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MAR.19, 2020

Seafood Restaurant Business Plan Sample

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Seafood business plan for starting your own restaurant

Do you want to set up restaurant and earn profit by exhibiting your culinary skills? Well, you must opt for it if you have some good cooking or management skills. Starting a seafood business can prove out to be extremely profitable provided that you select the location wisely.

What you’ll have to do is just hiring the right employees and establishing contacts with seafood vendors and suppliers.

To help you in getting started we’re providing a sample business plan for seafood restaurant written for startup ‘Sea Sprite’. This sample plan can help you in planning your startup and devising a policy for your business.

Executive Summary

2.1 The Business

Sea Sprite will be a registered and licensed seafood dining business based in Chicago, Illinois. The restaurant will be owned by Marlon Hacks. The business will be aimed at providing freshest and healthiest seafood to its customers in a beautiful and peaceful environment.

2.2 Management of Seafood Restaurant

Before starting a seafood restaurant, it is essential to formulate a comprehensive and precise seafood restaurant business plan that covers all details about the startup.

In this sample business plan, we are giving details of the management plan and strategies of Sea Sprite to achieve its goals. Anyone looking for how to open a seafood restaurant can benefit from here.

Marlon will hire skillful cooks and chefs, a manager, general assistants, accountants and waiters to run his restaurant.

2.3 Customers of Seafood Restaurant

Due to the nutritional content and delicious taste, seafood is liked and consumed all over the world by people of all age groups. That’s why we expect the nearby residential community, tourists and persons who arrange a menu for ceremonies and events to be our target customers.

2.4 Business Target

We aim to provide our customers with nutritious, delicious and fresh seafood. We aim at maintaining a repeat customer rate of 61% by the end of the first year and to increase customer footfall in our restaurant from 5 to 10% every month.

Seafood Restaurant Business Plan - 3 Years Profit Forecast

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

Company Summary

3.1 Company Owner

Sea Sprite will be owned by Marlon Hacks. Marlon is an MBA from the University of Chicago. Marlon has been fond of cooking since his teenage. Alongside his studies, he used to cook and bake things side by side. Due to his skills in management and cooking, Marlon believes that he can successfully run a restaurant.

3.2 Why the Seafood Restaurant is being started

Marlon has always wanted to start some food-related business. After analyzing the market and his surroundings, he realized that there are very few restaurants in his hometown that provide all sorts of fresh seafood. Thus, to serve his customers with dishes that aren’t too common, Marlon opted for opening a seafood restaurant.

3.3 How the Seafood Restaurant will be started

The first step Marlon took to start his restaurant was making a business plan for his business. in his business plan, Marlon has defined all the startup strategies and has estimated how much does it cost to open a seafood restaurant.

According to the plan, Marlin will first rent an old restaurant building in the city. The space will be updated with new tiles, new furniture, and new décor after renovation. Alongside the renewal of the place, Marlon will organize tests and interviews for hiring the right employees.

Marlon has decided to hire the personnel for executing the sales strategy plan a month before the launch so that more and more people can get knowledge about the new startup before the actual commence.

Moreover, a strong web presence will be ensured before the day of the launch of the restaurant so that people can explore the restaurant and its competitive aspects by even sitting at their homes.

Seafood Restaurant Business Plan - Startup Cost

Start-up Expenses  
Legal $220,900
Consultants $0
Insurance $48,000
Rent $43,500
Research and Development $37,000
Expensed Equipment $66,700
Signs $3,300
TOTAL START-UP EXPENSES $419,400
Start-up Assets $362,000
Cash Required $449,000
Start-up Inventory $71,000
Other Current Assets $275,000
Long-term Assets $300,000
TOTAL ASSETS $1,457,000
Total Requirements $1,876,400
START-UP FUNDING
Start-up Expenses to Fund $640,400
Start-up Assets to Fund $2,209,000
TOTAL FUNDING REQUIRED $2,849,400
Assets
Non-cash Assets from Start-up $2,642,000
Cash Requirements from Start-up $202,200
Additional Cash Raised $48,200
Cash Balance on Starting Date $38,000
TOTAL ASSETS $2,930,400
Liabilities and Capital
Liabilities $35,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $46,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $81,000
Capital
Planned Investment $2,849,400
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $2,849,400
Loss at Start-up (Start-up Expenses) $0
TOTAL CAPITAL $2,849,400
TOTAL CAPITAL AND LIABILITIES $2,930,400
Total Funding $2,849,400

Any questions? Get in Touch!

