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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. 

starting a small restaurant business 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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How to write a restaurant business plan.

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

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

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

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

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

1. Branded cover

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

2. Table of contents

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

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

Image depicts a restaurant worker in a new restaurant.

A restaurant owner contemplates the design of a new space as part of their business plan. | Credit: Getty Images

3. Restaurant concept

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

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

4. Sample menu

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

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

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

This section is most relevant for:

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

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

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

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

Image depicts two restaurant workers discussing finances.

Two restaurant workers review finances for a new restaurant as part of their business plan. | Credit: Getty Images

6. Management team

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

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

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

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

8. Target market

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

Image depicts two restaurant workers having a discussion.

Two restaurant workers discuss a business plan. | Credit: Getty Images

9. Location

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

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

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

10. Market overview

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

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

11. Marketing and publicity

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

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

Image depicts two restaurant workers having a discussion over a tablet.

Using technology, like these two restaurant workers, can streamline discussions about a business plan. | Credit: Getty Images

12. Specialists and consultants

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

  • General contractor
  • PR and marketing

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

13. Business structure

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

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

14. Financial projections

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

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

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

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

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

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

The key projections you can expect to work on are:

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

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

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

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JUST RELEASED: View the 2024 Franchise 500 Ranking

How to Start and Open a Restaurant Step by Step (2023) If you're interested in starting a restaurant business, this guide provides all the information necessary to open and operate a successful eatery.

By The Staff of Entrepreneur Media, Inc.

Starting and opening a new restaurant is an exciting venture. It can be both a rewarding and challenging experience, but the hard work you put in will pay off.

Opening a successful restaurant requires having a strong business plan, understanding the local market, finding the right location and staff, obtaining permits and your business license, managing inventory and supplies, creating menus that appeal to customers, and more.

There's a lot that goes into it. If it's your first time, you'll need to look beyond the grand opening and strategize for generating a cash flow that allows you to do more than just break even. Still, with the right guidance, you can make your dreams of owning a successful restaurant come true.

This guide will give you all the information you need to know about starting and opening a restaurant. It will cover everything from creating a new business plan to setting up operations and marketing your restaurant. By following this guide step by step, you can open a restaurant that will thrive and last for years.

What's Inside

  • Target Markets

Restaurant Service Styles

Carving your niche, writing a business plan, choosing a location, creating a menu, hiring employees, marketing and promotions, more articles on restaurant businesses ".

No single food-service operation has universal appeal. This is a fact that many newer entrepreneurs have trouble accepting, but the reality is that you will never capture 100 percent of the market. When you try to please everyone, you end up pleasing no one. So focus on the 5 or 10 percent of the market that you can get, and forget about the rest.

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

  • Generation Y . This generation, also tagged the "millennial generation," the "echo" or the "boomlet" generation, includes those born between 1980 and 2000. Generation Y is the most ethnically diverse generation yet and is more than three times the size of generation X. They are a prime target for a food-service business. Members of Generation Y go for fast-food and quick-service items. About 25 percent of their restaurant visits are to burger franchises, follow by pizza restaurants at 12 percent.
  • Generation X . Generation X is a label applied to those who were born between 1965 and 1980. This group is known for strong family values. While earlier generations strove to do better financially than their parents, Gen Xers are more likely to focus on their relationship with their children. They are concerned with value, and they favor quick-service restaurants and midscale operations that offer all-you-can-eat salad bars and buffets. To appeal to this market group, offer a comfortable atmosphere that focuses on value and ambience.
  • Baby boomers . Born between 1946 and 1964, baby boomers make up the largest segment of the U.S. population. Prominent in this generation are affluent professionals who can afford to visit upscale restaurants and spend money freely. During the 1980s, they were the main customer group for upscale, trendy restaurants. In the 1990s, many baby boomer were two-income households with children. Today, those on the leading edge of the boomer generation are becoming grandparents, making them a target of restaurants that offer a family-friendly atmosphere and those that provide an upscale, formal dining experience.
  • Empty nesters . This group consists of people in the age range between the high end of the baby boomers and seniors (people in their early 50s to about age 64). Empty nesters typically have grown children who no longer live at home, and their ranks will continue to increase as the baby boomers grow older and their children leave home. With the most discretionary income and the highest per-capita income of all the generations, this group typically visits upscale restaurants. They are less concerned with price and are more focused on excellent service and outstanding food. Appeal to this group with elegant surroundings and a sophisticated ambience.
  • Seniors . The senior market covers the large age group of people age 65 and older. Generally, the majority of seniors are on fixed incomes and may not often be able to afford upscale restaurants often, so they tend to visit family-style restaurants that offer good service and reasonable prices. "Younger" seniors are likely to be more active and have more disposable income than "older" seniors, whose health may be declining. Seniors typically appreciate restaurants that offer early-bird specials and senior menus with lower prices and smaller portions, since their appetites are less hearty than those of younger people.

How to Start a Restaurant

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

When people think of fast-food restaurants, they often think of hamburgers and french fries, but establishments in this category also serve chicken, hot dogs, sandwiches, pizza, fresh seafood and ethnic foods.

More Articles on Restaurant Businesses "

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

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

Selecting a Food Concept

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

  • Seafood. Quick-service seafood restaurants generally offer a limited range of choices, often restricted to fried seafood. Midscale and upscale seafood restaurants offer a wider selection, prepared in ways other than fried, such as baked, broiled and grilled. Seafood can be a risky area on which to focus, as prices are always changing, and many kinds of seafood are seasonal. Also, quality can vary tremendously. When shopping for seafood, make sure the items are fresh and meet your standards of quality. If you are not happy with what a distributor offers, you can be sure your customers won't be, either.
  • Steakhouses. Steakhouses are part of the midscale and upscale markets. Midscale steakhouses are typically family-oriented and offer a casual environment with meals perceived as good values. In terms of décor, comfort is emphasized and Western themes are popular. Upscale steakhouses offer a more formal atmosphere and may serve larger cuts of meat that are of better quality than those served in midscale restaurants. Upscale establishments also charge higher prices, and their décor may be similar to that of other fine-dining establishments, offering guests more privacy and focusing more on adult patrons than on families.
  • Family-style restaurants. As the name implies, these establishments are geared toward family fun. Since they charge reasonable prices, they also appeal to seniors. They offer speedy service that falls somewhere between that of quick-service places and full-service restaurants. Their menus offer a variety of selections to appeal to the interests of a broad range of customers, from children to seniors. Family-style restaurant prices may be higher than those at fast-food restaurants, but these establishments provide table service to compensate. The décor of family-style restaurants is generally comfortable, with muted tones, unremarkable artwork, and plenty of booths and wide chairs. Booster seats and highchairs for children are readily available.
  • Casual-dining restaurants. These establishments appeal to a wide audience, ranging from members of Generation Y to Generation X to baby boomers with families to seniors, and they provide a variety of food items, from appetizers and salads to main dishes and ice cream for dessert. Casual-dining restaurants offer comfortable atmospheres with midrange prices. Many center on a theme that's incorporated into their menus and décor. You may need to get your liquor license, depending on what you plan to serve.
  • Ethnic restaurants. Ethnic restaurants enjoy a significant share of the U.S. restaurant market. They range from quick-service places with limited selections to upscale eateries with a wide variety of menu items. Their menus typically include Americanized versions of ethnic dishes with unique flavor, as well as more authentic food. The three most popular kinds of ethnic restaurants are Italian, Chinese and Mexican. Other popular ethnic restaurant types include Indian, Thai, Caribbean, English, French, German, Japanese, Korean, Mediterranean and Vietnamese. An even wider variety of ethnic restaurants can thrive in areas with a culturally diverse population, such as large metropolitan areas.
  • Pizzeria. You have two primary choices when entering starting a pizzeria. One is a to-go restaurant in a modest facility with a specialized menu highlighted by pizza and beer, limited seating and a self-service atmosphere. The other is a full-service pizza restaurant with a menu that features not only a variety of pizzas, beer and wine, but also Italian entrees like spaghetti, ravioli and lasagna, side dishes such as salads (or even a salad bar), and a few desserts. The foundation of a pizzeria is, of course, the pizza. If you don't know how to make a good pizza, hire a good pizza cook who does. Invest in top-quality ingredients and preparation methods, and make every pizza as if you're going to eat it yourself. Do that, and your customers will keep coming back for more.
  • Sandwich Shop/Delicatessen. One reason sandwich shops are so successful is that they enjoy high profit margins. Sandwich shops and delicatessens can also change their menus quickly and easily to adapt to current tastes. For example, with the growing interest in health and nutrition in the United States, sandwich shops and delicatessens have started offering more low-fat, healthy ingredients in their sandwiches, salads and other menu items. In addition, many sandwich shops and delis have been able to keep up with workers who eat at their workplaces by adding delivery and catering to their sit-down and take-out operations. Sandwich shops and delicatessens can be differentiated by the foods they serve. Most sandwich shops serve only sandwiches, possibly with some side dishes or desserts. A delicatessen usually offers a more extensive menu, including sandwiches, prepared meats, smoked fish, cheeses, salads, relishes and various hot entrees.
  • Coffeehouse. With more than 400 billion cups consumed every year, coffee is the world's most popular beverage. But beyond the beverage itself, people frequent coffeehouses and espresso bars for a variety of reasons: to meet with friends, for a quick lunch and a drink to perk up the afternoon, or simply to start off each morning with a great cup of coffee to start off each morning. Most successful coffeehouses have heavy foot traffic and high-volume sales. The majority will serve up to 500 customers per day and manage up to five customer turnovers during the lunch hour, despite having limited floor space and modest seating capacity. Profit margins for coffee and espresso drinks are extremely high--after all, you're dealing with a product that's more than 95 percent water. At the same time, your average ticket amount is around $3, so you need volume to reach and maintain profitability. Besides specialty roasted coffee by the cup, most coffeehouses also have espresso-based drinks (cappuccinos, lattes, etc.), assorted teas, bottled water and fruit juices, along with an inviting assortment of baked goods, a selection of desserts, and coffee beans by the pound.
  • Bakery. With the emergence of strip malls and competition from supermarkets that have in-store bakeries, "bread-only" retail bakeries have almost disappeared from the United States. Bakeries today offer cakes, scones, bagels and coffee drinks, and sometimes even offer full dining menus, including sandwiches, hot entrees, beer and wine. Consumers love fresh bakery goods, but the market is extremely competitive. As you develop your particular bakery concept, you'll need to find a way to differentiate yourself from other bakeries in town.

Before you can begin any serious business planning, you must first decide what specific segment of the food-service industry you want to enter. While there are many commonalities among the various types of food-service businesses, there are also many differences. And while there is much overlap in the knowledge and skills necessary to be successful, your own personality and preferences will dictate whether you choose to open a commercial bakery, a coffee cart, a fine-dining restaurant or another type of operation. Then, once you have decided what business best suits you, you must figure out the niche you'll occupy in the marketplace.

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

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

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

As you do this self-analysis, think about your ideal day. If you could be doing exactly what you wanted to do, what would it be?

Once you've decided on the best niche for you as an individual, it's time to determine if you can develop a niche in the market for your food-service business.

Working in a Restaurant

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

Regardless of the type of food-service business you intend to start, the best way to learn the ropes is to work for a similar operation for a while before striking out on your own. Doing so will give you significant insight into the realities and logistics of the business.

Successful restaurateurs agree that the best preparation for owning a restaurant is to work in someone else's first. Think of it as getting paid to be educated. Certainly you should read books and take courses, but you should also plan to work in a restaurant for at least a few years doing as many different jobs as possible. And if you're not actually doing the job, pay attention to the person who is--you may find yourself doing it when your own restaurant is unexpectedly shorthanded.

Ideally, you should work in a restaurant similar to the type you want to open. You may find you don't like the business. Or you may find you're more suited to a different type of operation than you originally thought. Hopefully, you'll discover you're in exactly the right place.

"As soon as I started working in a restaurant, I realized this was my passion," says Scott Redler, "when you have a busy restaurant, and you're watching everything happen as it should, it's just a wonderful feeling of satisfaction." Redler has worked in various restaurants for 11 years, he opened a Chinese fast-food place at the age of 26. That venture failed within eight months, then Redler went to work for a large restaurant company, where he eventually advanced to the position of senior vice president, overseeing 15 operations. But he still yearned for his own place, so he developed the concept that became Timberline Steakhouse & Grill in Kansas (which he sold in 2011). He recognized that the fast, casual segment was gaining momentum, so he created Freddy's Frozen Custard, which offers hot dogs, hamburgers, and (as you might expect) frozen custard. Freddy's Frozen Custard is now a franchise operation with 60 stores in nine states.

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

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

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

A well-crafted business plan is the cornerstone of any successful restaurant. It's best to have it professionally written, but if you're short on cash, you can also draft a document yourself. Just be sure that your plan is comprehensive and as accurate as possible. Include realistic projections, research data (such as current industry trends), and thorough analyses of the competition.

No matter what you decide, your business plan should be a living document that you update and refine as your restaurant evolves.

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

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

  • Your own resources. Do a thorough inventory of your assets. People generally have more assets than they realize, including savings accounts, retirement accounts, equity in real estate, recreation equipment, vehicles, collections and other investments. You may opt to sell assets for cash or use them as collateral for a loan. Also look at your personal line of credit. Many a successful business has been started with credit cards.
  • Family and friends. The logical next step after gathering your own resources is to approach friends and relatives who believe in you and want to help you succeed. Be cautious with these arrangements; no matter how close you are with the person, present yourself professionally, put everything in writing, and be sure the individuals you approach can afford to take the risk of investing in your business.
  • Partners. Using the "strength in numbers" principle, look around for someone who may want to team up with you in your venture. You may choose someone who has financial resources and wants to work side by side with you in the business. Or you may find someone who has money to invest but no interest in doing the actual work. Be sure to create a written partnership agreement that clearly defines your respective responsibilities and obligations. And choose your partners carefully--especially when it comes to family members.

