Step By Step Guide To Write A Bar Business Plan
Opening a new bar requires grit and determination - as well as a fantastic bar business plan to act as your roadmap. This document can determine the future success of your new venture, so it’s essential to make it as comprehensive as possible.
But for first-time bar owners, figuring out where to start can be challenging. Our step-by-step guide to writing a business plan will help you pinpoint the finer details to consider when building a thriving bar business.
How to Write a Bar Business Plan in 9 Steps
1. bar overview.
The first step in writing a bar business plan is to establish an overview of the type of bar you want to open. You need a concept and location to shape your business model and create an executive summary for your new venture:
One of the defining aspects of your establishment is its concept and theme, which you’ll need to describe clearly in your business plan. Whether it’s a simple sports bar, speakeasy, or high-end nightclub, have a fully developed idea of what your venue will be and what purpose it will serve.
You also need to consider how to meet market needs. If you’re following trending concepts, you’ll know that roof-top bars and lounges are popular now. Or, perhaps you want your venue to be an activity-based bar that offers an art gallery, board games, or mini-golf?
Part of your business plan also includes setting your mission statement and goals. These should outline your vision and will influence who invests in your bar. Your mission statement should be a comprehensive statement that details what sets you apart from other bars and should include your company’s values.
It’s important to link your statement to your business concept. You should consider how your values and goals are influenced by what makes your bar unique - including your overall purpose.
Next, you need to propose a location for your bar. Venues close to stores, shopping, centers, and tourist attractions, typically get good visibility and attract a lot of foot traffic. Because of the number of people moving through these areas daily, they also usually offer a decent level of security for your customers.
Another consideration for location is to avoid suburban areas where neighbors might lodge noise complaints. Should this happen, it can mean regulations stipulate earlier closing times for your venue so as not to disturb the peace.
Finally, look for a space where there’s low competition, and your business can shine. There are plenty of strips crowded with bars and nightclubs. While these might attract a decent amount of foot traffic, you’ll need to work much harder to draw people into your place if one establishment has already made a name for itself.
For this reason, aim to secure a spot with little competition. It could mean having a unique concept bar that overshadows the competition. Or it could mean selecting a space where your type of bar doesn’t yet exist.
Ease of Accessibility
Potential customers need to be able to access your bar easily, or they will go elsewhere. They might drive, take public transport, or use a ridesharing company to travel to your venue. It’s up to you to ensure there are ways and means to get them conveniently to the front door.
Here, you should be looking for a venue where you can offer parking to your patrons. It should also be accessible to ride-hailing services and close to public transport.
2. Customer Overview
No bar establishment would be successful without its customers. As part of your bar business plan, include a profile of the type of customer you hope to attract. Consider who your target market is and how it aligns with your bar concept.
You should also outline your demographic's age, income, and interests. You’ll need this information later when developing marketing strategies for your business.
3. Management Overview
The next step in your bar business plan is building a team structure. Your crafty bar concept requires talented people to execute it properly.
Your bartenders are the face of your establishment. Essentially, they can make or break your customer’s impression of your venue. When going through the hiring process, you’ll need to consider each individual’s personality, qualifications, experience, and skills.
Ideally, you want at least one experienced bartender who knows the ropes and can help set up operations, deal with bar management, and train the team. They will also be able to help streamline any teething issues that come up as a result of starting a new business.
From the get-go, outline your bartending teams’ possible responsibilities and the duties they’ll need to undertake. This can help set expectations ahead of advertising jobs and interviewing potential candidates.
Bar-backs don’t need as much experience as bartenders or servers as they aren’t in the customer eye as much. But they must be willing and eager to learn. They are essential to keeping everything running smoothly and work closely with the bartender as an assistant.
For this reason, they need a solid foundational knowledge of the industry, ingredients, and barware in general.
Depending on your business concept and operational model, you may or may not need to employ servers. Some high-end venues have servers to reduce the crowd around the bar and deliver drinks to the table. Additionally, you’ll need to hire servers if you offer any food.
When building out your staffing plan, you’ll need to determine where your establishment lands with that requirement. Make a note here to look for bar industry candidates with alcohol training who know how to serve alcohol safely and legally.
4. Drinks Menu Plan
Your drinks menu is your bar’s product. To be successful, it’s essential to get this offering right.
While your beverage list will undoubtedly change over time, don’t neglect to include a sample menu in your business plan. This will give potential investors an idea of what’s in store and possibly help you secure funding.
Your drinks menu is the selling point of your bar business and the star of the show. If you can excite and entice patrons with promises of wonderful flavors, you’ll be onto a gold mine.
So, it’s important to include product descriptions in your menu, particularly for signature drinks. Each listing should detail the ingredients of individual drinks, any garnishes they may come with, and add-ons your customers can choose from.
A successful bar is only as strong as its product. So, aligning your drinks with your bar’s brand and concept is important. Get together with a mixologist to create one or several signature drinks that will be uniquely your own. Give these drinks names that play to the overall theme of your business.
Many establishments lean on particular products as their claim to fame. For example, you might want to be known as a French wine bistro, local brewery, or craft cocktail spot. Decide what you wish your unique story to be and reflect this in your plan for product sourcing.
Of course, sourcing locally is the most sustainable way to go. You can also build relationships with vendors in your community, which can help bring people into your venue.
It’s essential to do your research and stay abreast of industry trends. Note what these are in your business plan, as this will help keep customers walking through your doors.
For example, one of the most popular cocktail trends in the bar scene is smoke-infused or smoked cocktails. Some mixologists may also use smoke bubbles to infuse the cocktail with a smoky aroma. This trend has gained fame in the last few years and adds a new twist to the cocktail-drinking experience.
Small Food Menu (Small Bites)
Food and beverages go hand in hand. If you plan a small menu with, say, tapas or easy eats, you can increase your revenue. It will prevent your guests from leaving to find something to eat.
Suppose you don’t want the hassle of food storage and preparation. In that case, consider formulating a partnership with a local eatery or small food business that can deliver a menu of select freshly-made items to your establishment.
It’s key to plan out your business licenses carefully. If you don’t have the right ones in place, you won’t be able to operate.
When putting together your bar business plan, it’s important to research whether you need a tavern license. It’s a government-issued license for restaurants, bars, or businesses with more than 50% liquor sales.
Beer and Wine License
If you’re planning on starting a beerhouse or wine lounge, you may only need to apply for a beer and wine license. This will restrict your sales to wine and malt beverages, as you won’t be able to sell hard liquors like spirits. Whether you need to apply for this license depends on your bar's concept.
Health/Food Service License
With a small food menu, you’ll likely need to note on your restaurant and bar business plan to apply for a food service license. It’s a requirement to serve any type of food within your establishment. To obtain a food service license, you’ll need to ensure that your bar follows strict rules and regulations laid out by the U.S. Food and Drug Administration .
Music is one of the key elements of creating ambiance in a venue. But did you know that streaming music from your digital subscription with Spotify or Deezer is not actually operating within the law? This is true even if you’re playing music through a TV or radio.
The right way to go about this is to pay a Performance Rights Organization (PRO) or music service that will send royalties to the relevant artists. For the most part, this doesn’t apply to bands or performers who play live at your venue.
6. Market Research
Performing market research as part of your bar business plan is key to understanding your opportunities and how to capitalize on them.
Part of your research should be to determine the market size you can potentially snag. Look at other bars already operating in the area, consider the industry as a whole, and determine what trends are driving it forward.
What needs will your bar solve for your target market? You can find out who they are and what they want by considering the local neighborhood and bar type.
It’s also an idea to look at census data to see how many potential customers within a certain demographic live within a reachable radius of your proposed location.
Market Share and Price Point
When doing your market analysis, consider similar bar businesses that have come before you. What do their successes and failures look like? Why did they crash and burn, or soar to new heights? Take these lessons and figure out how to apply them so your business can succeed.
Furthermore, what will your entry into the market mean for the local community? Are you creating new job opportunities? Or are you going to bring in an unruly crowd of patrons they hope to avoid? Knowing this information will help you be accepted and create connections rather than catastrophes.
Lastly, consider what your ‘competitors’ or other similar industry businesses are charging for their drinks and services. Run a competitive analysis in the area to determine your potential price point and how you can stand out.
7. Bar Marketing
Utilizing a marketing plan in the right way helps you take measured steps to get your establishment in front of potential customers. Here are the strategies to get started:
Create a Brand
The key to starting a successful business - and keeping it open - is to create a memorable brand identity. Your toolbox for promoting your brand should include your logo, colors, and ‘personality.’ Use these in a way that becomes synonymous with your bar, no matter where people interact with it.
Besides developing your brand identity, consider the channels you can market on to attract customers. At the very least, it should include your social channels, website, and media influencers.
8. Other Avenues to Increase Revenue
Besides being a bar and welcoming guests who come in with reservations or foot traffic, there are other avenues to increase your revenue.
Hosting events such as karaoke nights, wine tastings, or live music is an excellent way to attract larger crowds to your bar. You are guaranteed certain sales, can charge a cover fee, and get new people walking through the door.
If you go this route, we recommend using event management software to keep everything on track and work effortlessly with your team.
It’s no surprise that all businesses go through an ebb and flow of customer traffic. A great way to increase cash flow during slower periods is to introduce ideas like drink specials and happy hour discounts.
When you’re writing up a business plan, don’t forget to brainstorm ideas for a pre-opening promotion as a way to test the market. This can be as simple as a soft launch or as elaborate as a grand-opening celebration.
An important aspect of your business plan is to outline your potential start-up costs. These, along with the costs of day-to-day business operations, and financial projections, will attract or deter potential investors.
Your business plan should also highlight possible funding options like loans and investment opportunities you have available. Additionally, you’ll need to draw up a break-even analysis to determine how much revenue it will take to turn profits.
Realizing your dream of owning the hottest bar in town starts with a great business plan. It will need to cover everything from your mission statement to your concept and drinks menu. This will help you build a sturdy management team, hire great employees, and attract people to your venue.
Want to know more about Perfect Venue for event management? Try it free to find out how it can be a fit for your new business.
Have thoughts on the article? Feel free to email us at [email protected] - we'd love to hear from you!
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An easy guide to writing a bar business plan
Behind every great bar is a great bartender. Behind them, is a bar business plan that sets your establishment up for a successful launch and long-term success. Whether you’re setting out to open your own spot or expanding into a new neighborhood with another location, your first step is laying out your plan. An effective bar restaurant business plan covers everything from financial goals to local business marketing strategies , all detailed in this 6-step guide.
1. Executive summary
A well-constructed bar business plan can be your roadmap, helping guide and establish your business’s operations and reputation. Not only is it an essential document if you’re raising funds, but it’s also a helpful way to organize thoughts and plans for yourself and to share them with employees.