Menu of seafood restaurant

Before you start a seafood restaurant its essential for you to decide your menu. Because you’ll need to buy the equipment and will need to contact the vendors as required by your menu. Moreover, if you are about to own a restaurant, deciding your services before time can also help in sorting out the right employees/chefs with the relevant experience.

Before formulating a salon business plan outline you must finalize which services you’ll be providing to your customers because this decision of yours will be affecting the business in the long run.

Sea Sprite will offer the following foodstuff to its customers:

Seafood dishes: We’ll provide all sorts of dishes made by clams, fish, crabs, lobsters, oysters, shrimps, squids, octopus and prawns such as curries, Ceviche, salmon rice, and Lohikeitto.

Soups: We’ll provide seafood soups mixed with seasonal vegetables. Our main servings in this domain will include chowder, Tekwan, Ukha, Machh bhaja, etc.

Salads & Sandwiches: We will provide fresh fish, shrimps, and grilled octopus sandwiches as well as mix salads of vegetables and seafood.

Seafood Pizza & Steaks: The major thing in our menu that isn’t offered by any of our competitors will be seafood pizza with primary ingredients as shellfish, trout, salmon, and shrimps. We’ll also provide steaks of different sea-animals that are liked and consumed by the people.

Marketing Analysis of Seafood Restaurant

Before setting up a restaurant business it’s essential that you properly analyze your market. Market analysis is the assessment of people who are supposed to be the customers of your seafood restaurant. Analyzing your market precisely can help you run the business in the long run because the choice of location, choice of menu and prices are set after taking this important step.

An accurate marketing plan for restaurant business must evaluate the market potential, buying patterns of your target customers and economic patterns in the location in which you are going to start your restaurant.

5.1 Market Trends

Seafood is liked all over the world because it contains high nutrition value, protein, minerals, and vitamin content. The fact that fresh seafood is difficult to acquire and cook has generated more and more demand for processed or cooked seafood.

Note

A 3.6% compound annual growth rate of seafood businesses is reported by Allied Market Research Company. That’s why if you want to open seafood restaurant you need not worry about the scope of the business. the thing for which you should be worried is just correct pre-planning of every aspect of your restaurant.

5.2 Marketing Segmentation

To focus on the needs and demands of the target customers, Sea Sprite has divided them into three groups. Such segmentation must also be done by you if you want to study and explore each group effectively.

Seafood Restaurant Business Plan - Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

Business Plan for Investors

5.2.1 Residential Community: Our first target group will be the people living near our restaurant. Since very few seafood restaurants in the vicinity are providing comfortable dine-in facilities, thus we expect the residential community near us to come to us whenever they want to consume good-quality and delicious seafood.

Moreover, almost all the people living near our restaurant have more than average median incomes. Thus they all can afford our dishes made of seafood.

5.2.2 Event Planners: Since seafood is expensive than other usual items, it is considered a good and valuable food to serve people in ceremonies and events. As seafood is a cherished food item in events and seafood pizza is a totally new product for our customers so we expect event and wedding organizers to be our second target category.

5.2.3 Tourists & Passers-By: Our third target group is expected to be the people who pass by our restaurant. Our beautiful display, alluring signboards and appetizing odors of dishes will surely compel them to come inside. Moreover, tourists are also expected to come and consume our products.

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Residential Community 43% 26,000 31,000 37,000 46,000 59,000 11.00%
Event Planners 31% 20,000 23,000 27,000 35,000 44,000 11.00%
Tourists & Passers-by 26% 14,000 16,000 24,000 33,000 39,000 10.00%
Total 100% 60,000 70,000 88,000 114,000 142,000 10%

5.3 Business Target

Marlon defined a set of goals to be achieved over a fixed time. They are:

  • To balance startup expenses by the earned profits by the end of the first eight months
  • To increase customer footfall by 8% every month by the end of the first six months
  • To maintain customer repeat rate of 61% by the end of the first year
  • To maintain an average rating of 4.75 by the end of the first year
  • To start food delivery services business by the end of the first year

5.4 Product Pricing

Our prices will be a little bit higher than our competitors. But looking at the financial status and income of target customers we expect that they would love to spend to get quality food in a quality place.

