Restaurant Business PlansAs with most businesses, Restaurant business plans, have their own unique terminology. In the restaurant trade, the number of covers you need to turn to break even is a critical number. Each place at a table is a cover, and it is possible to have more than one sitting at each place in an evening. The industry is well known for the word of mouth effect. If you visit a good restaurant, you tell all your friends about it. If you visit a bad one, you tell everybody. If this word of mouth effect is working in your favour, then no amount of advertising budget, can buy a recommendation from someone you trust. The location of your restaurant is of prime importance, and locating it where there is passing trade, or next to some healthy competition is important. Equally important, is understanding the target customer, and making sure there are enough of them within easy access of where the site is going to be.
If you’re buying an existing restaurant, then it is important to do market research of the existing customers, asking them what they like about the restaurant, how often they visit. If you want to make changes – as all new owners do – then make sure they are informed changes, and don’t impact negatively on the goodwill of the existing clientele. Sample Restaurant Business PlanStudio 67Executive Summary
Studio67 is a new medium-sized restaurant located in a trendy neighborhood of Portland, Oregon. Studio67's emphasis will be on organic and creative ethnic food. An emphasis on organic ingredients is based on Studio67's dedication to sustainable development. Additionally, the restaurant procures local foods when possible, reducing their dependence on fossil foods used for transportation.
ServicesStudio67 offers Portlanders a trendy, fun place to have great food in a social environment. Chef Mario Langostino has a large repertoire of ethnic ingredients and recipes. Studio67 forecasts that the majority of purchases will be from the chef's recommendations. Ethnic recipes will be used to provide the customers with a diverse, unusual menu. Chef Mario will also be emphasizing healthy dishes, recognizing the trend within the restaurant industry for the demand for healthy cuisine.CustomersStudio67 believes that the market can be segmented into four distinct groups that it aims to target.The first group is the lonely rich which number 400,000 people. The second group that will be targeted is young happy customers which are growing at an annual rate of 8% with 150,000 potential customers. The third group is rich hippies who naturally desire organic foods as well as ethnic cuisine.
The last group which is particularly interested in the menu's healthy offerings is dieting women which number 350,000 in the Portland area. ManagementStudio67 has assembled a strong management team. Andrew Flounderson will be the general manager. Andrew has extensive management experience of organizations ranging from six to 45 people.Jane Flap will be responsible for all of the finance and accounting functions. Jane has seven years experience as an Arthur Andersen CPA. Jane's financial control skills will be invaluable in keeping Studio67 on track and profitable. Lastly, Studio67 has chef Marion Langostino who will be responsible for the back-end production of the venture. Chef Mario has over 12 years of experience and is a published, visible fixture in the Portland community. Most important to Studio67 is the financial success which will be achieved through strict financial controls. Additionally, success will be ensured by offering a high-quality service and extremely clean, non-greasy food with interesting twists. Studio67 does plan to raise menu rates as the restaurant gets more and more crowded, and to make sure that they are charging a premium for the feeling of being in the "in crowd."
The market and financial analyses indicate that with a start-up expenditure of $141,000, Studio67 can generate $350,000 in sales by year one, $500,000 in sales by the end of year two and produce net profits of 7.5% on sales by the end of year three. Profitability will be reached by year two... Business Plans provided by
Palo Alto software
Top of Restaurant Business Plans | Back to Sample Business Plans |
