Mexican Restaurant Business Plan

Do you want to start Mexican restaurant business plan?

Do you want to open a Mexican restaurant? Well, Mexican foods are high in demand as they are loved by people of all ages and life areas. From Enchiladas to Taco, Mexican foods are all about delight.

The business can prove out to be extremely profitable provided that you plan it effectively. There are only a few areas that require extreme care and consideration. The topmost among them is regarding maintaining the food quality and nutritional value.

To apprehend how to open Mexican restaurant you should start exploring and researching. You will be needed to pen down your findings in a business plan for a Mexican restaurant to come up with a structured approach for starting this business. In case, you are unaware of how to make an accurate business plan, you can take help from this sample plan written for ‘Mexican Delicacies’.

Executive Summary

2.1 The Business

Mexican Delicacies will be a registered and licensed food restaurant based in New York. The business will primarily provide Mexican foods and desserts to the citizens of New York. Moreover, a few internationally-acclaimed cuisines will also be offered in the restaurant.

2.2 Management of Mexican Restaurant

Mexican Delicacies will be managed and run by its owner, co-manager, and team. Since the restaurant aims at providing supreme quality service to its customers, strict supervision will be held in place. Moreover, a building that was previously used as a restaurant will be acquired on rent and renovated to create a Mexican culture environment.

In this start up summary for a restaurant we have listed a brief management plan. To have a complete idea of how to set up a Mexican restaurant business plan keep reading this sample executive summary of a Mexican restaurant business plan.

2.3 Customers of Mexican Restaurant

Our major customers will be the local community living near us, Mexican communities, and tourists.

2.4 Business Target

Our major targets are:

• To achieve a repeat purchase rate of 80% by the end of the first year
• To maintain a CSAT score of above 90% throughout our service years
• To earn a net profit margin of $28.6k per month by the end of the third year
• To earn an average rating above 4.75 within two years of our launch

Immigration Business Plan

Document for passing government compliance requirements for immigration to the US, Canada, or the UK.

Company Summary

3.1 Company Owner

Mexican Delights will be owned by Matt Downey. Matt had always remained enthusiastic about food. After completing his MBA, he joined Krispy Kreme as a manager. Throughout his academic and service years, he remained an active participant in cooking competitions.

3.2 Why the Mexican restaurant is being started

Matt had to start a business at some point in his life. Due to his interest in the cooking side, he decided to opt for some cooking-related business. After surveying his target marketplace, he discovered that there was a huge demand for Mexican cuisines.

3.3 How the Mexican restaurant will be started

Step1: Plan Everything

For starting a Mexican restaurant business, you have to first create a business plan. In this Mexican restaurant business plan sample we will be providing all the details of Mexcian Delights so that you can learn how to create an accurate business plan. However, if your offerings are different than ours, then it is recommended to also study more Mexican restaurant business plan examples before finalizing your plan.

Step2: Define the Brand

The second step is to get the licenses and required registrations to start establishing yourself. At the time, you should define your business values, targets, and offerings that you can get identified in the market.

Step3: Establish the Restaurant

The next step is to purchase the inventory and furniture to set up your restaurant. The décor and environment of a restaurant matter a lot. Therefore, make sure that you are offering a serene and refreshing environment to your customers.

Step4: Never Ignore the Web Presence

Establishing a website and social media sites is vital to attract more and more people to your site. And to let them know your specialties through their fellow’s comments.

Step5: Promote and Market

Lastly, you should develop advertisement and marketing business strategies to get introduced to your target audience.

To give you an idea of how much does it cost to open a Mexican restaurant we are providing a list of startup costs of Mexican Delights.

Start-up Expenses
Legal	$251,000
Consultants	$0
Insurance	$31,000
Rent	$34,000
Research and Development	$24,000
Expensed Equipment	$47,000
Signs	$4,000
TOTAL START-UP EXPENSES	$391,000
Start-up Assets	$374,000
Cash Required	$398,000
Start-up Inventory	$52,000
Other Current Assets	$289,000
Long-term Assets	$295,000
TOTAL ASSETS	$1,408,000
Total Requirements	$1,799,000
START-UP FUNDING
Start-up Expenses to Fund	$391,000
Start-up Assets to Fund	$1,408,000
TOTAL FUNDING REQUIRED	$1,799,000
Assets
Non-cash Assets from Start-up	$1,834,000
Cash Requirements from Start-up	$398,000
Additional Cash Raised	$51,200
Cash Balance on Starting Date	$32,000
TOTAL ASSETS	$2,315,200
Liabilities and Capital
Liabilities	$30,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$44,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$74,000
Capital
Planned Investment	$1,799,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,799,000
Loss at Start-up (Start-up Expenses)	$442,200
TOTAL CAPITAL	$2,241,200
TOTAL CAPITAL AND LIABILITIES	$2,315,200
Total Funding	$1,799,000

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Services

In your Mexican restaurant business plan template you should define your services so that you can make the relevant arrangements. Stating your services in your business fast food Mexican plan restaurant will also help you in identifying your customers and daily buying trends.