Start every business plan with a summary to hook the reader to learn more about your company and your proposal. Think of it a little like a sales pitch for your bar, and a preview of everything you lay out inside your business plan. Be sure to include:
- Mission statement – Be both ambitious and realistic with how you position yourself and your bar with a mission that answers the question, “who are you and what do you do?” This should touch on why you’re opening this business and what you hope to accomplish in doing so.
- Concept – Whether you picture your bar as a high-end cocktail lounge or a family-friendly brewery, share what will make your place unique. Get specific on how it will compete in the neighborhood you’re opening in, touching on the local demographic and other establishments.
- Operations – Briefly summarize how your business will function, whether you’ll be open late, serving food, or offering a retail selection. Detail the general structure of owners, managers, and employees.
- Value propositions - Highlight the value of your bar and what sets it apart from others in the area. Turning her food truck Yolos into a brick-and-mortar location, in Amarillo, TX, restaurant owner Yolanda Grazier offers an escape for the local lunch crowd: “We're really hoping to bring a good place where people are comfortable to come and sit down, enjoy a meal with their coworkers, [and] get a little rest and relaxation before they go back to work.”
You can also include your experience, industry trends, and more about the local market to show how your neighborhood bar will meet your goals.
2. Location and design
Your bar’s physical location, inside and out, is important for business and your business plan. Use this section to connect your location to how it will influence your bar’s success. It should be clear to potential investors that you’ve done your research and see what will make it special based on the neighborhood it’s in. Share details on:
- Access to public transit – An accessible location near a bus or metro stop will make it easier for customers to come and go from your bar safely.
- Neighborhood – Location may influence the type of bar you open, and vice versa. Share more about the area you’re located in and how you’re filling a need there. You can include what kind of foot traffic your location gets and demographic information of clientele, like age, income, lifestyle details, and employment information.
- Interior design – From the back bar to your floor plan, establish plans for what your bar will look like inside. Include diagrams and renderings that will illustrate your vision. List amenities, like kitchen appliances and bathroom, plus any plans for remodeling.
3. Inventory and menu planning
Whether you’re serving local craft beer or a selection of wine from around the world, this is your opportunity to get specific about what neighbors at your bar will be saying “cheers!” with.
Include inventory needs and menu planning details, like:
- Menu options – The more details you can provide about your upcoming specialties, the better. Share your menu, with price points and seasonal variations, as well as plating and glassware.
- Ingredient lists – Provide the ingredients you plan to use and where you’ll source them. Share distributors for liquor, beer, and wine, and don’t forget mixers and garnishes.
- Miscellaneous items – Bar napkins, glassware, straws, cleaning supplies, and towels are necessary for most bars. Estimate weekly ordering needs and identify suppliers to ensure everything is accounted for.
Since the investors, lenders, or partners reviewing your bar business plan may not have the opportunity to test everything on your future menu, get detailed on flavor profiles, tasting notes, and descriptions to help them preview the experience of ordering at your bar.
4. Research and marketing strategy
To build buzz for your local bar or restaurant, try a mix of traditional print advertising and online marketing. Get to know your local and target demographics to decide where and how to reach them.
In the marketing section of your bar business plan, provide details on:
- Demographics - Are you near a university, a hospital, or a hotel? Include neighborhood demographics and how you plan to serve locals what they’re thirsty for. With 22.9% of bar revenue coming from customers between the ages of 21 and 34 , age and income level can be factors worth highlighting.
- Neighborhood specifics - Tap into the interests and needs of the community you’re opening your doors in Speak directly with your bar’s new neighbors and connect with fellow businesses with a free Nextdoor business page that gives you instant access to everyone within two miles.
- Traditional and digital marketing – Share your marketing plans, which should consider industry trends, print, and local advertising, partnering with other local businesses, and building a digital presence. Your bar should have a website, Nextdoor business page, and other social media so your information is readily available, easily searchable, and stands out as neighbors scroll for where to go this weekend.
Make marketing more effective by keeping both larger industry trends and your local demographic in mind as you plan to drive and build awareness for your bar.
5. Financial plan
The financial section of your bar business plan covers your financial history with potential for profit and your plan for obstacles that may come up. This is important for your business strategy, as well as for potential lenders, investors, or partners to see.
Develop your bar’s financial plan with information on the following:
- Overhead costs – Price out liquor licenses, business licenses, and any associated fees with starting your bar restaurant. Note any equipment or training required to open.
- Financial projections – Estimate your cash flow and the revenue for the first few years of your business, sharing when you expect your bar to break even.
- Capital investment – Note your inventory, staff, and real estate costs, plus taxes and insurance costs. Assess what type of funding you need, if any, and what you’ll do with — and how you’ll pay back — any investment. Note any money that is set aside to cover unexpected fees and incidentals.
If you have unique plans to drive additional revenue, include them here in the financial section. Pa-Nash Restaurant, Bar & Lounge in Queens, NY, found new opportunities in catering and deliveries. Event buyouts or private dining options could be a secondary way for your bar to make money.
Consider hiring experts, like an accountant, to help you with this stage of the process, especially if they have advised other local bars or restaurants in your area.
6. Daily operations
Any potential investors or partners will need to get a sense of your day-to-day operations. Even if you change specific details once your bar is open, going in with an idea can make your first weeks easier for you and your team.
Daily operations for a bar owner can include:
- Service style – Whether you’re opening a smaller bar with a single rail or a massive bar restaurant with tables and servers, explain how service will run. Detail and define POS systems, tickets, and customer comps.
- Chain of command – Delineate staff responsibilities, as well as the general chain of command for managers and operators. Everyone should know their exact role and responsibilities when they walk into work each day.
- Company policies – Sick leave, paid time off, and general company policies can be established in this section. Consider creating a separate employee handbook for easy reference as you onboard team members.
Even a busy bar can feel like a well-oiled machine if its daily operations are established on day one. Prepare for success and help eliminate unnecessary stress when your bar finally opens its doors.
Open shop on Nextdoor
An effective bar business plan will help guide you on the path toward success. As a local establishment, another key element to a bright future for your bar is in making it a neighborhood favorite. With one in three households on Nextdoor, there are potential customers right around the corner who can help. Invite neighbors in when you claim your free Nextdoor Business Page . Build buzz for your opening, share local deals, and give your neighborhood something to cheers to.
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Bar Business Plan
Bar businesses are growing. Especially due to the increase in alcohol consumption and nightlife culture amongst the younger population.
But all of us know that a bar business is much more than just alcohol. It is also a good profession for people who like to socialize, talk to new people, and are lively and cheerful more often than not.
And the best part is no industry giant holds a huge chunk of the market in this business.
Sounds good, right? But before you go ahead and fulfill your long-standing dream of having a bar, you’ll need a bar business plan and we are here to help you with that, Here’s a quick overview of the industry.
The bar industry stood at a massive market value of 25.09 billion dollars in the US in 2021. And is going through a phase of rapid recovery after being hit by the coronavirus pandemic.
The bar industry covers the broad spectrum of nightclubs, bars, and other such establishments that serve alcohol and snacks. The revenue for nightclubs also comes mainly from the sales of alcohol.
Increased acceptance of alcohol and an increase in disposable income of the younger population, mainly the millennials has led to the growth of the bar business.
Things to Consider Before Writing a bar business plan
Get all the necessary licenses.
As a bar business staying on the right side of the law is more important than anything. Having all the necessary licenses and permits lets you run your business smoothly and without any chaos.
Here’s a list of licenses that you’ll need:
- Liquor License
- Food Safety Permit
- Fire Safety Certificate
- Music license
The location matters ( A lot )
In the case of a bar business, the location is usually the whole and soul of your business. The right location would be a preferred hangout spot for your target audience, easy to access, and not overly crowded.
Know your target audience and their preferences
Have a unique theme, how can a bar business plan help you.
A business plan helps you develop the right perspective toward the industry you plan on entering.
It not only helps you with market analysis and management but also acts as a guide in your business journey.
If you plan your business well, you get an edge over poorly managed entities and unaware owners who did not conduct market research before starting the business.
Specifically, when starting a bar business , a business plan helps you in making cost-effective decisions when you begin, so you don’t have to worry about haphazard finances later.
And as you know the benefits of having a business plan now, let’s discuss how to write an effective plan .
How to write an effective bar business plan?
Although you can write a business plan on your own from scratch, it is always good to get a little guidance when writing one.
Thanks to technology, there are several options available, and you can choose the one that fits the best for you.
You can either go to a business consultant, design your plan based on a predesigned template or get a customized plan for your business through an online business plan software without going anywhere.
Chalking Out Your Business Plan
All businesses like bars, pubs, lounges, and nightclubs come under the aegis of the bar business. All of these are drinking places that primarily serve and prepare alcoholic beverages.
Moreover, it is an industry where there are no market leaders who hold a big share in the industry’s value, but small fragmented units amongst whom the industry’s value is distributed.
Now it might look like a lucrative business to enter, but a lot of bar businesses fail due to bad financial and employee management. They end up overspending and working their employees to the point of exhaustion.
You don’t have to worry about it though, the above problem has a quick and easy solution: A business plan.
Yes, you heard it right, a bar business plan can help you solve all the management and planning-related problems.
If you are planning to start a new bar business , the first thing you will need is a business plan. Use our sample Bar business plan created using upmetrics business plan software to start writing your business plan in no time.
Bar Business Plan Outline
This is the standard bar business plan outline which will cover all important sections that you should include in your business plan.
- Business Overview
- Mission Statement
- Guiding Principles
- Keys to Success
- Start-Up Summary
- Location and Facilities
- Products/Services Description
- Competitive Comparison
- Product/Service Sourcing
- Inventory Management
- Future Products/Services
- Market Size
- Industry Participants
- Market Share
- Applebee’s Pinto’s Bar and Grill 6706
- Cococabana Bar & Grill
- Flanigan’s Seafood Bar & Grill
- Market Segments
- Market Tests
- Market Needs
- Market Trends
- Market Growth
- SWOT Analysis
- Strategy Pyramid
- Unique Selling Proposition (USP)
- Competitive Edge
- Positioning Statement
- Pricing Strategy
- Promotion and Advertising Strategy
- Marketing Programs
- Sales Forecast
- Sales Programs
- Exit Strategy
- Organizational Structure
- Management Team Gaps
- Personnel Plan
- Important Assumptions
- Startup Expenses
- Startup Assets
- Source And Use Of Funds
- Profit & Loss Statement
- Balance Sheet
- Cash Flow Statement
Before you get started with writing your business plan, let’s understand each section in detail:
1. Executive Summary
An executive summary is the most important document of your business plan. It is crucial to get you funded as a business as it sums up everything your business stands for.
