitalize on new technology

Throughout the course of any restaurant’s existence, it’s not uncommon to encounter several  new forms of technology . This trend will continue, and it’s important for operators to embrace and utilize them when possible. Just as computerized tickets,  automated cleaning solutions  and tabletop kiosks are benefiting the industry, new technologies will continue to make restaurants more productive . Be on the lookout for new technologies and understand what they can do for the restaurant business. Adopting the right ones could have a big payoff.

Make use of social media—but not all social media

If a restaurant is not already active on social media, it’s time to establish a presence. The power of this cost-effective marketing platform cannot be overstated—provided it’s done with a targeted approach. Just as restaurants can’t possibly carry menu items for every cuisine taste, they also cannot effectively manage every social media channel. Instead, make sure the restaurant appears properly on search sites like  Google  and Yelp, and then embrace a couple of social media channels to spend time actively cultivating a following on. Commit to regular posting on these select channels and enjoy far better interaction than trying to hit all channels at once but doing so sparsely.

All restaurants have to do is keep up their social media presence to build a community of followers who interact with the restaurant from one innovation to the next.

Visit www.rti-inc.com to learn more about how Restaurant Technologies’ innovation and technologies can help restaurants keep business moving forward.

This post is sponsored by Restaurant Technologies

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7 ways to expand: restaurant growth strategies.

Restaurant Growth Strategies

In any business, it’s crucial to strike a balance between perfecting your current operations and expanding your reach to increase profits, drive sales, and capture new audiences. This is especially true in the restaurant world, where it’s essential to stay agile and ahead of the curve in order for growth to happen. If your restaurant is ready to move onwards and upwards, it’s important to have a few key restaurant growth strategies in mind as you begin mapping out a robust plan to  scale your restaurant operations . 

Being strategic about expansion ensures you’ll be able to grow both rapidly  and  effectively. This means you can meet your goals while still maintaining your brand’s core values and commitment to excellence. 

Every restaurant is unique, and the possibilities for expansion are seemingly endless—there’s no one-size-fits-all approach! Whether expansion is in the immediate future or down the line, take a look at seven restaurant growth strategies that can help your business reach its full potential:

restaurant business growth plan

#1. Company Expansion: Growing Through Company-Owned Restaurants

Many times the best opportunity for expansion is actually within your own company. Expanding by adding new, company-owned restaurants can be a logical and lucrative option for those who want to increase profits without loosening their hold on the reins. 

However, it’s worth noting that maintaining total control comes with the trade-off of assuming all operational and capital risks. Growing through company-owned restaurants is more expensive, requires more capital, and is typically a slower way to grow as well. 

For corporate groups that require significant back-end support, this strategy also requires beefing up staff in the corporate office to include more team members that can manage things like HR, training, and operational issues. 

If you currently operate 1-2 restaurants, Consult to Grow recommends you own and exceptionally operate several company locations before pursuing any other growth strategies

#2 Acquisitions: Buying Regional Chains and Converting them to Your Brand

If you’re looking for a rapid expansion plan with fewer barriers to entry, purchasing a regional chain and converting it to your brand can be a great option. Think of it this way: your company still gets to add a location, but the restaurant’s foundation has already been laid, and you won’t run into many of the problems that come from starting from scratch.  

As with most restaurant growth strategies, taking an acquisition-forward approach has downsides such as mixed financial returns, integration issues, and of course, a hefty price tag. It’s also crucial to ensure that the process of absorbing a new location and brand doesn’t act as a distraction from your company’s original goals. 

#3 Co-Branding: Selling Products Into Existing Chains

Joining forces with another brand works well when you’re looking for expansion without sky-high upfront costs. By co-branding products into existing foodservice operations, you can increase brand awareness, increase your audience, and drive profits—without having to shoulder the expenses of physical expansion. 

Choosing the right brands to work with is essential to this restaurant growth strategy’s success because your co-brand’s reputation becomes  your  reputation. Since co-branding requires such a high level of communication and collaboration, keeping relationship management a top priority is also crucial. 

#4   General Franchising: Franchising Brand, Products, and Methods

Using franchising as a restaurant growth strategy enables you to duplicate your brand while taking on fewer financial and management risks. Plus, franchising provides additional sources of capital, which can be used to tackle other growth and development projects. 

When done correctly, franchising is a smart restaurant growth strategy that allows your brand to broaden its reach, while also passing on some of the associated responsibilities to a franchisee. In return, they’ll benefit from your help organizing, training, merchandising, marketing, and managing. Learn more about whether franchising your restaurant makes sense for your brand.

restaurant business growth plan

#5 Single-Unit Franchising: Investing in a Single Unit with No Promise of Any Future Additional Restaurants

There are several advantages to this expansion strategy including the opportunity to gain helpful capital, the chance to work with motivated business partners, and minimized growth risk for your brand. Single-unit franchisees often use their retirement funds or savings to open restaurants (and may lack franchising experience), so the relationship will probably require more involvement on the franchisor’s end, and growth tends to be slower than other types of franchising. All in all, single-unit franchising can be a wise move for owners who want to ease their way into brand expansion. 

#6 Multi-Unit Operators: Franchising Multiple Units in Larger Territories

Multi-unit (MU) franchisees tend to be professional developers who already know the ropes when it comes to operating a franchise. They also have the advantage of being able to bring more resources—and capital—to the table. 

Though working with a MU franchisee can be smart for businesses who want to seriously expand their brand beyond their immediate vicinity, there are a limited number of MU franchisees in the marketplace. Since they operate via economies of scale, you’ll often encounter more pushback on your decisions as a franchisor. 

#7 Concessionaires: Licensing Operators for Special Locations Such as Schools, Universities, Airports, Hospitals, Etc. 

Operating as a concessionaire means working in a unique location based on a grant from a local political entity. Your business will usually come from captured customers, which can be advantageous since it also means you won’t have as many competitors. Concessionaires can be either multi-national corporates, or small, regional businesses. 

Generally speaking, this restaurant growth strategy should be supplemental to other expansion methods, since the red tape involved makes the process slow and time-consuming. 

There’s No Right or Wrong Way to Grow

What works for one business model might be completely wrong for another. As you look to the future, remember that your plan for expansion should be as unique as your restaurant. 

Do You Have Questions?

If you’re in the process of scaling your business, reviewing strategic alternatives, articulating a growth strategy, or anything else relating to expanding your restaurant business, don’t hesitate to contact us at Consult to Grow®. We would love to be part of your restaurant journey!

If you’re scaling your business from a few locations to many, reviewing strategic alternatives, articulating a growth strategy, or anything else relating to strategically expanding your restaurant business, don’t hesitate to contact us at Consult to Grow®. We would love to be part of your restaurant journey! Ready to get started?  

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How to Write a Small Restaurant Business Plan + Free Sample Plan PDF

Group of seven individuals standing around inside of the entrance of a restaurant. Two are speaking with the owner, who just finished planning for his restaurant, preparing to order food.

Makenna Crocker

10 min. read

Updated February 7, 2024

Free Download:  Sample Restaurant Business Plan Template

From greasy spoon diners to Michelin Star restaurants, food service has captured the hearts and imaginations of countless culinary entrepreneurs.

In the United States, 90% of restaurant owners operate small restaurants with fewer than 50 employees . And 70% operate in just one location.

If you’re passionate about food and dream of opening a restaurant, you have plenty of company. But cooking skills alone won’t cut it. You need a plan.

In this article, we’ll walk you through writing a small restaurant business plan, from conducting market research to developing promotional strategies and creating a financial forecast. 

Need more guidance? Download our free small restaurant business plan template .

Why write a small restaurant business plan?

Starting a restaurant from scratch isn’t cheap.  Startup costs range from $175,000 to $750,000 and include hefty upfront expenses like:

  • Building lease
  • Kitchen equipment
  • Ingredient sourcing

The financials section of a business plan gives you space to compile these costs into an expense budget and compare them to your revenue projections . These will be invaluable in helping you determine if your restaurant concept is financially viable.

And if you need a bank loan or investor to help fund your restaurant , they’ll want to see a plan that includes financial projections (more on that later).

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  • How to write a small restaurant business plan

The business plan is not only where you lay out your plan, vision, and goals for the restaurant – it pushes you to thoroughly research and understand your market , competitors , and customers to make informed decisions. It guides you through the intricacies of opening and running a small restaurant and helps you keep your finances in order.

Here are some tips for writing a small restaurant business plan that sets you up for success.

  • Start with a company overview

A good place to start is to think about the big picture. What do you want your restaurant to be? Are you envisioning upscale dining in a candlelit, intimate setting? Or maybe you’re going for comfort food in a family-friendly atmosphere?