Government programs. Take advantage of the abundance of local, state and federal programs designed to support small businesses. Make your first stop the SBA, but be sure to investigate various other programs. Women, minorities and veterans should check out special financing programs designed to help them get into business. The business section of your local library is a good place to begin your research.

Banks and other lending institutions . Despite the general mood of tight credit, many banks are still willing to make small-business loans. They may even be more open now as they seek to increase their loan portfolios.

Be prepared with a business plan and financial projections . These help prove your concept and show lenders you are serious about your business. Also, compare rates from multiple lenders, and don't forget to factor in closing costs and other fees.

Venture capitalists and angels . If you have a capital-intensive concept with proven profitability potential, venture capitalists or angel investors may be willing to provide the funding you need for a stake in your business.

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

Depending on how much money you have to invest in your food-service business and the particular type of business you choose, you can spend anywhere between $70,000 and $1.5 million on a facility.

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

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

Once you have chosen a location, it is time to establish the restaurant. You must decide on a concept for your restaurant, create a menu, design the layout of your business, secure staffing and start marketing your product. With a well-thought-out plan, you will be well on your way to having a successful food service business.

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

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

Much of your dining room design will depend on your concept. It will help you to know that studies indicate that 40 to 50 percent of all sit-down customers arrive in pairs; 30 percent come alone or in parties of three; and 20 percent come in groups of four or more.

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

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

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

As you put together a plan for your food-service business, be aware of some of the trends in terms of menu content and design: These factors could--and, in fact, should--influence the type of food-service business you open.

Restaurant operators report that vegetarian items, tortillas, locally grown produce, organic items, fusion dishes (combining two or more ethnic cuisines in one dish or on one plate) and microbrewed or local beers are gaining in popularity. Pita dishes and wraps continue to be in high demand, too, as an easy-to-consume alternative to sandwiches. You will also see a strong demand for bagels, espresso and specialty coffees, and "real meals," which are typically an entree with a side order. Consumers are also eating more chicken, seafood and beef dishes than they have in recent years. At the same time, people expect to see meatless alternatives on the menu. Consumers are also demanding "comfort food"--the dishes that take them back to their childhoods, when mothers baked from scratch, and meat and potatoes were at the center of each plate.

Menus are also showing a number of ethnic dishes and spice-infused offerings. It's not surprising to find Thai, Vietnamese, Creole, Tuscan and even classic French cuisines on the same menu and even the same plate.

At the same time, be sure to keep the kids in mind as you plan your selections. If families are a key part of your target market, you'll want a range of four or five items in smaller portions that youngsters will enjoy. If you serve snack items as well as entrees, note that kids are choosing healthier snacks more often than they did a few years ago, thanks to concerned parents. For example, while both sweet and salty snacks remain popular, yogurt is the fastest growing snack food based on consumption frequency among kids ages 2 to 17. While most restaurants still offer fixed kids' meals, you might consider allowing your young diners to choose among a selection of nutritious options.

Though menu variety has increased over the years, menus themselves are growing shorter. Busy consumers don't want to read a lengthy menu before dinner; dining out is a recreational activity, so they're in the restaurant to relax. Keep your number of items in check and menu descriptions simple and straightforward, providing customers with a variety of choices in a concise format. Your menu should also indicate what dishes can be prepared to meet special dietary requirements. Items low in fat, sodium and cholesterol should also be marked as such.

Safety Regulations Though we don't think of food service as heavily regulated an industry as something like medical services or public utilities, the reality is that many aspects of your operation are strictly regulated and subject to inspection. Fail to meet regulations, and you could be subject to fines or get shut down by authorities. And if the violations involve tainted food, you could be responsible for your patrons' illnesses and even death. Issues such as sanitation and fire safety are critical. You must provide a safe environment in which your employees can work and your guests can dine, follow the laws of your state on sales of alcohol and tobacco products, and handle tax issues, including sales, beverage, payroll and more.

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

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

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

Next, you need to establish a pay scale. You should do research to find out what the pay rates are in your area. You'll want to establish a minimum and maximum rate for each position. You'll pay more even at the start for better qualified and more experienced workers. Of course, the pay scale will be affected by whether or not the position is one that is regularly tipped.

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

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

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

There are several categories of personnel in the restaurant business: manager, cooks, servers, busboys, dishwashers, hosts and bartenders. When your restaurant is still new, some employees' duties may cross over from one category to another. For example, your manager may double as the host, and servers may also bus tables. Be sure to hire people who are willing to be flexible in their duties. Your payroll costs, including your own salary and that of your managers, should be about 24 to 35 percent of your total gross sales.

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

To get the quality of manager you want, you'll have to pay well. Depending on your location, expect to pay a seasoned manager $35,000 to $55,000 a year, plus a percentage of sales. An entry-level manager will earn $28,000 to $32,000 but won't have the skills of a more experienced candidate. If you can't offer a high salary, work out a profit-sharing arrangement-it's an excellent way to hire good people and motivate them to build a successful restaurant. Hire your manager at least a month before you open so he or she can help you set up your restaurant.

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

Salaries for chefs and cooks vary according to their experience and your menu. Chefs command salaries significantly higher than cooks, averaging $1,300 to $1,800 a week. You may also find chefs who are willing to work under profit-sharing plans. If you have a fairly complex menu that requires a cook with lots of experience, you may have to pay anywhere from $575 to $650 a week. You can pay part-time cooks on an hourly basis; check around for the going rate in your area.

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

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

Every business needs a marketing plan, and your food-service business is no exception. But even as you consider various marketing vehicles, keep this in mind: Research conducted by the National Restaurant Association reveals that word-of-mouth is still the best method of advertising. More than four out of five consumers are likely to choose a table-service restaurant they haven't patronized before on the basis of a recommendation from a family member or friend. So make the foundation of your marketing program an absolutely dazzling dining experience that customers will want to talk about and repeat.

Ask every new customer how they found out about you, and make a note of this information so you know how well your various marketing efforts are working. You can then decide to increase certain programs and eliminate those that aren't working.

More articles on restaurant businesses "

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

The first step in creating a complete marketing package is to know your market, and it's not enough to gather demographic information once. Markets change, and food-service businesses that don't change their marketing strategies with population shifts are missing out on a lot of opportunities.

Next, step back and take a look at each element in your facility. Everything from the parking lot to the interior decor to the printed items contributes to your marketing message--and each should be an accurate reflection of what that message is.

One cheap and easy way to promote your food-service business is by giving away gift certificates--such as dinner for two, coffee and bagels for 10, or a free pizza. Call local radio stations that reach the demographics of your target market and ask to speak to their promotions manager. Offer to provide gift certificates or coupons to use as prizes for on-air contests and promotions. Your company name and location will be announced several times on the air during the contest, providing you with valuable free exposure, and it's always possible that the winner will become a paying customer.

You can also donate coupons and gift certificates to be used as door prizes at professional meetings or for nonprofit organizations to use as raffle prizes. Just be sure every coupon or gift certificate clearly identifies your business name, location, hours of operation and any restrictions on the prize.

Some other promotional methods you can try include local event or sporting team sponsorships, discount coupon books, frequent-dining clubs, menu promotions and contests.

Restaurant Startup Resources

  • Restaurant and More: Step-By-Step Startup Guide : Entrepreneur 's official guide describes the ins and outs of starting and running a successful restaurant, pizzeria, coffeehouse, deli, bakery or catering service. Packed with tips on how to keep your restaurant growing and healthy, the book answers most commonly asked questions and covers the essential business basics.
  • The Menu Maker : Having trouble creating that memorable menu for your restaurant? This site specializes in spicing up menus to increase your profits, complement your eatery and reinforce your desired image. It also offers tips for menu presentation and helps determine your menu needs.
  • National Restaurant Association (NRA) : Founded in 1919, the NRA is the leading business association for the restaurant industry. Its site offers access to an information service and library, various publications and industry research. It also provides networking opportunities and training, and emphasizes the ways in which local restaurants can contribute to their communities.
  • National Restaurant Association (NRA) Educational Foundation : This nonprofit organization is dedicated to fulfilling the NRA's educational mission. The site offers classes for professionals and listings of U.S. Food Safety Regulatory System laws and training requirements. Where available, county and municipal requirements are also listed.
  • PlanMagic Restaurant : This comprehensive package is geared toward startup restaurants. It focuses on methods for writing a successful business plan, and helps you figure out specific financial calculations to beef up your proposal.
  • Restaurant Associations (by State) : Find out state-specific information regarding the restaurant and food-service industry.
  • Restaurant Business Plan from Bplans.com : This site is a collection of resources and tools for starting a restaurant, including a restaurant industry report, sample restaurant business plans and a link to a local Small Business Development Center finder.
  • Restaurantfunds : This website allows you to order a package called the Restaurant Success Kit, which includes a restaurant business plan creation tool, restaurant financials creation software, and a complete e-book and user's manual to help answer all your restaurant questions.
  • Restaurant Startup & Growth magazine : Here you'll find resources to help you get organized, increase sales, reduce theft, control costs, improve service, hire better employees, safeguard your cash and much more.
  • SCORE : To get some practical, real-world advice, contact SCORE and ask to speak with small-business counselors who owned or managed a restaurant. Find offices or counselors in your area by visiting the website.
  • Women's Foodservice Forum (WFF) : The WFF is dedicated to providing women in the food-service industry with the resources to succeed. It offers leadership development programs, market research, and a regional partnership program for networking. The site also provides answers to FAQs, advice and a community of peers.

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

Check out Entrepreneur's other guides and resources for more informational articles like this one!

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A Step-by-Step Guide to Opening a Restaurant

Meredith Wood

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 .

If you love food and want to start your own small business, you've possibly done some research into how to open a restaurant. After all launching a restaurant is one of the most common routes to entrepreneurship in the United States. According to the National Restaurant Association , restaurant workers make up 10% of the United States workforce. What's more, projected sales in the restaurant industry are projected to reach $863 billion in 2019.

But starting a restaurant means entering a highly competitive space. There are over 1 million restaurant locations in the United States, and 60% of restaurants fail within the first year. So how do you stand out, and build something that will last?

In this guide, we'll show you how to open a restaurant and avoid the common mistakes that plague most new restaurateurs.

starting a small restaurant business plan

A step-by-step guide to starting a restaurant

Whatever background or level of experience you come from, nothing can totally prepare you for starting your first restaurant, or really starting any business. Even more, no matter how much you read or what research you do, there are certain things about being a restaurateur that you can truly only learn from experience. But the steps below can help you avoid some of the most common pitfalls.

Step 1. Pick a niche

There are a wide variety of eateries out there in the world, and it takes lots of different skills to keep them running smoothly.

As you look around your own little corner of the universe, what cuisine, service, or convenience do you see as missing? What foodie need is still left to be filled? Would your market be best served by opening a pizza shop, starting a food truck, or opening a cafe?

If this isn’t narrowing down your options well enough, consider some of these top trends .

Step 2. Write your business plan

In the same way that recipes give you a roadmap to create an excellent dish, your restaurant business plan is the recipe you’ll follow to make your business a success.

Ultimately, writing a business plan is about thinking through and answering questions about your future restaurant that force you to contemplate the market you serve, the viability of your overall plan, and challenges you might not have otherwise have thought of.

When done right, this process will help you refine define the next steps involved in opening your restaurant, giving you the highest possible shot at success.

Take a look at the 12 biggest questions you should be answering as part of the business planning process for your future restaurant:

What kind of restaurant do you want to run? This is known as your “elevator pitch,” and it’s something you’ll repeat over and over and over to friends, family, customers, lenders, investors, and just about everyone else.

Who is your restaurant for? This is called your target market—the group of people whom your restaurant is meant to serve.

Who are your competitors? It helps to understand who you are competing against in your market and how their restaurants are similar and different than yours.

Where will your restaurant be located ? Having an expensive steak house in the middle of a low-income neighborhood probably won't work out.

What is your value proposition? What makes your restaurant different from the competition?

How will customers find your restaurant? Will you market your business through word-of-mouth, paid advertising, social media, or another method? We recommend leveraging popular review apps like Yelp, OpenTable, and Resy to allow customers to find and review your restaurant or even book a reservation online.

What resources will your restaurant need? Take the time now to list out all the one-time and recurring expenses you’re likely to incur as part of your cost of doing business—leaving no stone unturned.

How will your restaurant make money? Your business model determines how your restaurant will generate revenue, cover expenses, and eventually make more money than it spends.

How long will it take for your restaurant to turn a profit? Use a revenue forecast to determine how long it will take to recuperate your initial investment, break even, and run a profitable business.

What are you not willing to compromise on? What values are most important to you, both personally and as a business? What are your non-negotiables? This will help you make critical business decisions down the road.

What is your staffing plan? Your head chef, friends, and family will be the place to start looking for stand-up, smart, reliable people. But even when you find the right staff, you'll have to train them.

What's your endgame? Are you building a restaurant that you hope to eventually sell, or are you working towards a long-term, sustainable business? Knowing where you want to end up, and when, will help to inform many of your business decisions along the way.

How much do you need?

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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.

Step 3. Choose your restaurant's name and legal structure

If you plan to use a unique name for your restaurant, go ahead and file your “doing business as” (DBA) name with your state’s agency, as this will keep you from losing your name idea to another business.

Once you have your DBA figured out, you'll need to select a business entity type for your restaurant. The structure you choose will impact how you file state and federal business taxes, the roles of different team members, and how you can be held liable in the event that someone files a legal claim against your business.