Chances are that the investors might not even read beyond this section.
Therefore, when you write it make sure you sum up your business idea and its functions properly.
2. Business Overview
In this section, you will include an overview of all the chief needs of your business.
In a bar business plan, the chief aspects would include the location and its accessibility, the legal rules regarding alcohol followed by the area as well as the primary legal formalities involved in running a bar.
3. Products and services
This section includes all the products and services you’ll offer.
Resources for getting the products, especially in the case of a bar business the formal procedures involved in acquiring alcohol should be included.
It is also good to note down the differentiating factor between your and your competitor’s product.
4. Market analysis
Market analysis is another crucial aspect of a business plan. It comes in handy while assessing strategies and techniques that work and do not work by analyzing your competitors.
It also helps you get information about the size of the market and its growth potential.
It helps you in knowing your target audience and segment of the market that forms the majority of your client base.
5. Marketing strategy and implementation
Based on market analysis, next up you’ll formulate your marketing strategy.
While formulating your marketing strategy you should always keep your unique selling point and target market in mind.
Apart from that your positioning in the industry is also a critical aspect of your strategy implementation.
In addition to all of the above, advertising strategy is an aspect a bar business has to pay special attention to, as a direct advertisement of alcohol isn’t allowed on various media platforms.
6. Organizational Management
This step is also especially important in a bar business plan to avoid overworking employees, create good and respectful relations amongst the team, and have strong teamwork.
You should also include various roles and responsibilities of different people in your organization as well as ways of tracking their performance in this section.
7. Financial Plan
A financial plan is important because it prevents you from overspending and optimally distributes your cash flow amongst various segments of your business.
Apart from that in a financial plan, you can also carry out an analysis of your financial history as well as funding options for your business.
The above-mentioned order can help you write a well-rounded plan. But most importantly, while starting a bar business it is important to keep the legalities involved in mind.
You should always watch out for the current and potential alcohol laws that would have an impact on your business and frame your business strategy accordingly.
Hence, you should frame a business plan that is flexible and dynamic and thus, can help you succeed in the bar and pub industry.
Bar Business Plan Summary
A bar business can be extremely successful and smooth if you go about it with a business plan.
A business plan helps you keep all the facets from legal to financial ones in mind while running a bar business, thus making the process easier and quicker.
After getting started with Upmetrics , you can copy this sample bar business plan template into your business plan, modify the required information, and download your bar business plan pdf or doc file.
It’s the fastest and easiest way to start writing your business plan.
Business Planning Guide & Resources
We have plenty of free business planning resources available to help you with your planning. You can download our resources to learn all about business planning.
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Everybody’s got to eat and there’s still plenty of niche aspects of food and beverage business for entrepreneurs to explore. Locally sourced, organic, farm-fresh, delivery, craft, pick a buzz-word and there’s an opportunity there.
So if you think you have the makings of the next top chef, developed a secret whiskey recipe that will blow people’s minds, or even have a better way of doing delivery, you may want to enter the food and beverage business.
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- Bar Business Plan
2.0 Company Description
3.0 products, 4.0 market analysis, 5.0 marketing strategy and implementation, 6.0 organization and management, 7.0 financial plan, 1.0 executive summary.
The Neighborhood Bar and Grill will be a unique gathering place in the suburbs of Palm Beach County. By providing exemplary service (think of the character Norm from Cheers as he’s warmly greeted each day after work), a vast selection of beer and wines and award winning food in a relaxed comfortable setting, the NB&G will be the premier bar that ‘the locals’ go to in suburban Palm Beach County.
The success of the bar is in its owners – with collectively 30+ years experience in the restaurant and bar industry. They are committed to making this operation a successful one. Employees have been hand selected and share the same views as the owners, that is, keeping the customer happy assures repeat business.
The Neighborhood Bar and Grill has plans to initially capture 2% market share or $334,000 of the $16.7 million of the local market by fiscal Year One, and an additional 2.3% and 2.53% for Years Two and Three respectively. The Neighborhood Bar and Grill will accomplish this through a concerted advertising and marketing campaign, reliance on signage and primarily by word of mouth. Located at a major intersection in Palm Beach County, the site is located in a neighborhood retail centered anchored by a Winn Dixie grocery store. With average traffic counts of 42,000 daily, the site was primarily selected because of its location, the local demographics surrounding the site and reasonable rental rates.
The Neighborhood Bar and Grill is leasing 1,400 square feet retail space in the shopping center and paying $18.00 per square foot annually NNN lease.
The following business plan summarizes the history of the NB&G, where the business currently resides and its future plans for growth.
1.1 Mission Statement
The Neighborhood Bar and Grill will provide a comfortable place for locals to come and gather for relaxation, striving to be the bar of choice for the locals in the Cresthaven neighborhood and suburban West Palm Beach. The NB&G will be known as the “Cheers Bar” – where everybody knows your name and the business will do this by: providing a relaxed atmosphere encouraging patrons to unwind — specifically targeting professionals between the ages of 30 and 65 making $50,000 annually. The Neighborhood Bar and Grill is based on the guiding principles that life is to be enjoyed and this is reflected in its vast selection of beverages, its delicious food offerings and the professional team members. The Neighborhood Bar and Grill wants to be synonymous with country singer Toby Keith’s song “I Love This Bar”.
1.2 Guiding Principles
The Neighborhood Bar and Grill’s philosophy is simple: enjoy life and treat others as you’d want to be treated. These sound principles apply to all life’s situations, both personal and professional. At the Neighborhood Bar and Grill, these principles are applied to management, employees, customers and suppliers alike.
Life is to be enjoyed! Neighborhood Bar and Grill employees love their jobs and their customers! This is not only reflected in the outstanding service – it is because management personally culls and trains each employee putting them in the position that is ideally suited for them.
Integrity – In the spirit of all great bartenders, treat each customer with utmost respect and professionalism. The Neighborhood Bar and Grill bartenders and wait staff are trained to act professionally in all situations. If a regular patron happens to become disorderly say after a particularly stressful day, the Neighborhood Bar and Grill’s staff is trained to promptly and discreetly order a cab for these individuals. No one wants to work with drunken and disorderly individuals and the patrons do not want to be known as such either.
1.3 Keys to Success
The Neighborhood Bar and Grill’s key to success will be based on:
Outstanding customer services – the NB&G’s goal is be the place “where everyone knows your name”. All team members are hand selected and love what they what do. Customer Satisfaction – By providing a quiet and relaxed environment, where friends can meet and unwind and relax. Provide a vast offering of specialty beer and wine offerings – catering to the public’s increased requirement for variety and sophistication in alcoholic beverages.
The Neighborhood Bar and Grill will be a locally owned neighborhood bar equally owned and operated by Ben Davis, Roberta Gary and Danny Zinn. The Neighborhood Bar and Grill is a C-Corporation.
The NB&G will occupy a 1,400 square foot facility located in a neighborhood shopping center known as the Shoppes at Cresthaven. The property address is 2601 South Military Trail.
The Neighborhood Bar and Grill will provide a soft, quiet environment for its patrons. The furnishings are comprised of leather appointed chairs and small booths throughout the bar. These items were obtained at various local auctions and although not entirely matching, lend an eclectic look to the cocktail lounge area. The walls are adorned with a hodgepodge collection of memorabilia from the local area – many donated by Mr. Davis’ wine bar patrons including two cigar store Indians, an antique bear claw and 1950’s coca cola signs.
The bar will have a small central stage and provide the site for jazz musicians and open mic nights on the weekends.
The NB&G is C-Corporation, owned equally by Ben Davis, Roberta Gary and Danny Zinn.
Mr. Davis has 20+ combined experience years in management and operations. A successful business owner, he currently owns two independent wine bars in West Palm Beach and Boca Raton.
Ms. Gary has 10+ years experience the restaurant and bar industry beginning her career as an Event Coordinator for the Radisson and most she recently managed two nightclubs in exclusive South Beach.
Chef Danny Zinn will oversee the kitchen. He brings to the table 15+ years experience as a formerly trained Culinary Chef. Mr. Zinn and Ms. Gary met while employed at the Radisson.
2.2 Legal Form
The Neighborhood Bar and Grill is a registered C-Corporation, owned equally by Ben Davis, Roberta Gary and Danny Zinn, doing business in the State of Florida.
2.3 Start-Up Summary
Following is a summary of required funds to establish the business:
Tenant improvement costs have been in the form of new heating/air conditioning, electrical, plumbing, painting, carpentry, flooring and smoke detectors.
The owners have spent $38,262 in furnishing and fixtures including leather chairs and small booths throughout the bar. These items were obtained at various local auctions.
The owners are currently remodeling and retrofitting the space to accommodate both a front and back bar along with stools for customers. The back bar was secured from a consignment shop and is ornately decorated English walnut, marble and glass. The front bar will be constructed by Mr. Davis’ brother-in-law who owns a cabinet company.
Additional out of pocket expenses were rent and security deposits.
The owners are seeking a $22,000 working capital loan to meet start-up inventory requirements, and licensing requirements. The loan will be secured by UCC filings on all inventories, and accounts receivables.
Further, the owners are seeking a commercial loan in the amount of $61,000 to purchase kitchen equipment, supplies and bar supplies. The space was formerly a restaurant and the layout is perfect for the proposed kitchen. The commercial loan proceeds will be used to purchase the majority of the kitchen equipment including two stoves and ovens, one walk in refrigerator, a freezer, two microwaves and a deep fryer. The commercial loan will be secured by UCC filings on all furniture fixtures and equipment.
Total starts up costs are $142,512. To date the owners have contributed $59,512 or 42% equity in the business. The source of repayment for both loans will primarily be cash flow from the bar and secondary source of repayment will be recourse to the owners. The tertiary form will be disposal of the assets.
2.4 Location and Facilities
The location was a key component for the NB&G. The owners specifically sought this location because the demographics aligned with their target customer.
The 1,400 square foot Neighborhood Bar and Grill will be located in the Shoppes at Cresthaven located at 2601 South Military Trail in West Palm Beach, Florida. Located on the northwest corner of Military Trail and Cresthaven Boulevard, approximately 42,000 cars pass the site daily. The shopping plaza is anchored by a Winn Dixie grocery store. The area surrounding the NB&G is the Cresthaven neighborhood. The NB&G residents live in this neighborhood and surrounding area.
The bar location specifically meets the needs of the owner’s patron profile – that is professionals between the ages of 30-65 with incomes greater than $50,000. The following table briefly summarizes the population in the 3 and 5 mile radius:
3.1 Products/Services Descriptions
The Neighborhood Bar and Grill will offer a broad and deep variety of specialty beers and wines which will appeal the public’s ever changing and increasingly more sophisticated demands for variety in beer and wine. The bar will also offer a full service liquor bar.