Strategy

After starting a fine dining restaurant, it’s required to carry out a sales strategy plan so that more and more people can be made aware of the new launch.

6.1 Competitive Analysis

Sea Sprite will be coming up with several competitive aspects the first of which is the quality of food. All our products will be absolutely fresh and healthy. Secondly, our menu is much vaster than that of our competitors. We are providing seafood sandwiches and pizza that aren’t offered by any other restaurant in our vicinity. Lastly, we are providing a peaceful and natural environment for our customers to dine in so that they would like to come again and again.

6.2 Sales Strategy

  • We’ll ensure a strong web presence
  • We’ll start advertising us through Facebook and Instagram one month before the launch
  • We’ll install signboards displaying our delicious meals at various places
  • We’ll offer a 50% discount on our sandwiches and pizza for the first two weeks of our launch
  • We’ll offer a 20% discount card to customers who will spend more than $85 on our food in the first month (non-inclusive of 50% discount defined earlier)

The above-mentioned discounts will be announced a week before Marlon open a restaurant business.

6.3 Sales Monthly

Seafood Restaurant Business Plan - Sales Monthly

6.4 Sales Yearly

Seafood Restaurant Business Plan - Sales Yearly

6.5 Sales Forecast

Seafood Restaurant Business Plan - Unit Sales

Sales Forecast    
Unit Sales Year 1 Year 2
Seafood Dishes 40,000 42,400
Soups 21,000 22,260
Salads & Sandwiches 23,000 24,380
Seafood Pizza & Steaks 37,000 39,220
TOTAL UNIT SALES 121,000 128,260
Unit Prices Year 1 Year 2
Seafood Dishes $69.00 $80.04
Soups $41.00 $47.56
Salads & Sandwiches $44.00 $51.04
Seafood Pizza & Steaks $56.00 $64.96
Sales
Seafood Dishes $2,760,000.00 $3,393,696.00
Soups $861,000.00 $1,058,685.60
Salads & Sandwiches $1,012,000.00 $1,244,355.20
Seafood Pizza & Steaks $2,072,000.00 $2,547,731.20
TOTAL SALES $6,705,000.00 $8,244,468.00
Direct Unit Costs Year 1 Year 2
Seafood Dishes $46.00 $48.00
Soups $21.00 $27.00
Salads & Sandwiches $24.00 $26.00
Seafood Pizza & Steaks $37.00 $41.00
Direct Cost of Sales
Seafood Dishes $1,840,000.00 $2,035,200.00
Soups $441,000.00 $601,020.00
Salads & Sandwiches $552,000.00 $633,880.00
Seafood Pizza & Steaks $1,369,000.00 $1,608,020.00
Subtotal Direct Cost of Sales $4,202,000.00 $4,878,120.00

Any questions? Get in Touch!

Personnel plan

Opening a restaurant isn’t much difficult but running it successfully can surely become hard if you don’t have good employees. That’s why make sure that you employ the right workers after conducting proper tests and interviews.

7.1 Company Staff

Marlon will manage the business himself, for other works he’ll hire the following people.

  • 1 Accountant to maintain financial records
  • 1 Co-Manager to help in managing the restaurant
  • 2 Sales Executives to carry out the company’s sales strategy plan
  • 6 Chefs/Cooks to prepare dishes
  • 4 General Assistants to do routine tasks
  • 4 Waiters/ Waitresses to serve the customers
  • 3 Cleaners to maintain the facility
  • 1 Driver to transport materials and supplies
  • 1 Web Developer to manage company’s sites
  • 1 Customer Representative to provide customer care service
  • 1 Security Guard/Gatekeeper