Mexican Delights will offer the following delicious servings to its customers.

• Traditional Mexican Cuisines: We will offer all of the Mexican cuisines that are famous among our target customers. Our major offerings will include:
  • Taco
  • Guacamole
  • Enchiladas
  • Chilaquiles
  • Tamales
  • Pozole
  • Bistec
  • Huevos rancheros and more.
• Mexican Drinks: Our drink offerings will include the following items:
  • Tequila
  • Mezcal
  • Kahlúa
  • Mexican Coke
  • Horchata
  • Hot Chocolate
• Mexican Desserts: We will be offering several Mexican desserts and sweet dishes such as:
  • Chiles en nogada
  • Mexican Cinnamon Cookies
  • Churros
  • Tres Leches Cake
  • Creamy Caramel Flan
  • Mexican Brownies
  • Dulce de Leche Cheesecake and more.
• International Foods: We will also offer foods that are liked by people of all regions. They will range from local American dishes to Italian and Spanish delicacies. Moreover, seafood dishes and some fast food items will also be offered in this category.

Marketing Analysis of Mexican Restaurant

Here we are providing all details of Mexican Delights to assist you in case you are looking for how to write a business plan for a Mexican restaurant or how to carry out an accurate marketing analysis.

Business Plan for Investors

5.1 Market Trends

Due to the increased popularity and demand for Mexican foods, Mexican food restaurants have seen a growth rate of 4% during the past five years i.e. from 2016 to 2021. This stat is recorded by IBISWorld for the United States. The source also states that the Mexican restaurant industry is expected to grow by another 22.5% in 2021 alone. And the market size for this business is reported to reach $66.9 billion in 2021.

This Mexican restaurant industry analysis suggest that it is the right time to open Mexican restaurant. As stats are really good, it is highly recommended to enter this venture without any unnecessary delay.

5.2 Marketing Segmentation

Before exploring how to set up a Mexican restaurant business plan you should identify who your customers are. Because the groups of your target customer will be affecting your long-time decisions.

In this business plan, we’re providing the market segmentation done for Mexican Delights.

5.2.1 Local Communities

Our primary customers will be the local Anglo-Americans living near us. They are expected to devour our Mexican dishes as these dishes are different than local foods due to their distinct tastes and nutritional value. Since this community will also include cross-cultural minorities, thus, we expect them to enjoy our internationally acclaimed foods too.

5.2.2 Mexican Communities

The second group of our target customers will comprise the Mexican minorities living near us. They are expected to visit us frequently. Firstly, because of our large menu and wide range of offerings. And secondly, because of the immersive Mexican cultural environment, we’ll be demonstrating through our décor. Another thing that will help us draw more Mexicans is that we do not have abundant Mexican food restaurants servicing near us within 20 to 25-minute driving distance.

5.2.3 Tourists

Our third category of target customers will be tourists. This category will comprise the explorers who also want to explore traditional foods of different countries.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Local Communities	49%	51,000	52,000	53,000	54,000	55,000	10.00%
Mexican Communities	41%	43,000	44,000	45,000	46,000	47,000	10.00%
Tourists	10%	9,000	10,000	11,000	12,000	13,000	11.00%
Total	100%	103,000	106,000	109,000	112,000	115,000	10%

5.3 Business Target

Our business targets relevant to market customers are to achieve a repeat purchase rate of 80% by the end of the first year. Moreover, we aim to maintain a CSAT score of above 90% and an average rating above 4.75 in a specified time.

Marketing Strategy

Many restaurants are operating in the whole of the United States. In case you want to outperform others, you’ll need to come up with competitive benefits and an influencing advertisement plan.

In your Mexican restaurant business plan template you should include a detailed marketing plan. To help you in devising this part, we’re providing a marketing plan for a restaurant pdf of Mexican Delights.