Patrons desiring food will not be disappointed by the bar’s food offerings either. One of the owners is an award winning chef formerly trained at the Florida Culinary Institute and most recently employed by the Fontainebleau in Miami. Chef Danny Zinn will prepare traditional bar foods such as nachos, potato skins, and calamari, along with the local favorites of fish dip and fried grouper sandwiches. Dining patrons will also enjoy his daily specials including freshly caught Atlantic Snapper and Mahi Mahi.
The kitchen will close at 8 pm, but patrons will still have the option of easily prepared foods, that the bartender can microwave or easily throw into the deep fryer.
On Friday and Saturday nights, the NB&G will provide live entertainment performed by local jazz musicians. A cover charge will be applied to patrons to cover the band expenses. The bands will be responsible for setup and tear down of all equipment.
3.2 Competitive Comparison
Within a five mile radius of the subject are six comparables:
Applebee’s Neighborhood Bar and Grill 6706 Forest Hill Blvd West Palm Beach
Cococabana Bar & Grill 2944 S Jog Rd, Lake Worth Florida
Flanigans Seafood Bar & Grill 2401 10th Ave N, Lake Worth, Florida
Franchie’s Bar 3476 2nd Ave N, Lake Worth Road Lake Worth, Florida
Pit Row 4064 Forest Hill Blvd Ste 8 West Palm Beach Florida
Plush Pony 2028 S Military Trail West Palm Beach Florida
3.3 Product/Service Sourcing
The key food suppliers for the business will be Sysco Foods and Treasure Coast Food Service. Having two suppliers assures the NB&G exceptional delivery times, and better overall prices.
Restaurant supplies (pots, pans, cutlery, and cooking utensils) will come from Grover Restaurant Supply.
Alcoholic beverages will be purchased from Gold Coast Beverage Distributors and Florida Distributing Company.
The Neighborhood Bar and Grill will utilize a P-O-S (Point of Sale) touch screen system throughout the bar and restaurant area. These monitors and hand held units will provide point of sale menus, inventory control analysis, credit card sales, and office management.
3.4 Inventory Management
The POS system will be instrumental in the Neighborhood Bar and Grill’s success. Bartender theft and employee theft can quickly be the financial demise of any business. The POS systems will alert the chef when inventory levels are low and the bar manager when to place his order.
3.5 Warehousing and Fulfillment
3.6 future products/services.
The owners of the NB&G realize the customer is the key to the success of the business and will work continually to improve/enhance the patron experience. Comment cards will be available throughout the bar and management will keenly review these comments, making adjustments as needed. For example, the owners might consider open mic nights, creating a Trivia Night or providing other options as deemed acceptable by the customers.
4.1 Industry Analysis
Although people still gather to socialize in bars, just as they have for hundreds of years, other factors have come into play for the industry as well. Problems with driving while intoxicated have changed the drinking patterns of people in United States. The growing concern with health and fitness toward the end of the 20th century took its toll on the bar industry. Keeping tabs on this industry requires a look at the alcoholic beverage industry as a whole–what people buy in the store doesn’t differ much from what they buy in a bar. The distilled spirits industry generates around $100 billion in U.S. economic activity annually. (Distilled Spirits Council)
The US bar and nightclub industry includes about 45,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $20 billion. No major companies dominate; varying state liquor laws complicate the ability to form large chains. The industry is highly fragmented: the 50 largest companies account for about 5 percent of revenue. (First Research)
Personal income and entertainment needs drive demand. The profitability of individual companies depends on the ability to drive traffic and develop a loyal clientele. Large companies can offer a wide variety of food, drinks, and entertainment, and have scale advantages in purchasing, financing, and marketing. Small companies can compete effectively by serving a local market, offering unique products or entertainment, or providing superior customer service. The industry is labor-intensive: average annual revenue per worker is about $60,000. (First Research)
Major sources of revenue include beer (about 35 % of sales), distilled spirits or hard liquor (30 %), food and non-alcoholic beverages (20 %), and wine (7 %). (First Research)
4.1.1 Market Size
The US bar and nightclub industry includes about 45,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $20 billion. No major companies dominate; varying state liquor laws complicate the ability to form large chains. The industry is highly fragmented: the 50 largest companies account for about 5% of revenue. (First Research)
4.1.2 Industry Participants
There are few barriers to entry in the neighborhood bar industry, and the capital costs of starting a new neighborhood bar are low. However, competition among bars and taverns is intense due to the large number of bars in the target market. When combined with a small industry growth rate, market share gains by one bar will be at the expense of others.
Competing for the neighborhood bar are other small neighborhood bars and larger chain restaurants with full service bars. Additional competition for the NB&G are other types of bars, for example, sports bars, pubs, coffeehouses, and wine sellers. The slower economy resulted in some patrons purchasing from grocery stores, package stores and convenience stores.
4.1.3 Main Competitors
A recent analysis revealed six bars/restaurants with bars or a $16.7 million market as classified under the NAICS (North American Industry Classification System) code 722410 – bars and nightclubs – within a 5 mile radius of the subject. The following is summary of the comparables:
This 16,500 square foot corporate restaurant and bar was established in 1997. The neighborhood restaurant/bar generates approximately $5.5 million annually and has 55 employees. The Applebee’s target market is not the same as the subject, catering primarily to families and as a restaurant; it will not compete directly with the subject.
Privately owned, this is 3,300 square foot restaurant/bar with 11 employees and generates approximately $1.1 million annually in revenues. The restaurant specializes in Dominican food and drinks. With a focus on black beans and rice and mojitos, the theme is quite different from the subject. However, based on its size, its proximity to the subject and its uniqueness, the NB&G will have to work hard to attract these patrons. Word of mouth and its initial marketing campaign will have to convince these patrons that the NB&G’s food and beverage offerings are superior to this competitor.
Established in 1990, the iconic restaurant and bar is one of twenty-two facilities in the South Florida area. Flannigan’s is well known and has a loyal following. The 9,900 square foot bar and restaurant is privately owned and generates $3.3 million annually. The restaurant and bar has 33 employees. Because of its unique target focus as primarily a restaurant this business, like Applebee’s, this is an indirect competitor.
This freestanding 3,300 square foot bar is privately owned and operated. The bar has 11 employees and generates approximately $1.1 million annually. The bar has a “C” credit rating and does not provide food. The bar is old (its age unknown as it was not filed publicly) and is generally known in the area as a “dive bar”. This bar’s clientele do not typically meet the profile of the subject and will not compete directly with the subject.
With a race ‘pit’ themed bar and menu, Pit Row offers drink specials on NASCAR race days. The neighborhood bar has a sports bar theme. The bar has a pool league and a Texas Hold ‘Em game night. More of a sports bar, the subject will compete indirectly with this competitor. The 1,800 facility is located in a strip center and generates $600,000 annually. The bar has 6 employees. This neighborhood bar is one of three in Palm Beach County that are privately held by the same owner.
This 15,300 square foot bar started in 1995 has a tremendous following. Known as a “dive bar”, the Plush Pony has line dancing and country music. With 51 employees and $5.1 million in annual revenues, this country music bar is an indirect competitor.
4.1.4 Market Segments
Middle class, ‘white collar’ office workers on their way home from work. These are the patrons that will become the bar’s ‘regulars’, patronizing the bar on their way home from work and stopping for a glass of wine paired with some light appetizers and unwinding prior to heading home. Tourists and workers on their lunch hour – the bar is centrally located in Palm Beach County making it an ideal location for both tourists and workers alike. Late night and bar crowd seeking “lighter” late night venues – the NB&G will have live jazz music and acoustic guitar on weekends and some weeknights. The owners of the NB&G are targeting the following individuals for their target market:
Household income of $50,000 Between the ages of 30 and 65 Gender Demographic (75% Male, 25% Female) Lives within a 5 miles radius of the subject location
4.2 Market Tests
The owners specifically targeted this location because of the lack of finer ‘neighborhood bars’ in the suburbs – a bar that is quaint and cozy – but also provides a great option to take out of town guests with finer food and beverage offerings.
While patrons can find similar bars in the trendier downtown and midtown locations, the quieter, smaller bars offering finer foods and jazz venues, are all but overlooked in the suburbs. Experienced in the business, the owners listened to their patrons and created NB&G based on these requested needs.
The local distributors support this business venture as well and based on the area demographics and are anxious tap into this lucrative market.
4.3 Target Market Segment Strategy
The NB&G specifically targets individuals in the local market with incomes greater than $50,000 desiring a quiet neighborhood bar and grille to relax and unwind. The marketing strategy is designed to target this group.
This target group was selected primarily because of
the location of the bar and grille, the setting is designed to appeal to this target market and the current target market does not have any venues comparable to the subject. In fact the closest direct comparables are located eight miles away in downtown – the majority of locals would prefer a spot closer to home.
4.3.1 Market Needs
As the owner of two South Florida wine bars, Mr. Davis was constantly told by his patrons, that while they loved the local taverns, they’d be more interested in trying some finer quality food offerings along with some finer beverage choices, especially when they had guests visiting from out of town.
While still maintaining its image as “the place the locals go”, the owners have added some “class” to this little bar and grille by:
Offering both traditional bar fare, but also offering selections of daily prepared specials from a chef formally employed by the Fontainebleau and trained at the Florida Culinary Institute The bar will provide “light” jazz music and acoustic guitar, filling the vast void in such venues in the ‘burbs’ location.
4.3.2 Market Trends
Recent market trends focus increasingly on healthier lifestyles. Studies have shown that although consumers are drinking less alcohol, their tastes are becoming more discriminating. A greater emphasis on technology (POS) and training (“Star Servers and Bartenders”) resulting in increased productivity and earnings. Upgrades in improvements and interior décor – the days of the dimly lit and dark smoky bar rooms are quickly becoming a thing of the past. The NB&G is designed to embrace these trends. The NB&G will feature a vast assortment of locally crafted and imported beer offerings. The wine selection will be somewhat smaller but just as impressive. Food offerings will consist of standard bar fare along with, finely prepared daily gourmet specials. The owners will rely on POS system for orders, inventory control, accounting functions, time management and other functions. All bartenders will be hand selected and trained to cross sell appetizers or higher margin items. The NB&G’s ‘shabby chic’ interior is designed be a comfortable, sociable and enjoyable environment.