7.2 Average Salary of Employees

 Personnel Plan      
Year 1 Year 2 Year 3
Accountant $22,000 $24,200 $26,620
Co-Manager $24,000 $26,400 $29,040
Sales Executives $39,000 $42,900 $47,190
Chefs/Cooks $135,000 $148,500 $163,350
General Assistants $94,000 $103,400 $113,740
Waiters/Waiteresses $84,000 $92,400 $101,640
Cleaners $66,000 $72,600 $79,860
Driver $21,000 $23,100 $25,410
Web Developer $19,000 $20,900 $22,990
Customer Representative $20,000 $22,000 $24,200
Security Guard/Gatekeeper $21,000 $23,100 $25,410
Total Salaries $460,000 $599,500 $659,450

Financial Plan

The last step before you open restaurant is to make a financial plan. Your financial plan must include all the details of your investments, monthly expenses, expected profits, possible losses and strategies to maximize profit and minimize possible losses.

In this business plan, we’re giving a free sample of the financial plan of Sea Sprite that Marlon has developed himself. The sample is based on approximated costs for Sea Sprite and you must contact a financial expert if you want accurate figures according to your startup.

8.1 Important Assumptions

 General Assumptions      
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.02% 8.65% 9.40%
Long-term Interest Rate 8.30% 8.70% 9.20%
Tax Rate 25.30% 26.70% 27.10%
Other 0 0 0

8.2 Brake-even Analysis

Seafood Restaurant Business Plan - Brake-even Analysis

 Brake-Even Analysis  
Monthly Units Break-even 5335
Monthly Revenue Break-even $138,200
Assumptions:
Average Per-Unit Revenue $253.30
Average Per-Unit Variable Cost $0.72
Estimated Monthly Fixed Cost $171,000

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss      
Year 1 Year 2 Year 3
Sales $6,705,000 $8,244,468 $10,137,398
Direct Cost of Sales $4,202,000 $4,878,120 $5,778,675
Other $0 $0 $0
TOTAL COST OF SALES $4,202,000 $4,878,120 $5,778,675
Gross Margin $2,503,000 $3,366,348 $4,358,723
Gross Margin % 37.33% 40.83% 43.00%
Expenses
Payroll $460,000 $599,500 $659,450
Sales and Marketing and Other Expenses $138,000 $145,000 $150,000
Depreciation $2,600 $2,860 $2,900
Leased Equipment $0 $0 $0
Utilities $3,800 $4,300 $4,700
Insurance $2,100 $2,600 $3,100
Rent $6,300 $6,600 $6,900
Payroll Taxes $44,000 $48,000 $51,200
Other $0 $0 $0
Total Operating Expenses $656,800 $808,860 $878,250
Profit Before Interest and Taxes $1,846,200 $2,557,488 $3,480,473
EBITDA $1,846,200 $2,557,488 $3,480,473
Interest Expense $0 $0 $0
Taxes Incurred $369,240 $511,498 $696,095
Net Profit $1,476,960 $2,045,990 $2,784,378
Net Profit/Sales 22.03% 24.82% 27.47%

8.3.1 Profit Monthly

Seafood Restaurant Business Plan - Profit Monthly

8.3.2 Profit Yearly

Seafood Restaurant Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Seafood Restaurant Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Seafood Restaurant Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Seafood Restaurant Business Plan - Projected Cash Flow

 Pro Forma Cash Flow      
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $54,000 $58,320 $63,400
Cash from Receivables $11,400 $12,312 $13,297
SUBTOTAL CASH FROM OPERATIONS $63,300 $68,997 $74,517
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 $61,000 $63,200 $65,600
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $36,600 $41,900 $43,500
Bill Payments $19,000 $22,000 $24,000
SUBTOTAL SPENT ON OPERATIONS $51,100 $61,000 $68,900
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 $56,400 $60,912 $65,785
Net Cash Flow $14,000 $16,400 $18,300
Cash Balance $28,900 $33,410 $37,000

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet      
Assets Year 1 Year 2 Year 3
Current Assets
Cash $260,100 $291,312 $320,443
Accounts Receivable $22,900 $25,648 $28,828
Inventory $4,320 $4,838 $5,100
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $310,900 $348,208 $391,386
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $16,100 $18,032 $20,286
TOTAL LONG-TERM ASSETS $20,200 $22,624 $25,452
TOTAL ASSETS $297,000 $332,640 $374,220
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable $18,000 $20,160 $22,660
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $13,800 $15,456 $17,373
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $13,800 $15,456 $17,373
Paid-in Capital $29,000 $30,000 $30,000
Retained Earnings $65,000 $70,850 $77,935
Earnings $184,500 $201,105 $221,216
TOTAL CAPITAL $283,200 $308,688 $339,557
TOTAL LIABILITIES AND CAPITAL $297,000 $332,640 $374,220
Net Worth $278,500 $303,565 $333,922

