restaurant financial business plan

• Purchase History

Restaurant Financial Plan Template [2024 Guide]

by I.J. Karam | Jan 1, 2024 | Business Plans , Financial Plan Guide

How much does it cost to open a new restaurant? What kind of information you need to come up with a financial forecast for your new venture? And just how do you create a professional restaurant business plan with financials?

These questions seem difficult to answer at first but creating a Restaurant Financial Plan is actually not that hard — and we’ll show you how to go about it — but it requires some research, patience, and time. If you would rather like to simplify the entire process, may we suggest you have a look at our Restaurant Business Plan template ? The template has a fully automatic and customizable financial model in Excel designed specifically for the Restaurant business. Here are a couple of screenshots to give you an idea:

Some of the main highlights of our Restaurant Business Plan template are as follows:

• It is extremely user-friendly, allowing you to create a professional financial plan with just a few clicks
• No financial expertise is required, nor do you need to do any research. Simply, feed in the cost and revenue assumptions for your business model — and our financial model will do the rest. Based on the information provided by you, it will automatically generate important financial statements. These include Cash Flow statement, Income Statement, and Balance Sheet. Plus, it will generate several tables and charts to provide great data representation and make financial analysis readable and easy to follow.

Coming back to building an effective financial plan for your project, this guide is all you need. We’ll walk you through all the key elements of a comprehensive Restaurant Financial Plan. First, let’s have a look at the key benefits of creating a robust financial plan for your upcoming F&B venture.

The Benefits of Creating a Financial Plan for your Restaurant Project

First, it can help you secure funding. When approaching potential investors or lenders, they will want to see that you have a solid plan in place showing how you will use their money and make a profit. A well-researched and detailed restaurant financial plan can give them the confidence they need to invest in your F&B project.

Second, a financial plan can help you make better decisions about your restaurant. It can help you identify potential financial risks and opportunities, and make adjustments accordingly. For example, if your financial plan shows that certain menu items are quite costly compared to others, you can make the necessary changes to improve profitability.

Third, it can help you manage your cash flow. A restaurant financial plan can help you forecast when cash will be coming in and going out, allowing you to better manage your finances and avoid any unexpected cash flow problems. Remember, cash is a key element that can make or break the success of your F&B business, but more on that later.

Finally, a financial plan helps you set and achieve financial goals for your restaurant. It can give you a clear picture of where you want to be financially in the short and long term and help you create a roadmap to getting there.

In summary, building a financial plan is crucial in order to successfully navigate the challenges and opportunities of running a restaurant business.

Let’s now have a look at the first key element of a restaurant financial model: your cost structure.

Restaurant Financial Plan: Costs Forecast

How much will it cost you to run your restaurant business? This is the first question you need to answer. Figuring out the involved costs can be simplified by following the next steps: Start by dividing your costs into two categories: Costs of Goods Sold (also referred as Direct Costs or COGS) and Operating Expenses (usually referred simply as Opex).

So, what falls in the category of Direct Costs/COGS? It includes the cost of buying the raw materials and the cost of preparing the different food items in your menu. These include the cost of food ingredients, raw vegetables, meat, condiments, etc. You should also include non-food items that you purchase from various suppliers, such as paper and cloth napkins, straws, and any other consumables. These expenses are usually “variable costs” as their monthly figure tends to vary with the amount of customers you receive.

On the other hand, operating expenses (Opex) include things such as salaries, rent, utilities, advertising, and all other overhead expenses you will incur. These expenses are rather indirect, since they are indirectly related to what you sell. You can also think of them as “fixed costs” since they tend to remain stable month after month. Nevertheless, they are just as important as your COGS, so make sure you include every operating expense that you’re likely to incur.

Now that you have determined the Direct Costs and Operating Expenses, it’s time to calculate the total cost of running your restaurant business. Here’s the formula:

Total Cost = Direct Costs + Operating Expenses

Keep in mind that while certain expenses will invariably go up over time, other expenses may remain stable. A case in point is the rent, which is not likely to change on year-to-year basis. On the other hand, your employee’s salary will probably increase every year.

You might think we have missed a third category of costs related to buying equipment such as your restaurant’s kitchen appliances or furniture, but that’s not the case. From a financial perspective, these types of expenditures are actually considered types of investments rather than expenses. Check the next section for more details.

Restaurant Financial Plan: Capital Expenditures

Now, let’s have a look at the capital expenditures (Capex) that are involved in a Restaurant business. Simply put, capex include all the long-term investments you make to launch and run your restaurant business. By long-term investment, we mean all assets that have a useful life of 12 months or more. Not only these assets have long-term usage, but their value typically depreciates over the years. They are not usually considered as operating expenses or COGS.

Restaurant Startup Costs

Now what are the startup costs involved in launching a restaurant? Well, the startup costs for a restaurant are simply the investments associated with starting it as well as all the expenses that are necessary for running the restaurant on a day-to-day basis until it breaks-even and becomes self-sustaining. Example of essential startup costs include leasing or buying equipment, obtaining all the required licenses, paying rent, paying restaurant employees, and stocking up on ingredients. Generally speaking, these costs are covered by your initial capital.

Restaurant Financial Plan: Revenue Forecast

Once you’ve assessed the startup costs, you should figure out the revenue your Restaurant business is likely to make. Predicting the revenue may look like a daunting task at first, as it involves many assumptions, like how many customers may visit your restaurant daily on average, the average dollar spent by each customer (average order value), etc. However, a thorough research can help you make these assumptions with a fair degree of accuracy. For this reason, it’s important that you understand your target audience , their spending habits, and the area of your operation. The more research you do and the more data you have to go by, the easier it becomes to make an accurate sales forecast.

Let’s see how this works with the help of an example.

Let’s say you want to predict how many customers will visit your venue on a given day. To be able to do this, you must first know your target audience. For simplicity’s sake, let’s assume your potential customers are all those who are between the age of 20 and 50 and living within a 5 km radius of your restaurant. Let’s further assume your target audience size is 30,000, out of which you expect 4% to visit your restaurant once a month. So, in a month, you will get 1,200 customers. Suppose each customer spends $20 on average, this works out to $24,000 in revenue a month. Continuing with this, you can easily calculate your expected annual turnover, which will be $288,000 (12 x 24,000).

Of course, given the nature of the restaurant business, you also need to factor in certain special scenarios, such as holidays, events, cold or hot weather, etc. Generally speaking, you are likely to do more business during holidays and events. Likewise, a stretch of cold season might lead to more people visiting your warm and cozy restaurant as outdoor activities become more difficult.

For an accurate sales forecast, it’s important that you undertake a thorough market survey and rely on past historical data if available.

Restaurant Financial Plan: Income Statement or Profit & Loss

Forecasting the Income Statement, which is also referred to as the Profit and Loss statement, or simply the P&L statement, requires a bit of math. But worry not, we are talking about basic, simple math!

First, you must establish the gross revenue for a specific period. Next, deduct the COGS (or direct costs) to determine the gross profit. Once you have this figure, deduct all your operating expenses and other payments from it to calculate the net profit before tax (that is, your restaurant’s business profit before you have paid the income tax).  Finally, deduct the amount of tax you’ll pay from the last figure to calculate the net profit, also referred to as the “bottom line”.

Worried about all these calculations? If so, consider using the Restaurant Financial model which comes with our ready-made Restaurant business plan template. The tool will automatically generate your P&L statement once you have entered your revenue and cost assumptions.

Restaurant Financial Plan: Cash Flow Statement

The cash flow statement (CFS) predicts the amount of cash entering and leaving your restaurant business in a given period.

Before we look at what’s generally included in a CFS for a restaurant, let’s get one thing straight. There is a difference between cash flow and expense or income, even though some people conflate these terms. The main difference between these is in “timing”. Let’s take up an example to understand the finer subtleties clearly.

Let’s say you ordered soda cans worth $1,500 from your supplier on September 20 th . However, the invoice needs to be processed in 30 days. Upon receiving the order, your accountant is going to enter a COGS (or direct expense) of $1,500 in the September’s income statement. However, it’s in the CFS of October that he’ll enter a $1,500 operating cash outflow. That’s because, you will actually pay the vendor $1,500 in October since you have 30 days to pay the amount due.

When it comes to revenues, the same logic is applied. Suppose you supply soda cans worth $1,500 in September to an establishment but receive the payment in October. Your accountant will record revenue of $1,500 in September.  However, the money will actually get collected in October (reflected in your CFS statement of October).

A statement of cash flow provides a summary of 3 types of cash flow movements during a specific period.

Cash flows from operation activities: This represents the amount of cash generated by your restaurant business in a specific period. So, you will include here all cash inflows that you amassed from your customer orders, as well as cash outflows, which include the money you paid for food items and other things, like raw materials and consumables.

Cash flows from investing activities: In this section, cash inflows denote the money you collected from selling a Capex item (like an old furniture or kitchen appliance) or an asset. Cash outflows, on the other hand, refer to money needed for acquiring new assets (like new kitchen equipment or a new delivery bike).

Cash flows from financing activities: In this section, cash inflows refer to new capital raised from equity investors or a business loan, while cash outflows refer to money paid to partners, like dividends.

Investors like businesses with a solid ability to generate substantial cash flows on a consistent bases. Having a profitable restaurant alone isn’t enough; what’s of the most importance is whether the restaurant business has the ability to generate sizeable cash flows on a consistent basis.

By using our automatic Restaurant Financial plan in Excel included in our ready-made Restaurant Business Plan package, you can generate a comprehensive cash flow statement with just a few clicks. All you have to do is update the cost and revenue assumptions for a given period and you’re all set.

Restaurant Financial Plan: Balance Sheet

This financial statement gives a summary of the assets and liabilities of your restaurant business over a specific period. Here’s the formula summarizing a balance sheet:

Assets = Liabilities + Equity

By using our Restaurant Financial plan in Excel that’s included in the premium Restaurant Business Plan package, you can easily generate a balance sheet automatically by entering the cost and revenue assumptions in the model.

Restaurant Financial Plan: Conclusion

Thanks to this comprehensive guide, by now you have a clear idea about how to create a solid restaurant financial plan. Keep in mind that a comprehensive financial plan, one that includes proper cost and revenue models, is a must-have for every serious restaurant business. Of course, you can create this all by yourself, but it will take you a lot of time and effort. If you would rather focus on the restaurant project itself and save time and effort by simplifying the process, then consider using our automatic Excel financial plan, which is a part of our Restaurant Business Plan Template .

Download a Ready-Made Business Plan, Choose Your Industry:

• F&B Business Plans
• Services Business Plans
• Retail Business Plans
• Tourism Business Plans
• Tech Business Plans

Recent Posts

• Bed and Breakfast Business Model Canvas: A Complete Guide
• Restaurant Business Model Canvas
• How to Create a Bar Business Plan
• Gym Financial Plan Template [2024 Guide]
• Laundry Financial Plan Template [2024 Guide]

Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create a successful restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

What is a Restaurant Business Plan?

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.  

What are the Main Types of Restaurants?

There are many types of restaurant businesses which vary based on their service style. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types.

Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.  

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks or independent restaurant investors. Typically you will find a local bank and present your restaurant business plan to them. Most independent restaurant investors are in the restaurant business already and can be a valuable resource for advice and help with your business plan.

Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.  

Sample Business Plan for a Restaurant Owner

Below is a business plan example to help you create each section of a comprehensive restaurant business plan.

Executive Summary

Business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new business for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.  

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

A sample menu can be found in the Appendix of this business plan.

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.  

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.  

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and restaurant design, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.  

Customer Analysis

Demographic profile of target market.

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Customer Segmentation

The target audience for Bluehorn Restaurant & Steakhouse will primarily include the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each of our direct competitors is below.

Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose.  

Oak & Ore

Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired restaurant experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC

The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.  

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows:

Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media

Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options.  

SEO Website Marketing

Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks.  

Third Party Delivery Sites

Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.  

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire the entire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.  

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

  You can download our free restaurant business plan template PDF . This restaurant business plan template can be used to create a finalized business plan for your restaurant concept.

Restaurant Business Plan: Step-by-Step Guide + examples

Dreaming of opening a 🍴 restaurant? Passion, creativity, and delicious food are key. But for long-term success, a business plan is essential too.

Maja Jankowska

Are you dreaming of owning your own restaurant? Picture the sizzle of a hot skillet, the laughter of satisfied guests, and the fulfillment of sharing your culinary creations with the world. But before you dive into this flavorful adventure, there’s a crucial ingredient you can’t overlook: a winning restaurant business plan.

What is a business plan for?

A business plan is a vital document for every restaurant owner. It provides a roadmap for success, helps secure funding, guides financial and operational decisions, mitigates risks, and facilitates effective communication. 

Just like any other business, a restaurant needs a well-crafted business plan to ensure its success and sustainability. Without a business plan, you risk operating in the dark, making decisions on a whim, and facing unexpected challenges that could have been avoided. 

Investing time and effort into creating a solid business plan sets your restaurant on the path to achieving your culinary dreams and exceeding customer expectations.