Capture the essence of your restaurant with a brief, attention-grabbing overview. Think of the start of your overview section as an elevator pitch. You’re introducing your concept and vision to highlight what will make your business unique .

Just keep it succinct. 

You’ll need to include other important information about your business here, such as the legal structure of your business and the qualifications of you and your management team.

If you’re writing a business for an existing restaurant, you should also cover its history – when the restaurant was founded, who was involved, and milestones it has reached.

  • Understand your target market

Conducting a thorough market analysis is key to the success of your small restaurant. In an industry as competitive as the restaurant business, you’ll need to have your finger on the pulse of your dining market if you hope to create a unique offering.

Defining your target market is essential when starting your restaurant, helping answer questions like:

  • Is there demand in the local market for your food?
  • Who are your primary competitors? 
  • Is there building space for lease near where your target customers live or work?
  • What types of partnerships with food distributors (wholesalers, farmers, butchers, etc.) will be needed to ensure a steady flow of fresh ingredients?

The first step is to identify who your diners will be. 

It’s unrealistic to try to appeal to every single customer. So, ask yourself who you envision walking through your doors. Are they:

  • Adults aged 40 and over, with lots of disposable income and exotic culinary tastes.
  • Children, young adults, and families looking for quick, convenient food that doesn’t stretch their budgets.

Of course, these aren’t the only two customer demographics for a restaurant. But you should get the sense that these customer segments have very different preferences.

Read more: Target market example

Understanding your target market involves more than just demographics. Consider their:

  • Spending habits
  • Daily routines

If you plan to operate in a busy city center, your target market might include working professionals seeking quick lunch options or upscale dining options after work. But if you’re opening in a less visible area near residential neighborhoods, you may be more likely to target families.

  • Size up your competition

With a target customer in mind, you need to understand who you’ll be competing with for their dining budget.

Analyzing your competitors is about understanding their strengths, weaknesses, and strategies. 

Start by identifying direct competitors (other small restaurants) and indirect competitors (like fast-food chains or food trucks). Observe how they attract customers, the ambiance they create, and the variety and pricing of their menus.

Get a feel for their operational strategies:

  • How much staffing do they have?
  • How fast (or slow) is their service?
  • What kinds of supplier relationships do they seem to have?

And their marketing tactics :

  • How do they engage with customers?
  • What deals or promotions do they offer?
  • What kind of reviews are they getting online?

Finally, think about their long-term position: 

  • Have they expanded or downsized recently?
  • Have they changed their operating hours?
  • Have they changed their menu?

As you observe these competitors and their customers, ask yourself what they are doing right and where they are coming up short. 

This knowledge will help you identify gaps in the market and opportunities to offer a unique experience.

  • Create a detailed operations plan

With so many moving pieces to manage as a restaurant owner, writing an operations plan is just as important as creating a market analysis.

The operations section of your business plan details how your restaurant will function daily. 

It should briefly touch on every aspect of running the business–from staffing needs to how often you will need to buy new ingredients, kitchen equipment, or dining utensils.

Your operations plan will reflect the unique needs of your business, but a typical restaurant operations plan might include:

  • Staffing and training: Lay out a staffing plan, with the roles and responsibilities of each team member. Include strategies for hiring, training, and employee retention.
  • Equipment and technology: Outline your dining, kitchen, and technology needs, from tables and chairs to ovens and point-of-sale systems.
  • Supply chain management: Explain your ingredient sourcing and inventory management strategies and your plan to build relationships with suppliers.
  • Customer service policies: Describe how you manage customer service needs and feedback to ensure a positive dining experience.
  • Health and safety protocols: Detail procedures for maintaining kitchen hygiene practices and food handling standards to ensure food safety and compliance with health regulations.

Without an operations plan, you’ll lack a documented strategy for managing your kitchen workflow, maintaining customer satisfaction, or even basic tasks like inventory or staffing.

And if you’re writing a business plan to get a bank loan or investment , they’ll want to see that you have a plan for successfully managing the restaurant. 

  • Actively market your restaurant

Your small restaurant may serve the most mouthwatering dishes in town, but no one will discover it without effective promotional strategies. 

You need to develop a comprehensive marketing plan to showcase your culinary delights and entice customers through your doors.

Consider both traditional and digital marketing channels to reach your target audience. Traditional methods may include:

  • Hosting special events
  • Participating in local food festivals
  • Partnering with complementary businesses in your community

Digital strategies may include:

  • Creating an engaging website
  • Building a strong presence on social media platforms
  • Utilizing online review platforms to build credibility and foster positive word-of-mouth.

When developing your promotional strategies, consider the following tips:

Be smart about your online presence

Build a visually appealing and user-friendly website that showcases your restaurant’s ambiance, menu, and story. 

Leverage social media platforms to engage with your audience, share enticing food photos, and run targeted advertising campaigns.

Consider promotions

Encourage repeat business by implementing a loyalty program that rewards customers for their patronage. Offer incentives such as discounts to certain customer segments, like seniors, veterans, or students.

Engage with the local community

Participate in community events, sponsor local sports teams or charity initiatives, and establish partnerships with neighboring businesses. 

Becoming an active community member will build brand awareness and loyalty.

Don’t ignore your pricing and financial strategy

According to data from the National Restaurant Association , about 60% of restaurants fail in their first year, and 80% close within five years.

You need to understand your startup and ongoing operating expenses to run a successful small restaurant.

Start by estimating your startup costs , including:

  • Site acquisition (down payment if owning the space, initial payment if leasing)
  • Building improvements
  • Equipment purchases
  • Licenses and permits
  • Initial inventory
  • Menu creation

Then, account for ongoing operating expenses, such as:

  • Employee wages
  • Mortgage or rent payments
  • Ingredient costs

Pricing your menu items strategically is essential to ensuring profitability. Analyze ingredient costs, consider portion sizes, and compare prices in your local market to determine competitive yet profitable pricing.

Conduct a break-even analysis to determine the number of customers you need to serve to cover costs and start generating profits. Regularly review your financials and adjust your pricing as needed to maintain a healthy bottom line.

Consider these financial aspects when developing your small restaurant business plan:

Budget Allocation

Determine how you will allocate your budget across different areas of your restaurant, such as kitchen equipment, interior design, marketing, and staff training.

Prioritize investments that will have a direct impact on customer experience and operational efficiency.

Revenue Streams

Identify multiple revenue streams for your restaurant. This may include revenue from food sales, catering services, private events, or partnerships with local businesses.

Diversifying your revenue sources can help stabilize your cash flow.

Cost Control

Develop strategies to control costs without compromising quality. Efficient inventory management, negotiation with suppliers, and staff training on waste reduction can contribute to cost savings.

Sales Forecasting

Create a sales forecast based on your market research, pricing strategy, and seating capacity. Consider seasonal fluctuations and special events that may impact your restaurant’s performance.

Other information to include in your small restaurant business plan

As a restaurant owner, a few components of your business plan are unique to your industry. 

None of these fit neatly into any one section of a business plan. We suggest addressing them in additional sections or within the appendix .

Restaurant location and layout

Include information about your restaurant’s location . 

Some of this information will be included in your market analysis, but once you’ve secured a location, you should go deeper and analyze factors like:

  • Rent and utilities
  • Foot traffic
  • Parking availability
  • Nearby businesses

Explaining the layout of your restaurant – especially your kitchen – is also important. Consider adding photos or diagrams of each room to your plan. 

Diagrams can be especially helpful. You can add in-depth details for seating arrangements in the dining room or how staff should move efficiently throughout the kitchen.

What do many people do before deciding whether to eat at a restaurant? 

They look at the menu.

You can gain or lose customers on the strength of your menu. It affects numerous business areas, from marketing to pricing and operations.

For instance, if you’re running a family-friendly restaurant but your prices are too high, people will see that on your menu and may decide to eat somewhere cheaper. 

On the other hand, if you’re running a fine dining restaurant , but your menu fails to describe your dishes in an appealing way, diners may go somewhere they perceive as having higher quality meals.

That makes the business plan a great place to create menu concepts. 

You can experiment with different offerings, price points, and menu designs until you’re confident about sharing them with customers. 

And since business plans are continuously updated as your business changes—you can see how your menu has changed over time and what’s been most successful.

Download your free small restaurant business plan template

If you’re ready to start a restaurant, you can download our free small restaurant business plan template from our library of over 550 sample business plans . 

Get started today, and discover why businesses that plan grow 30% faster than those that don’t .

More restaurant business plan examples:

  • Food truck business plan
  • Coffee shop business plan

Bakery business plan

  • Brewery business plan

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Makenna Crocker

Makenna Crocker is the Social Brand Manager at Palo Alto Software. Her work focuses on market and social trends, educational content creation, and providing entrepreneurs with small business tips and tools. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through social media and sharable content.