4.3.3 Market Growth
Liquor sales and the bar industry overall is demonstrating improving trends. The following is a summary from the February 2012 U.S. Distilled Spirits Council Report:
Volume / revenue growth at pre-recession levels. Revenue up 6.3% to $20.3 billion Volumes up 2.9% to 196 million 9-liter cases Growth driven by improving economy/consumer confidence, increase in restaurant sales, stable pricing environment and product innovation Improved economy = return of premiumization Sales growth has pushed market share to 34.1% of revenue, 33.8% of volume Future growth dependent upon state of economy (Industry Review Distilled Spirits Council 02/2012)
The NB&G will position itself as the bar and grille of choice for patrons desiring a comfortable and relaxed bar and grille experience. Designed like its competitor’s downtown and midtown, the central location will appeal to suburbanites living in the area who don’t care to travel more than a few minutes from home.
The NB&G will position itself as the bar and grille of choice by providing top notch service, offering a vast selection of beverages, and providing both traditional bar fare as well as daily market specials prepared by its culinary chef. The ambience and décor will be comfortable and relaxing and with the benefit of light jazz in the background, the bar and grille will be a one of a kind experience in the suburbs. The owners and staff are constantly aware of patrons changing likes and dislikes and the bar and grille will act quickly to make changes to meet these needs.
5.1 SWOT Analysis
The following information summarizes the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a method for strategic planning that evaluates these four elements as they relate to the business objectives.
Relatively easy entry and low capital outlay. Committed owners with combined 35 years industry experience. The NB&G will be a unique one of a kind experience in its suburban location. Targeted, specific focus on its customers creates a memorable experience for its patrons resulting in repeat business.
Disorderly patrons can potentially harm both business reputations or cause collateral damage. Employee theft can make or break a bar business. Management’s exclusive use of the POS system mitigates this risk. Very specific target market – if the target market was broader the owners could increase market share in the segment that was the strongest. High turnover in bar industry – many bars are here today and gone tomorrow.
Opportunity to obtain a share of a $16.7 million market
Another new entrant could potentially hurt market share; competition is fierce
5.2 Strategy Pyramid
Strategy: Be the neighborhood bar and grille of choice
Tactics: Provide exceptional customer service in a relaxed and inviting environment encouraging patrons to return again
Programs: Extensive and ongoing employee training. Employees will be rewarded financially for providing impeccable service with opportunities to benefit in profit sharing.
All staff are hand selected and share the same core beliefs of the owners; everyone will be trained to be keenly aware of patrons and anticipate their needs before the customer does, for example always offering to promptly show them to their table, graciously asking to hang their coats, and bring them their drinks expediently.
5.3 Unique Selling Proposition (USP)
The NB&G will be a small, casual local bar. The bar features a vast selection of hand crafted beers – both local and imported, as well as an impressive wine selection. The bar features traditional pub fare as well as daily specials prepared by a formally trained culinary chef. With its ‘lighter’ music including live jazz and acoustic guitar performances on weekends and some evenings, the NB&G will be the alternative to its louder more raucous competitors. Although similar bars are located in downtown West Palm Beach, the NB&G is specifically designed to fill the void in the suburbs.
5.4 Competitive Edge
The NB&G specifically caters to its target market and is truly a unique local bar experience. The bar differs in its décor, its extensive beer and wine offerings, culinary choices and music style; the NB&G patrons cannot get this experience in any other bar within a 5 mile radius.
5.5 Marketing Strategy and Positioning
The NB&G is centrally located on the northwest corner of Cresthaven Boulevard and Military Trail. Traffic counts approximate 42,000 daily. In addition to its prime location, the NB&G will rely on:
Advertising – Outdoor Signage – Grand Opening Word of Mouth According to the Bob Johnson with Beverage Management Institute in Clearwater, South Carolina, the only cost-effective way to advertise a bar is word-of-mouth. “When you don’t have word-of-mouth working for you, you are in serious trouble. It’s not necessarily terminal. There are still ways to get some advertising and marketing out there without spending a ton of money. But anytime you reach into your own pocket to buy advertising for a bar, it’s not good.
“Word-of-mouth advertising is priceless,” he continues. “It means everything is right. Everything is happening. The bar is alive. Your employees love working there. They are talking and saying great things about the place, and that is passed on to your customers. The customers love being there, and they tell other customers. If you can get to that point, it’s just priceless.”
5.5.1 Positioning Statement
The owners have a combined 35 years industry experience in restaurant and bar management and fully support the operation. The NB&G will provide a vast collection of handcrafted beers and wine, provide jazz music and gourmet food, and will strive to be the premier bar ‘where the locals go’ in suburban Palm Beach County. The NB&G will go above and beyond the call of duty making patrons come back and tell everyone they know.
5.5.2 Pricing Strategy
The NB&G’s pricing will be similar to the competitor’s (competition based pricing) initially and management may consider lowering drink prices initially to attract initial patrons. However, near term, when the NB&G captures at least 2% of the local market, management plans to price alcohol and food to be more reflective of acquisition costs.
The menu items are moderately priced. Appetizer range from $8-$12, burger plates and wraps range from $9-$12 and the daily gourmet plates average $17.00.
5.5.3 Promotion and Advertising Strategy
The NB&G’s primary promotion and advertising strategy will be outdoor street signage and word of mouth. Additionally the bar is planning a grand opening in September, 20XX.
The NB&G will open mid August 20XX with a grand opening scheduled for September 20XX. The early opening date will allow the staff to familiarize themselves with operations and customer interfacing.
In addition, the NB&G will participate in select promotions annually. Once the bar is up and running, management will determine which nights need a boost. Historically, bars are busiest Friday and Saturday nights, with Thursdays coming in third place. The NB&G might decide to create an open mic night say on Tuesdays or Wednesday evenings. In addition, the bar will have promotional events on holidays such as Cinco de Mayo and the 4th of July. Management anticipates profit to equate to 3X the cost of advertising the promotion. In order to maintain the high energy levels during the promotions, all prizes will be awarded at the end of the evening. That way, patrons will have to stay all night to see whether or not they’ve won the grand prize.
The NB&G will have website featuring the menu items, phone number, hours of operation, events calendar and map. The website will also have links to its Facebook Page.
5.5.5 Marketing Programs
The owners of the NB&G will rely on a combination of customer feedback / sales reports captured from the POS to determine how well the bar is performing. Customer comment cards will be available tableside and guests will have the option to receive discounts on appetizers when the card is submitted. Additionally, the neighborhood market will utilize a local ‘mystery shopper’ company. All employees will be made aware of the NB&G’s commitment to customer service and this additional tool to be used to evaluate employee performance.
5.6 Sales Strategy
The patrons will be warmly greeted immediately upon entering the bar. The objective at the NB&G is to make everyone feel at home and be the place ‘where everyone knows your name’. Upon finding a comfortable location either at the bar, a cozy booth, or high top table, patrons will be asked for their drink and food order. Employees will be trained to cross sell high margin items. The NB&G truly values its employees and provides them with the very best training – and therefore the best service. Management believes that this investment in its employees ensures satisfied customers and in turn repeat business, leading to increased revenues.
The NB&G will be one of the few places that will truly make people happy. The NB&G staff will make sure patrons are comfortable, offer coffee, and hang coats for them. The owner will come to the table or booth and not just ask is everything okay, but is going to look to see what’s wrong before he/she even comes to the table. Employees will offer samples from the menu at no charge, and make fresh coffee because they know it’s been sitting out for a while.
At the NB&G, the staff goes above and beyond the call of duty which makes patrons come back and tell everyone they know.
5.6.1 Sales Forecast
The following table demonstrates the annual sales forecast:
Table 5.6.1 Annual Sales Forecast
5.6.2 Sales Programs
The NB&G employees will be the primary salespeople and will participate daily in the tip pool. Employees will participate in ongoing training and be compensated for their accomplishments as well. The NB&G has a strong belief that the bar only performs as well its employees.
The NB&G will be a C Corporation recognized in the State of Florida. The bar is currently in the process of obtaining the following licenses: liquor liability license, food service license, sales tax license, and entertainment permit.
The following milestones will guide the NB&G to meet its goals:
Table 5.8 Milestones
Milestone Date Secure space and negotiate lease terms July 20XX Complete Retrofit and Build-Out July 20XX Furnish restaurant and bar area July 20XX Obtain and meet necessary licensing requirements Aug 20XX Purchase inventory, kitchen equipment and POS system Aug 20XX Interview and hire employees Aug 20XX Grand Opening Sep 20XX Hire accountant when revenues exceed $500,000 Year Four
5.9 Exit Strategy
In the event that sales drop more than 5% for more than four consecutive quarters, the bar will have to liquidate. After employee’s compensation, furniture, and equipment will be sold at auction to repay lenders.
The following information provides the organizational components germane to the NB&G.
6.1 Organizational Structure
The NB&G will be owned equally by Ben Davis, Roberta Gary and Danny Zinn each with 33.3% ownership interest.
General duties will include review of daily operations, inventory control, employee training, employee hiring and firing, ordering supplies, and routine maintenance and upkeep of the bar, equipment and facilities management.
Danny Zinn will be head chef and oversee the day kitchen staff personnel, including 1 line and 1 prep cook.
The owners will also hire wait staff and bartenders.
All full time employees will be compensated with benefits including health insurance and education and training. They will have an opportunity to participate in profit sharing.
6.2 Management Team
Mr. Davis, a graduate of Florida Atlantic University left the corporate world of Pratt and Whitney behind over ten years ago to establish two neighborhood-based, independently owned wine bars. These gathering places showcase fine wines with exemplary food offerings. Mr. Davis has over a decade of experience in management, project development, and marketing providing the foundation for his business operations, including site selection, rehabilitation and construction and investor financing. In addition to overseeing the day to day operations (“back end”), Mr. Davis fully enjoys the “front end” of the business as well, by interacting with customers to ensure their experience is constantly improving.
Ms. Roberta Gary brings over ten years business and nightclub experience. A Florida native with a Masters of Business Administration from the University of Florida, Ms. Gary began her career as an Event Coordinator for the Radisson, and then moved to Miami to act as nightclub manager for two South Beach bars. Ms. Gray is a keen talent scout and will screen local acts for live performances.
Chef Danny Zinn was formally trained at the Florida Culinary Institute and has over fifteen years’ experience in the restaurant industry. Most recently he was employed at Miami’s famous Fontainebleau. Mr. Zinn will prepare traditional both traditional bar fare along with local specialties such as fresh Atlantic Grouper and Mahi Mahi. Mr. Zinn, a colleague of Ms. Gary, met her while they were both employed at the Radisson.
6.3 Management Team Gaps
Until the NB&G reaches $500,000 in annual revenues, they will utilize a part time bookkeeper to assist in payroll and income tax preparation (Reference legal and accounting line item on income statement).