Create Restaurant’s Business Plan in these 9 steps:

✔️ 1. Start with an executive summary ✔️ 2. Describe your concept ✔️ 3. Conduct Market analysis ✔️ 4. Define your management and organization ✔️ 5. Give a sample “yummy”  Menu ✔️ 6. Create design and branding ✔️ 7. Provide a Location ✔️ 8. Establish Marketing plan ✔️ 9. Define Financial plan

1. Executive summary

The executive summary is like the appetizer of your restaurant business plan – it’s the first bite that leaves a lasting impression. Its purpose is to capture the essence of your entire plan and entice time-crunched reviewers, such as potential investors and lenders, to delve deeper into your vision. It’s worth noting that the executive summary should be the final section you write.

To craft a concise and captivating summary, it’s crucial to highlight key points, including your unique concept, target market, and financial projections. Additionally, bear in mind that the executive summary sets the tone for the rest of your plan, so it’s essential to make it irresistible and leave readers yearning for more.

When it comes to the executive summary of your restaurant business plan, brevity is key . You have only one page to capture the attention of readers, but don’t worry, it’s definitely doable. Here’s what your executive summary should include:

• Restaurant concept : What does your business do?
• Goals and vision : What does your business want to achieve?
• Restaurant differentiation : What makes your menu/concept different, and what sets you apart?
• Projected financial state : What revenue do you anticipate?
• The team : Who is involved in the business?

2. Describe your concept

In the world of restaurant business plans, there’s a section that holds immense importance. It’s the one that answers two fundamental questions: Who are you, and what do you plan to do?

This is the section where you fully introduce your company, and it deserves special attention. Share all the important details that paint a vivid picture of your unique business. Include the restaurant’s name, location, and contact information. Additionally, provide relevant details such as the chef’s background and what makes your restaurant stand out in the market.

Curious about concept creation? Watch our short video featuring a summary of an example restaurant concept below! 👇

Now is your opportunity to showcase your vision and establish a unique identity for your restaurant. Utilize this section to highlight what sets you apart and capture the reader’s imagination.

3. Market analysis

Market analysis helps you understand your potential customers, competition, and overall restaurant market trends. It’s like having a crystal ball to shape your restaurant’s success.

Target audience 

When it comes to your potential market, you want to know how many people are hungry for what you’re serving. Sounds exciting, right? To estimate this, you’ll gather data on your target customers, like their age group or preferences, and combine it with industry trends. It’s like finding the perfect recipe to satisfy their cravings.

Competition

Now, let’s tackle the competition. Every restaurant has rivals, even if they’re serving a unique dish. It’s crucial to identify direct or indirect competitors and understand what makes you stand out. Are you offering affordable prices, a one-of-a-kind experience, or catering to a specific niche? Highlight your “secret sauce” that sets you apart from the rest.

Market analysis for restaurant’s business plan

Market analysis also involves a SWOT analysis. Don’t let the jargon scare you. It simply means evaluating your strengths, weaknesses, opportunities, and threats. Think of it as a superhero assessment for your restaurant. Identify what you excel at, areas for improvement, potential market opportunities, and external factors that could impact your success.

Example of SWOT analysis for a restaurant

Remember, market analysis is like a compass guiding your restaurant’s journey. It helps you make informed decisions, attract investors, and stay ahead of the game. So, embrace the power of market analysis, and let it shape the destiny of your delicious dining destination.

4. Management and organization

Effective management and organization are critical for success in the restaurant sector. This section of your business plan introduces the talented individuals who will lead your restaurant to new heights.

Outline your legal structure, whether it’s an S corporation, limited partnership, or sole proprietorship, providing key information for stakeholders.

Showcase your management team using an organizational chart to highlight their roles, responsibilities, and contributions. Their expertise and guidance are crucial for seamless operations and exceptional customer experiences.

With a strong management team in place, your restaurant is poised for success. They are the driving force behind your journey to greatness. Let’s meet the key players who will make it happen!

Streamline your operations and optimize your financial performance With resOs , you can efficiently manage reservations, track inventory, analyze sales data, and streamline your overall workflow. Get your FREE plan

5. Sample “yummy” Menu 

In the restaurant industry, your menu plays a main role as the core product. Include a section in your business plan that highlights key details about your menu offerings to engage readers.

If you offer a diverse range of dishes, provide a brief overview of each category. Alternatively, if your menu focuses on specific specialties or signature dishes, provide more detailed descriptions for each item.

You can also mention any upcoming menu additions or unique culinary creations that will enhance profitability and attract customers.

6. Design and branding 

When it comes to starting a restaurant, don’t underestimate the power of design and branding. They’re the secret ingredients that can make your establishment truly stand out. Think about it – when customers walk through your front door, what do they see? The right design and branding can instantly captivate their attention and make them feel right at home.

So, take some time to envision the overall aesthetic and mood you want to create.

Do you imagine a cozy and rustic setting or a sleek and modern vibe?

Let your creativity shine through! Include captivating photos of similar restaurants that inspire you and give potential investors a glimpse of your vision.

And don’t forget about your logo! If you’ve already designed one, proudly showcase it in your business plan. It’s the visual representation of your restaurant’s personality and will help establish brand recognition.

resOS’ customizable interface for your booking system

Stand out in the competitive restaurant industry with resOS’ customizable booking management system . Personalize every aspect of the interface to reflect your restaurant’s unique brand identity. Seamlessly integrate your logo, colors, and visual elements, creating a cohesive and immersive experience for your guests. With resOS, you have the power to revolutionize your restaurant’s image and leave a lasting impression.

Details matter too! Share your plans for specific design elements , from the choice of furniture to the color palette that will adorn your space. The more you paint a vivid picture, the more investors and customers will be enticed by your unique ambiance.

7. Location

For a restaurant, location can make or break the business. Occasionally, a restaurant concept is so good that people go out of their way to find it. But, more realistically, your location needs to be convenient for your target market. If it’s hard for your customers to get to you, hard for them to park, and not something they notice as they drive by, they’re unlikely to check your restaurant out.

In your business plan, make sure to discuss the potential locations that you hope to occupy, assuming you haven’t already secured the location. Explain why the location is ideal for your target market and how the location will help attract customers.

Unlock the potential of your restaurant’s location and streamline reservations with resOS. Our platform offers seamless integration with Reserve With Google , allowing customers to easily discover and book tables directly from Google search results and maps. By enabling this feature, you’ll maximize your restaurant’s visibility and attract more diners with just a few clicks. Experience the power of location-based reservations with resOS .

Be sure to explain the complete costs of your location and what kinds of renovations will be necessary to open your restaurant.

8. Marketing plan

In today’s competitive restaurant industry, it’s important to showcase your marketing strategy to investors. They want to know how you’ll create buzz and keep it going before and after your grand opening.

Create a winning business plan with a strong marketing focus. Our Restaurant Business Plan Steps Graphic (👆 see above) is your visual guide, including key marketing strategies. Download or save for later and plan your path to success.

Whether you’ve enlisted a top-notch Marketing company or have a solid ready-to-go marketing plan, highlight your chosen path. Discuss the unique strengths of your selected agency and why they stand out, including their notable clients. Alternatively, showcase your in-house plan, leveraging social media, your website, and valuable media connections.

A well-crafted marketing plan holds the key to differentiating your restaurant and attracting customers. Prepare to tantalize taste buds and offer an exceptional dining experience. Stay in tune with the latest restaurant industry trends, leverage effective marketing tools, and optimize your online presence. 

Lastly, integrate a robust restaurant booking system to streamline reservations and enhance the overall customer experience. With these strategic elements in place, success is within your reach.

9. Financial Plan

Financial analysis is a crucial part of your restaurant’s business plan. It helps investors assess the profitability of your concept and whether it’s a worthwhile investment. In this section, you’ll outline how you plan to allocate your funds in the first year and provide projections for costs and revenues.

Here are the 🔑 key components to include:

Investment Plan: Explain the initial investment costs, such as kitchen equipment, furniture, employee wages, legal fees, marketing expenses, and working capital. This shows how you’ll use your funds effectively.

Profit and Loss Projection: Estimate your restaurant’s costs and sales figures in the profit and loss statement. Consider factors like the size of your establishment, your target market, and the existing competition in your chosen location.

Break-Even Analysis: Show investors the monthly revenue you need to achieve to cover all your expenses and reach profitability. This analysis considers overhead costs, operational expenses, and factors that may affect revenue fluctuations throughout the year.

Claim your FREE plan on resOS today! Ready to revolutionize your business management? Join resos.com for FREE and take control of your operations. ✅ Seamless calendar integration ✅ Customizable booking forms ✅ Automated reminders ✅ Real-time availability updates Don’t miss out! Sign up now at resos.com and experience stress-free scheduling. Your time is valuable, so claim your FREE plan today!

Latest from the blog

How to start a restaurant in London

Are you considering starting a restaurant but still have questions? Read these 10 tips on how to open a successful restaurant without any mistakes!

Restaurant Management Software — The Ultimate Guide

Restaurant management software: The ultimate guide for owners Running a restaurant is no easy task. Between juggling reservations, managing inventory, and keeping your staff on schedule, it can quickly become overwhelming. That’s where restaurant management...

Review trends and behaviours in the restaurant and hospitality industry

Stay ahead in the restaurant industry by mastering online reviews and customer behavior. Learn actionable strategies to improve your reputation and attract more diners

Restaurant Business Plan Template & PDF Example

• July 23, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let’s dive in!

Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of the restaurant’s business concept, market analysis , management, and financial strategy.
• Restaurant & Location: Describes the restaurant’s prime location, size, seating capacity, and distinctive design, emphasizing its appeal to the target demographic.
• Supply & Operations: Outlines the supply chain management, focusing on local sourcing and quality ingredients, and details the operational aspects, including kitchen layout, equipment, and front-of-house operations.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the full-service restaurant market.
• Key Trends: Highlights recent trends affecting the restaurant sector, such as health-conscious dining, sustainability, and technology integration.
• Key Competitors: Analyzes the main competitors in the vicinity, showcasing the restaurant’s unique selling proposition in comparison.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for promoting the restaurant to maximize visibility and customer engagement.
• Timeline : Key milestones and objectives from the initial setup through the launch and operational optimization.
• Management: Information on who manages the restaurant and their roles.
• Financial Plan: Projects the restaurant’s financial performance, including revenue, profits, and expected expenses, aiming for profitability and sustainable growth.

Restaurant Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your restaurant’s business plan, offering a concise overview of your establishment and its offerings. It should detail your market positioning, the variety of cuisines and dining experiences you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your restaurant will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your restaurant’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the restaurant’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your restaurant’s financial plan.

Restaurant Business Plan Executive Summary Example

Business Overview

The  business overview  should detail the restaurant’s specific features, such as its seating capacity, ambiance, and supply chain practices. It’s important to emphasize how the restaurant caters to its target demographic through its strategic location and operational model.

Example: “[Your Restaurant Name],” located in [specific area or neighborhood], covers [total square footage] sq ft and includes a main dining area, bar, and outdoor patio, offering a total of [number of seats] seats. The restaurant’s commitment to quality is reflected in its locally sourced produce and sustainable supply chain practices, catering to a diverse clientele.

Market Overview

This section involves analyzing the size, growth, and trends of the full-service restaurant market. It should address the industry’s digital transformation, health-conscious dining preferences, and eco-friendly practices, positioning the restaurant within the broader market context.

Example: “[Your Restaurant Name]” enters a U.S. full-service restaurant market valued at $293 billion. The restaurant’s focus on technology, healthier menu options, and sustainability aligns well with current  market trends  and consumer preferences, setting it apart from six main competitors in the area.

Management Team

Detailing the management team’s background and expertise is crucial. This section should highlight how their experience in culinary arts and restaurant management contributes to the success of the restaurant.

Example: The Executive Chef and Co-Owner of “[Your Restaurant Name]” leads menu development and kitchen operations, ensuring high-quality food preparation and presentation. The General Manager and Co-Owner manages daily operations, staff, customer service, and financial aspects, ensuring a seamless dining experience.

Financial Plan

This section should outline the restaurant’s financial goals and projections, including revenue targets and profit margins, providing a clear picture of its financial aspirations and health.

Example: “[Your Restaurant Name]” aims to achieve $2.7 million in annual revenue with an 11%  EBITDA  margin by 2028. This financial goal is supported by a focus on quality dining experiences, strategic marketing, and operational efficiency, positioning the restaurant for growth in the  competitive  full-service restaurant market.

For a Restaurant, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Briefly describe the restaurant’s physical environment, emphasizing its design, ambiance, and the overall dining experience it offers to guests. Mention the restaurant’s location, highlighting its accessibility and the convenience it offers to diners, such as proximity to entertainment venues or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Operations

Detail the range of cuisines and dishes offered, from appetizers and main courses to desserts and specialty beverages. Outline your sourcing strategy, ensuring it reflects a commitment to quality and sustainability, and matches the market you’re targeting.

Highlight any unique culinary techniques, exclusive ingredients, or innovative kitchen technologies that set your restaurant apart. Discuss your operational strategies, including inventory management, supplier relationships, and kitchen workflow, to ensure efficiency and consistency in delivering exceptional dining experiences.

Industry size & growth

In the Market Overview of your restaurant business plan, start by examining the size of the restaurant industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key market trends

Proceed to discuss recent market trends , such as the increasing consumer interest in farm-to-table dining, ethnic cuisines, and experiential dining experiences.