Check out LivePlan

Table of Contents

  • Why you need a plan
  • Don’t ignore your pricing and financial strategy
  • Additional info to include
  • Free business plan template

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Blog / July 21, 2022

6 Restaurant Expansion Strategies to Try

restaurant business growth plan

Stephanie Schalow

There’s no one-size-fits-all solution for expanding a restaurant business. Growth can come in many forms. Whether you want your restaurant to be as ubiquitous as McDonald’s or simply would like to open a second location, our restaurant expansion strategies can help you take the next step.

Keep reading for:

  • Our top restaurant expansion strategies
  • Best practices for restaurant expansion

How to Expand Your Restaurant

Ready to take your business to the next level? Study these expansion strategies for inspiration for how to expand your restaurant.

1. Add New Revenue Streams

You can grow your food business while maintaining the same footprint by introducing new revenue streams, such as:

  • Offering off-premises dining via takeout and delivery
  • Selling branded merchandise in your restaurant and online
  • Introducing catering services
  • Offering prepaid bookings to secure advanced revenue during your busiest times
  • Organizing events and selling tickets for them
  • Renting your space out for events

These strategies can help you grow your business without spending more on real estate.

2. Create a Mobile Concept

Consider making a mobile concept part of your restaurant expansion business plan . A food truck or pop up can help you reach new audiences outside of your walls.

With a food truck , you can serve your delicious dishes in new areas or cater events. Having a food truck is a low-stakes way to see how popular your concept could be in a different location, or test new menu items in the place where you already have name recognition. 

There are a number of ways to expand your business through pop ups . Some bars and venues don’t have kitchens or chefs but instead work with restaurants to serve food to their clientele. For example, Philadelphia rooftop bar Bok Bar partners with a local restaurant or chef every few weeks for their food menu. Seek out similar partnerships in your neck of the woods.

Setting up a booth at a seasonal or pop up market is also a good way to reach new customers.

3. Expand Your Space

If you’re consistently booked to full capacity, you may want to consider growing your business by increasing capacity. See if the space next door to your restaurant is available. If not, consider making adjustments to your current layout to increase capacity. If there’s no way to increase capacity within your current footprint, move to a new, larger space.

4. Open a Second (or Third or Fourth) Location

If your existing restaurant concept has been successful and financially viable for several years, why not replicate the concept and open more locations? You can own and operate them yourself if you want full control, or franchise your concept if you’re up for a new challenge.

5. Start a Franchise

Considering global domination? Franchising your restaurant can help you get there. If you want to scale your brand, let other entrepreneurs handle it by starting a franchise and selling the rights to operate your business. Franchising can help your brand reach new markets at scale.

6. Form a Hospitality Group

Another restaurant expansion strategy is to open different concepts and operate them under one hospitality group. Hospitality group Bloomin’ Brands , for example, began with Outback Steakhouse and has since grown to include Carrabba’s, Bonefish Grill, Fleming’s and other concepts.

Leverage the name recognition from your existing restaurant to generate buzz for and draw customers to your new concepts.

Best Practices for Restaurant Expansion

Deciding how to expand your restaurant is only the beginning. Follow these best practices to execute your restaurant expansion business plan successfully.

Create a Consistent Experience

Whether you’re repeating the same concept or opening new ones as you grow, it’s important to create a consistent experience that represents your brand at each restaurant. 

Start by putting your company’s values down in writing to ensure that you exhibit them at all of your new locations. Then, formalize employee and manager training to ensure all employees perform at the same level.

Use guest data to create a consistent dining experience across properties. Reference guest profiles from your customer relationship management (CRM) platform to anticipate guests’ needs as they dine from one restaurant to the other. 

For example, let’s say you learn that a customer doesn’t eat dairy when they dine at your restaurant. Your team should make a note of this in the guest’s profile. Then, when that customer visits your sister restaurant, the staff there should see the note on the profile and be ready to point out dairy-free options.

Focus on Branding

Brand visibility is extremely important as you grow your restaurant empire. Feature your brand prominently across all customer touchpoints. 

For physical touchpoints, include your brand all over your restaurant’s interior, signage, menus, delivery packaging and staff uniforms.

When it comes to digital assets, look for tech partners that whitelabel their consumer-facing platforms so you can strengthen your brand’s presence, not theirs. SevenRooms lets you whitelabel its reservations platform so you can put your brand front and center.

Use Values-Based Hiring

Form dream teams at your new locations by finding employees who will fit into the existing culture and who share your values . Then, use veteran team members to train new hires. Shadowing is encouraged for both training and team-building purposes.

Grow Your Audience Through Marketing 

Marketing is something you need to be doing consistently to help keep a steady flow of customers coming as you expand your restaurant business. Leverage email marketing, social media, PR and ads to let people know about new locations, pop ups and franchise opportunities.

You don’t have to do it all yourself. With marketing automation software, you can spend less time sending emails. SevenRooms leverages guest data from your CRM to send highly targeted email marketing campaigns on your behalf.

Cross-Promote Sister Properties

Keep it in the family as your business grows by promoting sister properties to existing customers. Mention your other restaurants on social media and in email newsletters. 

If one venue is booked up for an evening, promote your sister properties through your reservations page by letting guests know which other locations have tables available.

Wrapping Up: Restaurant Expansion Strategies

Franchising isn’t the only way to grow your restaurant business. From adding new revenue streams or a mobile component to the business, to expanding your existing space and adding new locations, the possibilities are endless.

Set yourself up for success by following expansion best practices. Create a consistent experience at every touchpoint, focus on branding and marketing, hire people who share your values and cross-promote sister properties.

SevenRooms’ enterprise solutions can help you scale your restaurant. Book a demo today.

FAQs About Restaurant Expansion Strategies

1. what is good growth for a restaurant.

The rate at which restaurant guests are spending per visit grew during this past quarter. Average check growth of 3.1% in Q4, year-over-year, is significant. 

2. How Can I Make My Restaurant More Popular?

These tips can help you attract more customers to your restaurant: promote your business on social media, offer free wi-fi, provide live music, leverage email marketing, sign up for online ordering and food delivery apps, give away gift cards and partner with social media influencers.

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Sample Restaurant Business Plans For a New Business Owner

examples of a restaurant business plan

Writing a business plan is an essential part of starting a restaurant. Not only does it provide a roadmap for the future but it also helps to create funding opportunities and attract potential investors. For new business owners, having access to sample restaurant business plans can be especially helpful in providing direction and insights into how to write a restaurant business plan on their own.

Download our Ultimate Restaurant Business Plan Template

Having a comprehensive business plan in place is vital for any successful restaurant venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan will help you understand your restaurant’s startup costs and can also give you clarity on realistic financial projections and help you secure financing from investors and/or get a loan to start a restaurant. Examples of restaurant business plans are great resources to draw upon when creating your own plan to ensure that all the key elements are included in your document.

Below is an example restaurant business plan to help you see what one should look like. It is not however nearly as comprehensive and successful in raising capital for your restaurant as Growthink’s Ultimate Restaurant Business Plan Template , but it can help you write a business plan for your restaurant.

Restaurant Business Plan Example #1 – Black Pearl Seafood Restaurant

Table of contents.

Executive Summary

Company Overview

Industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

The Black Pearl Seafood Restaurant is a high-end seafood restaurant located in the heart of the historic district in New Orleans, LA. The restaurant will serve fresh seafood dishes with a modern twist and provide an unforgettable culinary experience for its guests.

The Black Pearl Seafood Restaurant is seeking to raise $200,000 in startup capital from a group of private investors. The funds will be used to cover the costs of building out the restaurant’s specific location, purchasing equipment and supplies, and hiring staff.

The Black Pearl Seafood Restaurant has a projected annual revenue of $1,200,000 and is expected to be profitable within its first year of operation. The restaurant’s target market is affluent diners who are looking for an exquisite seafood dining experience.

The Black Pearl Seafood Restaurant offers a unique and innovative menu that features fresh seafood dishes with a modern twist. The restaurant’s menu includes items such as:

  • Blackened salmon with shrimp and grits
  • Fried catfish po’ boy with remoulade sauce
  • Grilled Louisiana shrimp skewers
  • Crawfish etouffee
  • Shrimp gumbo

The Black Pearl Seafood Restaurant also offers a wide selection of wine and beer to complement its menu.

Company Description

The Black Pearl Seafood Restaurant is owned and operated by John Doe. Mr. Doe has over 10 years of experience in the food and beverage industry. He has worked as a chef at several renowned restaurants in New Orleans and has also owned and operated his own catering business.

