you are consideringopening a new restaurant, adding avirtual restaurantor streamline your restaurant business strategy to adapt to changes in the restaurant industry? Take the time to create a restaurant business plan. Why;
- Business plans are like business road maps – they literally show you the way to success
- They are essential if you are looking for investors and need to outline your restaurant's current wins and future revenue potential.
- They help you anticipate challenges before they occur, so you can avoid some disasters and be better prepared for others.
Some26% of restaurantsthey fail within a year of opening and lack of planning is one of the main reasons these restaurants close. Create a business plan and you'll be on the right side of that statistic.
Here's how to do it.
What is a restaurant business plan?
before they knowhow to write a business plan, it's important to understand what a business plan is — and what it isn't.
The purpose of a business plan is to create a guide to help you navigate each step of starting and running your business. This plan should also be comprehensive and worded enough that an outsider, such as an investor, can read it and easily understand your vision, your goals, and how you plan to make your restaurant dream a reality.
Business plans come in a variety of formats and can be as short as one page or long enough to be bound into a brochure. You may want to start with a Lean Startup plan that focuses on a high-level view of your strategy, and then follow up with a more detailed plan that elaborates on key points and provides more information to investors.
In short, your business plan must communicate everything you have and plan to put into your restaurant to ensure continued success.
11 elements every restaurant business plan should include
Your restaurant and mission statement should be unique to your business and your vision, but that doesn't mean you have to start from scratch. Crafted by industry experts and packed with insider knowledge, theGrubhub Restaurant Business Plan Templateis your step-by-step guide to creating a successful business strategy.Check out our editable business plan templateto start designing your restaurant. No matter how you write it, your comprehensive business plan should include seven main sections.
1. Summary
This is a brief summary of your business, why it's something the community wants or needs, and why it will succeed. Many different types of restaurants cater to different demographics and it's important to knowwhat kind of restaurant you want to run. Are you opening a quick-service deli that focuses on takeout sandwiches and prepared salads? Or will it be the first tapas restaurant in a city hungry for more variety?
If you are using your business plan to apply for financing, the SBA also recommends that you include high-level financials and growth plans in your executive summary. Your executive summary should include:
- Mission statement:A brief description of the purpose of your restaurant
- Suggested idea:The outline or outline of the restaurant concept
- Implementation:How do you plan to make this proposed idea work?
- Possible cost:A brief overview of expected costs
- Expected Return on Investment (ROI):How much is the restaurant expected to earn?
Think of your summary as an opportunity to grab the reader's attention. Many investors will make a split-second decision based on the summary alone - if this section is all they'll read, make every word count.
2. Company description
Now it's time to publish a more detailed description of the company, includingvital differentiators, the target audience and any other factors that may influence investors, such as experts you have hired as consultants or a location you have already explored or secured.
You'll want to include the legal structure of the business, explaining whether you're a sole proprietorship, LLC, etc., and listing existing management and their roles (including your own).
Now comes the fun part: writing a description of your idea. This is where you can let your creative side shine, showing your passion for what you hope to create and using plenty of adjectives to engage your readers and bring your idea to life. You have already decided whattype of restaurantyou open, now in detail all the rest of the details:
- Service style (counter vs. sit-down, casual vs. fine dining, etc.)
- Restaurant size and seating capacity
- General atmosphere, including decor and music
- Choice of seating styles, lighting and other accessories
- working hours
- kitchen style
- Regional service offerings such as retail products, delivery/pickup and catering
- Unique selling points, such as using products grown on an adjacent farm or a 30-minute lunch guarantee to better serve office workers in the area
3. Target market analysis
Analyze your target market, using buyer characteristics to indicate who you see as your primary customer and what their eating habits would be. These personas should include information about where your target customers live, their income levels, pain points (do they hate long waits or want restaurants that stay open late?), and how often they dine out or order out.
The more specific you are at this step in the process, the easier it will be to create marketing to reach them.
4. Sample menu
If you're a new restaurant, including a sample menu is the only way investors will know what you plan to serve. Don't just say you're going for "Rustic Italian" as that can mean different things to different people. Chances are your menu is your key differentiator, or at least part of it - otherwise why would customers choose you over tried and true competitors who already offer similar dishes?
Work with your chef and stick to the basicsgreat menu designin mind:
- Know your audience and tailor your design and descriptions to your target customer base - a college crowd hungry for deals on shared drinks and food will be more interested in eye-catching photos and prices than customers looking for an experience tablecloth white
- menu descriptionsit should be short but evocative - choose words that help guests understand exactly what they're about to eat and get them excited to try it (eg say 'juicy tea-smoked duck with anise flavored plum sauce' instead of ' duck with plum sauce")
- Consult menu psychology when setting and pricing by sticking to simple numbers (no dollar signs) placed to the right of the menu item, with no dots or dashes between them.