Because of the long-term and potentially weighty impact of your chosen business structure, it’s a good idea to consult a business attorney to help you make this choice. Here are the most common entity types for restauranteurs:

Sole proprietorship

This is the most basic form of business structure, in which you alone own the company and are responsible for any liabilities associated with it.

If you plan to have a food truck, pop-up, or any very small operation and won’t be taking on fixed assets or hiring any employees, a sole proprietorship might be the perfect structure for you. And the best part is you don’t have to take any formal action to form a sole proprietorship.

If you’ll be operating under your own name, you can just jump right into business. And if you have a clever idea for a business name, your “doing business as” filing (from above) will be all you need.

Partnership

This structure defines a single business in which there are two or more individuals are owners.

There are a few different partnership structures you can choose from, including a general partnership, limited partnership, or a joint venture.

Most experienced entrepreneurs don’t recommend partnerships as a business structure because they don’t offer much protection from liability.

If you do go with a partnership, make sure you choose a business partner is someone you can work well with for the long haul, and put clear terms and expectations in writing from the beginning detailing the roles and responsibilities of each party.

C-Corporation

A C-corporation is a more complex business structure usually reserved for larger companies, or those in particularly high-liability industries looking for a little extra insulation.

Most attorneys tend to put restaurants in this high-liability category, so a C-corporation structure is most likely to be recommended. That said, keep in mind that establishing a C-corporation requires having a board of directors as well as officers, and has more complicated tax filing requirements.

So consult your attorney, but also be prepared that the process might be a bit complex.

S-Corporation

Structured very similarly to a regular C-corporation, S-Corporations stand out because they’re taxed at the individual business owner level, rather than being taxed corporately.

If you think you may need the structure of a corporation but don’t want to mess with complicated dividend filings, an S-Corp might be a great middle ground for you.

Limited Liability Company (LLC)

Offering the liability protections of a corporation along with the flexibility and tax simplicity of a sole proprietorship or partnership, the limited liability company (LLC) is a “best of both worlds” business structure that has grown significantly in popularity over recent years.

Entrepreneurs who opt for an LLC structure can choose between a single-officer LLC, a partnership LLC, or a limited-liability corporation.

Step 4. Get a tax identification number for your restaurant

Also known as your employer identification number (EIN for short), this number helps the IRS keep track of your business for tax purposes.

Think of it like a social security number for your business.

If you plan to retain employees (think wait staff, hosts and hostesses, cooking staff and even dishwashers)—and especially if your business is established as a corporation or partnership—you’ll need this number to keep things on the up and up.

To obtain an employer identification number, apply online at the IRS website.

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Step 5. Register your restaurant for state and local taxes

In addition to federal business taxes, most U.S. states and territories will require you to pay income and employment taxes for your business. Certain states have additional fiscal requirements, like state-mandated workers’ compensation and unemployment insurance.

Registration, requirements, and filing procedures vary widely from state to state, so check out the business tax information specific to where you live.

Step 6. Secure permits, licenses, and insurance for your restaurant

The FDA updates the Food Code every four years, but the details of what is required, strongly encouraged, and just optional will vary from state to state, and even between counties.

You could read the 600+ pages published by the FDA , but we would recommend starting by finding your state's food service code regulation department . Here you'll find some of the highlights you should expect to encounter to get up to code in your area. This resource is useful, but not comprehensive, so be sure to check in with your local health department to make sure all of your bases are covered.

It’s a good idea to keep a master calendar with reminders for all of your renewal and payment due dates.

Food licenses

The most important part of remaining complaint is acquiring food and health code licenses. These licenses certify that you are safely handling, storing, and serving food. And don’t think that having a food cart or even a booth at a festival gets you out of this: they thought of those, too.

Included in this, but with its own special set of permits and rules will be serving alcohol. This covers not only safely serving alcohol but also includes training for dealing with customers that have perhaps overindulged. Read our complete guide for getting a liquor license in every state.

Health department permits

The health department has a lot to say about what is safe for the places you want to store, prepare, and serve your food. Your establishment will need to be inspected for operational safety, as well as edible safety.

Think maximum occupancy, fire hazards, ventilation, food surface types, sink placement, restroom regulations, and so on.

Restaurant insurance

Even with all the necessary licenses and permits, you still need to have some extra safety nets in place. You'll need to look into the specific business insurance requirements for restaurants.

Requirements vary depending on where you live and how you’re funded, but at the very least, you’ll want to consider these:

Property insurance

General insurance

Liquor liability

Auto liability

Workers compensation insurance

Unemployment insurance

Life insurance

Fire insurance

Loss of business

Food contamination

Americans with Disabilities Act compliance

In 1992, the Department of Justice passed the Americans with Disabilities Act so that consumers and employees with disabilities could avoid discrimination from places of public accommodation.

The complete details of the ADA are pretty detailed, but you can use this U.S. Small Business Administration guide to understand what is expected.

When you get past all the angles, measurements, and legalese, it boils down to having accommodations in place so that people with disabilities can safely park, travel into your restaurant, order food, and eat at a table.

Step 7. Set up accounting documents

Running a restaurant involves a lot of paperwork. You’ll need accounting documents to file your taxes, apply for business financing, and for internal tracking of your revenue, expenses, and profitability.

At a minimum, every restaurant owner should regularly maintain these three basic accounting documents:

Balance sheet

The balance sheet is essentially a snapshot of your restaurant’s financial standing at a given moment. It lists the assets, liabilities, and equity your company holds at a given time and is used to calculate the net worth of your business. Maintaining a “balanced” balance sheet—one in which total assets equals liabilities plus equity—is the foundational tenet of basic bookkeeping.

Income statement

Sometimes called a profit and loss statement, your income statement summarizes your business revenues and expenses over the course of a year, letting you calculate your net profit or loss for that year. Maintaining an accurate income statement is critical to measuring profitability over time.

Cash flow statement

Having enough cash on hand to cover expenses can make or break a restaurant’s financial health. In fact, this issue is so important, there is an accounting document dedicated to the tracking of cash flow.

Your cash flow statement reflects the inflow of revenue and outflow of expenses resulting from all your restaurant activities during a specific time period—usually a month or a financial quarter. Inflow will come from serving food and drink to your paying customers, while outflow represents things like purchasing ingredients, payroll, and paying rent and other overhead expenses.

Consider hiring a bookkeeper or accountant

If you feel a bit overwhelmed by these accounting protocols, we recommend asking around for a certified public accountant. It’s important to choose someone whose personality fits with yours, who will be available to answer questions as needed, and who can handle financial areas where you have less experience. Having a CPA experienced in the restaurant industry will help you understand your local laws to avoid problems when it comes servers minimum wage, tips as income, and over time for your staff.

Step 8. Invest in the right tools for your restaurant

Especially with all the moving parts involved in a working restaurant, managing the accounting documents above by hand can get overwhelming fast.

Not to mention employee schedules, timesheets, payment processing, payroll processing, and all the other logistics that go into keeping your restaurant afloat!

Thankfully, there are great restaurant accounting software options and other useful tools available that will take the guesswork out of your bookkeeping and generate these accounting documents automatically.

Restaurant POS system

One of the things entrepreneurs often overlook when researching how to open a restaurant is a restaurant POS system. A restaurant POS system is a combination of hardware and software that allows you to perform many important functions, including payment processing, front-of-house management, order coursing, and tip reconciliation. Most POS systems also produce helpful reports that allow you to more efficiently run your business.

Here are some of our favorite POS systems, based on the type of restaurant you own:

Square for Restaurants: Best POS system for new restaurants.

Clover POS: Best POS system for quick-service restaurants.

Lightspeed Restaurant POS: Best POS system for small and medium-sized restaurants.

TouchBistro POS: Best POS system for full-service restaurants.

Toast POS: Best overall restaurant POS system.

Loyverse POS: Best free restaurant POS software.

Step 9. Keep up with your restaurant's tax obligations

Along with getting your books in order, understanding and fulfilling tax requirements should be a first priority in the financial management of your restaurant. The consequences for failing to file your state and federal business taxes are severe—as in you could lose your business and even face criminal charges.

So even though dealing with the IRS can be intimidating, this isn’t something you can ignore.

Let’s break down the main business tax obligations you’ll need to keep track of:

All businesses must file annual income tax returns and make payments based on revenue received.

The exact tax form you use to make income tax payments depends on the structure of your business: sole proprietorship, partnership, corporation, S-corporation, or limited liability company (LLC).

Self-employment tax

Individuals who work for themselves (including small business owners) must pay social security and Medicare taxes via a self-employment tax. This tax is similar to the taxes withheld from the pay of most wage earners.

Estimated tax

Income and self-employment taxes both qualify as “pay as you go” taxes. You’ll need to file quarterly documents estimating the taxes you owe in these categories and make payments accordingly.

Click here for forms and more information about how to make quarterly estimated tax payments.

Employment taxes

Since you'll probably have employees working in your restaurant, you'll face additional tax obligations related to those employees, including social security and Medicare taxes, federal income tax withholdings, and the federal unemployment tax.

Learn about the specific IRS information about filing employment taxes for your business.

Step 10. Fund your newly opened restaurant

Unless you happen to be independently wealthy, you’ll likely need some funding from somewhere for starting a restaurant.

Entrepreneurs choose to finance their businesses in any variety of ways, but the most common approach is to take out a business loan . The growth of the alternative lending industry has brought about a wide variety of loan products to meet the needs of entrepreneurs, each with different costs, payment structures, and application processes.

Let's review the business loan options available to restaurateurs.

Probably the first thing you think of when you imagine business lending, term loans offer a set repayment time, set number of payments, and have a fixed or variable interest rate.

Depending on your business needs, credit rating, and other factors, there are a wide variety of term loans available to many small business owners—both from traditional banks and from non-bank alternative lenders—and with terms ranging from one year with daily payments up to five-year terms with monthly payments, and everything in between.

Because of the risky nature of small business lending, many commercial lenders have in the past been hesitant to lend money to small business owners, especially new restaurant ventures.

As a solution, the Small Business Administration began guaranteeing as much as 80% of the loan principal for term loans through participating lending institutions. This could be a viable option if you are already experienced in the food industry. (Otherwise, you probably won’t be considered.)

The SBA offers a variety of loan programs, including for restaurateurs. If you plan to use an SBA loan as your main source of funding to start your restaurant, you will need to go into this process with your ducks in a row. Write a stellar business plan that highlights the uniqueness of your idea, and be prepared to have 20%-30% of your loan amount in cash—or to take out a mortgage on your home.

Keep in mind, though, that while the SBA’s stamp of approval may make some lenders more willing to consider applicants who don’t fall within their strict loan criteria, applying for an SBA loan still involves lengthy paperwork, and the process can take several months.

Equipment financing

If you specifically need cash to make a big equipment purchase (like point of sale technology, commercial kitchen appliances, flatware, or furniture) for your new establishment, restaurant equipment financing might be the right choice for you.

This financing product works very similarly to a car loan, with the amount you can borrow depending on the price and type of equipment you’re buying.

And because the equipment itself serves as collateral, you likely won’t be asked to put up additional collateral for the loan.

Equipment financing terms typically work at a fixed interest rate—usually between 8% and 30%—with a fixed term length so your payments will be the same from month to month.

Short-term loans

For businesses with smaller and immediate financing needs, short-term loans can be a lifesaver. These loans work similarly to traditional term loans but cover amounts in the $2,500 to $250,000 range with terms of between three and 18 months.

With interest rates as low as 14%, short-term loan providers can often get you cash in hand in as few as two days, letting you make rent, cover payroll, pay food vendors, or meet other immediate overhead expenses—even when cash is tight.

Line of credit

Perhaps the most flexible form of business financing available, a business line of credit gives you capital to draw upon to meet a variety of business needs.

Once established, you can draw on your line of credit as you would a personal credit card, to get more working capital, buy inventory, handle seasonal cash flows, pay off other debts, or address almost any other business need.

If you do plan to apply for a small business loan at any point in the future, make sure that you are regularly reviewing your personal and business credit reports, as well as doing what you can improve your credit score.

Along with your annual revenue, time in business, and average bank balance, your personal and business credit scores are the single most important factor that will determine your ability to qualify for a small business loan.

How much does it cost to open a restaurant?

Now that you know your financing options, you're probably wondering exactly how much financing you'll need.

Obviously, the cost to open a restaurant varies widely depending on the type of restaurant you want to open, service style, decor, location, menu, and more. However, a recent survey by RestaurantOwner.com provided some insight into what entrepreneurs might have to pay.

According to a survey of 350 restauranteurs, a small restaurant can cost as much as $175,500 in total startup costs. A medium sized restaurant costs up to $375,500, and a large restaurant costs up to $750,500. You can view the full results of the survey here :

starting-a-restaurant-costs

Step 11. Market your restaurant

The last step in how to open a restaurant? Tell the world about it!

There are a variety of methods for marketing your restaurant to your target audience. Here are a few ideas to get you going:

Use social media marketing to share photos of your dishes, answer customer inquiries, and communicate the merits of your brand.

Make a professional looking website to show the world that you are a legitimate and trustworthy business.

Get your business aforementioned customer review websites like Yelp, OpenTable, and Resy.

Offer promotions such as discounts for first-time customers or a customer referral program.

Have a grand opening that stirs up interest in your restaurant and attracts media attention.

The bottom line

Being a restaurateur is truly not for the faint of heart, as owning your own restaurant is a never-ending, 24/7 adventure. The challenges and questions that come up for each restaurant owner will vary as widely as the different eateries and states they operate in. But if food is your passion and owning a restaurant is your dream, the steps above can offer a good start toward making that dream a reality.