The Black Pearl Seafood Restaurant will be located at 123 Main Street in New Orleans, LA. The restaurant will occupy a 3,000-square-foot space that was formerly occupied by a pizzeria. The location is in close proximity to several hotels and tourist attractions, which will generate significant foot traffic for the business. It is also located within walking distance of the Central Business District attracting local office workers and residents.

The Black Pearl Seafood Restaurant will have a seating capacity of 60 guests. The restaurant will also have a full-service bar that will serve beer, wine, and cocktails.

The seafood restaurant industry is one of the fastest-growing segments of the food service industry. Over the past five years, the industry has experienced strong growth due to an increase in the popularity of seafood as a healthy dietary choice.

The seafood restaurant industry is expected to continue to grow over the next five years as consumers’ preference for healthy and delicious food continues to rise. In addition, the industry will benefit from an increase in per capita disposable income, which will allow consumers to spend more on dining out.

Other Industry Analysis Points

  • The seafood restaurant industry is regulated by the FDA
  • Changes in government policies could impact the industry
  • The seafood restaurant industry is sensitive to changes in the economy
  • An economic downturn could lead to a decline in revenue and profit margins
  • The seafood restaurant industry is influenced by consumer trends and preferences
  • Health-conscious consumers are increasingly seeking out seafood as a healthy dietary choice

Technological:

  • The seafood restaurant industry is impacted by advances in food technology
  • New cooking techniques and equipment can help to improve the quality of dishes served
  • The seafood restaurant industry is subject to food safety and sanitation regulations
  • Changes in the law could impact the way that restaurants operate

Environmental:

  • The seafood restaurant industry is impacted by changes in the environment
  • The quality of seafood dishes can be impacted by pollution and other environmental factors

The Black Pearl Seafood Restaurant will target two primary customer market segments: tourists and local residents.

The tourist market segment consists of individuals who are visiting New Orleans for leisure or business purposes. This market segment is significant for the business as it represents a large portion of the city’s population. New Orleans is a major tourist destination, with over 16 million visitors per year.

The local resident market segment consists of individuals who live and work in New Orleans. This market segment is significant for the business as it represents a stable source of income. Local residents are more likely to visit the restaurant on a regular basis and recommend it to friends and family.

Competitor Analysis

The Black Pearl Seafood Restaurant will compete in the seafood restaurant industry. Through our competitive research, the restaurant’s closest direct competitors will be Red Fish Grill, Bourbon House, and GW Fins.

The Black Pearl Seafood Restaurant will compete in the seafood restaurant industry. The restaurant’s closest competitors will be Red Fish Grill, Bourbon House, and GW Fins.

Red Fish Grill is a seafood restaurant located in the French Quarter of New Orleans. The restaurant offers a casual dining experience with a menu that features fresh seafood dishes.

Bourbon House is a seafood restaurant located in the French Quarter of New Orleans. The restaurant offers a more upscale dining experience with a menu that features fresh seafood and steak dishes.

GW Fins is a seafood restaurant located in the Warehouse District of New Orleans. The restaurant offers an upscale dining experience with a menu that features fresh seafood dishes.

The Black Pearl Seafood Restaurant will differentiate itself from its competitors by offering a more innovative and modern menu with fresh seafood dishes that are prepared using unique cooking techniques. In addition, the restaurant will provide a superior level of customer service and create an unforgettable dining experience for its guests.

Our competitive advantages include:

  • Unique menu with fresh seafood dishes that are prepared using unique cooking techniques
  • Superior level of customer service

Products : The Black Pearl Seafood Restaurant will serve a variety of fresh seafood dishes that are prepared using unique cooking techniques.

Price : The price of menu items will be competitive with other seafood restaurants in the area.

Promotion : The Black Pearl Seafood Restaurant will use a combination of marketing strategies to promote the business and attract customers.

  • Develop a website and create social media accounts to reach a wider audience
  • Develop a promotional video to generate interest in the restaurant
  • Participate in local food festivals and events to generate awareness
  • Launch a targeted advertising campaign in local publications and on radio and television
  • Develop relationships with local tour operators to promote the restaurant to visitors
  • Offer discounts and special promotions to generate repeat business

Place : The Black Pearl Seafood Restaurant will be located in the French Quarter of New Orleans.

The Black Pearl Seafood Restaurant will be open for lunch and dinner seven days a week. The restaurant will be closed on Thanksgiving and Christmas Day.

The Black Pearl Seafood Restaurant will source seafood from local suppliers and growers to ensure the freshest ingredients are used in dishes.

The restaurant will use a point-of-sale system to manage inventory and track sales.

The restaurant will seat up to 100 guests at a time. Reservations will be accepted for parties of eight or more. Walk-in guests will be accommodated on a first-come, first-served basis.

The Black Pearl Seafood Restaurant will have a staff of 20 employees, including a head chef, sous chefs, kitchen staff, servers, and hostesses.

The Black Pearl Seafood Restaurant will be owned and operated by John and Jane Doe.

John Doe has over 10 years of experience in the restaurant industry. He has worked as a chef, manager, and consultant for a variety of restaurants.

Jane Doe has over 20 years of experience in the hospitality industry. She has worked as a hotel manager, event planner, and marketing consultant.

The Black Pearl Seafood Restaurant will have start-up costs of $500,000. The majority of the start-up costs will be for leasing and outfitting the restaurant space. Other start-up costs include purchasing kitchen equipment, hiring staff, and marketing the business.

The Black Pearl Seafood Restaurant is projected to generate $1.5 million in sales in the first year of operation. The restaurant is expected to have net profits of $250,000 in the first year.

Sample Menu

Appetizers:

  • Jumbo shrimp cocktail
  • Oysters Rockefeller

Soups and salads:

  • Seafood bisque
  • Caesar salad with grilled shrimp
  • House salad with tuna steak
  • Spinach salad with scallops
  • Shrimp scampi
  • Surf and turf (filet mignon and lobster tail)
  • Grilled salmon with roasted vegetables
  • Blackened redfish
  • Bread pudding with rum sauce
  • Bananas Foster
  • Cheesecake with berry sauce
  • Key lime pie
  • Soda, coffee, tea, milk
  • Beer, wine, cocktails

Financial Projections

Balance sheet.

[insert financial statement]

Income Statement

Cash flow statement, restaurant business plan example #2 – la cocina de el paso: home of authentic mexican cuisine.

La Cocina de El Paso is a restaurant that specializes in serving authentic Mexican cuisine. The owners, John and Jane Doe, have over 30 years of combined experience in the hospitality and restaurant industry. This wealth of experience will ensure the success and longevity of the business.

Located in the heart of El Paso, La Cocina de El Paso will offer a relaxed and welcoming atmosphere. Guests can expect to be served freshly made dishes, prepared with only the freshest ingredients. The restaurant will also serve a selection of beer, wine, and cocktails.

La Cocina de El Paso will cater to both locals and tourists alike. To promote the business, the owners plan to launch an aggressive marketing campaign that will include print ads, radio spots, and social media. In addition, the restaurant will partner with local businesses to offer discounts and promotional offers.

The owners have estimated start-up costs of $500,000. The majority of this amount will be used to lease and outfit the restaurant space. Income is projected to reach $1.75 million within the first year of operations, with net profits of $350,000.

La Cocina de El Paso is an upcoming restaurant that will offer authentic Mexican cuisine. The restaurant will be located in downtown El Paso, Texas, and will feature a relaxed atmosphere with seating for up to 150 guests.

The restaurant will utilize only the freshest ingredients in its dishes and offer a selection of beer, wine, and cocktails. The menu will feature appetizers, soups and salads, entrees, desserts, and drinks.

The restaurant industry is highly competitive. In particular, Mexican cuisine has gained popularity in recent years. To succeed, La Cocina de El Paso must differentiate itself from other restaurants in the area.

The restaurant will focus on offering fresh and authentic Mexican cuisine with a welcoming atmosphere. The owners plan to partner with local businesses and offer discounts and promotional offers. In addition, the owners plan to launch an aggressive marketing campaign that will include print ads, radio spots, and social media.

The target market for La Cocina de El Paso will be both locals and tourists. The restaurant is located in a tourist area and is close to several attractions. As such, it will be well-positioned to attract customers from out of town as well as local residents.

The restaurant will serve a variety of customers, including young adults and families. To appeal to this demographic, the restaurant will offer an inviting atmosphere with comfortable seating and a selection of entertainment options. Additionally, the menu will feature authentic Mexican dishes that are sure to please all tastes.