- Use the same psychology to guide customers through your offers, using callouts and bold to highlight more profitable items
- See your menu as an extension of itrestaurant brand, using the same colors, design elements and fonts
5. Organizational management
While you covered your organizational structure and management earlier in your business plan, now you will explainstructure of your businessand share a broader view of your team. An organizational chart can be helpful, as can a summary of your collective experience. Some people include a bulleted list of key team accomplishments that is easy to scan and digest. This section should include anyjobsyou will also need to complete a plan forhow you will train these employees;.
In addition to listing co-founders, managers, bartenders, etc., you can attach bios from your executive team or key players, such as a well-known mixologist who helps you develop your cocktail program.
6. Restaurant design
Restaurant interior design is vital to your customer's experience. The environment and floor plan affect how they perceive your business and whether it's a good enough place to eat. In fact, even the color of the walls and types of flooring can affect the mood of people and how they feel while in your restaurant.
Create a restaurant design that matches your theme and cuisine. This is the time todesign any patio seating areaand decide how many tables you can serve.
7. Location
You may have already selected a specific location or even purchased a building. If so, this section is of less concern to you. It is important to ensure that your location will benefit you rather than harm your business. If you still need to find the right space to host your business, the location you choose should align with your target market and be an easily accessible place to eat.
Before you sign a lease, it's a good idea to check out other competitors in your area. If you've found the perfect building for your pizzeria, but it's right next door to another popular pizzeria, it can be difficult to convert customers to your fancy creations. You want to enter a market where you can grab the customer's attention with new offers instead of competing with existing ones.
8. Marketing plan
With so many restaurants competing for customers' attention, marketing is extremely important to getting customers through the door (or to your website). processing amarketing plan for your restaurantprovides a plan for any potential publicity and disclosure. Promotional events, social media and paid advertising are just a few ways to help your restaurant take off, and investors will be very interested to know what you have planned.
9. Collection and delivery
Have confidencedistributionmto removeservices are very important to most audiences. In fact,51% of consumerssaid that if they can't order delivery or takeout from a restaurant, they probably won't visit for dinner as often. Offering off-site dining options will increase order volume and customer base.
If you want to have delivery and takeout capabilities in your restaurant,Grubhub makes everything easier. If you want to use your own drivers or our professional fleet,we offer:
- Grubhub Delivery:Our fleet of Grubhub Drivers collect and deliver orders to your customers' doors. We coordinate and pay the couriers – all you have to do is deliver the food.
- Additional Delivery:Use our delivery fleet of 300,000 drivers to expand your customer base.
- Self-delivery:Use your own drivers to deliver Grubhub orders to customers. You're in full control of delivery and billing, but take advantage of Grubhub's online ordering.
- Choose:Create a Grubhub account to accept pickup and delivery of orders from your customers, allowing you to reach new customers and increase sales.
10. Third Party Providers
To make your restaurant a reality, you'll probably need a little help. Make a list of anyexternal companies or softwareplan to use or lease to get your restaurant off the ground. These could be accountants you want to balance your books with or designers who can help you make your design dreams come true. This list may also include third party suppliers for your food and beverages. Who do you want to work with when it comes to getting your raw materials and supplies? You wantsource locallyor use a remote hub? Whoever you want to work with, write them!
Fortunately, when you join Grubhub, you'll not only have your food delivery and pickup partner of choice, but you'll also be able to simplify ordering and menu management using Grubhub for Restaurants.easy technology integration. Our technology integrations allow orders to come from the Grubhub app or Grubhub.com directly to your kitchen. Additionally, you can create a custom online ordering website withDirect. Encourage customers to order commission-free directly from your restaurant's website.
11. Customer Service Policies and Procedures
As a business owner, you want to give your customers a five-star experience at your restaurant. Creating customer service policies and procedures will help ensure that your team creates a great dining experience for your customers. Have a plan for how certain situations will be handled and what you will do if problems arise. For example, if a customer has a problem with their food, your entire team should know how to handle the situation and what to tell the customer. Next, make sure all your employees agree with your expectations of them and consistently use the same guidelines and approach.
12. Financial forecasts
Finally, it's time to deal with the financial side of your business, especially if you're using your business plan to get start-up capital or additional capital once you're up and running.
If you're pre-launch, your predictions are just that: assumptions. However, these estimates should be based on market research, actual costs and projected revenues, culminating in a five-year review of everything from estimated revenues to capital expenditure budgets.
If your business is up and running, you will include actual financial records, such as cash flow and profit and loss statements, preferably from the last five years. Use colorful charts and graphs to highlight financial gains and make it easier for investors to quickly assess your company's financial health.
If you are applying for funding, specify how these funds will be used and if you have any collateral that you can offer to secure a loan.
Start writing your own restaurant business plan
Now that you understand the steps involved in creating a strategic restaurant business plan, it's time to create your own. Download the Restaurant Business Plan template to create the operational foundation for your restaurants. Use it as a handbook to refer to whenever you make business decisions.
Once you've started your business plan, consider partnering with Grubhub. Platforms like Marketplace can make it easier than ever to attract the attention of new customers and revitalize relationships with existing customers by providing quick access to orders and stress-free pickup or delivery.
Are you ready to reach millions of hungry customers? Sign upgrubhub for restaurantstoday!