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

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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

starting a small restaurant business plan

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.

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How to Write a Restaurant Business Plan: Complete Guide

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  • January 31, 2023
  • Food & Beverage

starting a small restaurant business plan

👇 Check all our resources on restaurants 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) to open a restaurant , you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your restaurant. Use this template to create a complete, clear and solid business plan that get you funded. Let’s dive in!

1. Restaurant Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a restaurant?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write your restaurant’s executive summary?

Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

  • Business overview : start by introducing your restaurant and the products and services that you intend offer. Mention the type of restaurant you intend to open (such as fine dining, casual dining, fast casual, ghost restaurant, café, pub, etc.), the menu and prices. Also add here the total number of customers your restaurant can host at once, its location, and some details on the surface and the design layout
  • Market analysis : summarise the market where you will operate and provide a brief about the target audience, market size , competitors, etc. No need to provide granular data here, save it for the Market Overview section later on (or the appendix)
  • People : introduce your restaurant’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak about your hiring plans.
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials statements
  • Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

starting a small restaurant business plan

Restaurant Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Restaurant Business Overview

This is the section where you will provide details about your restaurant and the chosen business model. You must address some important questions that lenders and/or investors generally ask .

Here is a quick list of some of those questions you must address:

  • What is the rationale behind you opening this type of restaurant today?
  • What’s the restaurant’s location and why did you select that location?
  • Why did you select the type of restaurant you want to open?
  • What will be the products and services you will offer?
  • What will be your pricing strategy and why?
  • What will be your opening days / hours?
  • How many customers can you serve at once (capacity)?
  • What is the surface of your restaurant? How is the restaurant designed (incl. dining rooms and kitchen area)?
  • What will be the legal structure of your company?

a) History of the Project

Any business must have two components:

  • Passion & experience of the business owner
  • Rationale behind starting this type of business today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have been a restaurant manager in a popular restaurant for 6 years, and now you want to start your own restaurant and use your knowledge to run it more efficiently.

However, if you don’t already have experience, that’s fine. You must demonstrate your passion and some industry knowledge (you may have conducted thorough research).

What is your restaurant’s mission?

For example, there may not be any fine dining restaurant in your area where wealthy residents or tourists can enjoy an upscale meal experience in a sophisticated and elegant environment.

But that’s not all: your market must be suitable for your business to thrive.

For instance, if you are planning to open a fine dining restaurant in a low-income area, it is probably not going to attract many customers. Similarly, if the population of the target market has a high percentage of people preferring takeaway/delivery food options because of their busy lifestyle, a fine dining restaurant may not be a good idea.

starting a small restaurant business plan

b) Business Model

This sub-section of the Business Overview will explain your business model. Describe the following points briefly:

  • Will you buy an existing restaurant and do some remodeling, or will you start a new restaurant and design it from scratch?
  • Will you buy a franchise or do you plan to open an independent restaurant instead?
  • The type of restaurant you want to open and why

What are the different types of restaurants?

There are multiple types of restaurants. Some of them that you may consider include, but are not limited to:

  • Fine Dining : They provide upscale meal experience with several courses. The atmosphere is sophisticated and classy. They can be franchises or individually owned. Of course, they are quite expensive.
  • Casual Dining : This type of restaurants serve customers at their tables and the food prices are moderate. The atmosphere is not very sophisticated. Though the décor is often unique, it can be based on the type of food a restaurant serves.
  • Fast Casual : These restaurants will make your food available quickly, but the food is healthier than fast food. Also, food is cheaper than casual dining. They have a counter service (you must collect food from the counter) and the décor is more contemporary.
  • Ghost Kitchens : ghost kitchens (or “dark kitchen”) restaurants do not have a storefront, a dining room, signage, or décor. They operate using food delivery partners and take orders through online ordering or phone ordering.
  • Fast Food : Think of Taco Bell , KFC, Burger King, etc. The food is relatively cheap and is served quickly. Food ingredients are usually preheated or precooked, and food delivery happens over the counter or via a drive-through window.
  • Buffet Style : These restaurants are similar to the Family Style restaurants but with a fundamental difference. People get to select from a selection of food that are made available against a fixed price. However, customers need to serve themselves and they are allowed to return to the buffet for as many times as they want.

starting a small restaurant business plan

c) Products & Services

Of course, the products you will offer in your restaurant will depend on the type of restaurant you are opening. A Buffet Style restaurant, for example, usually prefer specialty cuisines like Indian, pizza, home cooking, Chinese, etc. Similarly, if you are opting for a Diner, you will most likely offer fried foods (fish & chicken), breakfast items, burgers, etc. at a low cost.

It is a good idea to give a list of food and drinks that you want to sell. Depending on the scale of your operations, you may have too many menu items. It is not possible to list every item on your menu, but make sure that you are listing the most important ones. If you specialize in one or a few specific dishes, mention that, too.

starting a small restaurant business plan

d) Pricing Strategy

In this sub-section, you must explain the pricing strategy of your restaurant. If you have multiple competitors (in the same niche) in the vicinity, you cannot have huge pricing variation, especially for the similar food items. Pricing will, of course, depend on the type of restaurant you are opening, and the food items you are offering.

For example, if you are sourcing the raw materials only from organic farms that do not use fertilizers and pesticides, your menu items will have a higher price tag.

Similarly, you cannot expect to charge expensive Fine Dining-like prices if you are opening a Casual Dining restaurant instead.

Create a pricing table and ensure to provide an average price range for your products. You don’t need to provide exact pricing for each product. Use price ranges instead.

Offering a pricing table is important because your pricing strategy will allow investors to tie your pricing strategy with your financial projections .

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Restaurant Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if your intentions are to open a classy Fine Dining restaurant in a low-income area, you will not attract enough customers. Similarly, if you want to open a fast-food restaurant in a place where family dining is more popular, it will be a disaster.

Therefore, you must cover here 3 important areas:

  • Market size & growth : how big is the restaurant industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
  • Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
  • Customer analysis: who is your target audience? What type of restaurants do they prefer? How regularly do they visit restaurants for dining? What type of food do they prefer? How much do they spend at restaurants on average?

a) Restaurant Industry Status Quo

How big is the restaurant industry in the us.

According to Finance Online , there were over 1 million restaurants (all types combined) in the US in 2021. The industry recovered post a 60% drop in sales in April 2020 due to the pandemic, and recorded an annualised market size of over $1 trillion dollars in July 2022 ($1,033 billion)..!

starting a small restaurant business plan

How big is the restaurant industry in your area?

Once you provide the overall picture of the US, divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the market size .

For example, if there are 1,000,000 restaurants in the country with total annual revenue of $1 trillion, the average annual revenue for each establishment is around $1 million.

Therefore, if the area where you want to open your restaurant has 30 restaurants, you can safely assume that the restaurant industry in your area is worth approximately $30 million.

How fast is the restaurant industry growing in the area?

You must show the expected growth rate of the restaurant industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult as you can use metrics such as the number of competitors in your area.

For instance, if there were 25 restaurants in 2018 and 30 restaurants in 2022, the average annual growth rate would be 5%.

starting a small restaurant business plan

What are the current restaurant market trends in your area?

It is vital to understand the trends of the restaurant industry in your area. Understanding trends will allow you to devise marketing strategies.

Understanding trends won’t be easy. You must conduct research and talk with your target audience. Additionally, you must also study your competitors to understand their target audience, the products they sell, etc.

Some common questions you may ask the target audience include:

  • What type of restaurants do they prefer?
  • At what time of the day do they prefer to visit a restaurant (breakfast, lunch, dinner)?
  • How frequently do they visit restaurants?
  • What type of foods do they usually order?

You can ask as many questions as you need to understand the evolving trends.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their food offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

Restaurant SWOT Analysis

Try to provide a SWOT analysis. It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

  • Strength: 8 years of senior manager experience in a reputed Michelin Star Fine Dining restaurant operated & owned by a renowned chef and a master’s degree in Hospitality management, experienced senior chef with 22 years of experience
  • Weakness: Startup cost, zero reputation
  • Opportunities: An affluent neighborhood with a rising demand for fine dining establishments, only one fine dining restaurant in the 3-mile radius
  • Threats: Increasing cost of raw materials because of geo-political turmoil restricting international trade routes

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

starting a small restaurant business plan

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience.

Some important points that you must include in your customer analysis include:

  • Age and gender distribution (you can get local demographic data from census.gov )
  • Per capita expenditure on dining
  • Frequency of restaurant visits
  • Average monthly income and disposable income
  • Average bill size per visit
  • Average yearly or monthly spending on food at restaurants
  • Type of restaurants preferred
  • The expected price range for food
  • Inclination towards loyalty programs & free perks
  • Things they dislike about existing restaurants and what they expect to be improved

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers and increase sales .

starting a small restaurant business plan

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

  • What is your USP?
  • What are the different marketing strategies you will use?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost ?
  • What is your marketing budget?
  • What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do restaurants use?

A few marketing channels that restaurants typically use are:

  • Word-of-mouth, recommendations,
  • Local listing & reviews (e.g. Google reviews)
  • Online booking platforms (e.g. TheFork , Opentable , etc.)
  • Influencer marketing
  • Print media, etc.

It is not necessary to use all channels. You can start by focusing on a few of them and include other marketing strategies later instead.

starting a small restaurant business plan

What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs can be:

  • Organic raw materials : we source organic farm fresh raw materials from local farmers
  • Authentic Indian food : prepared by a Michelin Star chef from India
  • Family run restaurant : run by a family, helping families connect over delicious food
  • Price : affordable food & menu for the quality vs. competitors
  • Location : the restaurant is located in a busy street, thereby attracting many customers who can easily glance over the menu
  • Uniqueness : you may be the only tapas-style restaurant around, in an area where people are fond of this type of restaurant

starting a small restaurant business plan

5. Management & People

You must address 2 things here:

  • The management team and their experience / track record
  • The organizational structure : different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your restaurant business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the restaurant you are proposing. If they have specialized training, achievement, and experience (such as a degree in hospitality management, 3 Michelin stars, experience in developing menus for 5-star hotels, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired a restaurant manager, server, chef, head cook, busser, cashier, bartenders, and other relevant staff members, you must provide here a chart of the organizational structure defining the hierarchy of reporting.

starting a small restaurant business plan

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a restaurant.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your restaurant is an attractive investment.

There should be 2 sections to your financial plan section:

  • The startup costs of your project (if you plan to start a new restaurant, renovate your restaurant, etc.)
  • The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your restaurant . For a restaurant, startup costs are all the expenses you incur before you open your restaurant and start making sales . These expenses typically are:

  • The leasing deposit for the space (if you rent) or to buy the real estate (if you buy)
  • Renovations and improvements
  • Equipment & appliances
  • Furniture & tableware

Of course, the startup costs depend on a number of factors, like the size of your restaurant, its location, the facilities, the menu, etc.

On average, it costs $484,000 to $685,000 to open a casual restaurant with 150 seats (2,500 sq. ft.) in the US.

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a restaurant, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your restaurant.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your restaurant.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even ?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 15%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of covers (customers or orders) over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, cost of raw materials (food supplies) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

starting a small restaurant business plan

7. Use of Funds

This is the last section of the business plan of your restaurant. Now that we have explained what your restaurant’s business model and concept are, what is your menu, your marketing strategy, etc., this section must now answer the following questions:

  • How much funding do you need ?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any restaurant business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our restaurant financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How to Write a Restaurant Business Plan + Free Template

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You have cracked the recipe for good food & great ambiance and are planning to start a restaurant, fantastic!

Whether starting a cozy corner cafe, a theme-based fine dining restaurant, or growing an existing one, you will need a restaurant business plan as a roadmap for your business success.

But writing a business plan is complex, isn’t it? That is why we are here with our comprehensive restaurant business plan template to help you in writing yours.

Key Takeaways

  • Highlight the concept of the restaurant along with the ambiance, types of cuisines, customer base, and USPs of the restaurant in the plan.
  • Utilize tools for SWOT analysis to assess your strengths, weaknesses, opportunities, and threats for making informed decisions.
  • Craft an impactful executive summary that outlines your restaurant’s concept, marketing approach, financial outlook, and team expertise to attract potential investors and partners.
  • Conduct thorough market research to understand market trends, consumer preferences, and the needs of your target market.
  • Analyze the competitive landscape, and identify direct & indirect competitors, to develop strategies that maintain your restaurant’s competitive advantage.
  • To ensure efficient daily operations, provide in-depth operational plans that incorporate staffing, additional services, inventory control, and customer service.
  • Create realistic financial projections for sales revenue, expenses, and profit forecasts while considering contingencies & emergencies.

Why is a restaurant business plan important?

Crafting a restaurant business plan is daunting but its significance cannot be underestimated. It is essential to drive your business toward success.

In the competitive atmosphere where there are 700,000+ restaurants in the USA, having a proper plan will help you get funding and better adaptability in a constantly changing business environment.

Even if funding isn’t a primary concern, a plan provides the restaurant owner or manager with clear direction on how to create actionable strategies for reaching business goals.

Your business plan will also help solidify the viability of the restaurant’s idea and concept.

In short, think of it as a guide for running all the aspects of the business smoothly.

How to write a restaurant business plan: Step-by-Step Guide

Since we are talking about a restaurant business plan; let us walk you through this restaurant business plan outline step-by-step without any delay:

1. Executive summary

An executive summary is the first section and the most significant section of any business plan. It captures the essence of your whole plan summarizing it for a quick understanding of your business.

Think of it as a sneak peek for the readers that draws their attention to the entire restaurant business plan.

You should start your summary with a compelling introduction with the name of your restaurant. It should also focus on the essence of your restaurant concept.