Ideal Customer Demographics:

  • Young adults: ages 18-34
  • Local residents

Psychographics:

  • Adventurous eaters
  • Value conscious
  • Seeking authentic experiences

There are several other restaurants in El Paso that specialize in Mexican cuisine. Main competitors include El Paso’s Best, El Taco Loco, and Casa Azul.

El Paso’s Best is the area’s premier Mexican restaurant. The food is of high quality and the atmosphere is casual yet upscale. Prices are slightly higher than La Cocina de El Paso, but the quality of the food makes it worth the price.

El Taco Loco is a fast-food Mexican restaurant. The food is inexpensive, but the quality is not as high as La Cocina de El Paso.

Casa Azul is a family-style Mexican restaurant with more of a casual atmosphere. Prices are slightly lower than La Cocina de El Paso and the menu features traditional Mexican dishes.

To differentiate itself, La Cocina de El Paso will focus on fresh ingredients and authentic Mexican dishes. The restaurant will also offer a selection of beer, wine, and cocktails, as well as discounts and promotional offers. Finally, the owners plan to launch an aggressive marketing campaign that will help spread the word about La Cocina de El Paso.

To attract customers, La Cocina de El Paso will focus on marketing its fresh and authentic Mexican cuisine.

Below is a sample menu for La Cocina de El Paso, featuring traditional Mexican dishes and a selection of beer, wine, and cocktails.

  • Quesadillas
  • Guacamole and Chips
  • Stuffed Jalapenos
  • Queso fundido, taquitos

Soups & Salads:

  • Chicken Tortilla Soup
  • Caldo de Res (Beef Soup)
  • Taco Salad with Ground Beef or Grilled Chicken
  • Ensalada de la Casa (House Salad)
  • Ensalada Fresca (Fresh Salad)
  • Tacos al Carbon (Grilled Steak Tacos)
  • Fajitas (Steak, Chicken, or Vegetarian)
  • Chiles Rellenos (Stuffed Peppers)
  • Carne Asada con Papas
  • Camarones a la Diabla
  • Enchiladas Verdes
  • Churros con Chocolate
  • Tres Leches Cake
  • Flan Napolitano
  • Beer & Wine

Promotions:

The restaurant will offer promotional discounts and specials. For example, customers who purchase two entrees may receive a complimentary appetizer or dessert. The owners plan to partner with local businesses to offer additional discounts and promotional offers.

La Cocina de El Paso will offer competitive pricing. Prices will be slightly lower than El Paso’s Best, but higher than El Taco Loco and Casa Azul.

The restaurant will be located in downtown El Paso, close to several attractions and tourist sites. The owners hope that the convenient location will help bring in both tourists and local residents.

Marketing Mix

To reach its target customers, La Cocina de El Paso will use a combination of traditional marketing strategies such as print ads, radio spots, and TV commercials, as well as digital marketing tactics such as content marketing, social media campaigns, email newsletters, and online advertising.

  • Print Advertising : The owners plan to run print ads in local newspapers and magazines that target young adults and families.
  • Radio & TV Spots : The restaurant will also air radio spots and TV commercials that feature its menu items and promotional offers.
  • Content Marketing : La Cocina de El Paso will create content that highlights the freshness of its ingredients and the authenticity of its Mexican dishes. The content will be shared on social media, in email newsletters, and on the restaurant’s website.
  • Social Media Campaigns : The restaurant will run campaigns on Facebook and Instagram that feature customer reviews, contests, and giveaways.
  • Online Advertising : The owners plan to use Google Ads and other online platforms to reach potential customers.

The owners of La Cocina de El Paso are confident that their marketing strategy will help the restaurant stand out from its competitors and attract customers. With its fresh and authentic Mexican cuisine, competitive prices, convenient location, and aggressive marketing campaigns, La Cocina de El Paso is sure to be a success.

Collaborative Promotion: The owners of La Cocina de El Paso plan to partner with local businesses in order to create mutually beneficial promotional offers. For example, the restaurant may offer discounts to customers who use services from one of its partners. The owners believe that this type of collaborative promotion will help draw in more customers and generate additional revenue for the business.

Events: La Cocina de El Paso plans to host events such as cooking classes and live music performances in order to build relationships with customers and increase brand awareness. The restaurant will also use these events to showcase the freshness of its ingredients, its Mexican cuisine, and the quality of its drinks (margaritas, beer & wine, cocktails).

These strategies are designed to help La Cocina de El Paso build a strong customer base and become a popular destination in downtown El Paso. The owners are confident that these tactics will help the restaurant stand out and create a positive impact on the local community.

La Cocina de El Paso will have a skilled team of servers, cooks, and bartenders who are knowledgeable about the restaurant’s Mexican cuisine. The owners plan to focus on delivering high-quality customer service in order to ensure customers have a great experience. The owners also plan to invest in modern kitchen equipment that can help streamline the cooking process.

The restaurant will be open from 11 am to 10 pm on weekdays and from 11 am to 11 pm on weekends. The owners plan to hire additional staff during peak hours in order to handle the influx of customers. The owners also plan to use advanced reservation systems and delivery services to accommodate customers who would prefer not to wait in line.

The owners of La Cocina de El Paso have extensive experience in the restaurant industry. They plan to hire a team of experienced managers who can handle day-to-day operations and ensure that the restaurant runs smoothly. The management team will also be responsible for developing marketing strategies, overseeing staff training programs, and creating promotional offers.

The job description for the management team includes:

  • Overseeing day-to-day operations
  • Developing marketing strategies and managing promotional campaigns
  • Creating training programs for staff members
  • Handling customer inquiries and complaints
  • Ensuring that food safety standards are met
  • Analyzing data to identify areas for improvement.

The total start-up cost of La Cocina de El Paso is estimated at $500,000.

This includes:

  • $100,000 for lease deposits and renovations costs;
  • $200,000 for furniture and fixtures;
  • $50,000 for marketing and advertising;
  • $50,000 for kitchen equipment;
  • $100,000 for the salary of the management team.

The owners plan to finance the start-up costs through a combination of their personal savings and bank loans. They also plan to generate additional revenue by offering catering services and hosting special events at the restaurant.

The financial forecast for La Cocina de El Paso is optimistic. The owners expect to break even in the first year of operations and reach profitability within five years.

Free Restaurant Business Plan Example PDF

Download our restaurant business plan pdf here. This is a free restaurant business plan example to help you get started on your own restaurant plan.

How to Finish Your Restaurant Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your restaurant business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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How to Write A Restaurant Business Plan And Milestones

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The great restaurant idea around in your head is composed of many parts, all swirling around. And your restaurant business plan-including your restaurant profit and loss statement -is how you’re going to communicate it clearly.

Every investor wants to see a great idea presented in a cohesive, digestible format that convinces them of a sustainable or profitable business. Almost no investors blindly shake hands on an idea alone.

And aside from using it as a tool to land initial investments, a solid restaurant business plan will establish the groundwork for the first few years of a restaurant. It provides a roadmap for the growth and management of your business.

The better and more detailed a restaurant business plan, the better the map. The easier it is to navigate the road ahead and the clearer your path to success. 

Here is everything you need for a clear, effective, and professional restaurant business plan. Investors are out there, waiting to invest. That’s what they do. Why not with you? Let’s give them something to get excited about.

How to Write a Restaurant Business Plan

Step 1: an executive summary.

An executive summary is how to start a restaurant business plan. It’s the introductory part that gives investors an aerial view of the project. Treat the executive summary as the basic foundation for the restaurant proposal.

In many cases, unfortunately, this is the only section an investor will read. So, make it count.

The ideal executive summary is 1–2 pages and includes:

  • The overall mission statement of the restaurant . Use clear language to present a concise, unified vision and purpose.
  • Introduce the concept using industry-standard language, i.e. a fast-casual Mediterranean restaurant
  • Lay out what makes your concept different from similar concepts, i.e. with nightly Mediterranean-influenced live music and wall-to-wall murals of Aegean seascapes
  • Cover the basics of the menu , the chef, and the culinary influences of your offerings, and if you're offering something along the lines of table d’hote menus
  • Detail the restaurant’s location, target market, and the opportunity in the area
  • Funding requirements . Lay out the fundamental financials. List the overall amount of capital you need to open and begin operating, and break down the restaurant startup costs into specific sections. For example, you may use this section to introduce the overall amount of capital your restaurant needs to open and begin operating. From there, breakdown the restaurant startup costs into specific sections. For example, you may need $300,000 to open and $50,000 of that will go to renovating the space. Specify that. Additionally, disclose any fundraising you have done prior to creating the restaurant business plan. If you have contributed a lump sum of your own money, taken a loan from an institution, or entered into agreements with other investors, communicate that here.
  • Keys to success . Use this section to lay out exactly what will be the cornerstones of your success. This is the last little bow you’ll put in your executive summary to upsell your restaurant’s concept and your capacity as operator. Also, if you’ve done any financial forecasting, include it here in a simple graph. Numbers speak. And if you can show your investors the numbers you are aiming to hit in the first one to five years, those numbers will speak loudly.