For example, highlight the demand for restaurants that offer unique cultural dishes, the growing popularity of health-conscious and dietary-specific menus, and the integration of technology in enhancing the dining experience.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your restaurant in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your restaurant’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Restaurant Industry

To comprehensively understand the competitive landscape, start by identifying both direct and indirect competitors in your area. Direct competitors are restaurants offering similar cuisines or targeting a comparable customer base. For instance, if your restaurant specializes in authentic Mexican cuisine, other nearby Mexican restaurants are direct competitors. Indirect competitors may include food trucks, cafes, or even fast-casual eateries offering diverse menus that overlap with your offerings.

Leverage digital tools like Google Maps, Yelp, or food delivery apps to map out the locations of your competitors. Reviews and ratings on platforms like TripAdvisor and social media can offer valuable insights into competitors’  strengths and weaknesses . Positive reviews highlighting exceptional service or a unique dining experience at a competitor’s restaurant can signify an area of focus for differentiation and improvement.

Restaurant Competitors’ Strategies

To conduct a comprehensive analysis, delve into various aspects of your competitors’ operations:

• Menu Offerings:  Assess the breadth and uniqueness of dishes offered by competitors. Take note if any local restaurants are gaining traction by focusing on farm-to-table ingredients, regional specialties, or offering innovative fusion cuisines, as these aspects often indicate emerging  market trends .
• Service and Ambiance:  Evaluate the overall customer experience. Identify if there’s a competitor renowned for its fine dining experience, another known for its trendy and vibrant atmosphere, or one that excels in providing a casual, family-friendly environment. These elements significantly contribute to a restaurant’s success and differentiation.
• Pricing and Positioning:  Compare pricing strategies . Determine whether competitors are positioned as budget-friendly eateries or if they adopt a more upscale approach with premium pricing, highlighting gourmet ingredients, or exclusive dining experiences.
• Marketing Channels :  Analyze how competitors market their restaurants. Do they leverage social media platforms for promotions, engage in collaborations with local influencers, or host special events or themed nights? Understanding their marketing tactics provides insights into effective promotional strategies that resonate with the  target audience .
• Operational Efficiency:  Observe if competitors have adopted technological advancements such as online reservations, mobile apps for ordering, or contactless payment systems. These innovations not only streamline operations but also contribute to an enhanced customer experience.

What’s Your Restaurant’s Value Proposition?

Reflect on what uniquely distinguishes your restaurant from the competition. It could be your innovative fusion of cuisines, a strong emphasis on locally sourced and sustainable ingredients, or perhaps a distinctive ambiance that reflects a particular cultural theme or historical narrative.

Listen attentively to customer feedback and observe emerging industry trends to identify gaps or unmet demands in the market. For instance, if there’s a growing interest in plant-based dining experiences and competitors have not tapped into this niche, it could present an opportunity for your restaurant to cater to this demand and stand out.

Consider how your restaurant’s location influences your strategy. A downtown location might warrant a focus on quick service and catering to office lunch crowds, while a suburban setting could embrace a more relaxed, family-friendly dining environment.

First, conduct a SWOT analysis for the restaurant , highlighting Strengths (such as a unique menu and exceptional customer service), Weaknesses (including potential high operational costs or strong competition in the area), Opportunities (for example, a growing interest in diverse cuisines and healthy eating), and Threats (such as economic downturns that may decrease consumer spending on dining out).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, food blogger outreach, and community involvement, such as local events or charity sponsorships.

Marketing Channels

Utilize various marketing channels to engage with your audience and attract new patrons.

Digital Marketing

• Social Media:  Utilize social media platforms such as Instagram, Facebook, Twitter, and TikTok to showcase your restaurant’s ambiance, signature dishes, behind-the-scenes glimpses, chef profiles, and customer testimonials. Regularly engage with your audience by responding to comments, hosting interactive polls, or sharing user-generated content.
• Email Marketing:  I mplement an email marketing strategy to build a loyal customer base. Offer incentives such as exclusive recipes, promotional offers, or early access to special events in exchange for subscribing to your newsletter. Regularly communicate with your subscribers, sharing updates, promotions, and stories that resonate with your brand.
• Website and SEO:  Maintain an  informative website showcasing your menu , chef profiles, reservation options, and reviews. Optimize it for local SEO to ensure visibility in searches related to your cuisine and location.

Local Advertising

• Printed Materials:  Distribute well-designed flyers in nearby neighborhoods, advertise in local magazines, and collaborate with tourism centers or hotels for exposure.
• Community Engagement:  Sponsor local events, collaborate with food bloggers or influencers, and participate in food festivals or charity events to increase brand visibility and community involvement.
• Partnerships:  Forge partnerships with complementary businesses (such as wine shops or local farmers’ markets) for cross-promotions or collaborative events.

Promotional Activities

Engage potential customers through enticing offers and events.

• Special Offers:  Launch promotions like ‘Chef’s Tasting Menu Nights’ or ‘Happy Hour Discounts’ to attract new diners and retain regulars.
• Loyalty Programs:  Implement a loyalty system offering rewards for frequent visits or referrals, such as a free appetizer or dessert after a certain number of visits.
• Events and Special Occasions:  Host themed nights, seasonal menus, or exclusive culinary events to create buzz and attract diverse audiences.

Sales Channels

Efficiently manage  sales channels  to maximize revenue and customer satisfaction.

In-Restaurant Upselling

• Menu Strategies:  Highlight premium dishes or chef’s specials, offer wine pairings or dessert suggestions, and train staff to upsell without being pushy.
• Merchandising:  Display branded merchandise, specialty sauces, or cookbooks for sale to complement the dining experience.

Online Ordering and Delivery

• Online Ordering Platform: I mplement an easy-to-use online ordering system for takeout or delivery orders. Offer exclusive online discounts or bundle deals.
• Delivery Partnerships:  Collaborate with food delivery services or establish in-house delivery for customers’ convenience.

Reservation Management

• Reservation System:  Utilize an efficient reservation platform to manage bookings. Offer incentives for off-peak reservations or special occasions.

Membership and VIP Programs

Developing membership and VIP programs can cultivate a loyal customer base and drive recurring revenue:

• VIP Memberships:  Create exclusive membership tiers offering perks like priority reservations, chef’s table access, or private event invitations.
• Reward Programs:  Develop a digital loyalty system where customers earn points for every dollar spent, redeemable for discounts, exclusive menu items, or special events.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the restaurant’s opening, marketing campaigns, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

The management section focuses on the restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the restaurant towards its financial and operational goals.

For your restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Related Posts

Steakhouse Business Plan Template & PDF Example

• July 24, 2024

Bubble Tea Business Plan Template & PDF Example

Bar Business Plan Template & PDF Example

• July 22, 2024

Privacy Overview

Eat App for

How it works

How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

• Creating a solid business plan is important, as it helps:
• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% ( Harvard Business Study ).
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on common elements of an executive summary, including:

• A mission statement 
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

1.1 Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

1.2 Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

1.3 Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content: How to Write a Restaurant Mission Statement 

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.

2. Company description

This is where you carefully introduce the company in the restaurant business plan.

Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information.

Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description.

To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

Further reading

• How to Write a Great Restaurant Description

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market ? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

 Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

• How to Identify Your Restaurant’s Target Market (Expert Tips Included)

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up menu for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result. 

You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

7.1 Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

7.2 Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

• Why does restaurant location matter?

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more : How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems.

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section. We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

• Your Complete Guide to Restaurant Financing and Loans

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

Share this article!

Related articles

SWOT Analysis for:...

Your restaurant may have the best ambiance or...

How to Calculate Food Cost in:...

Whether you're putting together a menu for your...

How to Write a Restaurant:...

An executive summary for a restaurant is a...

Join restaurants in 70+ countries using Eat App

Empowering restaurants, one table at a time Discover seamless dining with Eat App

• Reservation system
• Table management
• CRM and guest profiles
• Reports & trends
• WhatsApp messaging
• Integrations
• Privacy policy
• Terms of service
• The 16 Best Reservation Systems
• Guide to Restaurant Marketing
• Guide to Customer Service
• Guide to Making a Restaurant Website
• All articles

"> "> Compare us

• Compare All

© Eat App. All rights reserved.

How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

10 minute read

helped business professionals at:

Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology, such as restaurant POS systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff , including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, tip system , and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

Found this post useful?

Subscribe to our monthly newsletter.

Get notified as more awesome content goes live.

(No spam, no ads, opt-out whenever)

You've just joined an elite group of people that make the top performing 1% of sales and marketing collateral.

Make your best business plan to date

Stop losing opportunities to ineffective presentations. Your new amazing deck is one click away!

• Sample Business Plans

How to Create a Financial Plan For a Restaurant?

Financial planning is crucial to setting up a successful restaurant business.

A lot goes into financial planning, right from estimating costs to making sales projections, evaluating break even, and much more.

All of these require you to work on endless and tiring Excel sheets. However, only if you plan to do everything traditionally.

The figures in your financial plan will help evaluate the financial feasibility of your restaurant. You simply cannot afford to be negligent with this aspect of your business plan.

Feeling stuck writing the financial aspect of a business plan? Well, let us help you out.

What is a Restaurant Financial Plan?

A restaurant’s financial plan reflects the current monetary position of an eatery and outlines its long-term financial goals, objectives, and strategies to achieve the desired outcomes.

It is the last but most important part of a restaurant’s business plan that can convince investors to invest in your business.

A financial plan consists of key financial reports like an Income statement, break-even analysis, balance sheet, and investment plan. These reports help investors assess the revenue potential, risks, and rewards that a particular restaurant can bring.

Instead of paragraphs, the financial section of a business plan is presented best with figures, diagrams, graphs, and charts.

Key Takeaways

• Plan a realistic funding strategy for your restaurant by assessing the monetary position and estimating start-up costs.
• Determine the profitability of your eatery with key financial reports.
• Enhance the accuracy of the plan by testing assumptions and conducting sensitivity analysis.
• Get a financial snapshot of your business and pique investors’ interest.

Say goodbye to old-school excel sheets & templates

Make accurate financial plan faster with AI

Plans starting from $7/month

How to Prepare a Financial Plan for Your Restaurant?

Writing a financial plan can feel overwhelming. However, this step-by-step procedure can help you prepare a financial document for the restaurant by making sure you have accounted for every detail.

1. Identify Your Funding Requirements

Starting a restaurant is a costly affair. You need money, and a loads of it to open the doors of your eatery in the actual world.

The first step here is to accurately estimate your restaurant startup costs .

Account for expenses on lease, construction, licenses and permits, furniture, kitchen equipment, pre-launch marketing, and every expense that goes into starting a restaurant.

Ensure that your cost estimates also include the restaurant’s operating costs for the first few months. This will help you have adequate working capital to run the restaurant before it turns into a profitable business.

Assess your current monetary position and determine how much funding you require to fund your own restaurant.

2. Determine Your Funding Strategy

People don’t always have enough money lying around to fund their business. They need to seek help from potential lenders to acquire the startup capital.

Here are a few funding sources you can consider for your restaurant:

• Lendings from friends and family
• Angel Investors
• Real Estate loans

When you seek credit from banks and investors, you will need a neat document projecting the financial modeling of your restaurant.

A financial plan with clear projections and calculations will help potential investors get an accurate idea of your business.

Evaluate different funding sources, their costs, and benefits to pick the most desirable ones.

3. Select a Business & Financial Planning Software

We don’t mean to scare you off, but starting and running a restaurant will swamp you with responsibilities. Unless you plan to run around like a headless chicken, a planning tool can support you in making different financial plans and reports.

If you are struggling to create a financial plan for the restaurant, you definitely need a planning and forecasting tool right away.

Too many options to confuse you? Consider a tool that is easy to use, offers a range of functions, and allows seamless integration of Excel data.

Create a Restaurant Financial Plan with Upmetrics in no time

Enter your Financial Assumptions, and we’ll calculate your monthly/quarterly and yearly financial projections.

Start Forecasting

4. Pre-Assumptions & Market Analysis

A successful business always relies on the foundation of good quality market research.

You have already done a deep dive into understanding the target market, customer demography, state of the industry, competition, and restaurant concept when you started writing the business plan.

Now, it’s time to use that market research to create a financial forecast for your eatery.

Let’s have a look at these key essentials that the financial aspect of your business plan should include:

Pricing strategy

There is no fixed rule when it comes to developing a pricing strategy . However, factor in aspects like menu items, potential customers, spending patterns,  and competition to determine an ideal pricing strategy for your business.

Generally, the pricing should be in line with the competitors’ pricing to establish yourself in the market. However, you can choose different pricing and still succeed by marketing the eatery wisely.

Remember, that the pricing you choose will set the tone of your eatery in the market. Ideally, it should reflect the restaurant’s perceived value amongst its target customers.

When developing your pricing strategies, account for seasonal, quarterly, or yearly increases in food costs.

Sales forecast

Sales is the ultimate goal for any business. After all, sales are the very basis for company profits and business growth.

A sales projection will help conclude whether or not an eatery can perform as a profitable business.

Now how do you make sales projections?

Well, here are a few things to consider when making sales projections:

• How many customers can an eatery accommodate at a time?
• What are your different sales channels, i.e. dine-in, online orders, takeout?
• How many average customer orders do you receive in a day?
• How much is an average customer spending?
• How many times does a table turn in a particular shift?
• How many menu items are ordered per person?