Give a brief overview of your unique selling points, emphasizing what makes your restaurant special. It might be the signature dishes, innovative ambiance, prime location, or some new cuisine experience.

Apart from the above essential points, your executive summary should include:

  • Mission statement
  • Vision statement
  • Execution structure
  • Potential costs
  • Expected return on investment

Many readers will read the executive summary before making a judgment, so if this is all they read, make every word count.

Also, SBA advises to include financial projections in your executive summary if you’re using your business plan to request funding.

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starting a small restaurant business plan

2. Company Overview

Company overview is a part where you fully introduce your restaurant business including legal business structure, location, and your restaurant’s proposed concept.

Here you have the liberty to be a little more creative in describing your restaurant in the whole business plan.

Here are some points to incorporate in the company overview:

  • Detailed vision and mission statement
  • Type of restaurant (fine dining, small restaurant, bistro, cafe, etc.)
  • Legal business structure
  • Service style
  • History and background of the restaurant (if existing)
  • Owners’ names and qualifications
  • Cusinies & menu highlights
  • Restaurant size and seating capacity
  • Operating hours & meal plans
  • Related service availability (delivery, catering, etc)

Mainly emphasize the chosen location because easily accessible locations with high foot traffic will attract more walk-in customers. And if you haven’t decided on a specific location yet, then mention the type of place you are looking for to give an idea about it to your readers.

Besides, mention the short-term and long-term goals of your restaurant business in the later part of the company description. Along with that mention regional industry trends and your USPs.

starting a small restaurant business plan

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3. Market analysis

The market analysis section provides you with a clearer picture of your target market, competitors, and industry trends.

Based on the above details, one can make informed decisions while creating strategies. Therefore, make this section precise and concise to understand.

Here are some steps to follow to write an engaging market analysis section of the restaurant business plan:

  • Define your customer base: Identify and describe whom you are going to serve. Make a consumer base after considering the demographics, location, and concept of your restaurant.
  • Competitive analysis: List out the names of other restaurants in your location and do the SWOT analysis. You can get the competitive advantage of your restaurant this way.
  • Market trends: Discuss any shift in consumer behavior like healthy choices, an increase in vegan food consumption, or technological breakthroughs that might affect your restaurant.

Consider conducting market research, TAM-SAM-SOM analysis , and SWOT analysis to get insights for this section.

Remember, this section helps your readers and potential investors understand your target market, restaurant market overview, market size, and growth potential, so make sure you play your cards right.

4. Sample Menu

The most vital step in launching your restaurant business is the menu. A well-curated menu design will sell itself for your restaurant. Even if you are a new restaurant, then present the sample menu with the name and logo of your restaurant on it.

The menu will showcase all the unique offerings your direct competitors might not provide. Not just the list of cuisines but the pricing is also crucial. This way potential investors and readers can understand your restaurant’s target price point.

Plus your menu should be in sync with target customers; for example, a restaurant near the university should contain more beverages and delicious food options for brunch as students prefer those things more.

Consider your menu as a part of branding, choose the same theme for the menu as for the restaurant.

5. Restaurant Design

Restaurant design is the part where you can show your restaurant concept to potential investors and readers practically. Moreover, create a mood board to explain things smoothly.

Utilize this section to show the uniqueness of your restaurant, and how it is different from competitors.

Explain how your design represents your restaurant’s branding and visual identity. Furthermore, mention how your target market will enjoy and appreciate the ambiance you plan to provide.

Note that restaurant design is one of the key elements to running a successful restaurant, so match the theme and cuisines accordingly.

In this section, you also have to provide a detailed description of how many seats are going to be there along with the floor plan of your restaurant.

6. Management Team

As the name suggests, the management team section of your restaurant’s business plan introduces restaurant owners, key executives, and the management team. It also incorporates the experience, qualification, and restaurant industry knowledge of every individual who is on the team.

A strong management team section can be essential to weigh authority and help potential investors be confident about your restaurant’s idea and vision.

You might consider including the following information in the management team section:

  • Business owner or founder’s information
  • Executive chef and culinary team
  • Front-of-house manager
  • Operations and back-of-house team
  • Advisors/consultants
  • The organizational structure of the team

Showcase how each member fits and what roles & responsibilities they will play.  You should include a resume-styled summary for each person in the restaurant’s management section.

7. Operations Plan

The operations plan section outlines the daily business processes and activities centered on achieving the restaurant dream and objectives described in the rest of the plan.

A detailed operations plan helps you and your team define your responsibilities, daily tasks, and short-term goals you need to achieve, keeping track of your long-term objective.

Here are a few key elements to include in your operations plan section:

  • Staffing and training
  • Operating hours
  • Operational process
  • Tools and equipment
  • Inventory control
  • Technology and software
  • Quality control measures
  • Customer service policies

Remember it should incorporate all important daily tasks. Also, an operations plan is a living document, you can change it often according to the change in the dynamics of the work.

Read More: The Ultimate Guide to Restaurant Operations Planning

8. Marketing Plan

Even with great food, prices, and ambiance, you won’t attract enough diners without marketing.

Thus, a well-crafted restaurant marketing plan is necessary to spread awareness and build a strong brand presence.

The marketing plan can help you streamline your marketing efforts and create impactful and effective marketing campaigns while keeping track of the projected budget and maximizing return on investment.

Hence, this is the section in which you give an idea to your potential investors about how you will acquire new customers and retain existing ones. This section should include:

  • Target market and their dining habits
  • Branding and positioning
  • Marketing strategies (website, social media accounts, etc.)
  • Marketing Calendar
  • USPs of your restaurant (unique ambiance, amiable staff, new cuisines in the local area)
  • Your marketing goals
  • Customer retention strategies (loyalty program, giving coupons or discounts on bulk orders or events)

Even if you are going to hire a PR agency for marketing, then mention it and the reason why you chose them.

After taking care of marketing, let us move further to finances.

Read More: Step-by-Step Guide to Restaurant Marketing Plan

9. Financial Plan

The financial plan is the most crucial and demanding section of any business plan. It is one of the deciding factors for potential investors, banks, or any financial institute to invest in your restaurant business.

This section of your plan details your restaurant’s financial information and how it will reach its financial goals or how much revenue potential it has.

Here are key components and statements that you should include in your financial plan section:

  • Pro forma profit and loss statement
  • Break-even analysis
  • Balance sheet
  • Sales forecast
  • Detailed cost analysis
  • Cash flow projections
  • Business ratios
  • Funding request
  • Tax considerations
  • Exit strategy

Before you create financial projections, know how many seats the restaurant will have and what services you plan to provide. This will help you in making realistic financial projections if you are going to start a new business.

Also, if you are asking for funding, then mention where you will utilize your funds.

We hope that this sample restaurant business plan will provide you with an idea for writing a successful plan.

Restaurant Industry Highlights 2024

  • Growth forecast : National Restaurant Association predicted US restaurant sales to reach $898 billion in 2022 which would further grow by 4% yearly to reach $1.2 trillion by 2030.
  • Technology is everywhere : Automation is helping staff maximize their efficiency by handling orders, deliveries, and communication effectively.
  • Sustainability & ethical sourcing : Eco-friendly practices such as minimizing food waste, avoiding single-use plastics, and ethical plus local sourcing are encouraged by customers.
  • Delivery is the new deal : People prefer deliveries over dining out as they are time-saving. So, there is an incline in the number of delivery apps and delivery services providing restaurants.
  • Kiosks are the preference : The number of people who prefer ordering and paying through kiosks is increasing due to the convenience.

How to Refine & Present a Restaurant Business Plan

Once you have written your entire business plan, it is time to read and re-read it and make it error-free. You have to be confident about every aspect of the plan before you present it in front of your audience.

Moreover, alter your plan to suit different audiences to enhance your communication. For instance, keep your plan professional and include all the growth potential, profitability, and ROI data when you present your restaurant business plan for seeking funding.

Also, when you present your restaurant business plan to potential partners or vendors, emphasize collaboration benefits and how it can help in their individual growth.

Apart from the above points, make sure your plan has various engaging visuals, interactive elements, and enhanced storytelling to present all the data interestingly. Thus, make a digital presentation of your plan to incorporate all the above things clutter-free.

Once you are confident, it is time to email your plan to the people already on your mind. And give a pat to yourself for finally taking that step.

Download a sample business plan for a restaurant

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free restaurant business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for restaurants. It includes step-by-step instructions & examples to help in creating your own restaurant business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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Related Restaurant Resources

  • Restaurant Marketing Plan
  • Restaurant Financial Plan
  • Restaurant Operations Plan
  • Restaurant Industry Trends

Discover how Upmetrics can help you write a business plan

With Upmetrics, you will receive step-by-step guidance, customizable templates, 400+ sample business plans , and AI assistance to streamline your business planning process.

In fact, if you are not adept with finances, the financial forecasting tool Upmetrics provides will help you create realistic financial forecasts for 3 or more years.

Whether you’re starting a new venture or looking to grow one, Upmetrics offers the resources and insights you need to develop a successful & professional business plan that aligns with your goals.

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Frequently asked questions, why do you need a restaurant business plan.

A solid business plan is an essential tool for anyone looking to start or run a successful restaurant business. It helps to get clarity in your business, raise money, and identify potential challenges while starting and growing your business.

How to get funding for your restaurant business?

There are several ways to get funding for your restaurant business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

What is the easiest way to write your restaurant business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of restaurant business plan samples and edit it as per your needs. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good restaurant business plan help me secure funding?

Indeed. A well-crafted restaurant business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

What's the importance of a marketing strategy in a restaurant business plan?

Marketing strategy is a key component of your restaurant business plan. Whether it is about achieving goals or helping your investors understand the return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having a marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

About the Author

starting a small restaurant business plan

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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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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Restaurants | How To

How to Start a Restaurant in 10 Steps

Published July 18, 2023

Published Jul 18, 2023

Mary King

WRITTEN BY: Mary King

This article is part of a larger series on Restaurant .

  • 1. Research Your Market
  • 2. Choose a Name & Concept

3. Write a Business Plan

4. secure financing, 5. find a location.

  • 6. Get Permits & Insurance

7. Design Your Layout

  • 8. Procure FF&E & Starting Inventory
  • 9. Hire & Train Staff

10. Market Your Restaurant

Tools for starting a restaurant, bottom line.

Starting a restaurant is a daunting (but thrilling) task that requires careful planning. A passion for food and service is also helpful to push you through tedious tasks like writing a business plan and obtaining permits. I’ve seen new restaurants take six to 18 months to open and cost from $200,000 to over $2 million. The costs vary based on your location (cities are pricier) and restaurant style (the fancier your food and service, the higher your costs).

These are the basic steps you’ll follow when opening a restaurant:

1. Research Your Market & Consider Your Options

Your first step to starting a restaurant is market research. I have known many aspiring restaurant owners who skip this step because they think that their dream of serving Scandinavian hot dogs or having a dining room that is a replica of the original Super Mario Brothers video game is such a surefire winner that they don’t need research. Having a vision is great, but your restaurant needs to appeal to more than just you if you want to be profitable.

Market research helps you identify your target customer’s preferences, analyze local competitors, and gauge demand and potential profit. You can hire a professional market research company or do the market research yourself.

If you use a third party, look for one specializing in restaurant market research. They’ll analyze your local competition, organize customer focus groups, and survey your likely customers. Most market research firms will custom-quote you a price based on your restaurant size and the specific services you want. You’ll likely be on target if you budget $15,000 to $35,000. If you don’t have the budget, expand the section below for guidance on performing your own market research.

If you have the budget, getting market research from a reputable agency is worth the cost. It will test your business model while providing more complex research than most restaurant owners are capable of performing. Third-party market research will also save you time writing the market research section of your business plan (which we discuss in step 3).

How to Perform Market Research

If you have more time on your hands than cash, you can perform market research yourself. There are two goals to performing market research—identifying your target customer and assessing your competition. Get a notebook ready because both tasks require a lot of observing and notetaking.

Visit Local Restaurants

First, visit several local restaurants as a customer. Don’t worry about whether they match your intended restaurant style or cuisine; look for busy ones. Note everything about them—their hours of operation, their prices, the size of their menu, and how they serve their food (at a counter, tableside, takeout). Try some food and drinks. Note the portion size for the price, the flavor profile, and any vendors listed on the menu. Look at their social media channels; are they active? Do they pay for advertising or just post? How regularly?

Note Your Observations

Observe the customer types you see in the restaurants. Are they mostly families? Young professionals? Groups of friends? Do the customers vary at different meal times (i.e., office workers at lunch and families for dinner)? Strike up a conversation with any staff member that seems friendly. If you’re friendly and conversational, you can typically find out the restaurant’s average check size and what days/meal times they are busiest.

Analyze Your Notes

Next, sit down with your notes and look for patterns. Is there a lot of one type of restaurant? Do you see the same type of customer at multiple restaurants? Are there any gaps in the market your restaurant could fill?

Organize your observations into measurable data sets if you can, such as the percentage of customers you noticed that fall into specific age groups, the number of customers you counted at lunch and dinner services, or the spread of menu prices. Putting this information into a spreadsheet program will give you data to create charts and graphs when you write your business plan later.

Consider Your Options

Most aspiring restaurant owners I know need to take a moment here to consider what the market research is telling them. Nearly always, your market research will reveal more questions than you initially considered when you were dreaming of serving your grandmother’s ragu to grateful customers.

If you find that your market research has made the idea of opening a restaurant seem complicated, don’t be discouraged. That really is a sign that you did a good job on your research. It is normal for your market research to force you to ask some questions and refine your restaurant plan.

Ask yourself two questions:

  • Are you looking in the right location?
  • Should you consider opening a franchise instead?