6.4 Personnel Plan
The following chart shows employee salaries over the next three year period:
Table 6.4 Personnel Plan
*While the salaries appear low, these employees all benefit from the daily tip pool. Average take home pay is $60,000 and compares favorably with industry peers.
6.5 Board of Directors
The financial plan will cover the following:
Required Cost of Start-Up Profit and Loss Cash Flow Balance Sheet Financial Ratios
7.1 Important Assumptions
All 6 employees will be hired from day one of operations (the analysis does not assume employee growth during the initial three years of operations) Zero growth in employees’ salaries over the first three years, then after initial three years, employees will have opportunity for profit sharing. Management salaries remain constant as well – $7,500 monthly over the initial three years of operations Average drink sales price: $5.45 Average appetizer sales price: $10.00 Average meal sales price: $12.00 Annual sales allow economic cyclicality.
7.2 Start-Up Costs
Tenant (leasehold) improvement costs consist of new heating/air conditioning, electrical, plumbing, and painting, carpentry, flooring and smoke detectors.
Equipment consists of two stoves and ovens, one walk in refrigerator, a freezer, two microwaves and a deep fryer.
Furniture and fixtures consist of leather chairs, stools and small booths along with a front and back bar. The back bar was secured from a consignment shop. The front bar will be constructed by Mr. Davis’ brother-in-law who owns a cabinet company.
To date, the owners have invested almost $60,000 out of pocket (42% equity) to meet these startup costs including payment of rent and security deposit.
The owners are seeking a $22,000 working capital loan to meet start-up inventory requirements and, licensing requirements. The loan will be secured by UCC filings on all inventories and receivables.
They are seeking a commercial loan in the amount of $61,000 to purchase kitchen equipment, supplies and bar supplies.
Total start up costs a$142,512.
Table 7.2 Start-Up Costs
7.3 Source and Use of Funds
The following table demonstrates the proposed sources and uses of funds: To date the owners have contributed approximately $60,000 or 40% of the total cost to start the business.
Table 7.3 Source and Use of Funds
7.4 Break-Even Analysis
Total fixed costs are estimated to be $174,026. The variable cost (overhead) is estimated to be $4.60 per unit. Units are assumed to be: the combined average of: the average drink, the average appetizer, and the average meal. Based on the assumption of $9.15 as the average sales price per unit, the breakeven revenue then is $350,214 or 38,275 units. This is further depicted in the Table Below and the Graph that follow:
Table 7.4 Break-Even Analysis
7.4.1 Projected Profit and Loss
The NB&G’s estimated profit and loss for the initial three years of operations is reflected below:
Table 7.5.1 Pro Forma Profit and Loss
7.4.2 Projected Cash Flow
The statement of cash flow shows the incoming and outgoing cash of the business.
Table 7.4.2 Pro Forma Cash Flow
7.4.3 Projected Balance Sheet
The following chart depicts the proforma balance sheet:
Table 7.4.3 Pro Forma Balance Sheet
7.5 business ratios.
The following ratios are based on the Standard Industrial Classification (SIC) code 5183 and the North American Industry Classification System (NAICS) code 722410 – bars and nightclubs. The ratio analysis compares the subject to industry peers based on similar asset size and revenues.
Table 7.5 Ratio Analysis
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How to Write a Restaurant Business Plan in 2023 (Step by Step Guide with Templates)
Have you decided to open a restaurant? Has it been something you've thought of doing for years and are finally in a position to make it happen?
Regardless of how much time you've spent conceptualizing your idea and researching the industry, without proper planning, your restaurant is doomed for failure.
That's where a restaurant business plan comes in. A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations; from menu design, location, financials, employee training, and a lot more, and helps develop your restaurant ideas into a reality.
Read on for everything you need to know about writing a restaurant business plan along with samples and tips.
- Consider using a restaurant consultant or SWOT analysis tools/templates.
- Well-executed SWOT analysis aids strategic decision-making and long-term success.
- A comprehensive restaurant business plan is essential and should include a well-defined concept that outlines the type of cuisine, ambiance, and unique selling proposition (USP) of the restaurant.
- Conducting thorough market research to understand the target market, including demographics, preferences, and needs, is crucial for tailoring the restaurant's offerings and marketing efforts.
- Developing a strong marketing strategy, including branding, online presence, advertising, and promotions, is vital for attracting customers and building a loyal customer base.
- Realistic financial projections, including revenue, expenses, and profit margins, should be included to evaluate the feasibility and profitability of the restaurant, along with contingency plans.
- Detailed operational plans, such as the restaurant's layout, staffing, inventory management, and customer service, are crucial for ensuring smooth operations and efficient management.
- Analyzing the competitive landscape, including direct and indirect competitors, helps identify opportunities and challenges and develop strategies to stay ahead in the market.
- An effective executive summary providing an overview of the restaurant's concept, market opportunity, marketing strategy, financial projections, and the team is crucial for attracting potential investors or partners.
Why is a restaurant business plan important?
Many new restauranteurs fail to put together a well-thought-out restaurant business plan because the process can be a bit difficult and time-consuming. But without a proper restaurant business plan, you're shooting in the dark without an aim. It's unlikely that you would be able to secure an investor to help fund your restaurant dream without a proper plan. And even if you do, the lack of proper planning, regulations, and forecasts will set your restaurant up for failure.
Your restaurant business plan is what is going to map out how you plan on turning a profit from your business as well as where your restaurant fits into the saturated market and how you plan on standing out.
A little time and pain early on are worth the reward of a successful restaurant in the long run.
The 11 key steps a restaurant business plan should include
A good business plan varies from restaurant to restaurant and takes into account factors like style of restaurant, target market, location, etc. If you're new to the restaurant game, the idea of creating a business plan can be daunting. To help you get started, we have highlighted the key elements you need to include when writing a restaurant business plan.
Depending on who you are presenting your business plan to, you can change the order of the sections to reflect priority.
Here are the main components of a restaurant business plan
- Executive Summary
- Company Description
- Market Analysis
- Restaurant Design
- Market Overview
- External help
- Financial Analysis
1. Executive summary
A restaurant business plan should always begin with an executive summary. An executive summary not only acts as the introduction to your business plan but also a summary of the entire idea.
The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.
Common elements of an executive summary include:
- Mission statement (learn more about how to write a good mission statement here )
- Proposed concept
- A brief look at potential costs
- Expected return on investments
An executive summary is imperative for those looking to get investors to fund their projects. Instead of having to comb through the entire restaurant business plan to get all the information, they can instead just look through the executive summary.
2. Company description
This is the part of the restaurant business plan where you fully introduce the company. Start this section with the name of the restaurant you are opening along with the location, contacts, and other relevant information. Also include the owner’s details and a brief description of their experience.
The second part of the company description should highlight the legal standing of the restaurant and outline the restaurant’s short and long-term goals. Provide a brief market study showing that you understand the trends in the regional food industry and why the restaurant will succeed in this market.
3. Market analysis
The market analysis portion of the restaurant business plan is typically divided into three parts.
3.1 Industry analysis
What is your target market? What demographics will your restaurant cater to? This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.
3.2 Competition analysis
It's easy to assume that everyone will visit your restaurant, so it is important to research your competition to make this a reality. What restaurants have already established a customer base in the area? Take note of everything from their prices, hours, and menu design to the restaurant interior. Then explain to your investors how your restaurant will be different.
3.3 Marketing analysis
Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others? How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.
The most important element to launching your restaurant is the menu . Without it, your restaurant has nothing to serve. At this point, you probably don’t have a final version, but for a restaurant business plan, you should at least try to have a mock-up.
Add your logo to the mock-up and choose a design that you can see yourself actually using. If you are having trouble coming up with a menu design or don’t want to pay a designer, there are plenty of resources online to help.
The key element of your sample menu though should be pricing. Your prices should reflect the cost analysis you’ve done for investors. This will give them a better understanding of your restaurant’s target price point. You'll quickly see how important menu engineering can be, even early on.
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 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.
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.
The location you end up choosing for your restaurant should definitely be in line with your target market. At this point, you might not have a precise location set aside, but you should have a few to choose from.
When describing potential locations to your investors, you want to include as much information as possible about each one and why it would be perfect for your restaurant. Mention everything from square footage to typical demographics.
8. Market overview
The market overview section is heavily related to the market analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.
Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the restaurants that could prove to be competition and what your strategy is to set yourself apart.
With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world. The marketing and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.
Read more: How to write a restaurant marketing plan from scratch
10. External help
To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running. This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems . Explain to your investors the importance of each and what they will be doing for your restaurant.
11. Financial analysis
The most important part of your restaurant business plan is the financial section . We would recommend hiring professional help for this given its importance. Hiring a trained accountant will not only help you get your financial estimates in order but also give you a realistic insight into owning a restaurant.
You should have some information prepared to make this step easier on the accountant. He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.
In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator.
Restaurant business plan template
Ready to get started? Download our free restaurant business plan template to guide you through the process.
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Opening a Bar & Restaurant?
How to write a bar & restaurant business plan (fast), step by step (actionable) case study.
Opening a bar and restaurant is an amazing adventure for any up-and-coming entrepreneur – and writing a business plan is one of the very first (and most important!) steps.
Wondering how to go about it? No need to look any further.
Our Bar & Restaurant business plan sample will help you map out your journey, as well as identifying and addressing any potential pitfalls that could cause problems for your business.
So whether you need funding or would simply like a track to run on…
Be sure to check out this example to improve your chances of Business Success!
Ready? Let’s go.
#1 Executive Summary for a Restaurant Business Plan
Are you looking to write a restaurant business plan? If so, let’s firstly look at The Executive Summary section.
The Executive Summary of your business plan outlines what your business does. It’s an overview of your business and summarizes all its key points, as well as being an introduction for the rest of your plan.
The example in this section can be suitable for the following:
- Small Restaurant business plan
- Bar business plan
- Cocktail Bar business plan
- Fast Food Restaurant business plan
Please check it out and feel free to lift any content.
The #Executive #Summary outlines what your business does, summarizes your key points, and prepares investors for the rest of your #businessplan. It’s vital you provide a solid case for your business idea, which is why your #executive #summary is so important! Tweet
We are John and Mary Smith, a father and daughter team, offering years of experience in both business ownership and management, and the hospitality trade.
John Smith is currently a Director of an electrical contractors in Washington, and has been in the industry for 30 years. Currently working in the aerospace sector, John delivers the highest standard of workmanship for his clients, and offers a wide range of transferable skills including staff management, decision making, building strong business partnerships, and negotiation skills.
John will be supported by his eldest daughter Mary, a confident and outgoing people-persons with years of experience in the bar and restaurant industry. She offers a wealth of knowledge in hospitality and bar management, and would be very much at home running her own bar and restaurant.