Project daily sales and then create a chart depicting weekly, monthly, quarterly, and yearly sales. Account for fluctuations and changes in demand to create accurate sales projections.

The sales predictions will help you estimate the cash flow in the business and also the cost of goods sold.

If you are offering services like online orders and takeouts, create separate forecasts for each.

Overheads budget

Overhead costs are basically operating costs or day-to-day business expenses that will keep your eatery running.

To prepare accurate overhead forecasts, get precise estimates of expenses from your suppliers. Account for various fixed costs and variable costs incurred by a business regularly.

These include payroll expenses, occupancy costs, administrative expenses, amortization, depreciation, music and entertainment expenses, etc.

An accurate estimate of overhead costs will help determine a perfect restaurant’s budget.

5. Prepare Financial Projections

Figures are definitive and can act as a decisive point for investors. One look at the key reports and they will decide whether or not to invest in your restaurant.

Let’s check these key components of financial projection:

Cash flow statement

A cash flow statement guides whether or not you have enough funds to run a business.

CFS is formulated taking into account the figures of sales, cost of goods sold, and the eatery’s overhead budget. The precision of your projections in these aspects will determine the accuracy of cash flow.

CFS outlines the amount of cash generated and spent by the business during a particular time. Overall, it’s an indication of how well your restaurant is at generating cash.

Be realistic with the assumptions you make in the cash flow statement. Consider industry standards and market situation while preparing your CFS.

Income statement

The income statement, also known as the profit and loss statement, offers an insight into a business’s profitability, long-term financial goals, and business growth over the next 2-3 years.

Profit and loss measures the health of a restaurant. By deducting the cost of goods sold from revenue, you get the gross margin. The gross profit determines the eatery’s efficiency in utilizing the resources.

Further, deduct the operational expenses and EBITDA to calculate the net profit of your eatery. This is what interests investors the most.

The profit and loss statement overall gauges a restaurant’s feasibility in the long term.

Balance sheet

A balance sheet is a snapshot of what a company owns and what it owes. It is a summation of your restaurant’s liability, equity, and assets.

Investors are keen on the balance sheet as it helps evaluate the company’s capital structure and its ROI. It also forms the base for calculating various financial ratios.

Break-even Analysis

Profit is the ultimate goal for any restaurant operator. But when do you actually start generating the profits?

Break-even analysis helps determine how much sales volume is essential to reach the break-even point.

It answers an important question for investors: How long before the restaurant turns profitable?

It can take years to reach break-even if there are loans to settle. However, you can still keep the restaurant afloat and profitable with an appropriate understanding of fixed costs.

6. Test Assumptions

The entire financial plan is based on projections. Even when you have planned everything to the minutest details, a crisis will arise.

In this stage consider various what-if scenarios. Consider different situations- certain aggressive and certain progressive.

For instance, consider the sales drop when the weather gets extremely chilly or changes in prices of menu items when the inventory cost rises unpredictably.

These are extreme scenarios. Play with the in-betweens and change the inputs of different projections. Review the reports in a different light and check the viability of your projections.

Another way to implement sensitivity analysis is to test your projected calculations with actual metrics of similar restaurants. You can even choose from a listed company operating on the same level as you plan. This will help you validate the assumptions and make tweaks wherever necessary.

7. Monitor & Update Your Plan

Planning is only fruitful when you monitor and revise. Once your financial plan is ready, continue to monitor it closely and note the deviations.

If some metrics are significantly different than anticipated, identify the reason behind it.

All in all, continuously evaluate and update your financial plans when necessary.

Download Free Restaurant Financial Plan Example

Creating a financial plan from scratch can get overwhelming. After all, Excel sheets are tiring and endlessly long. Worry not. Download this free restaurant financial plan example prepared using Upmetrics to help you get started.

It includes all the key components of a restaurant’s financial projection, including the balance sheet, cash flow statement, P&L or income statement, and break-even statement, simplifying restaurant financial planning.

Related Restaurant Resources

• Restaurant Business Plan Template
• A Step-by-Step Guide to Starting a Restaurant
• Cost of starting a restaurant
• Restaurant Marketing Plan
• Restaurant Operations Plan

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Start Preparing Your Restaurant Financial Plan

And it’s a wrap. This blog has covered almost everything you need to know about financial planning.

But enough of planning. It’s time to nail financial planning for your restaurant now.

Feels like a dreadful task? Well, Upmetrics’ financial forecasting tool can be your savior here.

Simply enter the projected assumptions and let us take care of the rest.

So, what are you waiting for?  Create a financial plan for your eatery, NOW!

Frequently Asked Questions

How to do a financial analysis for a restaurant.

To perform a financial analysis of a restaurant, conduct detailed market research on competitors, target market, industry trends, and customer demographics. Implement this research in developing key forecasts for pricing, sales, investment, and overheads. Translate these figures into an Excel sheet which will further help generate key reports.

How do you create a financial plan for a new restaurant?

The planning for a new restaurant begins with estimating the funding requirements and identifying the funding sources. Thereafter a detailed market analysis will help generate forecasts on price, sales, revenue, and overhead components of an eatery. Further, using a business plan tool, you can generate key reports and evaluate the financial feasibility of your business.

What are the key elements to include in a restaurant's financial plan?

A detailed financial plan for a restaurant must include an estimate for startup costs, sales forecasts, overhead costs, and investment plans. It should include key reports like Income statement, balance sheet, CFS, and break-even analysis to help investors gauge the profitability and viability of your restaurant.

What are common mistakes to avoid when creating a restaurant's financial plan?

Here are a few mistakes to avoid when creating a financial plan for your restaurant.

• Estimating inaccurate startup costs.
• Comparing the estimates with restaurants that aren’t your competition.
• Not considering sensitivity analysis.
• Not accounting for fluctuations in sales, costs, and revenue in every quarter.
• Making ineffective pricing plans.
• Not accounting for expenses like depreciation and amortization in the income statement.

Can I create a financial plan myself or should I hire a professional?

No one understands your business plan as precisely as you. By conducting proper research and analysis on various aspects like costs, sales, pricing, and revenue, you can create a solid financial plan on your own. However, it is important that you take the help of financial planning tools and resources to create a detailed and attractive financial plan that sells itself to investors.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Restaurant Business Plan Template

Written by Dave Lavinsky

If you want to start a restaurant or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and aspiring restaurant owners create business plans to start and grow their restaurants. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a comprehensive restaurant business plan step-by-step so you can create your restaurant’s business plan today.

Download our Ultimate Restaurant Business Plan Template here >

What Is a Restaurant Business Plan?

A restaurant business plan provides a snapshot of your restaurant business as it stands today, and lays out your projected growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research, information about your target market, and a sample menu to support your winning restaurant business plan.

Why You Need a Business Plan for a Restaurant

If you’re looking to start a restaurant or grow the existing restaurant you need a business plan. A restaurant business plan will help you secure funding, if needed, and plan out the growth of your restaurant in order to improve your chances of success. Your restaurant business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Restaurants

With regards to funding, the main sources of funding for a restaurant are bank loans and angel investors. With regards to bank loans, banks will want to review your restaurant business plan and gain confidence that you will be able to repay your loan and interest.

To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional restaurant business plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a restaurant is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Private equity groups are also a good source of funding for restaurant chains looking to expand further.

Finish Your Business Plan Today!

How to write a restaurant business plan.

Use the following restaurant business plan template which includes the 10 key elements for how to write a restaurant business plan that will help you start, grow, and/or secure funding for your business.

Executive Summary

Your executive summary provides an introduction to your restaurant business plan, but it is normally the last section you write because it provides a summary of each key section of your business plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of restaurant business you are operating and the status; for example, are you a startup, do you have a restaurant that you would like to grow, or are you operating a chain of restaurants?

Next, provide an overview of each of the subsequent sections of your business plan. For example, give a brief overview of the restaurant industry. Discuss the type of restaurant you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer a financial analysis of your business.

Company Overview

In your company analysis, you will provide a brief description of the type of restaurant you are operating.

For example, are you writing a small restaurant business plan or a business plan for a restaurant franchise. Further, you might operate one of the following types:

• Fine Dining Restaurant : characterized by the fancy decor, a dress code, and high prices
• Casual Dining Restaurant : offers waiter/waitress service in a nice (but not overly fancy) atmosphere with moderate prices
• Fast Casual Restaurant : characterized by quality food (close to the quality of casual dining) but no waiter/waitress service in an accessible atmosphere
• Fast Food Restaurant : quick service style provided at the counter or via a drive-through. Lowest quality food and lowest prices
• Steak Restaurant : focuses on steak entrees and is usually a higher priced and fancier restaurant
• Buffet Restaurant : may or may not offer waiter/waitress service. Patrons serve themselves from buffet food selection
• Ethnic Restaurant : focuses on a specific ethnic cuisine such as Indian food, Mexican food, or Moroccan cuisine.

Within these types of restaurant businesses, there are also ethnic food specialties such as American, Italian, Japanese, Chinese, Indian, etc.

In addition to explaining the type of restaurant you operate, the Company Analysis section of your restaurant business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• Your mission statement and how it connects to your restaurant’s brand.
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new restaurant openings, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, also called a Market Analysis, you need to provide a market overview and an overview of the industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the restaurant industry educates you. It helps you understand the target market in which you are operating.

Secondly, research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards speedy restaurant services, it would be helpful to ensure your business plan calls for take-out or other quick-service options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your business plan, you achieve just that.

The following questions should be answered in the industry analysis section of your restaurant business plan:

• How big is the restaurant business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your restaurant? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your restaurant business plan must detail the customer base or target market you serve and/or expect to serve.

The following are examples of customer segments: business executives, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of restaurant you operate. Clearly, baby boomers would want a different atmosphere, pricing and sample menu options, and would respond to different marketing promotions than teens.

Try to break out your customers in terms of their demographic and psychographic profiles. With regards to customer demographics, include a discussion of the ages, genders, locations, and average income levels of the new customers you seek to serve. Because most restaurants primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. This should also include how your customers choose where they should eat, their dining habits, and how much they are willing to spend on a meal.

The answers to the following questions should be included in your customer analysis:

• Who is your target market?
• What are their needs and wants?
• How do they make dining decisions?
• What motivates them to choose one restaurant over another?

The more you can understand and define these needs, the better you will do in attracting and building customer loyalty.

Finish Your Restaurant Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Restaurant Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

This competitive research should help you identify the direct and indirect competitors that your business faces and then focus on the latter.

Direct competitors are other restaurants.

Indirect competitors are other options that customers have to purchase from you that aren’t directly competing. This includes restaurants, supermarkets, and customers preparing dishes for themselves at home. You need to mention such competition to show you understand that not everyone frequents a restaurant each day.

With regards to direct competition, you want to detail the other restaurants with which you compete. Your greatest competitors will be restaurants located very close to your specific location, who are of the same type (e.g., fine dining, casual dining, etc.) and who offer the same cuisine (Japanese, Italian, etc.).

For each such competitor, provide an overview of the other businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of repeat customers do they serve?
• What menu items do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the existing customers’ perspective. And don’t hesitate to find out this information from customers by reviewing your competitors’ Yelp listings and other review pages.

The final part of this section is to document your areas of competitive advantage. For example:

• Will you provide superior food items?
• Will you provide menu items that your competitors don’t offer?
• Will you provide have better customer service policies?
• Will you invest in a customer relationship management software to keep in touch with regulars?
• Will you implement a loyalty program that will encourage more visits?
• Will you offer better pricing?

Think about your unique selling points that will help you outperform your competition and document them in this section of your business plan.

    Finish Your Business Plan Today!

Marketing plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a restaurant business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of restaurant that you documented in your Company Analysis. Then, detail the specific menu items you offer/will offer.

Price : Document the prices. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your restaurant. Perform a location analysis and mention how the location will impact your success. For example, is your restaurant located next to a heavily populated office building, or gym? Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate food trucks, detail the locations where the trucks will operate.

Promotions : the final part of your restaurant marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your restaurant’s front store extra appealing to attract passing customers
• Search engine marketing and optimization
• Social media posting/advertising
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your restaurant business plan explained your goals, your operational plan describes how you will meet them.

This section of your restaurant business plan should have two key elements as follows:

• Everyday short-term processes include all of the tasks involved in running your restaurant such as serving customers, procuring supplies, keeping the restaurant clean, etc.
• Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your restaurant’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in the restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience operating restaurants and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Pro-Forma Profit & Loss Statement / Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows how much revenue you expect to earn or have earned, and then subtracts your costs to show your actual or projected profit.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Pro-Forma Balance Sheets

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

For instance, if you spend $250,000 on building out your restaurant, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Pro-Forma Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for ingredients, supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a restaurant:

• Location build-out including design fees, construction, etc.
• Cost of equipment like stoves, refrigerators, blenders
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections, detailed cost analysis and/or break-even analysis in the appendix of your business plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint, location lease, or initial menu design.

Taking the time to write your own restaurant business plan for your business is a worthwhile endeavor. It will help you communicate your ideas and provide potential investors with the information they need to make an informed decision about investing in your restaurant.

A well-crafted business plan will also give you a road map for growing your business and achieving your long-term goals. So, while it may take some time to put together, it will be well worth the effort in the end.