A simple graph for your executive summary can include gross revenue, COGS, employee expenses, operating expenses, and EBITDA (earning before interest, taxes, depreciation, and amortization).

Step 2: In-Depth Business Description 

The next step in how to draw up a restaurant business plan is diving into your restaurant’s specifics.

In this section, you’ll bring your restaurant to life for your investors. Section by section, illustrate what makes your restaurant stand out and the value you’ll be bringing to its guests.

The Restaurant Experience And Vision

When a guest enters your restaurant, how do they feel? Is your restaurant dark and moody with wood furniture , lush red velvet, and French music playing in the background? Does your restaurant have sunny outdoor seating with an unparalleled view of the ocean and playful, colorful decor?

Set the stage. Paint a picture. Transport the reader of your restaurant business plan to your restaurant. Use this section to draw your investor in and show them what’s so special about your idea.

Consider also how you want your guests to feel. If you are offering healthy, fresh fare, you might want your guests to leave feeling light, happy and ready for a day outside. Are your servers knowledgeable sommeliers? Do you want your guests to settle in for a long evening of fine dining or are you a fast casual restaurant?

Close your eyes and take the time to envision your restaurant. Paint the picture of your mission statement by showing and telling your investor about it.

Restaurant Design

Here’s where you visually present some of the things you were just describing. Depending on how far you are along in the process, this section can have varying levels of detail.

You can have a full-blown professional mock-up of the restaurant and bar equipment layout , bar layout , including kitchen equipment, bar glasses , POS systems, lighting, and more.

Or you can include a mood board, which is a collage of images that will inspire the restaurant’s aesthetic. This option is typically less exciting for an investor, because it means you’ve got more work to do on the design front. But it’s certainly better than nothing. And if you don’t have a physical space yet, you won’t be able to get specific with a layout.

Introduce the Menu

Use this section to showcase your restaurant menu to investors. Write a brief introduction describing the cuisine. Does it come from a certain geo? Do you adhere to a particular dietary restriction? Is it meant to evoke a specific time or place? Will it be a QR code menu or a traditional paper menu?

Include all of your menus in this section. If you intend on serving Lunch, Dinner and Brunch, include all of the menus, along with their ingredients and preparations.

Step 3: Labor and Operation Details

Here you’ll cover hours of operation, payments accepted, portion controls, management techniques, training programs, labor, and money management.

The devil is in the details here. Try to cover these as thoroughly as possible. The less questions investors have, the better.

Operations:

  • Hours of operation
  • Days of operation (holidays, etc.)
  • Inventory and food cost controls (like setting par level inventory )
  • Recipe controls
  • Cross utilization of inventory
  • Sanitation schedules, including a bar cleaning checklist with glass and surface cleaner supplies from Bar Keepers Friend or Branch Basics.
  • Food handling
  • Management systems
  • Software used (scheduling, reservation management, point of service, etc) 
  • Training and staff education
  • Money management

Addressing these seemingly minute details may seem excessive when constructing a restaurant business plan. However, having these plans in place will demonstrate the sincere consideration you have put into making your restaurant dream a reality. Additionally, once funding is secured, it will set you up for success.

Now introduce your team.

If you’re going to be heavily involved, as an owner, tell the investors more about yourself. Let your story, your passion, and your experience color your restaurant. Consider the unique point of view you bring and demonstrate this to the potential investors. If there are other key players the investors should know about, introduce them here as well.

Then move on to how the overall staff will be constructed. Having a clear idea of your team’s makeup demonstrates your deep understanding of what your restaurant needs and what it is going to cost to staff it.

Your team breakdown might look something like this:

  • General manager
  • 2 assistant general managers
  • Kitchen or BOH Manager
  • 2 lead cooks
  • 2 line managers
  • 2 prep cooks/ line cooks (see a line cook job description here)
  • 3 bartenders

Consider adding how staffing might look for different meals, days of the week, and times of the year. You can break down the cost of labor for a slow Monday lunch in February as opposed to a Saturday night dinner in June.

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Step 4: Market Analysis

You know what most restaurant failure has in common? Insufficient market analysis. A lot of things can make or break a restaurant, no matter how great the food, ambiance, and concept may be.

Before considering a certain restaurant location, make sure you have an active, ready-to-engage target market waiting for you and you'll need to perform a swot analysis for restaurant . Check out a restaurant swot analysis example to get some ideas for how to do one.

Target Market

What does your restaurant’s target market look like?

Are they well-to-do business people who work across the street from your location? Are you opening in a foot traffic area with lots of young families?

Assess your target market, find out where they live, and find a great location from which to serve them.

Some characteristics you might want to consider in searching for a target market are:

  • Dining habits
  • Style and tastes
  • Value beliefs
  • Marital status
  • Religion (and any corresponding dietary restrictions)

Neighborhood Analysis

The analysis of the neighborhood is also important and will feed directly into your target market. Consider using results from the latest Census to include in your restaurant business plan.

Answer questions like:

  • How many people live within walking distance?
  • How many people live within an easy driving distance?
  • Will most of your customers dine with you for brunch on the weekend?
  • Is your location close to a cluster of businesses making it a busy lunch spot?
  • Are there any major universities or large institutions nearby?

This is a great place to include some visual elements. Consider including maps of the area. A zoomed-in map showing the surrounding area, whether a neighborhood or a city block, can illustrate the opportunity for foot traffic.

A bigger map showing surrounding freeways, parks, hotels, and institutions can provide a glimpse into nearby opportunities, as well.

Analysis of Surrounding Businesses & Competition

There will likely be restaurants, coffee shops, and other venues around your new restaurant.

Make sure to communicate what restaurants are in the area. Obviously, you won't want to open a Mexican restaurant in an area with several successful ones. However, if you are opening a Mediterranean restaurant in the middle of a neighborhood that is serving other cuisines, it might be a perfect fit for a highly trafficked area.

Major Venues and Institutions

A large institution could have a huge impact on your restaurant.

Make note of any large institutions and what they might bring to your restaurant. If a major university is nearby, they likely have a consistent stream of visitors on a daily basis.

This will also add season highs for your restaurant come commencement ceremonies. If your restaurant is located by a major theater or auditorium, you might have a nightly influx of pre-show or post-show guests

Use this section as an area to highlight these neighbors that could be a huge benefit to your restaurant. And that brings us to marketing

Step 5: Marketing Strategy

Whether you are opening the 900th franchise of a popular restaurant or a brand new cafe, you need a marketing strategy.

Positioning and Branding

By this point in your restaurant business plan, you’ve likely told the story of your brand, both visually and through text.

Use this area to contrast your brand, your mission statement, your values, and what you hope to bring to the community at hand against the businesses already present in the community.

You’ll also lay out your restaurant marketing plan timeline here, which will start months before your opening.

Marketing Timeline

This specific, actionable marketing includes:

  • Advertising in local and regional newspapers and magazines
  • Creating a website and social media account that reflect the restaurant’s brand and mission statement
  • Public relations push to increase awareness prior to opening, including story coverage in local newspapers
  • Partnerships with nearby major institutions, venues, gyms and hotels
  • Strategies to attract new customers
  • Strategies to retain existing customers through loyalty programs
  • Strategies to create “evangelist” customers who will both return and spread the word
  • Utilizing restaurant SEO strategies and Facebook Advertisements targeting your specific geography and target market.

Utilizing social media in tandem with word of mouth will allow you to spread the word without necessarily breaking the bank.

In terms of timing your marketing strategy, sooner is better. The minute your permits, funding, and groundbreaking are underway, alay your marketing foundation.

Tease some of your menu on Instagram.

Allow your followers to see the progress of renovations.

Having an engaged audience through the building process will translate into a record-breaking opening day.

Step 6: Financial Outlook

This section reiterates the numbers. State the overall amount of capital needed to open and operate. From there, break down where the funds will be allocated to align with the vision your business plan detailed.

This section will require robust figures and numbers, so do your research.

Funding Requirements & Capitalization Plan

This is where you will show how you turn your investors’ capital into a financial return on a decided timeline. After breaking down the startup costs of a restaurant, show how you intend to make money.

Like we noted earlier, create an outline showing your financial forecasts. Create this by using these figures:

  • Gross revenue
  • Cost of goods sold
  • Employee expenses
  • Operating expenses
  • EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortization)

Your EBITDA will show what your projected earnings are before taxation. Consider laying these out over the course of the first five years, with a steady increase on your bottom line earnings.