Shifting Location

If you’re really in love with your restaurant idea, but don’t see your target customer in your first location, expand your search. Sometimes finding the perfect fit of restaurant and customer means considering a new neighborhood or even a different town.

Opening a Franchise

Many restaurant operators know from the beginning that they plan to open a franchise. But if you haven’t previously considered opening a restaurant franchise, many more aspiring restaurant owners do consider it now. If you are new to the restaurant industry, a franchise is a good way to start since a franchisor typically offers a lot of support for researching your market and learning how to run your restaurant business.

If you’re considering opening a restaurant franchise, it is a good idea to look beyond the big names like McDonald’s and The Melting Pot. Big names tend to require high dollar investments, and your market may already be saturated with them. In 2023, these are some fast-growing restaurant franchise concepts you may want to consider:

2. Choose a Name & Restaurant Concept

Unless you have opted to open a franchise (in which case, you can skip to the next step), your market research will inform your restaurant concept.

What is a restaurant concept? A restaurant “concept” is a combination of your restaurant’s service style, cuisine, and target customer. The restaurant concept is a concise way to communicate your business type to your investors, business partners, staff, and— ultimately—customers. It should be as easy to say as “an upscale full-service vegan restaurant” or “a family-friendly Mexican takeout.”

You can construct a restaurant concept easily by answering a few questions:

  • Who is your target customer? Target restaurant customers can be summed up in a couple of words. Think of what word you would put in front of the word “clientele.” A French bistro appeals to an upscale clientele, a wine bar to a singles clientele, a pub to a casual clientele, and a buffet to a family-friendly clientele. Who is coming to your restaurant, and how would you describe them in a word or two?
  • What is your service style? There are two major service types: full-service and quick service. Full-service always means that most customers dine in, are served tableside by staff, and pay at the end of their meal. Quick service means customers place their orders at a register and pay before their food is prepared. Quick service spots may be counter-service, buffet, or take-away only. If a restaurant offers both quick and full-service options, they tend to still be categorized as full-service.
  • What is your cuisine? This is the easy one. What type of food will you serve? Burgers? Pizza? Tacos?

Now, take all of these words and put them in the order that flows the best. Combine that with your restaurant name, and you have the header for your restaurant business plan.

If you haven’t settled on a name yet, use our restaurant name generator to help brainstorm ideas.

Design a Menu That Fits Your Concept

The final step to solidifying your restaurant concept is designing your menu. Menu design can mean two things: the layout and color scheme of your physical menus or simply the composition of the dishes on your menu. Right now, we’re talking about the second one—your menu composition. This doesn’t need to be your final menu. It is just about getting your ideas written down so you can identify potential holes in your menu and, more importantly, sell potential business partners, investors, and staff on your restaurant idea.

Write down all of your dishes and dish categories on a sheet of paper. You want to see everything laid out. Pencil in proposed prices. This is just a rough sketch. You are not committed to charging $10 for your stuffed poblano burger; just go with your gut and see what it looks like. If you see any obvious holes in your menu—like if you have 14 entrees but only two appetizers—balance it out. This is the fun part. Refine, refine, refine. Get feedback from friends, family, or even strangers in your target customer demographic. Then, refine some more.

Once you’ve selected your mix of dishes, see our guides to the best restaurant menu templates and top digital menu templates for design inspiration and to create a sharp-looking sample menu.

A restaurant business plan is a summary of your restaurant’s business structure, projected sales, and development budget. Your business plan also introduces prospective investors to your management team, restaurant concept, and menu. A strong restaurant business plan includes design details and market research to show banks, investors, or business partners the viability of your restaurant idea.

If you’re collaborating with a chef or have a general manager to work with, you should ask for their input on your business plan. You may also want to have an accountant look over your profit and loss projections to ensure your calculations are accurate. If you need help to get started, email yourself a copy of our restaurant business plan template below.

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Restaurant Business Plan Template

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Just like customers, potential investors eat with their eyes first. Make sure your restaurant business plan looks sharp. Include mouthwatering photos of your food and enticing images (or mock-ups) of your interior design if you have them. Action shots of you and your team cooking or serving will also make you look like seasoned professionals.

This is where your business plan comes into play. Most restaurant owners raise the funds they need through a mix of personal investment, business loans , equipment loans , and individual investors. Crowdfunding and lines of credit can help with smaller amounts of money.

If you have previous restaurant industry experience, a loan through the Small Business Administration (SBA) might be a good fit. It is much easier to qualify for an SBA loan if you have relevant experience in the industry in which you are opening a business.

To get a better understanding of what SBA loan type is right for your restaurant, check out our article on SBA loan types .

Choosing the right location is the most impactful decision you will make when starting a restaurant. You want to be in a location that lets your target customers easily find you and that supports your business type. For example, quick service restaurants may need drive-thru windows, while full-service restaurants need ample parking. Restaurants can be located in strip malls or high-rises, freestanding buildings, new buildings, and old ones.

In most cases, you will save time and money on renovations if you operate in a space that has previously been a restaurant. The other major aspect to consider is the lease terms. Most restaurants rent their location; owning your restaurant space is rare. Commercial real estate prices can be too high for most new restaurant businesses to afford to buy. So, it is important to ensure that your lease terms are favorable.

I cannot stress this enough; most of the independent restaurants I have personally seen close have closed due to onerous lease terms or a landlord’s refusal to renew a lease. Don’t let this deter you from opening your restaurant; just use it as a reason to be extremely careful. You quite literally cannot use too many resources to get the best lease terms. Hire an experienced attorney to look over any lease agreements and negotiate on your behalf.

If you need help finding a qualified attorney to help you negotiate a favorable lease, search lawyer listings on online legal service sites. In addition to document services, they all typically have a searchable index of attorneys and their specialties.

6. Get Permits & Insurance

To keep moving forward, you’ll need permits to authorize your business to operate and insurance to protect your business. Depending on the style of your restaurant and your location, the types of permits and insurance you need will vary.

Permits & Licenses

Restaurant permits and licenses fall into four categories:

  • Health & Safety: These are permits like food handlers certifications and a certificate of occupancy from your local fire safety authority.
  • Construction Permits: The scope of your building or renovation plans will determine what type of permits you need here. Some locations even require demolition permits, so be sure to check your local requirements.
  • Operational Permits: These types of licenses allow you to sell alcohol, as in a liquor license) or play copyrighted music (as in a music licensing permit).
  • Specialty Permits: These could be things like a permit for a valet stand or sidewalk seating.

Permit and licensing requirements vary by state, county, and sometimes by city. Check with your local health department, fire department, and local Secretary of State’s office to get a list of the required restaurant licenses and permits in your area. If you plan to renovate or build a location, you should also check with your local building department to inquire about permits. Some locations require a permit even for demolition, so check first to avoid fines.

If you need a lot of permits due to construction or renovations, look for a local permit expediting service. Expeditors are typically former building inspectors who know the ins and outs of the local permit processes. They can ensure you obtain all the necessary permits and get them as quickly (and cost-effectively) as possible.

Insurance Coverage

All businesses need liability in insurance, but restaurants have additional insurance considerations. Restaurants typically buy separate policies to protect against business-related losses, property damage, data breaches that compromise customer data, and injury to employees. If you staff delivery drivers, you will also need to think about a commercial automotive policy , and if you serve alcohol, a liquor liability policy is a must.

Restaurant-specific insurance policies may bundle some of these insurance coverages together in a blanket policy. Others may itemize each policy separately. The best way to ensure your business is covered is to work with an insurance broker that specializes in business. A broker familiar with restaurant operations is even better. Finding the best-fitting policies for your restaurant can take some time.

For more answers to insurance questions, see our guide to small business insurance coverage , and rankings of the best small business insurance companies .

You’re heading steadily toward opening. Now, it’s time to ensure that your space flows the way you need for your business. The best restaurant floorplans allow for the flow of people, products, and information. Your layout will naturally include spaces for your dream kitchen and dining room, but it also needs to include less flashy things like electrical outlets and floor drains.

Most restaurants set aside 40% to 60% of their entire space for the dining room and customer area. Kitchens are usually 30% of the total footprint, with half of that space dedicated to food preparation and the other half devoted to food storage, dishwashing, sanitation, and supply receiving. You’ll also need to lay out exactly where key equipment like refrigerators, dishwashers, cooking ranges, and sinks will be located, as that impacts your electrical and plumbing needs.

You can sketch your layout with simple pen and paper or use online drawing tools. Many furniture and equipment brands include some rudimentary free tools on their websites. If you use a point of sale (POS) to operate, you can also use the floorplan tools in that system to tinker with your dining room layout until it is perfect.

See our detailed guide to designing a restaurant floorplan for design inspiration and guidelines on how much space to allocate for various needs.

Renovations & Buildout

If you need to renovate your space or are constructing a new space, this is the time to do it. Restaurant renovations are complex, involving electrical, plumbing, ventilation, and gas line work. You’ll also need to adhere to many health, safety, and building codes. So any restaurant buildout (the industry term for kitting out a restaurant space) should include licensed construction professionals—general contractors, electricians, and plumbers.

Buildout can increase the time it takes to open, so be sure about your updates and renovations before you begin. A typical restaurant buildout takes from three months to a year, depending on the complexity of the project. Costs for buildout can run from $250,000 to more than $1 million.

Many leases will stipulate that any work be completed by licensed contractors. They may also require that these technicians list the landlord or property management company as an additional insured on their business insurance before beginning work.

8. Procure FF&E & Starting Inventory

With your floorplan finalized, it’s time to purchase furnishings, fixtures, and equipment (FF&E) and your starting inventory. Your equipment will include any cooking, refrigeration, and sanitation equipment that your space is missing (or that you want to upgrade). Equipment also includes tools like your POS hardware . Most restaurant owners also take this time to make software purchases for things like marketing, payroll management, or employee scheduling.

Furnishings are all your tables and chairs, and any small wares and tableware that you need for serving your customers. Depending on the level of renovations you performed, you could also consider specialty light fixtures and ceiling fans as part of your FF&E.

FF&E are all pieces that you own and that won’t damage the building when removed. So, your cooking range falls under the category of FF&E, but the gas and electrical lines that feed it are part of the building.

In addition to your equipment and software, this is also the time to secure your opening inventory. Since food and beverages are perishable, you don’t want to do this too far from your opening date. Start with the items with the longest shelf life, like bottled beverages and bulk dry goods.

See our guide to restaurant suppliers for advice on finding vendors and opening vendor accounts.

9. Hire & Train Staff

Most restaurants have two major categories of employees: managers and hourly staff. Some very small restaurants operate with hourly supervisors rather than salaried managers. Staff like line cooks , servers, and bartenders generally work part time and are paid hourly.

Hire Managers or Supervisors

Even if your restaurant is small, you may need additional managers to supplement the work you do as an owner. Depending on the type of restaurant you have and the role you play in the daily operation, the types of restaurant managers in the front and back of house you need will vary. Typically, managers in the back of house are some type of chef.

Word-of-mouth referrals from other restaurant owners are a great way to find restaurant managers with relevant experience. If you are located in a city with lots of restaurants, using industry-specific job sites like Culinary Agents and Poached Jobs can save you administrative time. In smaller markets with fewer hospitality professionals, a tool like Indeed’s resume search tool can be a great way to scan resumes for relevant experience.

Hire Hourly Staff

The types of restaurant staff you need will vary based on your restaurant’s style. The fastest way to find restaurant staff is to wallpaper the internet with open positions. Write job descriptions, settle on a salary range, and post your openings on job posting sites and social media channels. Encourage friends and family to share your social media posts as well.

You will get the most relevant applicants if your postings contain a detailed description of each job’s tasks. If the prospect of writing job descriptions for every role on your team sounds exhausting, look at the functions of your restaurant software. Some tools, like the Homebase scheduling app actually contain job description templates for the most common restaurant roles.

Train Staff

One of the major benefits that a new restaurant has over an existing one is the ability to focus on training. The weeks before your restaurant opening will be one of the few times in your restaurant’s lifespan that you are able to bring your entire staff together and get everyone on the same page.

A comprehensive staff training plan should include time to cover:

  • Skills training: Show your staff how you would like trays, plates, and glassware to be carried. Teach them your restaurant’s table settings and beverage recipes. Go over daily side work tasks to ensure everyone knows what is expected of them.
  • Menu knowledge: Have your management team write detailed guides about each dish, including common allergens. Include the same information for your beverage program.
  • Customer service procedures: Your staff should know the answers to common questions customers ask, like parking information, driving directions, and brief biographical information about the chef and owner. Make sure your team knows how you prefer to handle customer complaints.
  • Safety procedures: Everyone on your team should know where to find emergency exits and who to contact if an emergency arises. Beyond that, you should also cover basic, daily safety protocols like cash handling, opening and closing the restaurant, and how to safely work in the kitchen and bar areas.

You’ve been subtly marketing your restaurant since you started this process, as curious neighbors and vendors have likely been watching your location become busier with construction, staff arrival, and deliveries. In the month or weeks before you open, you should kick your marketing into high gear. Write a brief press release and announce your opening to local newspapers and news channels.

Buy ads in local papers, and schedule social media posts and ads to find customers where they are. Take the time to also create a user-friendly website with optimized online ordering (if you plan to offer that service).

Don’t forget your location itself. Those curious neighbors who have been watching your construction would love to see an eye-catching grand opening announcement in your front window. As you hang that sign, take a moment now to look back on all your work so far; you’ve made it to your grand opening, and that is something to celebrate.

See our guide to the best restaurant marketing software for ideas, inspiration, and tools for keeping your marketing organized.