What We Sell
We will be selling a wide range of soft drinks and alcoholic beverages in partnership with ABC PLC. The wet list will be based on the current ABC listings, and we would also like to expand the wine list in accordance with ABC Code of Practice.
The dry menu, which is currently of a very high standard, will be based on local and seasonal produce and created in direct association with the Head Chef.
We will also run a number of promotions to push more from our wet and dry menus, and these promotions will also run in accordance with ABC Code of Practice.
Who We Sell To
We will sell to local residents and also people visiting the area. We want to create a warm and friendly atmosphere, and to leave our customers feeling totally satisfied with our service whether they pop in for a pint or a coffee, or stay with us all evening for a meal and drinks. We can only achieve this by employing and developing the right team, and we will focus our efforts on hiring experienced, friendly, professional and enthusiastic staff. From our Head Chef down to our team of waiting staff and bar staff, we will ensure we only hire the best the local area has to offer.
In addition to retaining existing regular customers, we recognize the importance of attracting new customers, and we will look into what is currently working for the business, and what isn’t working so well. With this knowledge and information, we can look into promotions and improvements that will encourage more visitors, whether they are locals or passing trade.
Please see financial plan for further information.
#2 Restaurant Business Plan Company Profile Section
The Company Profile in this restaurant business plan sample is also known as the Company Description. If written well, your potential investors will find it easy to understand your business model, your mission and goals and how it’s going to meet the needs of your target market.
For the purpose of this bar business plan, we’ve included the following in the Company Profile Section:
- Company Overview & Management Team
- Location and Facilities
The Hugo’s Bar and Restaurant has been in business for years, and is an established bar and restaurant offering a wide range of beverages and a fine selection of hot and cold meals.
The main company address is Main Road, Washington USA
This is not a new business, but we would be taking over as new managers of the establishment. The bar and restaurant is owned by ABC PLC and would be offered to us under a five year tenancy, with the opportunity to renew this lease after expiry.
Under such an agreement we – the tenants – will pay the rent and be responsible for the day-to-day management of the bar and restaurant. This will include such things as:
- Bookkeeping and accounting
- Managing stock
- Taking responsibility for minor repairs
- Maintaining fixtures and fittings
The management team consists of John Smith and Mary Smith, a father and daughter team. John Smith has years of experience as a Director for an electrical contractor, and is very experienced in staff management, business management, key decision making, negotiations with suppliers and partners and achieving results.
Mary Smith brings a wealth of bar and restaurant and bar management experience, and is keen to continue with the success the bar and restaurant has experienced already, whilst also making significant improvements where necessary.
We will look to recruit where required. It is essential that we have a first class Head Chef employed at all times to oversee our menu, and ensure that meals are produced to the very highest standard and that all ingredients are sourced locally where possible. We will employ a mixture of full-time and part-time staff.
Locations and Facilities
The Hugo’s Bar and Restaurant is situated at Main Road Washington USA
Our mission is to sell delicious and remarkable food and drinks to our customers. We will ensure that the food and drink we sell meets the highest possible standards of quality, freshness and seasonality and that it is sourced from local producers where possible. We want our customers to experience impeccable service at all times, and we will ensure that our staff demonstrate warmth, efficiency, integrity and knowledge at all times, and that every customer leaves happy.
A #mission #statement is a short statement of an organization's purpose and shows the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. Tweet
The bar and restaurant has been trading in the same location for a number of years, and offers a wide range of beverages and hot and cold foods to its clientele. Now run by ABC PLC, the establishment has been leased by a number of landlords, and now commands good reviews and a good following in the local region.
#3 Restaurant Business Plan Products & Services Section
The Products and Services section in this restaurant business plan example is showcasing the value and quality of their products and services.
For any start up bar business plan, it’s important to write down what it is that sets you apart from your competitors and the benefits of your business.
- What sets you apart from your competitors?
- How does your pricing compare?
- Why would people buy from you as opposed to your competitors?
Here’s the example.
Products and Services
The Hugo’s Bar and Restaurant is a family bar and restaurant offering a warm welcome, a wide selection of beverages, and an excellent menu. It is very popular with locals and has received very good reviews on TripAdvisor. The wet list features ABC fine cask beers, wines, spirits, cocktails, soft drinks and a coffee menu. We would also be interested in adding more wines to the menu, perhaps featuring a wine of the month, or wines from a particular region each month to keep the menu interesting.
In addition to the usual bar and restaurant fayre, we would also look to introduce the following services and events:
- A lunch club once a week for elderly people within the region.
- A dedicated kids menu. We could offer discounted kids meals one afternoon a week to encourage parents to visit us with their children after school.
- A dedicated gluten-free menu. There were a few comments on TripAdvisor about there not being a good gluten free selection. This is becoming more important to clientele.
- More theme nights such as steak & wine nights. We would also look into doing beer & cheese nights. This is something that has just started to take off, and would be a great way to introduce people to the cask beers on offer alongside local cheeses.
- Events such as coffee mornings welcoming people from the community, especially new people looking for a place to meet with locals, or get to know us better.
We would also look into adding or updating fruit machines and a jukebox, as well as increasing food service hours, and perhaps looking into serving a small breakfast menu.
There are a number of bar and restaurants in the region we would be competing directly with. Some of the most popular bar and restaurants in the area include:
- Happy Restaurant
- Washington Arms
These bar and restaurants have good reviews. Happy Restaurant is famed for its real ales and homemade pork pies. The Arms is popular with sports crowds and offers good beer and a welcoming, busy atmosphere. Washington Arms offers a good selection of beers, and cheap homestyle food.
We want to be able to cater to more families looking for excellent food in a warm and welcoming atmosphere. We want to offer a busy and lively atmosphere in the evenings and to attract locals and passing trade. We also feel our dry menu offers so much more than other offerings in the local area, and we really want to focus on increasing profits in this area, and to look into ways to attract our customers to have a meal with us.
Product & Service Development
We would love to develop the products, services and events on offer, and to do this in line with the ABC Code of Practice. As the saying goes ‘if it ain’t broke don’t fix it’ and so we would look at the aspects of the business that are working well, and only make improvements where necessary. We also want to stay away from adding too many gimmicks as this can be a bar and restaurant’s downfall. We believe clientele like regular events so they know what is happening and when, and this works very well with the XYZ brand which offers Curry Clubs, Lunch Clubs and other options on set days of the week.
We also want to appeal more to families during the day. One idea we have is to add a marquee outside, and to build a pizza oven so that we can hold kids’ pizza parties and other events outside. Parents are always looking for something different for their kids to do, and this could be a very lucrative revenue stream for the bar and restaurant. Parents may also stay to have a meal or drinks while the little ones enjoy the party.
We may also look into offer a set kids menu as seen in other establishments. Children could choose a main meal, dessert and a drink for around $4.95, and also be given coloring pencils and a picture to color in. This not only keeps the kids entertained, but also encourages adults to stay longer and purchase more items from wet and dry menus. We would also promote our birthday parties on the back of the coloring in page.
Sourcing and Fulfillment
All wet products will be sourced and supplied by ABC PLC as per our agreement with the brewery. Equipment such as cellar cooling and drinks dispensers are maintained by ABC. We would look to secure good deals for local produce for our dry menu, and will leave this responsibility to our Head Chef.
Pathway and Lease Agreements are fully tied for all beers, ciders, stout, wines, spirits, soft drinks, packaged alcoholic drinks and gaming machines, including Amusement with Prize Machines (AWP), Skill with Prize Machines (SWP), pool tables and video/LCD based non-payout leisure machines.
Not applicable to this business.
Not applicable to this business. The products we sell will already have the relevant trademarks and licenses in place.
#4 Opening a Restaurant Business Plan Situation & Market Analysis Section
This section of a business plan is very often glossed over because more often than not, the business owner is so involved within their business, that it doesn’t occur to them that they can learn something by writing this down!
This section is one of the most important aspects of your Bar & Restaurant marketing plan.
In fact, it defines where you are currently in terms of your market, product, customer, and competition. It also allows you to look at both internal and external factors and to review and document the strengths and weaknesses of your business, as well as identifying any opportunities and threats within your marketplace.
- Market Analysis & Trends
Industry analysis, key customers, target market, market overview.
Our target market will consist of local customers already regulars at the establishment, new local customers, people visiting the area, and passing trade. The Hugo’s Bar and Restaurant already has a good reputation in the area for a good atmosphere and great food, and we certainly would not want to change that!
However, we do believe there is room for improvement and that these improvements would attract new customer streams to the bar and restaurant. If we could extend the restaurant opening hours for example, we could improve profits across the wet and dry menus, and also upsell items such as good wines. We would also want to welcome more children and parents to the bar and restaurant, and will look into ways we can do this.
The Hugo’s Bar and Restaurant offers some amazing attributes to the area. Its warm and welcoming atmosphere and good food are very well documented on TripAdvisor.
We will offer a wide range of products under one roof including alcohol, soft drinks, coffee and good food. People can come to us in the afternoon for drinks and stay with us through dinner and up until closing time if they wish. We want to encourage this kind of home from home experience and encourage people to enjoy as many of our products and services as possible.
The Hugo’s Bar and Restaurant always serves good food and drink and is our favorite place to eat in the local area. If you haven’t tried the Hugo’s Bar and Restaurant, it’s a must for 2016. – Vivien S (TripAdvisor)
For most of the evening, we had the dining room to ourselves which was lovely. The staff were friendly and left us alone unless we needed them. I really liked the fact that there was a limited menu. This way I know all the food prepared is fresh. – Emily C (TripAdvisor)
However, there is room for improvement. There are a number of negative comments on TripAdvisor regarding the limited range of food on offer for children, and there have also been misunderstandings in the past about gluten-free options. We would do more to ensure our customers are catered to and made to feel totally comfortable in our surroundings and with our menu.
We would also look at adding services that cannot be found elsewhere. For example, our plan is to offer kids’ parties outside in a marquee. By adding a pizza oven outdoors, we can capture a section of the market that is growing with a relatively cost-effective idea. This will also attract more wet menu sales from parents and carers who want to stay with us while the party is going on.
The great American night out has always featured the bar and restaurant. Whether it is at the start of the night for a few drinks before dinner or going on to a nightclub, or patrons spend their entire night in the same establishment, this timeless trend shows no sign in stopping or even slowing down. However, with more bar and restaurants springing up, and more bar and restaurants using innovative ways to attract patrons, we would need to stay on our toes. By offering a mix of traditional bar and restaurant fayre and services, and also looking at new ways of attracting customers, we will remain competitive and maintain the already good reputation.