If you follow the restaurant business plan template above, by the time you are done, you will truly be an expert. You will really understand the restaurant business, your competition, and your existing customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful restaurant concept.

Free Restaurant Business Plan Template PDF

You can download our Free Restaurant Business Plan Template PDF and use our sample restaurant business plan to help you get started on your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Restaurant Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

Other Resources for Restaurant Owners

Want more tips? Check out our related articles and downloads:

• How to Start a Restaurant
• Restaurant Startup Costs: How Much Does It Cost To Start a Restaurant?
• How To Write a Restaurant Marketing Plan + Template & Examples
• How To Get Funding To Start and/or Grow Your Restaurant

Don’t you wish there was a faster, easier way to finish your Restaurant business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan professional services can help you create a winning business.

Other Helpful Business Plan Articles & Templates

+971 4 457 8200

Refer & earn.

Home > Business Plan Templates > 10-Step Restaurant Business Plan Template With Examples

10-Step Restaurant Business Plan Template With Examples

Apr 14, 2024 | Business Plan Templates

Table of Contents

Summarising Our Restaurant Business Plan Template

This restaurant business plan template provides a comprehensive guide for those wanting to establish a restaurant business. It outlines ten crucial aspects – from executive summary, restaurant concept, business history and model, industry analysis, PR and marketing strategy, operations, and financial plan to appendices, offering a well-rounded view of your venture.

Each section comes with clear explanations and examples for clarity and easy understanding. The template assists you in presenting a concise and detailed blueprint that can impress investors, direct your team’s efforts, and fuel the steady growth of your restaurant.

1. Executive Summary

Introduction.

This section should introduce your restaurant. Details like your restaurant’s name, its theme or type, and cuisine should be included.

Example: Delicious Delights is a fine-dining restaurant specialising in contemporary American cuisine with a Southern twist.

Overview of the Business

Provide a summary of your restaurant. Discuss your speciality dishes, ambience, and dining experience. Also, share why your restaurant’s offerings are unique.

Example: Delicious Delights offers gastronomic delights derived from classic Southern dishes, revamped for the modern palette. Our customers enjoy these specialities in a chic and sophisticated setting for an ultimate dining experience.

Mission and Vision Statement

Write your restaurant’s mission and vision statements. These should communicate what you wish to achieve and where you plan to go in the future.

Example: Our mission is to provide our guests with a memorable dining experience through exceptional service, exquisite cuisine and a charming setting. Our vision is to become the city’s go-to destination for food lovers, known for its innovative and delectable American cuisine.

Location and Accessibility

Discuss where your restaurant is located. Talk about its accessibility and any prominent landmarks that could make it easier for customers to find you.

Example: Delicious Delights is conveniently located in the heart of downtown, just a few blocks from the popular city plaza.

Type of Service

Discuss in detail the type of service your restaurant provides, whether it offers sit-down, fine dining, fast-casual, take-out, or delivery service.

Example: Delicious Delights offers fine dining service while stressing each guest’s personal attention and comfort. We also provide customised catering services for special events and occasions.

Key Goals and Objectives

State your short and long-term goals. These should be SMART goals (Specific, Measurable, Achievable, Realistic and Time-bound).

Example: Our short-term goal is to establish ourselves as a popular food destination in town within a year, building a strong, loyal customer base. In the long run, we plan to open two more branches across the state and start franchise opportunities.

2. Restaurant Concept and Brand

Restaurant concept.

This section should describe, in detail, the type of restaurant you plan to establish and the theme that it will carry. Moreover, explain why this specific restaurant’s concept was chosen.

Example: Delicious Delights is a fine-dining restaurant that revolves around contemporary American cuisine with a Southern twist. We chose this concept because of the rising admiration for American foods and the unique, rich flavours of Southern cuisine, which we believe can create exciting culinary experiences.

Brand Identity

Discuss how you plan to brand your restaurant here. This can include your restaurant’s logo, colour scheme, tone of voice used in advertising, and, in general, what you desire your restaurant to be recognised for.

Example: Our brand identity is about sophistication, warmth, and exceptional culinary experiences. Our logo features a fusion of a chef’s hat and a fork, symbolising our commitment to culinary excellence. We’ve used rustic colours to represent Southern inspiration; our tone is always warm, inviting, and passionate about food. We strive to be recognised for innovative American cuisine, impeccable customer service policies, and lively ambience.

3. Business History & Ownership

Legal status & structure.

Specify your restaurant’s legal status, such as whether it’s a sole proprietorship, a partnership, or a Limited Liability Company (LLC).

Example: Delicious Delights operates as an LLC, providing business partners with the flexibility of a partnership while offering legal protection by limiting personal liability.

Business Ownership

Describe who owns the restaurant, what their roles are, and what their share percentages are if there are multiple owners.

Example: Delicious Delights is co-owned by John Roe and Jane Doe. John, who has extensive culinary experience, holds the executive chef position, and Jane, who has a background in hospitality and other company management, oversees the daily operations and management of the restaurant. They both have equal ownership in the business.

Key Milestones

Describe significant achievements or key moments in your restaurant’s history that illustrate its initial success, growth, or impact.

Example: Since its opening in 2019, Delicious Delights has grown steadily, doubling our dinner service within six months. In 2020, despite the challenges, we introduced a successful take-out menu and catering services, adding a revenue boost. Recently, our city’s lifestyle magazine nominated us under the ‘Best New Restaurants’ category.

4. Business Model

Main revenue sources.

Discuss your restaurant’s main revenue sources. These could include food and beverage sales, merchandise, special events, or catering services.

Example: Delicious Delights primarily generates revenue through food and beverage sales. We also host private parties and events and offer catering services to restaurant businesses, contributing significantly to our income. Additionally, we sell merchandise like branded mugs, t-shirts, and our signature spice blends.

Supply Chain

Discuss your supply chain, including where you source your ingredients from, your relationship with suppliers, and any unique or local products you use.

Example: We pride ourselves on using high-quality, fresh ingredients sourced locally wherever possible. Our meat and poultry come from sustainable, free-range farms within the state. Our vegetables are sourced from local organic farms. We have a good relationship with our suppliers, ensuring we get the best prices and priority delivery.

Special Events

If your restaurant plans to host special events or themed nights that could impact revenue, detail them here.

Example : We plan to host various special events and themed nights, including ‘Southern Nights,’ where we explore and celebrate different Southern cuisines on our menu once a month. We also host wine-tasting events featuring local vineyards and ‘Live Music Fridays,’ which draw a large crowd, boosting our revenue.

5. Industry Analysis

Current market trends.

Explore the prominent trends within the restaurant industry, noting how these trends may influence your restaurant.

Example: Current trends show an increasing demand for farm-to-table dining experiences and an appreciation for local cuisine. At Delicious Delights, we aim to tap into these trends, offering our guests meals prepared with locally sourced, fresh ingredients and serving dishes that are influenced by regional flavours.

Direct and Indirect Competition

Analyse the competitive landscape around your restaurant. Look at both direct competitors (other restaurants) and indirect competitors (like grocery stores or home meal kit delivery services).

Example: Our direct competitors include other fine dining establishments in the city. Indirect competitors include food delivery services and upscale supermarkets promoting ready-to-eat meals. Despite the competition, our unique blend of contemporary and Southern cuisine and our commitment to local sourcing give us a competitive edge.

Competitive Advantage

Discuss what sets your restaurant apart from the competition.

Example: What sets Delicious Delights apart is our menu, which offers a unique fusion of contemporary and Southern flavours, our commitment to local sourcing and fresh ingredients, and our ambience, which seamlessly blends sophistication and homeliness. We also offer a personalised dining experience, where our chefs interact with diners, explaining the story behind each dish.

Positioning and Strategy

Clarify your restaurant’s positioning and the strategy it will adopt to succeed.

Example: Delicious Delights is positioned as a leader in culinary innovation, presenting a modern take on Southern cuisine with high-quality, locally sourced ingredients. Our strategy is to constantly deliver delightful culinary experiences by experimenting with diverse South American flavours, maintaining superior service, and offering a pleasing environment for our patrons.

6. Public Relations and Marketing Strategy

Pr strategy.

Outline your public relations strategy, including how you plan to gain positive media attention and build a strong reputation within the community.

Example: Our PR strategy involves hosting media tasting events during new menu launches and sending out press releases around key milestones and special events. We plan to engage with bloggers and influencers to highlight our culinary adventures and invite them for exclusive tasting sessions.

Marketing Plan

Discuss your plan to attract and retain customers, whether it’s through social media advertising, a referral program, a loyalty program, or other marketing efforts.

Example: Our marketing plan revolves around digital marketing, primarily utilising social media platforms to engage potential and existing customers. We also plan to launch a loyalty program to provide returning customers exclusive perks. Traditional marketing methods like distributing flyers and local press ads will also be leveraged.

Website and Social Media

Describe plans for your organisation’s online presence, including your website and social media platforms.

Example: Our website features our complete menu, information about our chef, and upcoming events, and it allows direct reservations. We are active on several social media platforms where we showcase behind-the-scenes content, daily specials, food photos, and customer testimonials. It’s a great tool to engage with our audience and keep them updated with what’s new at Delicious Delights.

7. Operations

Staff hiring and roles.

Talk about your restaurant’s hiring practices, the roles needed, including front-of-house and kitchen staff, and any training you provide. Also, forecast future recruitment needs.

Example: We employ a full complement of restaurant staff, including chefs, line cooks, servers, bartenders, hosts, and managers. To ensure the highest level of service, all employees undergo rigorous training upon hiring, with ongoing training provided for customer service and safety standards. As we plan to extend our operating hours, we envisage hiring additional staff.

Daily Operations

Describe your daily operations, from the restaurant’s opening, the general seating procedure, and how orders are taken to closing tasks.

Example: Daily operations at Delicious Delights include pre-opening procedures such as cooking preparation, cleaning, and setup. Once we open, hosts greet and seat customers, servers take orders, and the kitchen staff prepare the meals. Post-service, staff clean the restaurant and prep for the next day. At the same time, the manager runs a daily sales report and restocks inventory as necessary.

Facility Needs (If Applicable)

Discuss the physical needs of your restaurant, such as your kitchen requirements, dining area layout, and any future needs for space expansion.

Example: Our facility includes a spacious kitchen equipped with state-of-the-art appliances, a comfortable dining area, a private dining room for special events, and a small outdoor patio. With our long-term plan of menu expansion, we anticipate requiring additional storage and potentially expanding our kitchen space.

8. Marketing and Communications Strategy

Marketing & outreach.

Describe how you plan to get the word out about your restaurant to the community and potential customers.

Example: We aim to promote Delicious Delights through a combination of digital marketing efforts, including managing an informative website, regular social media updates, and targeted email marketing. Additionally, we will use outdoor advertising, such as billboards in key locations and PR initiatives like food tasting events for local influencers and food critics.

Discuss your restaurant’s online presence, specifically your website and the social media platforms you’ll utilise.

Example: Our website provides detailed information about Delicious Delights including our menu, specials, location, operating hours, and the ability to make a reservation. We will also keep our audience engaged through regular posts and pictures on various social media platforms, including Instagram, Facebook, and Twitter.

Community Engagement

Explain how you plan to build relationships with the local community beyond the immediate services you offer.

Example: Delicious Delights plans to actively participate in local events and festivals by hosting food stalls or sponsorships. We also contemplate organising free monthly cooking workshops where our chefs and patrons can meet, discuss, and bond over their love for food.

9. Financial Plan

Startup budget/ current annual budget.

List your restaurant’s current or projected financial status. Include information about present/anticipated income and expenses.

Example: Our projected annual budget for this year is $1.5 million, with income anticipated from food and beverage sales, event hosting, and merchandise sales. Major expenses include food costs, labour, rent, utilities, and marketing.

Proposed Financing

Review your financial strategy, including how to manage any income shortfalls. Discuss your plans for potential investments or loans, if any.

Example: We plan to finance our restaurant through a blend of owner’s equity and bank loans. In the case of revenue shortfalls, we have planned for a revolving credit facility, which we can access as needed.

Key Financial Assumptions and Justifications

Mention any assumptions you have made while planning your finances, with suitable justifications for each assumption.

Example: Based on our market survey and the growing food culture in our locality, we have an estimated revenue growth of 10% per annum. Food costs are anticipated to remain at about 30% of total revenue, as we plan to manage these costs diligently by carefully selecting vendors and regularly reviewing our food waste.

10. Appendices

Organisational chart.

Include a visual hierarchy of staff and management positions within your restaurant.

Example: Our organisational chart outlines our management structure, starting with the restaurant owner and followed by the restaurant manager, chef, kitchen staff, front-of-house manager, and servers, providing clarity on role responsibilities and interactions.

Resumes of Key Staff

A brief bio or resume of your key team members can help you better understand their expertise, skills, and experience.

Example: Attached are the resumes of our Head Chef and Restaurant Manager. Both have significant industry experience and a track record of success in their respective fields.

Detailed Budget

Have a detailed budget breakdown, including income and expenses, if you’ve referred to it in your financial plan.

Example: Enclosed is a detailed version of our annual budget, indicating how resources are allocated between food costs, labour, rent, utilities, and marketing, and how we have planned for our income.