6.1 Competitive Analysis

Our biggest competitive advantages are listed here:

1. We are offering a wide variety of foods to attract customers from different walks of life.
2. Our restaurant is specifically designed to provide a powerful environment. We hired professional décor services to install cultural items of Mexico and to create 3D posters of Mexican celebrities to provide an immersive experience to our customers.
3. Lastly, due to our extraordinary sales strategy, we expect to get more customers as compared to our competitors.

6.2 Sales Strategy

• We’ll advertise our startup through Google Local ads service and social media campaigns.
• We’ll invite a famous and beloved Mexican celebrity to our launching ceremony to mark our exclusive startup.
• We’ll keep track of our repeat customers and will offer them a 25% discount on all of our offerings after their first twenty purchases.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Traditional Mexican Cuisines	55,000	58,300	61,798
Mexican Drinks	12,000	12,720	13,483
Mexican Desserts	34,000	36,040	38,202
International Foods	49,000	51,940	55,056
TOTAL UNIT SALES	150,000	159,000	168,540
Unit Prices	Year 1	Year 2	Year 3
Traditional Mexican Cuisines	$56.00	$64.96	$75.35
Mexican Drinks	$50.00	$58.00	$67.28
Mexican Desserts	$46.00	$53.36	$61.90
International Foods	$58.00	$67.28	$78.04
Sales
Traditional Mexican Cuisines	$3,080,000.00	$3,787,168.00	$4,656,701.77
Mexican Drinks	$600,000.00	$737,760.00	$907,149.70
Mexican Desserts	$1,564,000.00	$1,923,094.40	$2,364,636.87
International Foods	$2,842,000.00	$3,494,523.20	$4,296,865.73
TOTAL SALES	$8,086,000.00	$9,942,545.60	$12,225,354.07
Direct Unit Costs	Year 1	Year 2	Year 3
Traditional Mexican Cuisines	$54.00	$61.00	$71.00
Mexican Drinks	$47.00	$55.00	$63.00
Mexican Desserts	$43.00	$49.00	$56.00
International Foods	$55.00	$64.00	$73.00
Direct Cost of Sales
Traditional Mexican Cuisines	$2,970,000.00	$3,556,300.00	$4,387,658.00
Mexican Drinks	$564,000.00	$699,600.00	$849,441.60
Mexican Desserts	$1,462,000.00	$1,765,960.00	$2,139,334.40
International Foods	$2,695,000.00	$3,324,160.00	$4,019,117.20
Subtotal Direct Cost of Sales	$7,691,000.00	$9,346,020.00	$11,395,551.20

Personnel plan

When you write business plan Mexican restaurant you should also create a peroneal and HR management plan. This will eventually help you in retaining a skilled and motivated workforce.

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7.1 Company Staff

Matt will be the CEO herself. To run his business, he’ll hire.

• 1 Co-Manager to monitor business operations
• 1 Accountant to maintain financial records
• 8 Cooks to prepare the dishes
• 6 Waiters to serve the food
• 2 General Assistants for routine tasks
• 1 Technician to maintain the machinery
• 1 Web Developer to manage the online presence
• 1 Sales Executive to execute the restaurant’s sales strategy
• 4 Cleaners
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Co-Manager	$12,000	$13,200	$14,520
Accountant	$9,000	$9,900	$10,890
Cooks	$64,000	$70,400	$77,440
Waiters	$40,000	$44,000	$48,400
Technician	$6,000	$6,600	$7,260
General Assistants	$12,000	$13,200	$14,520
Web Developer	$6,000	$6,600	$7,260
Cleaners	$28,000	$30,800	$33,880
Sales Executive	$7,000	$7,700	$8,470
Receptionist	$6,000	$6,600	$7,260
Total Salaries	$190,000	$209,000	$229,900

Financial Plan

A financial plan is one of the most important components to include when you write business plan Mexican restaurant. A financial plan analyzes the costs involved in running your business as well as the monthly and yearly sales. By gathering all the business analytics, an accurate financial plan suggests a time at which you will be able to recover your startup costs. Moreover, it also incorporates financial risks to figure out a strategy to minimize or even avoid undesirable losses.