Starting a restaurant takes a lot of administrative bandwidth. With all the numbers you need to keep in mind, supplies you need to order, and employees you need to pay, it can be impossible to stay on top of everything. Onboarding some smart software and technology partners can lighten your load.

From a restaurant supplier that helps you design a mouthwatering menu to a POS provider that transfers your menu to a POS screen and online ordering site, these are some of our top recommendations when you are opening a new restaurant.

Starting a Restaurant Frequently Asked Questions (FAQs)

How profitable is owning a restaurant.

A well-run restaurant generally earns between 3% and 10% profit (though most fall in the 3% to 5% range). Depending on the restaurant’s price point, that 3% to 10% could be $50,000 to $1 million. You’re unlikely to earn a million dollars in profit your first year in operation, but after years of operation, many of the top-performing independent restaurants in the US see $10 million to $40 million in annual sales; 3% to 10% of that is a substantial sum.

Is $10,000 enough to start a restaurant?

In most US cities, $10,000 is not enough to start a full-blown brick-and-mortar restaurant. That amount of money won’t cover the rent, permits, supply orders, and employee payroll that most restaurants must pay. If your ultimate goal is to start a restaurant, but you only have $10,000, consider starting a smaller-footprint food business. A home-based catering business or a cottage food business can both get started for $10,000. You can grow a customer base with your catering or cottage foods, then build toward opening a restaurant a year or two down the line.

What is the first step to opening a restaurant?

The first step to opening a restaurant is researching your market. If you open the 10th sandwich shop in a neighborhood, you’re unlikely to make the profit you need to stay open. So, really look at what businesses are successful in your area. Consider their menu prices, locations, and service style. Then try to mold your restaurant concept around the customers you see supporting other businesses. Starting with market research ensures that you will open a restaurant that already has a likely customer base. That’s the first step to restaurant success.

Opening a restaurant is thrilling but challenging. So remember to hydrate and celebrate the wins along the way. Restaurants are among the most complex businesses to open, but—in my experience—one of the most rewarding to run. There are a lot of moving pieces to opening a restaurant, but if you stay focused, you can get your restaurant open in six to 12 months. A solid business plan helps you raise the funds you need, and partnering with software providers ensures you have the tools to support the customers and employees of your dreams.

About the Author

Mary King

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Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

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Restaurant Business Plan Template

Written by Dave Lavinsky

how-to-start-a-restaurant (1)

If you want to start a restaurant or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their restaurants. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a restaurant business plan step-by-step so you can create your restaurant’s business plan today.

Download our Ultimate Restaurant Business Plan Template here >

What Is a Restaurant Business Plan?

A restaurant business plan provides a snapshot of your restaurant business as it stands today, and lays out your projected growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research, information about your target market, and a sample menu to support your winning restaurant business plan.

Why You Need a Restaurant Business Plan

If you’re looking to start a restaurant or grow the existing restaurant you need a business plan. A restaurant business plan will help you secure funding, if needed, and plan out the growth of your restaurant in order to improve your chances of success. Your restaurant business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Restaurants

With regards to funding, the main sources of funding for a restaurant are bank loans and angel investors. With regards to bank loans, banks will want to review your restaurant business plan and gain confidence that you will be able to repay your loan and interest.

To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional restaurant business plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a restaurant is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Private equity groups are also a good source of funding for restaurant chains looking to expand further.

Finish Your Business Plan Today!

How to write a restaurant business plan.

Use the following restaurant business plan template which includes the 10 key elements for how to write a restaurant business plan that will help you start, grow, and/or secure funding for your business.

Executive Summary

Your executive summary provides an introduction to your restaurant business plan, but it is normally the last section you write because it provides a summary of each key section of your business plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of restaurant business you are operating and the status; for example, are you a startup, do you have a restaurant that you would like to grow, or are you operating a chain of restaurants?

Next, provide an overview of each of the subsequent sections of your business plan. For example, give a brief overview of the restaurant industry. Discuss the type of restaurant you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer a financial analysis of your business.

Company Overview

In your company analysis, you will provide a brief description of the type of restaurant you are operating.

For example, are you writing a small restaurant business plan or a business plan for a restaurant franchise. Further, you might operate one of the following types:

  • Fine Dining : characterized by the fancy decor, a dress code, and high prices
  • Casual Dining : offers waiter/waitress service in a nice (but not overly fancy) atmosphere with moderate prices
  • Fast Casual : characterized by quality food (close to the quality of casual dining) but no waiter/waitress service in an accessible atmosphere
  • Fast Food : quick service style provided at the counter or via a drive-through. Lowest quality food and lowest prices
  • Steak Restaurant : focuses on steak entrees and is usually a higher priced and fancier restaurant
  • Buffet Restaurant : may or may not offer waiter/waitress service. Patrons serve themselves from buffet food selection
  • Ethnic Restaurant : focuses on a specific ethnic cuisine such as Indian food, Mexican food, or Moroccan cuisine.

Within these types of restaurants, there are also ethnic food specialties such as American, Italian, Japanese, Chinese, Indian, etc.

In addition to explaining the type of restaurant you operate, the Company Analysis section of your restaurant business plan needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • Your mission statement and how it connects to your restaurant’s brand.
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new restaurant openings, etc.
  • Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, also called a Market Analysis, you need to provide a market overview and an overview of the industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the restaurant industry educates you. It helps you understand the target market in which you are operating.

Secondly, research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards speedy restaurant services, it would be helpful to ensure your business plan calls for take-out or other quick-service options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your business plan, you achieve just that.

The following questions should be answered in the industry analysis section of your restaurant business plan:

  • How big is the restaurant business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your restaurant? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your restaurant business plan must detail the customer base or target market you serve and/or expect to serve.

The following are examples of customer segments: business executives, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of restaurant you operate. Clearly, baby boomers would want a different atmosphere, pricing and sample menu options, and would respond to different marketing promotions than teens.

Try to break out your customers in terms of their demographic and psychographic profiles. With regards to diner demographics, include a discussion of the ages, genders, locations, and average income levels of the new customers you seek to serve. Because most restaurants primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. This should also include how your customers choose where they should eat, their dining habits, and how much they are willing to spend on a meal.

The answers to the following questions should be included in your customer analysis:

  • Who is your target market?
  • What are their needs and wants?
  • How do they make dining decisions?
  • What motivates them to choose one restaurant over another?

The more you can understand and define these needs, the better you will do in attracting and building customer loyalty.

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

Competitive Analysis

This competitive research should help you identify the direct and indirect competitors that your business faces and then focus on the latter.

Direct competitors are other restaurants.

Indirect competitors are other options that customers have to purchase from you that aren’t directly competing. This includes restaurants, supermarkets, and customers preparing dishes for themselves at home. You need to mention such competition to show you understand that not everyone frequents a restaurant each day.

With regards to direct competition, you want to detail the other restaurants with which you compete. Your greatest competitors will be restaurants located very close to your specific location, who are of the same type (e.g., fine dining, casual dining, etc.) and who offer the same cuisine (Japanese, Italian, etc.).

For each such competitor, provide an overview of the other businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of repeat customers do they serve?
  • What menu items do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the existing customers’ perspective. And don’t hesitate to find out this information from customers by reviewing your competitors’ Yelp listings and other review pages.

The final part of this section is to document your areas of competitive advantage. For example:

  • Will you provide superior food items?
  • Will you provide menu items that your competitors don’t offer?
  • Will you make it easier or faster for customers to acquire your meals?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about your unique selling points that will help you outperform your competition and document them in this section of your business plan.

    Finish Your Business Plan Today!

Marketing plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a restaurant business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of restaurant that you documented in your Company Analysis. Then, detail the specific menu items you offer/will offer.

Price : Document the prices. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your restaurant. Perform a location analysis and mention how the location will impact your success. For example, is your restaurant located next to a heavily populated office building, or gym? Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate food trucks, detail the locations where the trucks will operate.

Promotions : the final part of your restaurant marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your restaurant’s front store extra appealing to attract passing customers
  • Search engine marketing and optimization
  • Social media posting/advertising
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Local radio advertising
  • Banner ads at local venues

Operations Plan

While the earlier sections of your restaurant business plan explained your goals, your operational plan describes how you will meet them.

This section of your restaurant business plan should have two key elements as follows:

  • Everyday short-term processes include all of the tasks involved in running your restaurant such as serving customers, procuring supplies, keeping the restaurant clean, etc.
  • Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your restaurant’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in the restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience operating restaurants and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Pro-Forma Profit & Loss Statement / Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows how much revenue you expect to earn or have earned, and then subtracts your costs to show your actual or projected profit.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Pro-Forma Balance Sheets

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

For instance, if you spend $250,000 on building out your restaurant, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Pro-Forma Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for ingredients, supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a restaurant:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like stoves, refrigerators, blenders
  • Cost of ingredients and maintaining an adequate amount of supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections, detailed cost analysis and/or break-even analysis in the appendix of your business plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint, location lease, or initial menu design.

Taking the time to write your own restaurant business plan for your business is a worthwhile endeavor. It will help you communicate your ideas and provide potential investors with the information they need to make an informed decision about investing in your restaurant.

A well-crafted business plan will also give you a road map for growing your business and achieving your long-term goals. So, while it may take some time to put together, it will be well worth the effort in the end.

If you follow the restaurant business plan template above, by the time you are done, you will truly be an expert. You will really understand the restaurant business, your competition, and your existing customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful restaurant concept.

Want more tips? Check out our related articles:

  • How to Start a Restaurant
  • Restaurant Startup Costs: How Much Does It Cost To Start a Restaurant?
  • How To Write a Restaurant Marketing Plan + Template & Examples
  • How To Get Funding To Start and/or Grow Your Restaurant

Restaurant Business Plan Template FAQs

What is the easiest way to complete my restaurant business plan.

Growthink’s Ultimate Restaurant Business Plan Template allows you to quickly and easily complete your restaurant business plan.

Where Can I Download a Free Restaurant Business Plan PDF?

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

Where Can I Find a Small Restaurant Business Plan PDF?

Our small restaurant business plan PDF is a free resource to to help you get started on your own small restaurant business plan.

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

OR, Let Us Develop Your Plan For You

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Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide for Small Businesses

Restaurant Business Plans

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Small Restaurant Business Plan

Bistro Locale offers an intimate and authentic dining experience by serving fresh, seasonal dishes inspired by local flavors and ingredients. With its warm, inviting atmosphere and exceptional customer service, it provides a unique destination for food lovers seeking a local, high-quality dining experience.

You’re a professional chef in the making. You have delicious recipes, a killer drink menu, and even a delicious secret sauce all ready to go, but what about your business plan? You can have the best food and dining experience in the world, but without a good business plan in place, your restaurant may be out of business before you ever fire up the oven.

Check out our library of sample restaurant business plans to be sure you have everything in order to confidently take your first order.

You can also read our comprehensive guide on how to write a small restaurant business plan .

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

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Small Restaurant Business Plan PDF [With Free Sample!]

Sick of vague advice on writing a restaurant business plan?

Struggling to make all the pieces come together?

This guide details exactly what to include in each section of your plan, with a downloadable template PDF and real sample plans to simplify the process.

You’ll have the comprehensive roadmap to launch your restaurant right.

Table of Contents

Key Sections of a Small Restaurant Business Plan

A business plan serves as your roadmap as you establish and grow your restaurant.

While you can mold it to your specifications, certain components should be present.

Here are some of the major sections to incorporate.

Executive Summary

The executive summary outlines your business goals and how you plan to achieve them. Even though it appears first, it’s often easiest to write this after completing the rest of your plan.

Aim for a 1-2 page overview highlighting your restaurant concept, target market, competition, management team, and projected financials.

  • Open with your restaurant concept in one sentence – “Rosie’s Diner is a 50’s themed diner serving classic American comfort food in downtown Springfield.”
  • Include the exact address or intersection if you have a location selected.
  • Specify your main offerings rather than just cuisine type – “The menu will feature items like juicy burgers, hearty meatloaf, flaky pot pies, thick milkshakes, and fresh apple pie.”
  • Share total estimated startup costs based on contractor quotes and equipment sourcing – “Total startup costs are projected at $550,000, including $350,000 for buildout and renovations, $125,000 for key kitchen equipment, $50,000 initial food and beverage inventory, and $25,000 for furnishings and decor.”
  • Note specific experience that qualifies you to launch this restaurant, like “The owner has 10 years experience managing diners in the region and a degree in Culinary Arts from ABC Institute.”
  • Give concrete first-year financial goals – “The diner is projected to generate $1.2M in revenue and $150k in profit in Year 1 with an average of 250 covers daily at an average check of $18 per person.”
  • List strategic partnerships or vendors secured like Sysco for ingredients or Groupon for pre-opening deals.

This section is critical for engaging potential investors.

“There is a growing demand for healthy, organic fare with vegan, gluten-free, and paleo options. As Julie Morris, author of Superfood Kitchen, notes, ‘Diners today prioritize fresh, nutrient-dense ingredients. Restaurants need to adapt menus to cater to these preferences.'”

Company Description

Your company description provides an overview of key details of your business. Include information like:

  • Outline ownership structure – “Rosie’s Diner is registered as an LLC in the state of Oregon with John Smith as 51% owner and Jane Doe as 49% owner.”
  • Note years of relevant experience such as “John has 15 years experience managing diners in Portland and Jane has 10 years as a head cook for retro-style cafes.”
  • Share mission statement or brand ethos – “Rosie’s mission is to provide fresh, wholesome comfort food with quick friendly service in a charming retro diner atmosphere.”
  • If purchasing an existing restaurant, detail transfer terms – “Rosie’s is purchasing Scramblers Diner for $300k with inventory and select equipment included. The current owner will transfer all licenses and permits to continue uninterrupted operation.”
  • For growth goals, get specific – “We plan to expand Rosie’s to a second location in Eugene in 2025 once the Portland location is well-established. Future locations will maintain the core menu with some localized specials.”
  • Note any community initiatives – “Rosie’s will partner with the Springfield Food Bank, donating 10% of weekly pie sales and excess food inventory to support our neighbors in need.”
  • If relevant, provide a brief history – “Rosie’s founder Jane Doe opened the first Rosie’s on Route 66 in Arizona in 2000 before relocating to Oregon. Her passion for quality diner fare sparked this new endeavor.”