Evidence of Market Demand

Include any results from market research or demand surveys that support the viability of your restaurant in the location where you plan to operate.

Example: Find attached excerpts from a local market survey we conducted, which shows substantial demand for restaurants offering local cuisine with a modern twist in our city, underlining the potential for success of Delicious Delights.

Recent Posts

• What Is The Difference Between A Commercial And Professional Licence In Dubai
• Accounting (35)
• Business and Leadership Skills (65)
• Business Plan Templates (9)
• Business Setup (60)
• Business Software and Tools (61)
• Business Success and Challenges (75)
• Entrepreneurship (187)
• Featured Posts (33)
• Finance (65)
• Free Zones (35)
• Human Resources (60)
• Living in Dubai (25)
• Mainland (15)
• UAE Company Setup (139)
• Uncategorized (1)

Book your free 15 minute consultation

Avoid expensive mistakes when setting up your business. Talk to one of our experts now.

Want to save on your business setup?

Starting a business? Check out our latest business setup offers now!

How much does it cost to start a company in Dubai?

Find out how much investment you’ll need to launch your own company in the UAE.

Get your FREE copy of our UAE Business Setup Guide

Discover the trade secrets to starting and growing a successful business in the UAE.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Restaurant Business Plan

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .

While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.

We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.

Why you shouldn’t skip a restaurant business plan

First-time restaurateurs and industry veterans alike all need to create a business plan when opening a new restaurant . That’s because, even if you deeply understand your business and its nuances (say, seasonal menu planning or how to order correct quantities), a restaurant is more than its operations. There’s marketing, financing, the competitive landscape, and more—and each of these things is unique to each door you open.

That’s why it’s so crucial to understand how to create a business plan for a restaurant. All of these things and more will be addressed in the document—which should run about 20 or 30 pages—so you’ll not only have a go-to-market strategy, but you’ll also likely figure out some things about your business that you haven’t even thought of yet.

Additionally, if you’re planning to apply for business funding down the line, some loans—including the highly desirable SBA loan —actually require you to submit your business plan to gain approval. In other words: Don’t skip this step!

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to write a restaurant business plan: Step by step

There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than others, for example, or you might find that there’s a logical order that makes more sense than the one in the restaurant business plan example below. However, this business plan outline will serve as a good foundation, and you can use it as a restaurant business plan template for when you write your own.

Executive summary

Your executive summary is one to two pages that kick off your business plan and explain your vision. Even though this might seem like an introduction that no one will read, that isn’t the case. In fact, some investors only ask for the executive summary. So, you’ll want to spend a lot of time perfecting it.

Your restaurant business plan executive summary should include information on:

Mission statement: Your goals and objectives

General company information: Include your founding date, team roles (i.e. executive chef, sous chefs, sommeliers), and locations

Category and offerings: What category your restaurant fits into, what you’re planning to serve (i.e. farm-to-table or Korean), and why

Context for success: Any past success you’ve had, or any current financial data that’ll support that you are on the path to success

Financial requests: If you’re searching for investment or financing, include your plans and goals here and any financing you’ve raised or borrowed thus far

Future plans: Your vision for where you’re going in the next year, three years, and five years

When you’re done with your executive summary, you should feel like you’ve provided a bird’s eye view of your entire business plan. In fact, even though this section is first, you will likely write it last so you can take the highlights from each of the subsequent sections.

And once you’re done, read it on its own: Does it give a comprehensive, high-level overview of your restaurant, its current state, and your vision for the future? Remember, this may be the only part of your business plan potential investors or partners will read, so it should be able to stand on its own and be interesting enough to make them want to read the rest of your plan.

Company overview

This is where you’ll dive into the specifics of your company, detailing the kind of restaurant you’re looking to create, who’s helping you do it, and how you’re prepared to accomplish it.

Your restaurant business plan company overview should include:

Purpose: The type of restaurant you’re opening (fine dining, fast-casual, pop-up, etc.), type of food you’re serving, goals you have, and the niche you hope to fill in the market

Area: Information on the area in which you’re opening

Customers: Whom you’re hoping to target, their demographic information

Legal structure: Your business entity (i.e. LLC, LLP, etc.) and how many owners you have

Similar to your executive summary, you won’t be going into major detail here as the sections below will get into the nitty-gritty. You’ll want to look at this as an extended tear sheet that gives someone a good grip on your restaurant or concept, where it fits into the market, and why you’re starting it.

Team and management

Barely anything is as important for a restaurant as the team that runs it. You’ll want to create a section dedicated to the members of your staff—even the ones that aren’t yet hired. This will provide a sense of who is taking care of what, and how you need to structure and build out the team to get your restaurant operating at full steam.

Your restaurant business plan team and management section should have:

Management overview: Who is running the restaurant, what their experience and qualifications are, and what duties they’ll be responsible for

Staff: Other employees you’ve brought on and their bios, as well as other spots you anticipate needing to hire for

Ownership percentage: Which individuals own what percentage of the restaurant, or if you are an employee-owned establishment

Be sure to update this section with more information as your business changes and you continue to share this business plan—especially because who is on your team will change both your business and the way people look at it.

Sample menu

You’ll also want to include a sample menu in your restaurant business plan so readers have a sense of what they can expect from your operations, as well as what your diners can expect from you when they sit down. This will also force you to consider exactly what you want to serve your diners and how your menu will stand out from similar restaurants in the area. Although a sample menu is in some ways self-explanatory, consider the following:

Service : If your brunch is as important as your dinner, provide both menus; you also might want to consider including both a-la-carte and prix fixe menus if you plan to offer them.

Beverage/wine service: If you’ll have an emphasis on specialty beverages or wine, a separate drinks list could be important.

Seasonality: If you’re a highly seasonal restaurant, you might want to consider providing menus for multiple seasons to demonstrate how your dishes (and subsequent purchasing) will change.

Market analysis

This is where you’ll begin to dive deeper. Although you’ve likely mentioned your market and the whitespace you hope to address, the market analysis section will enable you to prove your hypotheses.

Your restaurant business plan market analysis should include:

Industry information: Include a description of the restaurant industry, its size, growth trends, and other trends regarding things such as tastes, trends, demographics, structures, etc.

Target market: Zoom in on the area and neighborhood in which you’re opening your restaurant as well as the type of cuisine you’re serving.

Target market characteristics: Describe your customers and their needs, how/if their needs are currently being served, other important pieces about your specific location and customers.

Target market size and growth: Include a data-driven section on the size of your market, trends in its growth, how your target market fits into the industry as a whole, projected growth of your market, etc.

Market share potential: Share how much potential there is in the market, how much your presence will change the market, and how much your specific restaurant or restaurant locations can own of the open market; also touch on any barriers to growth or entry you might see.

Market pricing: Explain how you’ll be pricing your menu and where you’ll fall relative to your competitors or other restaurants in the market.

Competitive research: Include research on your closest competitors, how they are both succeeding and failing, how customers view them, etc.

If this section seems like it might be long, it should—it’s going to outline one of the most important parts of your strategy, and should feel comprehensive. Lack of demand is the number one reason why new businesses fail, so the goal of this section should be to prove that there is demand for your restaurant and show how you’ll capitalize on it.

Additionally, if market research isn’t your forte, don’t be shy to reach out to market research experts to help you compile the data, or at least read deeply on how to conduct effective research.

Marketing and sales

Your marketing and sales section should feel like a logical extension of your market analysis section, since all of the decisions you’ll make in this section should follow the data of the prior section.

The marketing and sales sections of your restaurant business plan should include:

Positioning: How you’ll describe your restaurant to potential customers, the brand identity and visuals you’ll use to do it, and how you’ll stand out in the market based on the brand you’re building

Promotion: The tools, tactics, and platforms you’ll use to market your business

Sales: How you’ll convert on certain items, and who/how you will facilitate any additional revenue streams (i.e. catering)

It’s likely that you’ll only have concepts for some of these elements, especially if you’re not yet open. Still, get to paper all of the ideas you have, and you can (and should) always update them later as your restaurant business becomes more fully formed.

Business operations

The business operations section should get to the heart of how you plan to run your business. It will highlight both internal factors as well as external forces that will dictate how you run the ship.

The business operations section should include:

Management team: Your management structure and hierarchy, and who is responsible for what

Hours: Your hours and days of operation

Location: What’s special about your location that will get people through the door

Relationships: Any advantageous relationships you have with fellow restaurateurs, places for sourcing and buying, business organizations, or consultants on your team

Add here anything you think could be helpful for illustrating how you’re going to do business and what will affect it.

Here, you’ll detail the current state of your business finances and project where you hope to be in a year, three years, and five years. You’ll want to detail what you’ve spent, what you will spend, where you’ll get the money, costs you might incur, and returns you’ll hope to see—including when you can expect to break even and turn a profit.

Financial statements: If you’ve been in business for any amount of time, include existing financial statements (i.e. profit and loss, balance sheet, cash flow, etc.)

Budget: Your current budget or a general startup budget

Projections: Include revenue, cash flow, projected profit and loss, and other costs

Debt: Include liabilities if the business has any outstanding debt or loans

Funding request: If you’re requesting a loan or an investment, lay out how much capital you’re looking for, your company’s valuation (if applicable), and the purpose of the funding

Above all, as you’re putting your financials together, be realistic—even conservative. You want to give any potential investors a realistic picture of your business.

Feel like there are other important components but they don't quite fit in any of the other categories (or make them run too long)? That’s what the restaurant business plan appendix section is for. And although in, say, a book, an appendix can feel like an afterthought, don’t ignore it—this is another opportunity for you to include crucial information that can give anyone reading your plan some context. You may include additional data, graphs, marketing collateral (like logo mockups), and more.

LLC Formation

The bottom line

Whether you’re writing a restaurant business plan for investors, lenders, or simply for yourself and your team, the most important thing to do is make sure your document is comprehensive. A good business plan for a restaurant will take time—and maybe a little sweat—to complete fully and correctly.

One other crucial thing to remember: a business plan is not a document set in stone. You should often look to it to make sure you’re keeping your vision and mission on track, but you should also feel prepared to update its components as you learn more about your business and individual restaurant.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Guide To Creating a Restaurant Financial Plan

Writing up a restaurant financial plan is an essential part of assessing whether you will be running a lucrative business. It helps you ensure that your financial strategy is feasible by examining every aspect of your restaurant - from your start-up costs to your estimated sales projections and break-even point.

A financial plan can also act as a forecast to show you what you should anticipate over the first few years to effectively plan your restaurant's growth. If you want to know more about creating a financial plan for your eatery, we’re here to guide you through the process.

What is a Restaurant Financial Plan?

A restaurant financial plan is a set of documents outlining the business’ current monetary position, long-term financial goals, and strategies to achieve these outcomes. With a financial plan in place, you can make intelligent use of your money to build a successful business.

While these plans don’t follow a strict format, they generally serve the purpose of outlining your net worth and spending patterns. Then you consider your financial goals and explore ways to realize them. This will involve budgeting and taking out loans.

Finally, you’ll calculate a breakeven analysis and explore ways to expand your revenue.

How to Create a Financial Plan for Your Restaurant

The summarized version of your financial findings in your restaurant business plan comes from this comprehensive financial plan document. It lays everything out in more detail. Number-crunching investors or bankers will be interested in analyzing this document when you’re doing the rounds to secure funding for your business.  

It also acts as a tool for projecting income, planning cash flow, and preventing unexpected financial dips.

1. Funding and Company Structure

The first step in creating your restaurant’s financial plan is to assess your current monetary position. You’ll also need to determine how much funding you require to open the eatery doors to welcome diners.

Start-Up Costs

Restaurant start-up costs are typically pretty hefty. A lot goes into getting the business off the ground. Here is a list of expenses that you’ll likely need to factor in at the start:

• Restaurant licensing fees
• Land and building
• Kitchen and bar equipment
• Dining furniture
• Interior design and finishes
• Exterior finishes
• Move-in costs
• Pre-opening expenses
• Restaurant marketing and advertising
• Opening inventory
• Initial working capital (money required for starting daily operations)

Securing Loans

Depending on how much capital you have available to begin with, it might be necessary to secure loans or funding to bridge the gap and get your restaurant open for business. This will require you to approach the bank or seek out investors.

It’s best to get a head start on researching your funding options and loan opportunities. The sooner you can discuss your financial needs with people who can extend you credit, the sooner you can kick start your eatery business.

A neat document with expertly calculated projections will help reassure potential lenders that you have a solid plan and can handle financial management.

LLP Or LLC Company Structure

In your financial plan, you should also clearly define your company structure. Are you going to set your restaurant business up as an LLP or LLC?

A limited liability partnership or LLP is largely based on a partnership agreement and offers partial protection from other partners’ dereliction of duty or business obligations. Adversely, limited liability companies or LLCs are separate business entities that protect the owner from the business’s debts and liabilities.

Having this information in there is essential, as it affects how you pay taxes, distribute profit, and handle debt. Lenders will want to know the setup before giving you access to funds.

2. Market Analysis

As part of the exercise around creating your restaurant business plan, you would have done a deep dive into your target market, competitors, the general state of the restaurant industry, and your niche. This will prepare you to develop a pricing strategy for your eatery’s offering.

It will also give you an idea of what your sales projections might look like.