8.6 Business Ratios

 Ratio Analysis        
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 7.10% 7.87% 8.72% 3.00%
Percent of Total Assets
Accounts Receivable 9.18% 10.17% 11.27% 9.80%
Inventory 5.60% 6.20% 6.87% 9.90%
Other Current Assets 2.47% 2.74% 3.03% 2.40%
Total Current Assets 150.00% 153.00% 156.00% 158.00%
Long-term Assets 11.10% 12.30% 12.80% 12.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.49% 4.53% 4.57% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.06% 7.12% 7.18% 7.38%
NET WORTH 104.10% 104.93% 105.90% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 97.60% 100.24% 103.04% 98.00%
Selling, General & Administrative Expenses 92.60% 95.10% 97.76% 97.30%
Advertising Expenses 1.89% 1.94% 2.00% 1.40%
Profit Before Interest and Taxes 43.90% 45.09% 46.35% 34.10%
Main Ratios
Current 38 39.6 40.59 32
Quick 34 34.8 35.67 34
Total Debt to Total Assets 0.31% 0.24% 0.01% 0.41%
Pre-tax Return on Net Worth 76.09% 79.89% 83.89% 75.00%
Pre-tax Return on Assets 90.05% 94.55% 99.28% 112.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 34.70% 35.78% 36.88% N.A.
Return on Equity 58.43% 60.24% 62.11% N.A.
Activity Ratios
Accounts Receivable Turnover 7.25 7.54 7.8 N.A.
Collection Days 100 100 100 N.A.
Inventory Turnover 34.4 36.12 37.926 N.A.
Accounts Payable Turnover 16.08 16.5 16.98 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.45 2.65 2.72 N.A.
Debt Ratios
Debt to Net Worth -0.04 -0.05 -0.05 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $220,450 $232,795 $245,832 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.81 0.88 0.97 N.A.
Current Debt/Total Assets 1% 1% 0% N.A.
Acid Test 28.4 27.5 31.1 N.A.
Sales/Net Worth 2.1 2.1 2.3 N.A.
Dividend Payout 0 0 0 N.A.

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Catering Business Plan Template

NOV, 11 ∙ 2016

Brewery Business Plan Template

NOV, 11 ∙ 2016

Juice Bar Business Plan Template

NOV, 11 ∙ 2016

Food Business Plans Temlates

NOV, 11 ∙ 2016

Coffee Shop Business Plan Template

AUG, 16 ∙ 2016

Organic Restaurant Business Plan Sample

JUN, 08 ∙ 2015

Writing a Successful Restaurant Business Plan

MAY, 26 ∙ 2015

Fine Dining Restaurant Business Plan Template

MAY, 22 ∙ 2015

Fast Food Restaurant Business Plan Sample

MAY, 22 ∙ 2015

Lemonade Stand Business Plan Sample

MAY, 11 ∙ 2015

Important Issues to Make Seafood Business Plan Sample

FEB, 19 ∙ 2015

Business Plan for a Restaurant

NOV, 21 ∙ 2014

Bakery Business Plan Template

NOV, 15 ∙ 2014

Building a Business Plan for a Restaurant

NOV, 01 ∙ 2014

Bar Business Plan Template

JUN, 02 ∙ 2014

Confectionery Shop Business Plan Sample

APR, 06 ∙ 2014

Earning Delicious Profits with a Cookie Company Business

MAR, 07 ∙ 2014

Ethnic Indian Restaurant Food Business Plan Sample

FEB, 07 ∙ 2014

Food Delivery Service Business Plan

JAN, 06 ∙ 2014

Pizzeria Business Plan Sample

OCT, 04 ∙ 2013

Food Truck Start up Business Plan Sample

AUG, 16 ∙ 2013

Restaurant Business Plan Template

JUL, 06 ∙ 2013

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