This helps readers understand the foundational elements of your operations.

Market Analysis

A market analysis examines your business environment. The goal is to determine if there’s room for your restaurant to thrive.

Research your geography and demographics to assess demand. Study competitors to see how you can differentiate. Interview prospective customers to gauge interest in your concept.

The data collected guides your direction by revealing target audiences, pricing ability, busy hours, and similar insights. Omitting this step means operating blindly.

  • Pull demographics for a 3-mile radius showing 75k population, median income of $62k, and competitors like Betty’s Cafe, AJ’s Diner, and Pancake Palace.
  • Highlight market research insights like “82% of surveyed residents visit a diner 2+ times per month and 76% want more milkshake options.”
  • Note market gaps like no diners in the area open after 8 p.m. or with pie shakes.

“Our market research and concept validation interviews indicate customers feel there are not enough family-friendly Italian restaurants in the area. As Marco Bruno, owner of Bruno’s Bistro shares, ‘Families are looking for authentic Italian cuisine with great service but also some entertainment to keep kids engaged. There’s room here for a restaurant catering to that niche.'”

Management Team

Your business plan should detail how you and your team are qualified to launch and manage the restaurant. Highlight experience and training as applicable.

If you need to bring on more partners or employees, outline those roles and ideal qualifications. Investors want to partner with those demonstrating expertise for restaurant success.

  • List owners’ names, roles, and 2-3 bullet point bios conveying experience.
  • Specify key hires needed like a head chef with 5+ years diner experience and front-of-house manager.
  • If you lack experience in any area, list qualified mentors, coaches, or advisors you will partner with.

“Having an experienced chef at the helm is critical for new restaurants to produce consistent, high-quality cuisine. As chef David Burke advises, ‘Hire a head chef with leadership skills, creativity, and a proven track record of succeeding in the kitchen. They set the tone for the entire operation.'”

Products and Services

Clearly describe your restaurant concept and offerings. Share your theme or cuisine type, bar options, price points, special menus, etc.

If you’ll provide catering or private event services, have dedicated sections on those as well. Thoroughly explain how you’ll execute your vision.

  • Give a sample menu with specific items like “Classic Cheeseburger – $12”, “Chicken Pot Pie – $15”, “Vanilla Milkshake – $6”
  • List sides, beverages, desserts, kids and seniors menus.
  • Describe specials like Friday Fish Fry, Sat. Prime Rib, and Sunday Brunch.
  • Note catering offerings and private event spaces if applicable.

Marketing Plan

A marketing plan depicts how you’ll promote your restaurant to ideal customers. Identify strategies for advertising, social media engagement, specials, loyalty programs, and any partnerships.

Set realistic budgets for each initiative based on local marketing costs and your financial situation.

  • Define promotional strategies like social media ads, partnerships with local hotels, direct mail coupons, and PR outreach to local media.
  • Set specific goals like getting 10k Instagram followers in Year 1 and running 2 ads per platform per week.
  • Allocate budgets like $3k/mo for social ads, $1.5k for branded merchandise, and $2k for signage.

“Social media is integral for restaurants today to reach and engage customers. Sara Brito, CEO of Brito Social Media Consulting says, ‘8 out of 10 diners discover new restaurants on social media. Small businesses must dedicate 15-20% of marketing budgets to digital platforms for success.'”

Operations Plan

Your operations plan addresses the logistics of running your restaurant. Detail day-to-day management duties, staffing requirements, vendors/suppliers, technology needs, and general policies.

This helps you strategize for smooth operations while giving investors confidence in your preparation level.

  • Outline systems for inventory, ordering, payment processing, scheduling, and customer management.
  • Estimate staffing needs like 2 cooks and 4 servers on weekdays and add roles for weekends.
  • List specific equipment and vendors secured like POS systems, food suppliers, and beverage distributors.

Financial Plan

The financial plan includes startup costs, operating expenses, sales projections, and funding needs. Breakdown costs associated with buildout, equipment, inventory, payroll, rent, etc.

Determine the financing you need to launch and operate until revenue is steady. Share expected profit margins and repayment plans if you have debt.

  • Breakdown costs for buildout, equipment, inventory, marketing, labor, rent, etc with real estimates.
  • Project monthly and annual sales and profit goals based on market research and capacity.
  • Share specific financing terms like an SBA loan of $250k through ABC Bank, repaid over 10 years at 5% interest.

The financials demonstrate the viability and profit potential of your business.

An appendix adds supplementary materials for context.

This can include photos/drawings of your space, menus, licenses/permits, owner resumes , market research data, letters of intent from suppliers, and more.

References build credibility and allow a deeper understanding of your operations.

Download the Small Restaurant Business Plan PDF

To help you get started, you can download a PDF template of a sample business plan tailored for a small restaurant.

It contains placeholders for each section along with explanatory notes on what to include. You can easily customize it by inputting your text and numbers.

Having an example is useful for structuring your document properly. It also ensures you cover all the fundamental components.

Sample Small Restaurant Business Plans

To further illustrate effective business plans, below are excerpts from two restaurant examples:

Example 1: Natalie’s Cafe

“This breakfast and lunch cafe highlights the owner’s experience operating popular restaurants in town.

Their market research showed an unmet need for healthier options in the area.

The marketing plan emphasizes social media engagement and partnerships with local gyms for promotions.”

  • This plan excels at clearly conveying the cafe’s unique value proposition of healthy, locally sourced menu options. The market research supports the unmet demand for this positioning.
  • The marketing plan is comprehensive with a good mix of partnerships, digital campaigns, and promotions to attract their target customers. The budget allocation seems reasonable.
  • While they outline a 3-year growth plan, more detail on future locations, timeline, and financial projections would strengthen it. Plans to scale need concrete facts.

Example 2: Rico’s Pizzeria

“Rico has years of experience as a head chef for Italian restaurants in the city.

His business plan focuses on affordably priced pizza, pasta, and salads in a family-friendly setting.

He has negotiated extensively with vendors to keep food costs low.”

  • Rico has clearly leveraged his extensive restaurant experience into the operations plan, especially regarding vendor relationships, inventory management, and cost control. This establishes credibility.
  • The menu and price points are well-researched to appeal to families in the area based on competitors and customer interviews.
  • The financial plan could be more robust with 3-5 year projections and funding requirements for growth. Investors will want to see the longer-term vision.
  • Including photos of menu items and restaurant, design will help bring the concept to life since there is no operating history.

Perusing real samples helps you identify components to model for your own restaurant’s success. Analyze plans in your cuisine niche or area to make the biggest impact.

Next Steps After Completing Your Small Restaurant Business Plan

With your business plan complete, here are the next steps to take:

  • Finalize your budget and financing to cover all start-up expenses.
  • Start scouting locations and negotiate lease terms if needed.
  • Obtain all required licenses, permits, and legal documents.
  • Begin designing and outfitting your restaurant space.
  • Start the hiring process to build your team.
  • Develop your website, online profiles, and pre-opening promotions.
  • Connect with vendors and finalize supplier logistics.
  • Host soft openings or a VIP launch event.
  • Continually review your plan and modify it as needed.

As you begin your entrepreneurial endeavor, let this sample plan and guide set you up for success.

With grit and perseverance, your dream of owning a thriving restaurant can become a reality.

Here’s to bringing your culinary vision to life!

Related Posts:

  • Small Scale Poultry Business Plan PDF
  • Smoke Shop Business Plan PDF
  • Small Bakery Business Plan PDF

FAQs On Small Restaurant Business Plan

Can you start a small restaurant with $10,000 dollars.

Yes, it’s possible to start a small restaurant with $10,000, but it would require finding an inexpensive location, buying used equipment, and starting with a limited menu.

How Much Money Should You Have to Open a Small Restaurant?

You should plan to have at least $50,000-$100,000 saved to open a small restaurant once you factor in rent, renovations, equipment, inventory, licensing, and operating expenses for the first few months.

What Do You Need for a Restaurant Business Plan?

A restaurant business plan should include a concept summary, market analysis, management team, menu and pricing, financial projections, marketing strategy, operations plan, and funding requirements.

Is Restaurant a Profitable Business?

Operating a successful, profitable restaurant requires experience, solid business planning, efficient operations, quality food, good marketing, and the ability to adapt to challenges.

How Many Pages Should a Restaurant Business Plan Be?

A restaurant business plan should be around 15-30 pages long, covering all key areas like the concept, market, operations, management, and financial projections in sufficient detail.

Rahul is a former medical student turned business blogger who founded NamesPilot to share his passion for entrepreneurship. After successfully launching several online ventures, he now runs his blog full-time, providing tips and insights to help others build their own businesses.

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COMMENTS

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  3. How to write a restaurant business plan

    A small restaurant business plan is the roadmap you use to open a successful spot. As a first step to creating yours, ask your friends and colleagues to share restaurant business plan examples. Their restaurant business plan samples can inspire yours. Once you've studied those examples, it's time to start writing your own.

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    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.

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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.

  8. How to Write a Restaurant Business Plan: Complete Guide

    Use this template to create a complete, clear and solid business plan that get you funded. Let's dive in! 1. Restaurant Executive Summary. The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors. If the information you provide here is not concise, informative, and ...

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    Here you go, download our free restaurant business plan pdf, and start writing. This intuitive, modern, and investment-ready template is designed specifically for restaurants. It includes step-by-step instructions & examples to help in creating your own restaurant business plan.

  10. Writing a Business Plan for a Restaurant

    START YOUR LLC. Starts at $0 + state fees and only takes 5-10 minutes. Excellent 13,345 reviews. Starting a restaurant is an exciting venture, but it requires careful planning to ensure its success. A well-crafted restaurant business plan serves as a roadmap, outlining your goals, strategies, and financial projections.

  11. Restaurant Business Plan: What To Include, Plus 8 Examples

    5) Menu. 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.

  12. How to Open a Restaurant: 11 Steps to Success

    1. Choose a Restaurant Concept A restaurant concept is the central idea or theme that defines your restaurant. It serves as the foundation for what your business will be and should be reflected in every aspect of your restaurant, from the decor to the menu to the overall ambiance.

  13. How to Start a Restaurant in 10 Steps

    These are the basic steps you'll follow when opening a restaurant: 1. Research Your Market & Consider Your Options Your first step to starting a restaurant is market research.

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    This section of your restaurant business plan should have two key elements as follows: Everyday short-term processes include all of the tasks involved in running your restaurant such as serving customers, procuring supplies, keeping the restaurant clean, etc. Long-term goals are the milestones you hope to achieve.

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    How to Open a Small Restaurant: Starting a Small Restaurant Business Steps Marketing The Guide to Restaurant Social Media Marketing [+ 14 Examples] Operations Essential Bar Equipment List: Equipment Needed to Start a Bar Read more Accounting State of Broccli Prices: Wholesale Restaurant Food Cost Trends Accounting

  16. How to Write a Restaurant Business Plan

    A restaurant business plan is the foundation when starting a new restaurant, whether you're opening a franchise or a small family-owned restaurant. Your business plan will act as a roadmap for starting your restaurant: it can help you get loans from financial institutions, and it will be a point of reference when forecasting sales.

  17. Writing A Restaurant Business Plan

    Financial Plan. The financial plan is the most critical part of your business plan. It should clearly show how much money you need to start, run and grow your restaurant. You will need to show a ...

  18. Restaurant Business Plan Examples

    Small Restaurant Business Plan. Bistro Locale offers an intimate and authentic dining experience by serving fresh, seasonal dishes inspired by local flavors and ingredients. With its warm, inviting atmosphere and exceptional customer service, it provides a unique destination for food lovers seeking a local, high-quality dining experience.

  19. Small Restaurant Business Plan PDF [With Free Sample!]

    Give concrete first-year financial goals - "The diner is projected to generate $1.2M in revenue and $150k in profit in Year 1 with an average of 250 covers daily at an average check of $18 per person." List strategic partnerships or vendors secured like Sysco for ingredients or Groupon for pre-opening deals.

  20. KAMPANIYA, Moscow

    Kampaniya, Moscow: See 7 unbiased reviews of Kampaniya, rated 4.5 of 5 on Tripadvisor and ranked #3,960 of 15,819 restaurants in Moscow.

  21. LA PIAZZA, Moscow

    La Piazza. Claimed. Review. Save. Share. 30 reviews #2,149 of 11,093 Restaurants in Moscow $$ - $$$ Italian Vegetarian Friendly. Admirala Lazareva St., 24, Moscow 117042 Russia +7 496 787-26-15 + Add website + Add hours Improve this listing.

  22. BAR 1980, Moscow

    5 reviews #3,610 of 11,086 Restaurants in Moscow $ European Russian. Yuzhnobutovskaya St., 117, Moscow 117042 Russia +7 499 110-19-80 Website Menu. Open now : 5:00 PM - 05:00 AM. Improve this listing. See all (71) There aren't enough food, service, value or atmosphere ratings for Bar 1980, Russia yet. Be one of the first to write a review!

  23. Prisma Business Center

    Adres: BOSB Mermerciler San. Sitesi 4. Cadde No: 7 34520, Beylikdüzü / İstanbul / TÜRKİYE