Craft beers and cask ales are becoming more and more popular. People are open to trying new experiences, and would look at ways we can promote beer sales with special events. Beer and cheese evenings are starting to gain popularity with patrons being offered a cheeseboard and smaller taster glasses of beer. This is just one idea, but an example of how important it is to keep up to date with market needs and trends.
We may also look into ways in which we could encourage people to have their “big night in” at the bar and restaurant instead of at home. People settle down at home for shows such as X-Factor, Americas Got Talent, and other big TV events. We could possibly create a living room atmosphere and encourage people to come to us instead. This sort of event could get people talking to each other, enjoying themselves in our establishment, and ultimately ordering more drinks.
During the past decade, a series of legislative, social and economic trends have conspired to squeeze industry revenue and profit margins, forcing many bar and restaurants out of business. Already reeling from the ban on smoking in bar and restaurant places, patronage and industry revenue have been battered by rising beer duty, declining alcohol consumption, competition from low supermarket alcohol prices and the prolonged economic downturn.
Whilst it can be difficult for new bar and restaurants to enter the market, established bar and restaurants with regular visitors, a good reputation and willing to keep up with the latest trends and customer demands, can continue to thrive. This is why it is so important for us to review where the Hugo’s Bar and Restaurant is doing well, and to focus our efforts on areas that need improving or to introduce new events or services that would bring in new sustainable revenue streams.
We will be working in the hospitality industry, offering good food and drinks to our customers in a warm, friendly and welcoming atmosphere. Our services and products will be sold directly to customers within our establishment, and promoted across a number of different channels.
Customers often make their buying decisions based on price and personal preference. In addition to drinks purchased direct from the bar, we will also offer drinks within our restaurant, and this is where we may have the best opportunity to push some of our higher priced items such as wines and also pre-dinner cocktails. Reputation is also important, and the ABC name is well known amongst cask ale lovers.
Our key customers will consist of people of all age groups, from 0-100 years old. We want to promote a real family-friendly atmosphere, and to encourage people of all ages, all walks of life, and all areas to come to our bar and restaurant. We want to promote a real community spirit that unites people, starts conversations, offers customers a great day out or a memorable night out, and which also encourages customers to share their experience with others.
#5 Small Restaurant Business Plan Marketing Strategy Section
The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.
If your potential customers are not made aware of your business, you are not going to stay in business for very long!
Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.
- How are you planning to advertise to your market?
- What is your competitive edge?
- What is your sales strategy?
- SWOT analysis.
Let’s look at this example for a restaurant business plan.
Define a marketing strategy within your business plan to highlight your expertise and emphasize what makes your business concept compelling. Tweet
Strategy and Implementation
There is a need for a good local bar and restaurant in every town, somewhere people can come together to share good times, celebrate, relax at the end of a long day and generally socialize with friends, family and other locals. The Hugo’s Bar and Restaurant is a small bar and restaurant, but is very big on character and reputation, and we would want to keep it that way.
We believe there is room in the market for many different establishments, but we do need to ensure that we stand out. Through good advertising locally and nationally, we can ensure our name stays on the map, and that we maintain the reputation the bar and restaurant has achieved already.
Good quality cask beers, a wide range of beverages, excellent food, a welcoming atmosphere, exciting promotions, regular events and a family feel are all qualities we feel are important to the bar and restaurant and its customers.
Our marketing plan would include improving the website, using social media channels more effectively, using print advertising for our promotions and events and also encouraging word of mouth recommendations and online reviews. We feel there is a lot of room for improvement where marketing is concerned. For example, the Twitter feed has not been updated since February 2nd.
Please see the latest ABC wet list pricing. The bar and restaurant currently offers a set menu for its guests at lunchtime, and an à la carte menu during the evening. These are all priced at very competitive rates.
We would like to offer our customers discounts, especially regular customers. We will offer these discounts through a discount card, and also through fun promotions on our social media channels.
We intend to use digital marketing and print marketing to its full potential. Through regular updates to Twitter, Facebook and our website, we can start to attract more attention, and ultimately attract more people through the door.
There is currently a website, but we feel it is very lacking in terms of up to date information. For example, there is a sample food menu listed, but we feel there could be more details here and some good quality photos to show potential customers how good our food is. There are also no event listings or any information about promotions or other messages that could attract customers. We would also like to attract more customers celebrating a special event. For example, we could give the birthday boy or girl a free pint or glass of prosecco, or a free dessert. We want the Hugo’s Bar and Restaurant to be their first choice whenever they have something special to celebrate.
We would like to use social media to advertise promotions. There will be regular quiet times during the week, and we would like to encourage more footfall by offering discounts through Twitter and Facebook. For example, we can give a 10-15% discount to any customer that quotes a phrase we have posted on our social media channels.
We also want to promote the Hugo’s Bar and Restaurant as a true community bar and restaurant, and we will look into charity promotions and other events where we can put something good back into the community. Whether it is giving a local charity somewhere to hold an event, or holding a special lunch club for elderly local residents, we want to portray a caring and welcoming image.
We will sell directly through the bar and restaurant. We will also offer birthday party packages.
We would be taking over an already established business. Before taking over, we would want to have a set plan of action in place for any improvements we would like to make. For example, we would like to have seasonal lunch and dinner menus devised in advance so that we can publish these on our website and through our social media channels. We would also like to have set out our regular events and promotions and to have advertising arranged for each of these events so that we can get the word out in advance of each event taking place.
It is also important that we are accepted as the new management team, and therefore any changes we make will need to be handled carefully and in a sympathetic way. We want to listen to our customers, and through face to face conversation and activity on our social media accounts, we can obtain feedback on what our customers would like to see. This feedback will also have an impact on our milestones.
Training of key members of staff is also essential and we would work closely with ABC to establish a training schedule in accordance with their Code of Practice. Both John and Mary already have a Personal License in place.
In summary, we would look at employng good quality staff including a Head Chef, increasing food availability times, improving sales and profits and establishing ourselves as one of the leading bar and restaurants in the community.
The Hugo’s Bar and Restaurant is in a very strong position as a popular bar and restaurant in the heart of the community, and is well established. It is especially well known for its excellent food and drink menus, and for its large garden during the summer months. The exterior of the bar and restaurant is attractive and welcoming, and offers a clean and modern look and good kerb appeal. There are also good parking facilities.
The bar and restaurant is also known for its excellent staff and service, and this is apparent on TripAdvisor and other review sites. We would work hard to maintain this level of service, and to make improvements where possible.
As with any business, there is always room for improvement. We feel there are a number of areas that we could work on immediately, and which would take minimal focused effort to achieve and improve.
We would first turn our attention to the food menus, offering a good set price kids menu, and also gluten-free options on a separate menu. We would also review gluten-free food prep in the kitchen, ensuring we have a separate fryer for chips and other foods that need to be cooked separately.
Food service times are currently too short, and we feel the bar and restaurant is missing out on profits during these times.
The bar and restaurant is currently closed on Monday, and this is an entire day where the bar and restaurant is missing out on local trade and trade from people visiting the area.
The patio area is not currently used to its full potential, and we would like to improve this area to make it more appealing and more suitable for a range of uses.
Social media channels are not being updated. The last Twitter update was almost six months ago, and this is a big area we would like to address. The website also needs attention.
There are many opportunities for improvement. In addition to the improvements we have already listed, we would like to focus on seasonal opportunities such as Christmas, New Year and Mother’s Day and advertise these events and promotions well so that we achieve maximum covers in the restaurant and excellent profits from our wet menu.
There is a real opportunity for us to appeal to more groups of customers, and to open up new revenue streams. For example, our aim is to have at least one kid’s birthday party booked every weekend, and to have more parents popping with their kids after school. There are also opportunities for us to improve our food menu, to make it more available during the week, and to publicise our menu and any special offers across our website and social media.
We also want to welcome our more elderly residents, and give them somewhere to visit on a weekly or monthly basis for a warm meal and a friendly atmosphere.
It is essential that we maintain the Hugo’s Bar and Restaurant’s already excellent reputation, and that we make improvements carefully and in the right way. One bad TripAdvisor review could be very damaging, so we will do everything in our power to attract the best reviews and word of mouth recommendations. Any failures in service will be dealt with immediately, and any poor reviews replied to and addressed in the best way possible, offering compensation where necessary.
We also need to ensure we keep an eye on our competition and what they are doing. Our tie-in with ABC is also critical to our operations, and so we would ensure that we work in accordance with the Code of Practice at all times.
Staff retention is extremely important to the establishment, especially in terms of more skilled staff such as the Head Chef. We would ensure we offer an attractive remuneration package, and that we keep our team motivated to the point where they wouldn’t want to work anywhere else.
We are competing against a number of similar establishments in the local area. The most popular bar and restaurants in the region offer excellent services, but we are in a very strong position to compete. For example, some are more well known for a lively sports crowd, and well-placed near to public transport links where there is good footfall from visitors.
We want to be the warm, friendly and inviting bar and restaurant where everybody is welcome. We offer a range of good quality beverages backed by the outstanding ABC brand, and we offer a fresh, seasonal and local menu cooked and presented to perfection. Customer service will also be extremely high, and customers will want to come back to us time and time again.
We believe we can stand out with our reputation, our promotional activities and also our innovative options such as kids’ pizza parties, beer and cheese nights and other events that are not available elsewhere.
In addition to our website and social media channels, we will also advertise in local newspapers, outside the bar and restaurant, at point of sale and on our restaurant and bar tables. We will track the success of our promotional activity through social media promotions, and also through print promotions. For example, some promotions may require a special code to be announced at the time of ordering, or for a leaflet to be presented to gain a discount.
Our restaurant bookings will be taken in person, over the phone and through our website. All other products and services will be sold directly.
Whilst all sales will be largely led by what the customer wants to order at the time, we will encourage more sales through our promotions and also through clever upselling by our staff. For example, asking customers if they would like to see the wine list over lunch, or asking them if they would like any bar snacks with their order are all ways we can gently make suggestions. We may look into financial rewards for our staff depending on which products we can upsell and how.
Our greatest strategic alliance will be with ABC PLC, and we would ensure we work closely with the company at all times to ensure we are complying with their Code of Practice, and to raise any concerns we may have early on.
#6 Restaurant Business Plan Financials Section
Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.
A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.
We’ve listed here the key elements you need to have in a successful financial section:
- Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
- Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
- Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
- Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
- Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
- Loan Repayment – This shows the lender or potential investor the act of paying back any monies.
So… Are you ready to look at some figures?
Profit & Loss
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Now, over to you...
Now I’d love to hear from you:
Are you going to start up your own bar & restaurant or have you recently written a business plan?
We’d love to know what you thought about our bar & restaurant business plan example.
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