Additionally, break these numbers down according to meals. Your brunch revenue assumptions will differ from your lunch and dinner revenue assumptions.

The more figure-based predictions you can provide in this section, the better.

Step 7: Milestones For Restaurant Business Plan

Finally, you’ll use the last section to project the completion of the fundamental parts of opening your restaurant. 

It should look something like this:

*See where bars buy liquor and how to stock a bar .

What about a small restaurant business plan.

There is no meaningful difference between a large and small restaurant business plan. In spirit, they aim to communicate the exact same things. That your idea is unique and brings value to its community.

Anything specific to a small restaurant business plan will organically surface throughout the plan itself. It will infect the way you analyze your market, your competition, your strategy, your menu, etc. Everything. 

If you’re trying to figure out how to make a small restaurant business plan, follow the steps above and be true to your business’s identity. Then it’ll be a small restaurant business plan.

It applies largely to how to open a bar , too.

Restaurant Business Plan: Achieved

Your restaurant business plan doesn’t just reflect the potential of your restaurant. It reflects your potential as a business owner. It can make or break your opportunity.

There is no shortage of stories documenting restaurant failure due to missed details, overconfidence, or plain old neglect. Creating a comprehensive restaurant business plan will not only gain you capital.

When done right, a great restaurant business plan sets you up for success, allows you to avoid common pitfalls, and gives you something to revisit when making future business decisions. It's also a good way to figure out how to drive restaurant sales . Good luck out there!

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Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create your 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.

Below is a restaurant business plan template to help you create each section of your business plan.

Restaurant Business Plan Example

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 restaurant 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

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 design of the restaurant, 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

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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 restaurant 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, customer segmentation.

Bluehorn Restaurant & Steakhouse will primarily target 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 competitor is below. The Press 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 dining 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: Location 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 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 restaurant 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

Restaurant Business Plan FAQs

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 customers, presents your marketing plan and details your financial projections.

You can  easily complete your restaurant business plan using our Restaurant Business Plan Template here .

What Are the Main Types of Restaurants?

There are many types of restaurant businesses. 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. Typically you will find a local bank and present your business plan to them. 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.

What are the Steps To Start a Restaurant Business?

1. Develop A Restaurant Business Plan - The first step in starting a business is to create a detailed restaurant business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your restaurant business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your restaurant business is in compliance with local laws.

3. Register Your Restaurant Business - Once you have chosen a legal structure, the next step is to register your restaurant business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your restaurant business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Restaurant Equipment & Supplies - In order to start your restaurant business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your restaurant business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful restaurant business:

  • How to Start a Restaurant Business

Where Can I Get a Restaurant Business Plan PDF?

You can download our free restaurant business plan template PDF here . This is a sample restaurant business plan template you can use in PDF format.

Restaurant Expansion Strategy: How to Grow Your Restaurant Into a Successful Food Empire

Carl Jacobs

So you’ve got a couple of successful locations under your belt, and now you’re working on a strategy to expand your restaurant business even further?

Kudos to you — great things happen to those who wait act. And nothing says you’re taking action as much as taking steps to accomplish your growth goals.

That said… 

Managing a dozen or more locations is not the same ballgame as managing a couple of them. 

In fact, it’s not even a ball sport — it’s a bloody, bloody contact sport where you’re always a quick jab away from losing a tooth.

You already know this, right?

With two locations, you’re always there. On the ground. You’re keeping an eye on everything from your processes to your people, and you’re close at hand when a problem needs fixing.

When you’re running double-digit locations… well, you aren’t doing that. 

You can’t because there aren’t enough hours in a day.

Once you get to this point, you should have meticulous, data-driven plans and forecasts. AND error-proof (and human-proof) processes and systems. Most importantly, your team has to be able to be in control and manage restaurant expansion in a single dashboard .

In short, if you want to scale your restaurant business beyond a couple of locations, your restaurant expansion strategy should include:

  • a solid foundation (before going all-in on scaling your restaurant business);
  • a mix of corporate and franchise expansion (it’s definitely worth an exploratory poke);
  • and the right tech stack (it’s second only to the right location when it comes to success).

Luckily, that’s exactly what you’ll learn in this post.

Got your knife and fork? Great, let’s dig in.

Scaling Up Your Restaurant? Set Up an Ironclad Foundation First

grow restaurant - foundations

There’s no point in scaling an unhealthy, messy business.

Do that, and you’ll simply multiply all the ways in which you’re losing money… and you’ll be crushed under them.

So… avoid that by focusing on your foundations.

We focus on creating consistency across all outlets. To get there, we have optimised our processes, upgraded systems, conducted audits and provided training. We can’t wait to open more locations in cool cities all over Europe! Julien Zaal CEO & Co-founder, The Avocado Show

Here’s a small list of things that you need to nail (in no particular order) before you start growing your restaurant business:

  • Know your concept — figure out what makes your business distinctive — what makes it tick — and lean into those advantages when scaling. Is it a signature dish? Make sure you bring it to every single new location. Is it your lightning-fast delivery? Open only those locations that allow you to replicate that. Is it your super-friendly and witty FoH crew? Make staffing and training a priority.
  • Work on your finances — when you think you can support growth with your balance sheet capital — give it a bit more time. You want to be waaaay there in the green before scaling your business. Why? Well, because if anything’s true, it’s that scaling ends up costing double the amount you originally budget for it. And takes double the time sometimes, too. If you’re bankrolling it personally (or with a loan), make sure you can stay afloat if things go south.
  • Hone your processes — I mean, really hone ‘em. Everything from managing your inventory and waste to staff training and product development needs to be inspected, standardised, perfected (and then some), polished, and written down. The goal of it all is to get a blueprint that allows you to a) keep your food costs low, and b) find profit leaks and plug them. Once you have that blueprint, you can lift it wholesale and deploy it at every new location. Then, it’s just a matter of fine-tuning it to specific needs.
  • Have an A-list bench — it takes a freaking village to grow a restaurant business. Even if you end up selling franchises (more on that below), you still need to commit a good chunk of time getting that place set up properly. This goes a lot faster (and requires less of your time) if you have an experienced team on board.
  • Aim for consistency — scratch that… don’t aim for it — get it nailed down 100%. Flavours, experiences, service — they all need to be in sync across your operation before you add any more moving parts to the whole thing. 

Recommended reading : How To Set Up A Solid Restaurant Inventory Management System for Multi-Unit Restaurants

Think About (& TEST!) Your Locations Before Going All-In

grow restaurant strategy

Location, location, location.

This real estate trope holds so true for the restaurant industry. Every single business owner I’ve talked to about restaurant scaling immediately went to ‘location’ the moment I asked the question.

Every. Single. One.

And highly successful, world-renowned operators harp about it on international TV:

You can luck out on your first two or three location choices. Heck, you can even luck out on your first dozen. But getting one of them wrong can put you in a financial hole so deep that it sets your restaurant expansion goals back a good year, if not more.

Because rent costs serious money. It’s your biggest fixed expense, and it can easily be anywhere between 5 and 10 per cent of your sales . That’s no peanuts… it’s the difference between running a profitable gig and boarding up your windows.

When choosing a new restaurant location, here are five things to keep in mind:

Everything from managing your inventory to staff training and purchasing protocols needs to be inspected, standardised, perfected, and documented.

  • Your concept fits the location — don’t open a burger joint on a high street where your rent is € 10,000 per month. With a 10-euro average check amount, you need to sell 1,000 burgers just to cover your rent. And then 2,000 more to break even.
  • You’re ready to go the first minute — these days, you don’t have the luxury of a slow month where you settle in, train your new crew, and iron stuff out. The minute you open, things need to be up to scratch — interiors, design, equipment, staff, training, restaurant inventory management software … the whole shebang. If you did your marketing right, your customers will come. And if your new location is not rearing to go, your Yelp rating will reflect that.
  • There are restaurants there already — and, yes — you want them to be there. If they’re not, that means that they were at some point, but they went under. This is a red flag — you should open here only if you’re 100% sure that there’s plenty of your ideal audience in and around this place. Don’t be afraid of some light competition — if your concept is unique enough, it will carry you through.
  • Delivery is not (too) complicated — sometimes, a location can look great, but the logistics just don’t work out. You have to think about procurement and delivery — if you can’t get the inventory that you need consistently, you start accruing small slip-ups that eventually damage your overall brand reputation.
  • You’ve done a low-cost test of your menu — there are zero excuses for not testing your menu in this day and age. Go to the country/city/neighbourhood where you want to open a new location. Rent out a cloud kitchen (or set up a small pop-up location). Put your meals up on Wolt, Deliveroo, or Postmates. Now you just need to give yourself some time to test the waters. After a month or so, you should have a pretty clear idea of whether your items will swim or sink at that location.

