RESTAURANT BUSINESS PLAN SAMPLE AND FEASIBILITY STUDY REPORT FORMAT
Are you looking for a restaurant business plan sample to help guide you write a business plan for your restaurant business? Here is a restaurant business plan sample for you if you are about starting your restaurant business and are determined in writing a good business plan for your restaurant business.
You should know that a business plan is like a blueprint for your business which helps guide you in achieving your business goals and vision. Of course, there are many benefits to having an aptly written business plan. One of which is the ability for you to be able to attract investors and secure loans from the bank.
I suppose you are well aware of the services that a restaurant business offers, and you must have realized that it is a little tasking to draft-out a business plan for your restaurant all by yourself. So, let us get started!
BUSINESS NAME: Spicy Foods Restaurant (SHR).
Sample Restaurant Business Plan Template and Feasibility Report
- Executive Summary
- Business Objectives
- Mission Statement
- Business Structure
- Market Analysis
- Target Market
- Sales and Marketing Strategy
- Financial Plan
- Sales Forecast
- Exit Strategy
The Spicy Foods Restaurant (SFR) is a duly registered restaurant business. It will be a 90-seat restaurant that will offer foods and beverages services. SFR will be focusing on serving customers healthy and nutritious foods. We will specialize on offering sandwiches, salads and other recipes alongside soft beverages and beer.
SFR will be a sole proprietorship restaurant business and will be owned by John and Jane Kings. The site will be located at an admirable locality in downtown area of Detroit. The site is a 3,600 square foot space leased by the Kings, which was up to that time, used as a restaurant. The site location will nonetheless demand some sort of renovation to keep it in top shape even though it was formerly used as a restaurant.
The total start-up cost for the restaurant business will be $300,000, and $100,000 of it will be secured from the owners’ pulse and other investments. The remainder will be secured by obtaining a loan from the bank.
These are our business objectives at Spicy Foods Restaurant (SFR):
– To be one of the leading restaurants in downtown Detroit.
– To deliver top quality meals at affordable prices with top quality services.
– To achieve not lesser than a 4% annual growth rate in sales revenues.
– To reimburse all accrued debts before the end of the second year.
Our mission statement at Spicy Foods Restaurant (SFR) is: To offer to our customers; nutritious, healthy, and unique meals prepared with astounding food recipes that would leave them satisfied with our quality services.
We will do well to achieve this goal by:
– Offering menu items that include quality ingredients at reasonable prices – even if it means charging a little more.
– Taking into consideration the welfare of our customers and staff and treating them with respect and dignity.
Spicy Foods Restaurant hopes to hire employees as it expands overtime. At least a total of 19 employees would constitute our staff team. The restaurant will be owned by John and Jane Kings, and together, they will personally select highly qualified and experienced people for each position through an interview process.
Many of the managerial positions will initially be occupied by the Kings due to their wealth of experience and training. John Kings, who had previously held positions as Assistant Manager and later General Manager at various restaurants in Boston, will hold the position of the General Manager.
While Jane Kings, who has a wealth of a 6-year work experience preparing meals in various reputable restaurants in Las Vegas and Dallas, will initially occupy the position of the Kitchen Manager.
In due course, we shall hire:
– A sales director.
– A general manager.
– A kitchen manager.
Spicy Foods Restaurant will be open 7 days a week – that is every day, 365 days a year.
We will offer lunch and dinner menu. On our lunch and dinner menu, we will offer veggie sandwiches, vegetable and chicken soups, chips and a variety of salads. In addition, we will offer a variety of beverages such as coffee, tea, soft drinks and beer. For dinner, we will in addition to the menu, offer take-outs to our customers.
The restaurant industry could be described as a large and diverse one, having so many niches within it where one could focus on.
The industry could be categorized into two:
Full-service restaurants (FSR)
These restaurants focus on full service delivery. They primarily focus on providing food and beverage services to customers who seat, order for food, eat, and thereafter pay for services. Sometimes, most of these restaurants offer take-out services as well as some sort of entertainments to their customers.
Limited-service restaurants (LSR)
These restaurants, unlike the FSR, offer limited services which include buffets, cafeterias, snack bars, and non-alcoholic beverage bars.
The market is segmented into two: The residential and the business community.
The customers in the residential communities comprise both single family and multi-family housing. SHR had chosen its location in order to appeal to the increasing number of households in the area. A lot of the people living in this area would close from work at the end of the day’s work and come for well prepared nutritious meals that we have to offer.
SALES AND MARKETING STRATEGY
Spicy Foods Restaurant (SHR) will station itself as one of the leading restaurants in the downtown area of Detroit. How are we going to do this?
First, we will make sure to offer our customers healthy and nutritious meals that have been prepared with quality, nutritious and organic ingredients at affordable prices. Our restaurant will provide customers a welcoming atmosphere that keeps them comfortable and relaxed while they enjoy their meals. We will also provide some sort of soft entertainment to our customers.
Second, SHR will also stay active and up-to-date with the latest development in the industry regarding market trends. In addition to having a website, we will create an online presence on social media platforms like Facebook and Twitter.
The total start-up cost required will be $300,000. $100,000 of this capital will be provided by the owners – the Kings – and the remainder will be acquired through a loan from the bank.
Sources and Uses of Funds
The following illustrates the sources and uses of funds for SHR:
Sources of Funds
Owners’ investments $100,000
Bank loan $200,000
Total Sources of Funds $300,000
Uses of Funds
Restaurant equipment, inventory and furniture $100,000
Lease fee $50,000
Renovation of restaurant $50,000
Additional start-up expenses in the form of working capital and contingency $100,000
The following constitute the break-even analysis:
Total Fixed Cost (as annual expenses) $600,000
Variable Cost (overhead cost) $5
Average Unit Price $12
Break-Even Revenue (based on assumed average unit price) $980,000
We expect our annual sales revenues to rise gradually over the next 3 years. Over the next 3 years, we hope to generate the following profits:
Year 1 $300,300
Year 2 $400,200
Year 3 $450,200
At the event of closing our restaurant, we will sell off all our kitchen equipment, furniture, and other assets to prospective buyers. We will do away with our food inventory by selling off some of the products, and giving out the remainder to people who may need them. If there be left any remainder, because of their speedy perishable shelf life, we will discard them.
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