Pricing Strategy

As a new restaurant, you’ll need to ensure that your pricing is in line with your competitors. However, your pricing can fluctuate based on several factors.

Firstly, a unique restaurant concept with little to no competitors may be able to set its ideal prices and take them to market. However, even if you have a more standard concept eatery, you may be able to increase your pricing above the market average based on your ingredients and menu concept.

On the other hand, you may be able to lower your prices for a competitive edge if you can source cheaper ingredients and have lower operating costs. Generally, your prices should reflect your restaurant’s perceived value.

Sales Projection

Sales happen when diners come in to eat at your restaurant, drink at your bar, or get takeaways or deliveries. They are the lifeblood of your business. You’ll need to create a sales projection in your financial plan to determine whether you can run a profitable business. Your sales projection is based on your customer and order data. It should cover points such as:

• Average customer orders
• How many appetizers, main courses, and desserts are ordered per person?
• How many customers per shift (lunch and dinner)?
• The maximum seating capacity of your venue
• What is the average bill per person?
• What is the average number of customers per week?

A sales projection like this will help you anticipate your cash flow. You can establish the approximate inventory level to have on hand and the cost of securing that (cost of sales).

If you’re offering delivery and takeaway services, remember to add packaging and commissions charged by online delivery or reservations apps to the COS. You should also note the staffing requirements for preparing and serving your menu items.

3. Financial Projections

Overheads budget.

Overheads are the day-to-day running expenses your establishment will incur. For your restaurant financial plan, it’s best to get figure estimates from suppliers so that you have an accurate idea of how much daily operations will set you back.

Here are some of the main expenses involved in creating an overheads budget:

• Weekly labor costs
• Management salaries
• Employee benefits
• Music and entertainment
• Annual licensing fees
• Marketing and advertising
• Consultation costs
• Administrative expenses
• Building occupancy
• Maintenance
• Staff uniforms
• Cleaning products
• Asset depreciation

Once you have your projected sales, estimated cost of sales, and overheads budget outlined, it’s time to prepare the cash flow statement. Completing this projection will help you determine whether you have enough funds to run your restaurant or if you need additional finance.

Be realistic when calculating this. It’s recommended that you do 6- and 12-month projections to capture any seasonal fluctuations.

4. Operational Profit/Loss

Operational profit and loss statements and projections factor in your longer-term financial goals, business growth, and profitability.

It should tie in long-term cash flow projections, growth plans, and investment opportunities and repayments. Work with an accountant here so you can develop the projections together and understand if actions are needed to secure your eatery's financial viability.

5. Break-Even Analysis

The last - and arguably most important - part of your financial plan is conducting a break-even analysis. This calculation will help you determine when your business will turn profitable.

To do this, work out how much you need to sell to ensure all your expenses are covered. Any sales above this are then considered profit.

Break-even point may be years away if you have loans to settle. But, with an understanding of your fixed costs, you can determine how much to mark up your food and beverages. You can also uncover where your revenue goals should be to keep afloat or turn a profit.

Writing up a restaurant financial plan requires attention to detail. This document is critical to helping you understand the financial viability of your restaurant business.

New restaurants can be prone to failure if they’re not managed correctly. A comprehensive financial analysis can reduce this risk and help you become a successful restauranteur.

If you plan to expand your revenue by hosting events at your venue, check out Perfect Venue’s event management software . It’s an all-in-one dashboard to help teams plan and execute successful events. Watch a demo or try it free - our team is also ready and waiting to answer any questions you may have.

Have thoughts on the article? Feel free to email us at [email protected] - we'd love to hear it!

• Skip to primary sidebar
• Skip to content
• Skip to footer

The Restaurant CFO

Just another WordPress site

How to Write a Restaurant Business Plan in 2023

So you’ve decided to open a restaurant. Congratulations! But before you can open a successful restaurant, you need to write a restaurant business plan. 

According to CNBC , approximately 60% of restaurants fail within the first year of operation, and 80% fail within the first five years. 

Without a proper plan, your restaurant might be doomed for failure before it even opens. However, a well-researched and detailed business plan can help solve half your problems and help you launch your restaurant successfully.

The restaurant industry constantly changes, so you need a detailed roadmap with a framework to start and run your business.

If you’re unsure where to start, we’ve compiled this guide on how to write an awesome restaurant business plan.

Read Also: Restaurant Tax Guide

Table of Contents

Business Plan for Restaurants Template

A detailed restaurant business plan requires a lot of research and analysis, especially if you’re just starting. It’s an essential tool for new business owners and the one thing you can’t do without. 

If you’re looking for a quick and easy way to start writing your restaurant business plan, here’s an accessible restaurant business plan template .

This template will provide the information and direction you need to create your restaurant business plan. 

The Importance of a Restaurant Business Plan

A restaurant business plan is an essential tool for new restaurants looking to open and existing operations seeking capital funding.

If it’s fast casual or fine dining, no matter which restaurant type, you need a thorough and thoughtful business plan.

A well-written plan helps you secure funding from lenders, investors, and other sources because it demonstrates how you plan to profit from your business, where your restaurant fits into the saturated market, and how you plan on standing out.

Whether you are a first-time restauranter or a group of seasoned restauranteurs. This roadmap will ensure your investors, management team, and employees are aligned on your mission.

In addition to helping you obtain financing, a restaurant business plan also ensures you have a clear vision for your restaurant before opening its doors to customers. 

By providing financial goals for the next year or two and detailed information about your location and target market, you can develop strategies to help you reach those goals.

A good restaurant business plan should include the following:

• A description of your business and how it will operate
• An analysis of your target markets
• Information about competition within those markets
• A marketing strategy for reaching those markets
• Financial projections for the coming years

If you are considering opening a restaurant, creating a business plan can help determine if it’s worth it in the long run. And if you already have a restaurant, creating a plan will help you improve operations and increase profits.

P.S. We Offer Restaurant Financial Models to make completing your restaurant business plan a breeze!

5 Year Financial Model

• Pre-built Profit and Loss, Balance Sheet and Cash Flow – for 5 years
• Sales projection worksheet with increases and seasonality
• Hourly and Salary Labor Cost Projection with built in bonus structure
• Pre-built revenue and expense drivers
• Annual Operating Projection – Detail
• Annual Operating Projection – Summary
• Perfect for Fundraising

2 Year Financial Model

• Pre-built Profit and Loss, Balance Sheet and Cash Flow – for 2 years

Annual Budget

• Pre-built Profit and Loss, Balance Sheet and Cash Flow
• Sales projection worksheet
• Hourly and Salary Labor Cost Projection

Whos’ it for, Anyways?

A restaurant business plan is for anyone wanting to start a food service establishment.

This could be you if you plan to open a small neighborhood restaurant or a chain of pizza spots. It can also help existing restaurants looking to expand their operations.

A restaurant business plan helps you stay focused on your goals and achieve them by laying out the steps needed. A good plan will help you get the right people on board, set realistic targets and timelines, and keep track of your progress toward these goals over time.

A restaurant business plan can also help you improve your chances of success when you’re looking for funding from investors or applying for loans. 

You’ll also find that developing a detailed outline for your restaurant helps you avoid making mistakes or overlooking essential details regarding location selection, marketing plans, and more.

How to Write a Restaurant Business Plan (Description, Examples, Proposals)

A restaurant business plan is a document that describes your proposed restaurant, the market you’re targeting, your marketing strategy, and other details about how the business will operate. 

It also outlines the financial plan for starting and running your business.

The following sections describe what goes into a restaurant business plan, how to develop one for your business, and examples and proposals you can use.

The Key Elements of a Restaurant Business Plan

To create a successful restaurant business plan, you should incorporate the following key elements:

A Branded Cover Page

You should incorporate your branding on the cover page. Your brand is your identity, the way your customers want to be seen.  

Branding allows you to create a positive perception of your company by combining elements like logos and a consistent theme throughout all your marketing communications.

It makes you unique, memorable, and different from your competitors.

A good brand strategy can help you build trust with potential investors and make your business more valuable in the long term.

An Executive Summary

The executive summary is the first thing people see when they look at your business plan. It’s a short description of your restaurant business that should be easy to understand and memorable.

You can use this section to highlight any unique aspects of your business, such as your restaurant’s mission statement, proposed concept, how you’ll execute the plan, an overview of potential costs, the anticipated return on investment, and your core business values.

The purpose of this section is to present an overview of your company and its key goals, objectives, and strategies. 

A Company Overview

Your company overview introduces the basic structure of your business, the market it serves, and its competitive advantage. You should also include details about the following:

• Ownership structure
• Type of restaurant
• Style of service
• Price positioning
• Sample Menu
• Restaurant Concept (Fast Food, QSR, casual dining, fine dining, etc.)

Finally, you can also discuss your plans for the restaurant’s space, including the layout and hours of operation. 

This section is essential because it helps potential investors understand what your company does and how it differs from other businesses in the same industry. Your target market should also be clearly defined in this section, so investors know who they are investing in.

1. Legal Structure

The legal structure of your business is critical to how it will operate and should be included in the company overview. 

Smart restaurant owners think about their corporate structure before they raise money. Three basic options are available : partnership, limited liability company, and corporation. Your legal structure significantly impacts what tax liability you might have. And each has its benefits and drawbacks, so make sure to do enough research on this before choosing a business structure. 

Consider consulting a lawyer or certified accountant for advice on which type of entity is best for your business. Once you’ve determined your business’s legal structure, ensure this information is included in your company overview.

2. Capitalization

This section of your business plan includes the money you will need to start and run your business. 

This is important because if you need more cash on hand, you may need to borrow money or get investors for your business, and they need to see your funding needs.

You can break it down into three categories: 

Cash: How much money do you need for your build-out? What are your expected pre-opening expenses? How much are you putting into the business? What is your cash burn during ramp-up?

If you don’t have enough money, you may need to look for other ways to raise your business’s capital, such as equity or debt financing.

Equity : Selling equity of your business is another way of raising funding for your business and involves raising capital through the sales of shares. 

If this is something that your business will need, you should figure out how much equity you are willing to give up in your restaurant. 

You’ll want to consider making this decision carefully, as you must relinquish some of your ownership and dilute your control over the business.

Debt : Debt financing differs from equity financing and involves borrowing money and paying it back with interest. The most common form of debt financing is a loan, so you may want to figure out if taking out a loan for your business makes sense.

3. Business Concept

To launch a successful restaurant, you must have a strong concept that resonates with customers with a unique selling point that sets it apart from other restaurants in the area. The concept defines the purpose of your restaurant, what your menu will look like, and who your target market will be. 

4. Market Analysis

Lots of entrepreneurs overlook this important step in the process. The naive think that they have a great idea that everyone will love. This isn’t the case; ensure you research your market to make sure it supports your restaurant concept, price point, aesthetic, and so on.

Include an Industry Analysis (Identifying Your Target Market)

Industry analysis is one of the essential parts of your business plan. Here you can discuss the market sector in which your restaurant will exist and the specific location or area where you plan to open the restaurant. 

This section also covers the growth of the local economy and industry, your major competitors, ongoing or upcoming infrastructure projects, and so forth. 

1. Target Market

The target market for your restaurant business plan is those who will frequent and purchase from your restaurant. Smart entrepreneurs think through their target market in the early stages of idea development.

And because the restaurant industry is so competitive, finding your niche (perfect restaurant concept) is crucial. 

You should know who your restaurant will attract and who you hope will become repeat customers. You can start by finding out who will eat at your restaurant. What age range are they in? Where do they live? 

The more specific you are in identifying your target market, the better off you’ll be when developing strategies for attracting the right customers to your restaurant. 

2. Location Analysis

The location analysis section of your restaurant business plan should include information on the area where you plan to open your restaurant. This includes data on population, employment, and other statistics of that area.

You can include information about how many people live in the area, the growth of the local economy, infrastructure projects nearby, and so forth.  

Also, include any other relevant information, such as activities in the area and significant events during certain times of the year.

The goal here is to help you find a location that will be successful for your restaurant. If there’s a lot of competition nearby or the area is not a prime spot to start a restaurant, this could be a warning sign that you should look elsewhere for your new business venture.

It’s also important to understand that your price point can be supported by the local community.

3. Competitive analysis

Competitive analysis helps you understand your competing restaurants and their strengths and weaknesses. It also allows you to determine what differentiates your restaurant, i.e., why customers should choose it over others. 

A great tool for this is a SWOT analysis , which I have covered here .

You’ll also want to discuss what will make your food service stand out, and doing this will give you a competitive business edge.

Investors will also want to know what will set your restaurant apart from the competitors so they can decide whether to invest in your business or not. 

Detail Your Restaurant Marketing Plan

Your restaurant’s marketing plan should detail how the business will attract new customers and encourage repeat visits. It should describe all the ways you plan to promote your restaurant. 

There are many ways to promote your restaurant, but you’ll want to focus on the most effective ones that work in today’s marketing landscape.

In your marketing strategy, be sure to include the following:

Your target audience : Who exactly do you want to visit your restaurant? What are their demographics (age, income level, etc.)? What kind of messages appeal to them? 

Your marketing strategy: How will you reach your target audience? Will it be through TV commercials, billboards, or social media? How much will this cost? What results should you expect? Will your foot traffic be enough to minimize marketing costs?

Your budget : How much money do you have for marketing? What other expenses might be included in the overall marketing strategy?