A business can never achieve its goals without a proper financial record and management. Therefore, you must take care of this part cautiously. If you lack the experience of making a financial plan, it is highly recommended to hire a professional financial analyst to do so.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.13%	8.16%	8.21%
Long-term Interest Rate	8.27%	8.35%	8.40%
Tax Rate	23.60%	23.90%	24.40%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5344
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$236.00
Average Per-Unit Variable Cost	$0.67
Estimated Monthly Fixed Cost	$161,200

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$8,086,000	$9,942,546	$12,225,354
Direct Cost of Sales	$7,691,000	$9,346,020	$11,395,551
Other	$0	$0	$0
TOTAL COST OF SALES	$7,691,000	$9,346,020	$11,395,551
Gross Margin	$395,000	$596,526	$829,803
Gross Margin %	4.88%	6.00%	6.79%
Expenses
Payroll	$190,000	$209,000	$229,900
Sales and Marketing and Other Expenses	$130,000	$128,000	$127,000
Depreciation	$2,500	$2,600	$2,400
Leased Equipment	$0	$0	$0
Utilities	$3,000	$3,090	$3,120
Insurance	$1,900	$2,090	$2,160
Rent	$3,400	$3,500	$3,600
Payroll Taxes	$30,000	$31,000	$32,000
Other	$0	$0	$0
Total Operating Expenses	$360,800	$379,280	$400,180
Profit Before Interest and Taxes	$34,200	$217,246	$429,623
EBITDA	$34,200	$217,246	$429,623
Interest Expense	$0	$0	$0
Taxes Incurred	$6,840	$43,449	$85,925
Net Profit	$27,360	$173,796	$343,698
Net Profit/Sales	0.34%	1.75%	2.81%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$56,000	$60,480	$65,318
Cash from Receivables	$18,000	$19,440	$20,995
SUBTOTAL CASH FROM OPERATIONS	$74,000	$80,660	$87,113
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$75,000	$82,000	$89,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$37,000	$40,000	$43,000
Bill Payments	$28,000	$30,000	$32,000
SUBTOTAL SPENT ON OPERATIONS	$65,000	$70,000	$75,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$65,000	$70,200	$75,816
Net Cash Flow	$15,000	$16,000	$17,200
Cash Balance	$26,500	$28,000	$30,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$288,000	$322,560	$354,816
Accounts Receivable	$25,000	$28,000	$31,472
Inventory	$4,000	$4,480	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$294,000	$329,280	$370,111
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$18,200	$20,384	$22,932
TOTAL LONG-TERM ASSETS	$24,000	$26,880	$30,240
TOTAL ASSETS	$296,000	$331,520	$372,960
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$21,100	$23,632	$26,562
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$14,000	$15,680	$17,624
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$16,000	$17,920	$20,142
Paid-in Capital	$30,000	$32,000	$33,000
Retained Earnings	$54,000	$58,860	$64,746
Earnings	$198,000	$215,820	$237,402
TOTAL CAPITAL	$273,000	$297,570	$327,327
TOTAL LIABILITIES AND CAPITAL	$289,000	$331,520	$372,960
Net Worth	$297,000	$323,730	$356,103

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.07%	7.83%	8.68%	3.00%
Percent of Total Assets
Accounts Receivable	9.22%	10.22%	11.32%	9.80%
Inventory	5.60%	6.20%	6.87%	9.90%
Other Current Assets	2.13%	2.36%	2.61%	2.40%
Total Current Assets	150.12%	151.80%	152.30%	158.00%
Long-term Assets	11.80%	11.86%	11.92%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.65%	4.69%	4.73%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.52%	7.58%	7.65%	7.38%
NET WORTH	101.09%	101.90%	102.84%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.99%	97.55%	100.29%	99.00%
Selling, General & Administrative Expenses	93.71%	96.24%	98.93%	97.80%
Advertising Expenses	1.69%	1.74%	1.78%	1.40%
Profit Before Interest and Taxes	41.05%	42.16%	43.34%	33.90%
Main Ratios
Current	37	38	39	32
Quick	31	32.8	33.62	33
Total Debt to Total Assets	0.19%	0.19%	0.18%	0.40%
Pre-tax Return on Net Worth	74.81%	75.50%	76.23%	75.00%
Pre-tax Return on Assets	94.04%	98.74%	103.68%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	32.91%	33.93%	34.98%	N.A.
Return on Equity	54.98%	56.68%	58.44%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.8	7.8	7.9	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.8	34.44	35.6	N.A.
Accounts Payable Turnover	16.1	16.3	16.59	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.03	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$243,000	$256,608	$270,978	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.83	0.85	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	27.8	28.2	28.7	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

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