Recommended reading: 8 Cloud Kitchen Best Practices (& 3 Pitfalls You Need to Avoid)

Consider a Healthy Mix of Corporate & Franchise Expansion

grow restaurant corporate vs franchise

Don’t get stuck thinking that you need to own every single aspect of your growing restaurant business.

Make sure you are ready for restaurant expansion behind the scenes. Think in advance about how your guests came into contact with you at your first location. Roy Goorts Manager Formulas and Marketing – Brother Horeca Group

You can just as easily grow your restaurant business and launch your winning concept into the world (particularly internationally) through franchising. Actually, it’s easier to expand through franchise restaurants because you won’t have a new ongoing commitment with every location.

However, don’t make the mistake of thinking that selling a franchise is easy. Or that it doesn’t require any work on your part besides signing a contract (I highly recommend reading up on the Pitfalls Of Starting A Restaurant Franchise for that matter).

As a franchisor, you get a bit of cash upfront for your brand and business model. But, you make the real money by taking a cut of profits ( anywhere between 4 and 12 per cent ) from the franchisee every month.

That’s why you want every new franchise location to be a smashing hit.

Here’s how you get there:

  • Choose your franchise partners wisely — fresh-off-the boat entrepreneurs, people looking for a career change, and retirees are not good franchise partners. They often lack drive, experience, and passion for foodservice, all of which are required to make this work. Choose people who have at least some experience working in the restaurant industry. Also, focus on franchisees who want to operate multiple locations instead of one-offs — they’ll become more independent with every new opening.
  • Write down your SOPs, processes, and everything in between — give the franchisee all the tools they need to be successful. This means writing down and codifying everything that works in your current locations, from back-of-house operating procedures to your allergen management strategy . This is extra upfront work for you, but it makes success more likely for your franchisees.
  • Invest time & money in guidance and training — your franchisee will need a lot of hand-holding and support, especially in the beginning. Be there for things like location selection, choosing real estate partners, and staffing. Explain what makes your concept work, and train them on how to replicate your results for themselves.

And one last thing — don’t rush into franchising.

Your goal is to open successful and profitable locations. Since you’ll be investing a lot of time in the early stages of each franchise, you don’t want to spread yourself too thin. If you do that, you risk botched launches, slow early months, and locations closing. And every time a location closes, your reputation takes a hit.

Avoid that by growing your restaurant brand slowly but steadily.

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How To Franchise A Restaurant? 

Develop your franchise using a proven roadmap for franchisors.

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Choose a Tech Stack That Supports Your Restaurant Expansion Strategy

restaurant business growth plan

All those things I talk about at the beginning — pitch-perfect processes, centralised management, bulletproof business insights — all of this is easier to reach with technology.

How much easier – 2x or 10x as easy – comes down to your tech stack.

If you want your software solutions to facilitate and speed up your restaurant scaling, your tech ecosystem has to be:

  • Cloud-based — having up-to-date data is crucial to running a successful operation. But, when you’re growing your restaurant business, it’s even more crucial that you have immediate access to every bit of data from everywhere. And that it’s comparable. And that every stakeholder (from your dev chef to your F&B manager) has access to it.
  • Platform-based — a good restaurant management platform has all the rudimentary tools that you need to run an insights-informed business (from kitchen management to personnel management). But, one of its biggest advantages is that it can be built on. If you need a more robust staffing and training software, you can integrate it so that it communicates with your central platform. This helps you standardise everything so that you get valuable information that’s applicable across your operations.
  • Scales with you — while it’s true that robust, all-in-one restaurant management solutions don’t come cheap, what’s even more expensive is completely overhauling your entire BoH management system. Especially in the middle of a big scaling push. This is where modular solutions come in. The idea is that you use the essentials while you’re still building out your business (modules such as product management, inventory, and analytics), and expand on them when it makes operational sense (for example, smart ordering, HACCP tasks, or staff training modules).

Apicbase Ticks All Boxes

Apicbase is the most complete F&B Management Platform for multi-unit restaurants, hotels, ghost kitchens and large scale catering, giving you:

  • A single source of truth for all things back of house
  • No more data silos—no matter if you run 3 or 30 locations
  • No more time-consuming spreadsheets
  • A heavily reduced food cost & waste
  • Controle over your menus, inventories and supply chain.

Scale Your Operations Faster With the Right BoH Solution

Restaurant expansion strategy: implement the right tech. Apicbase keeps your costs under control, streamlines operations & is ready to scale.

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Moscow's culinary opportunities: How to open a restaurant

restaurant business growth plan

Having a nice family-style restaurant in the Russian capital with a flavor of your home country is a popular business option for many expats. But it’s not as easy as it might seem. Here are a few things to consider for potential restaurant-owners.

Thinking it through

First and foremost, one should make sure that owning a restaurant, even a small one, is really something you would like to do. As any kind of business, it takes a significant amount of time and money to manage and develop. “Success in public catering requires hard work, without weekends or holidays,” Ilias Iliadis, owner of Pita&Suvlaki Greek restaurant in Moscow, told Russia Beyond. “It is not as hard to open a place as running it.”

One will need to learn everything about every aspect of a business, from legal, fire and sanitary requirements to managing business partner relationships and hiring experienced staff. “There are many difficulties in this sphere, so you need to be totally in love with what you do to be successful,” says Radomir Krajinovic, owner of Serbian restaurant Optimist.

The number of national cuisine restaurants have grown in Moscow over the last few years.

The number of national cuisine restaurants have grown in Moscow over the last few years.

Market trends

As we noted previously, the economic crisis had led to many Russians cutting back and, as a result, there has been a growth in interest in developing fast food outlets.

Yet, the general dynamic for restaurants is toward growth: According to Poster company 2017 review of trends in the restaurant business, healthy eating, vegetarian food, open kitchen format, craft beer, food trucks (mobile cafes), and regional cuisine are becoming more popular in Moscow. The number of restaurants and bars grow and they compete for custom by offering special deals and interesting dining formats.

“Over the last few years the number of national cuisine restaurants have grown,” says Krajinovic. ”Yes, the crisis has led to fewer people visiting us, but we are still doing well - we are opening a new restaurant soon.”

Iliadis’s venture is also experiencing growth: He opened his first café in city center in 2014 – now he has opened a second restaurant and a third one is on the way.

Of course, setting up a firm without back is impossible. “To open a small restaurant or a cafe one would need 5 million rubles ($87,160),” Vladimir Shalaev, a lawyer at BMS Law Firm, told Russia Beyond. Iliadis confirms this figure. “In our case it was a year before it paid off. Our small restaurant became popular quickly so we had to find a bigger place,” he adds.

“The biggest part of what you’ll need to pay is rent. It is very expensive here,” Krajinovic says. “Other things depend on what one wants. A home-style restaurant might require from seven to 10 million rubles of investment which will pay off in two years.”

Russian banks also offer business loans. “You need to have 30 percent of the necessary investment for the new project and the bank will cover the remaining 70 percent,” says Igor Glukhov, deputy director of Credit Department of RosEvroBank.

If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.

If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.

Legal aspect

The procedure of setting up a legal entity is no different for a foreigner than for a Russian national. “You need to gather all necessary documents to register a firm: Passport, various papers, a receipt of registration fee payment; foreign citizens need to provide a certified passport translation as well,” Shalaev said.

Of course, just registering a company will not be enough. You need to get a license for selling alcohol, rent a place for your café, add it to the commercial register, then get all necessary permits from sanitary and fire inspections, as well arrange for garbage disposal, Shalaev added.

“The legal framework is very similar to that in Greece,” Iliadis says. “The Russian requirements gradually develop to European standards. Of course, like in Greece, there are still some outdated rules, such as having a separate room for peeling potatoes, but inspectors don't take it seriously. No one terrorizes you every day without reason. If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.”

Krajinovic, who has been running his restaurant since 2012, agrees. “There are no problems. If you follow all the necessary requirements and use fresh products, no one will bother you asking for money,” he says. “A good thing here is that 3-4 months after starting a business you know how much tax you will need to pay, as opposed to Europe, where the percent might change. Here we pay 15-20 percent of our profits.”

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Best Restaurants in Moscow City (Business District), Central Russia

Moscow city (business district) restaurants, establishment type, online options, traveler rating, dietary restrictions, restaurant features, neighborhood.

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    2. Create a Mobile Concept. Consider making a mobile concept part of your restaurant expansion business plan. A food truck or pop up can help you reach new audiences outside of your walls. With a food truck, you can serve your delicious dishes in new areas or cater events. Having a food truck is a low-stakes way to see how popular your concept ...

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