The food industry is enormous and varied so building a business plan for a restaurant is something thousands of entrepreneurs do each year. The National Restaurant Association reports annual industry sales of $683.4 billion and 990,000 restaurants employing 13.5 million people. It is not surprising because there are so many options for anyone interested in starting some type of dining business.
The varied industry includes restaurants located in hotels, fast food restaurants, fine dining establishments, ethnic food restaurants, pub-style restaurants, steak houses, truck stop cafes, home-style food restaurants, sports bar and food restaurants, and many others. Within each of these categories is another list of specific restaurants serving a particular type of food like Italian, Mexican, American, Indian, Chinese, and so on.
However, starting a restaurant takes money which means most people need outside investors or loans for startup. The business plan is a key document supporting financial support requests so it needs to be high quality, comprehensive, and on target. A well-developed plan covers topics like the following:
• Description of the restaurant brand, vision, and cuisine
• Planned menu options
• Restaurant operations, including operating policies, software for completing and tracking transactions from sales to payroll, managing inventory, etc.
• Management experience in the restaurant industry
• Staffing plan which addresses the type of people needed (short order cooks, European trained chef, servers, and so on), customer service training, compensation plan, etc.
• Target market and demographics, and why customers will choose this restaurant over others, i.e. value, type of food served, atmosphere, amenities, accommodates families, etc.
• Competitive analysis which includes description of the local competitors, market positioning, how restaurant branding increases competitiveness, etc.
• Financial statements for the first five years of operation
• Startup capital and operating expenses
Entrepreneurs have options concerning startup. Some choose to buy a franchise, meaning the business plan will include information about the financing, marketing support, franchise brand, and so on. The other option is to open an independent restaurant.
Restaurants are opened in free-standing buildings, strip malls, shopping malls, and in space in other retail establishments. The type of space influences the capital requirements. Building a business plan for a restaurant requires having a firm understanding of the startup capital costs for kitchen and delivery equipment, and demonstrating in-depth planning for the first five years of operations. This is the type of detail that convinces angel investors, equity investors, and banks the entrepreneur is ready to join the booming restaurant industry.
It takes expertise to write an expert business plan, and that is what OGS Capital offers entrepreneurs ready to start or grow a business. Send a brief online message using the contact form, and a consultant will get in touch shortly to get the development process started.
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OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.