Writing a Business Plan for a Fast Food or Restaurant Business
A lot of people fantasize about opening their own restaurant, as it is a chance to make profit out of their passion for food and catering. In a real sense, running a restaurant is not as blissful as it may seem.
The work load is quite heavy for new comers who fail to plan properly before starting up their restaurant business, causing the restaurant to deteriorate after a year or two.
Mainly, new restaurants fail because they have no plan to manage problems and lack understanding on the cost of starting a good restaurant business. A written business plan would provide a fortuity plan when problems arise, a business plan also gives potential investors a summary of the startup process and successful running of your restaurant.
A business plan may also be important in securing a location for your restaurant and obtaining a liquor license in the case of a microbrewery.
If you are looking to write a good business plan for your restaurant business, most good restaurant business plans are of five main parts;
This section contains a brief outlook about the restaurant, consider it as the preamble of your restaurant’s business plan. Your executive summary should place emphasis on the important parts in all the other sections of your business plan.
Venture capitalists should be able to have a reasonable extent of understanding your business plan from just reading the executive summary. It should also contain fundamental information on your restaurant such as business name, details of the business as well as goals and aspirations and location. The executive summary of your business plan should portray the main idea of your restaurant to investors.
You can decide to start up a fast food restaurant, casual dining restaurant, ethnic restaurants, family style restaurants, barbecue, buffet, cafe, cafeteria, table top cooking or a special kind of cuisine which is sometimes associated with culture, local ingredients and geographic location.
The system of service in your restaurant should be included in your business plan, decide your intended customers, a special service type is mostly required in a fine dining restaurant and table top restaurant where full serving skills are required.
Quick service restaurants such as ethnic and fast food restaurants would require a low scale planning as cost of food and services are reduced. Also include a research on your regional competitors and ways to trounce them.
This section of a business plan is sometimes referred to as market analysis, which can further be broken down into;
- Industrial analysis: As described above this part should contain a description of your customers and the kind of food and services you offer. Would you cater for children? Also explain why customers would prefer your restaurant to that of competitors.
- Regional competitors: Restaurants are everywhere, almost in every corner. Research on competitors around regarding their menu, pricing, and ways to attract their customers to your restaurant.
- Marketing and advertising strategy: Starting up a restaurant and managing it is one task and attracting customers is another. You may decide to discount prices for kids or during special occasions and through social media.
Operations and Management
This part of your business plan should give details to investors on how many hours you intend to work and the number of employees you want to hire.
Explain the functions and duties of each employee you want to hire, ranging from the manager to the cleaners.
It is very important that your business plan contains methods to check the progress of your business, keep tabs to ensure what goes out of the business isn’t lesser than what comes in.
Employ the services of an accountant and manager and other business personnel if necessary.
In drawing out a business plan for a restaurant, take into account the source of your startup capital. If you do not have enough funds to start up your restaurant, you may consider external sources such as;
- Banks: Acquiring a bank loan is a very good source of startup capital, but there are a few difficulties associated with acquiring a bank loan as banks are indifferent when it comes to fresh restaurants or new comers. Also, a lot of restaurants fail within their first year of startup and individuals would still be required to pay up the loan.
- Finance from family and friends: If you have a close friend or family member you will like to borrow from, it is advisable to carry out a formal transaction to avoid future complications.
- Partners: Partnership in a restaurant may be of two types, a partner who wants to assist in the set up and running of the business or an investor who wants to part in the daily running of the business except when necessary or when demanded.
Starting up a new restaurant may seem to be fraught with danger and risk, a good restaurant business plan would help prevent failure and aid smooth running of the business. Your business plan should be updated and analyzed regularly as it is not just a preplanning activity.