Put Together an Operations Plan

An operations plan that outlines how you intend to operate your restaurant once it opens for business, including how many employees you’ll need and what their roles will be within the organization. 

You’ll also need to include information about how you will manage day-to-day operations once your restaurant opens for business, such as inventory control and financial management, and what systems or software you’ll use for these tasks.

Include in this section:

Staffing (Organizational Structure)

Your organizational structure should include how many positions you will need to fill in the different parts.

You should also include how much you expect to pay employees in each position and benefits packages. 

This is a great opportunity to call out your management team. What are their background and experience? What are your background and experience? What makes you the best restaurant owner for this project?

Your staffing plan should also include information about employee training programs and explain how you plan to motivate your staff to perform at their best.

Customer service policies and procedures

Your customers are your most important asset, so you want to ensure they’re always happy. A good operations plan should detail how you expect to provide an excellent guest experience. 

You should also outline the specific service values, policies, and procedures you will implement and how they will be enforced.

Restaurant point of sale and payroll systems (plus other essential systems)

An exemplary operation plan should include a detailed description of how you will track your inventory and sales. 

It should include details on how you plan on:

• Providing takeout and delivery
• Managing labor
• Cash Controls
• Payroll processing
• Accept various payment types

You may also include a detailed description of your point-of-sale system and a list of employees responsible for inputting data.

Main Suppliers

Your operations plan should describe how you will source your ingredients. You’ll want to outline where you will buy equipment and products, both one-time purchases and what will need to be bought regularly to keep your operations running.

Here are some more questions to consider in this evaluation:

• Are you focusing on local suppliers? If so, have you explored those relationships to ensure they can support your restaurant needs?
• Have you priced products from multiple suppliers?
• If the goods aren’t available locally, have you figured out your logistics and the cost to ship?
• Have you priced your menu with the market rate for products?

Complete A Detailed Financial Analysis with Five-Year Projections

The financial analysis is the backbone of your business and often one of the last parts of a business plan. It’s essential as investors expect to see a breakdown of how you plan to spend their money and compare the anticipated costs and projected revenue.

If you want to start a restaurant business, and need a detailed projection of your company’s financial performance over the next five years,  look no further!

Get your restaurant’s financial model here !

If you are writing a business plan or preparing to raise capital, you may also want our 5-year financial forecast . 

We provide 5-year financial models that will give you a comprehensive understanding of the financial aspects of your restaurant business, allowing you to make informed decisions that will drive your success.

We’ll dive into the details of your company’s start-up costs, operating expenses, existing assets, and industry trends for realistic projections. This will give you a clear picture of what it will take to make your restaurant profitable.

Here’s what a fundamental financial analysis looks like:

Investment Plan (Use of Initial Funds)

The investment plan is the first step in your financial analysis and is used to determine how much money you need to raise and how you plan on using the initial funds. 

Initial startup costs may include kitchen equipment, payroll , and marketing costs.

It’s essential to be detailed about how much money you will need from the start to avoid cashflow shortages before you open your doors.

Projected Profit and Loss (P&L) Statement 

The projected profit and loss statement is a detailed financial analysis that breaks down your business’s revenue and expenses by month.

It includes all your costs, such as payroll , rent, utilities, and other fixed costs. You can also have anticipated cost fluctuations for items like food or supplies.

Estimate revenue is projected especially if you’re just starting.

Break-Even Analysis

In this section, you want to provide a detailed analysis of your break-even point. This is the point at which your business will generate enough revenue to cover your expenses and sustain itself.

Investors will also want to know how much revenue you expect to bring in each month to break even.

To calculate your break-even point, divide the total fixed costs by the unit contribution margin. 

For example, let’s assume that your fixed costs are $20,000. With a contribution margin of $40, your break-even point would be 500 units ($20,000 divided by $40). 

So if you can sell 500 units, your business will report a net profit or loss of $0. 

Once you’ve reached this point (and hopefully exceeded it), your business should be able to sustain itself on its sales alone.

Expected Cash Flow

Cash flow is the lifeblood of a business. It’s what you use to pay your vendors and employees and how you pay yourself.

You need enough cash flow to keep the doors open. And cash flow forecasting is one of the essential parts of developing a restaurant business plan to help determine how much money your restaurant will need to get up and running.

The Best Ways to Present a Restaurant Business Plan

Now that you have a business plan, it’s time to learn it inside and out. In addition to a written plan, you should be ready to present your business plan to potential investors or other interested parties.

You’ll want to show that you’re knowledgeable about every area of your business and confident that you can pull it off. 

Once you’re confident about your business plan, Send the business plan to anyone you believe would be interested in investing in your company.

Some investors might like to receive the information from it in the form of a pitch presentation. You can use a professional template from Google Sheets or PowerPoint to create one and then practice, practice, and practice until you can deliver the entire presentation.

You may also want to prepare for any questions they might throw at you. Make sure you have a fact sheet or other document with your company’s critical metrics to reference it quickly if necessary.

Share this:

About Zachary Weiner

Zachary Weiner is a seasoned restaurant operator, CFO, consultant, and author of QuickBooks for Restaurants . He previously served as the CFO of an NYC-based restaurant group with 20+ locations, as well as several $50M+ annual revenue CPG companies.

Along with his work here at The Restaurant CFO™ , Zachary's writing has been featured in Business News Daily, Reader's Digest, Apartment Therapy, and Yahoo! Finance. He has a passion for helping restaurant owners better understand their finances and accounting.

Here are his top recommendations:

1 ) There has never been a better time to cut costs and fees while streamlining your restaurant business. Zachary has recommended Gusto to all his clients for years to handle their payroll needs. Sign up with today to try Gusto - With 1 Month Free .

2) Isn't it time you had a better understanding of your current and future financial performance? Zachary has built Custom Restaurant Financial Models just for restaurant owners and operators.

3) Does your restaurant need a contract CFO? No fear, Zachary is here! The Restaurant CFO's CFO Service is designed for you!

Reader Interactions

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

The Tools Your Restaurant Needs

The Restaurant CFO™

The Restaurant CFO ™ helps restaurant owners better understand their accounting and finances.

9 am to 4 pm EST, M – F

[email protected]

• How to Start an Accounting Blog
• Restaurant CFO For Hire
• Coaching Session
• Restaurant Financial Models

Subscribe for free updates and exclusive content, including hand-picked deals only shared with The Restaurant CFO™ subscribers.

No more than one email a week. No spam. Unsubscribe whenever.

Item added to your cart

The financial plan for a restaurant.

Running a successful restaurant is about more than just serving exquisite dishes; it's about making wise financial decisions that keep your business profitable.

In this post, we'll explore the key elements of creating a financial plan that can set your restaurant on the course to success.

From calculating your initial investment to controlling operational costs and forecasting revenue growth, we're here to help you navigate every aspect of your restaurant's finances.

Let's embark on the journey to turn your restaurant vision into a financial triumph!

And if you're looking to obtain a comprehensive 3-year financial analysis for your restaurant without the hassle of crunching numbers yourself, please download our specialized financial plan designed for restaurants.

What is a financial plan and how to make one for your restaurant?

A financial plan for a restaurant is an essential roadmap that guides you through the financial aspects of your culinary venture.

Think of it like preparing a gourmet menu: You need to know your available ingredients, the dishes you aim to serve, and the cost of creating these culinary delights. This plan becomes crucial when starting a new restaurant, as it helps turn your culinary passion into a structured and viable business.

So, why create a financial plan?

Envision you're about to open a trendy restaurant. Your financial plan will help you understand the costs involved - such as renting your restaurant space, purchasing kitchen equipment and ingredients, hiring staff, and marketing expenses. It's like checking your kitchen inventory and budget before embarking on a major culinary endeavor.

But it's more than just adding up costs.

A financial plan can provide critical insights, similar to perfecting a unique dish. For example, it might show that sourcing exotic ingredients is too costly, leading you to find excellent local substitutes. Or, it could reveal that having a large kitchen crew is not necessary in the initial stages of your operation.

These insights assist in preventing overspending and overstaffing.

Financial plans also serve as a forecasting tool to identify potential risks. Imagine your plan shows that reaching your break-even point – where income equals expenses – is achievable only if a certain number of meals are sold daily. This information underscores a risk: What if your sales are lower? It prompts you to think about alternative strategies, such as offering catering services or special event hosting, to boost revenue.

How does this differ for restaurants compared to other businesses? The main difference is in the nature of the costs and the revenue patterns.

That's why our team's financial plan is specifically designed for the restaurant industry . It can't be broadly applied to other business types.

Restaurants have unique expenses like perishable food items, varied menu changes, and specific health and safety regulations. Their revenue can also be more variable – consider how special events might increase sales, while other periods may be slower. This is different from, say, a technology store, where products don't expire and sales trends may be more consistent.

Of course, our financial plan takes into account all these specific factors. This enables you to easily create tailored financial projections for your new restaurant venture.

What financial tables and metrics include in the financial plan for a restaurant?

Creating a financial plan for a new restaurant is a crucial step in ensuring the success and viability of your culinary venture.

It's important to realize that your future restaurant's financial plan is more than just numbers on a sheet; it's a roadmap that guides you through the early stages and aids in sustaining the business over time.

Let's start with the most fundamental component: the startup costs. This covers everything required to open your restaurant doors for the first time.

Consider the cost of leasing or purchasing a location, kitchen equipment, initial inventory of ingredients and food items, furniture, décor, and even the sign outside your restaurant. These costs provide a clear picture of the initial investment needed. We have already itemized them in our financial plan , so you don’t have to search elsewhere.

Next, think about your operating expenses. These are recurring costs such as staff salaries, utility bills, food supplies, and other daily expenses. Estimating these expenses is essential to understand how much your restaurant needs to earn to be profitable.

In our financial plan, we've already inputted all the values, so you'll have a solid idea of what these should represent for a restaurant. Naturally, you can easily modify them in the 'assumptions' tab of our financial plan.

One of the most important tables in your financial plan is the cash flow statement (included in our financial plan). This illustrates the expected movement of cash into and out of your restaurant.

It’s a detailed monthly (and annual) breakdown, including your projected revenue (how much money you expect to make from food and beverage sales) and your projected expenses (the costs of operating the restaurant). This statement helps you foresee periods when you might need extra cash reserves or when you can plan for growth or upgrades.

Another essential table is the profit and loss statement, also known as the income statement, which is also included in our financial plan.

This official financial document provides insight into your restaurant's profitability over a certain period. It details your revenues and subtracts the expenses, revealing whether you're operating at a profit or a loss. This statement is particularly crucial for understanding the financial health of your restaurant over time.

Lastly, the break-even analysis (also included, of course). This calculation indicates how much revenue your restaurant needs to generate to cover all of its costs, both initial and ongoing. Understanding your break-even point is crucial as it sets a clear sales target.

We've also incorporated additional financial tables and metrics in our financial plan (provisional balance sheet, financing plan, working capital requirement, ratios, charts, etc.), offering a comprehensive and in-depth financial analysis for your upcoming restaurant.

Can you make a financial plan for your restaurant by yourself?

Yes, you actually can!

As mentioned above, we have developed a user-friendly financial plan specifically tailored for restaurant business models .

This plan includes financial projections for the first three years of operation.

Within the plan, you'll find an 'Assumptions' tab that contains pre-filled data, covering revenue assumptions, a detailed list of potential expenses relevant to restaurants, and a staffing plan. These figures can be easily customized to fit your specific project needs.

Our comprehensive financial plan covers all essential financial tables and ratios, including the income statement, cash flow statement, break-even analysis, and a provisional balance sheet. It's designed to be fully compatible with loan applications and is accessible to entrepreneurs at all levels, including those with no prior financial experience.

The process is automated to remove the need for manual calculations or complex Excel tasks. Simply enter your data into the designated fields and choose from the provided options. We have made the process straightforward and user-friendly, even for those new to financial planning tools.

If you face any difficulties, please don't hesitate to contact our team. We assure a response within 24 hours to help resolve any issues. In addition, we offer a complimentary review and correction service for your financial plan once you have completed all your assumptions.

What are the most important financial metrics for a restaurant?

Succeeding in the restaurant business requires a deep understanding of both the culinary arts and the principles of financial management.

For a restaurant, certain financial metrics are particularly crucial. These include your revenue, cost of goods sold (COGS), gross profit margin, and net profit margin.

Your revenue encompasses all the income from food and beverage sales, offering a clear view of how the market is responding to your menu. COGS, which includes the cost of ingredients and direct labor, is vital for understanding the direct costs associated with your dishes.

The gross profit margin, calculated as (Revenue - COGS) / Revenue, indicates the efficiency of your kitchen operations, while the net profit margin, the percentage of revenue left after all expenses, shows your overall financial health.

Projecting sales, costs, and profits for the first year demands careful analysis of various factors. Begin by studying the local market and your target clientele. Base your sales estimates on factors like location, competition, and pricing strategies.

Costs can be categorized into fixed costs (like rent and utilities) and variable costs (like ingredients and hourly labor). Be prudent in your estimates and account for seasonal variations in sales and costs.

Creating a realistic budget for a new restaurant is essential.

This budget should cover all anticipated expenses, including rent, utilities, kitchen equipment, initial inventory, labor, marketing, and an emergency fund. It’s also important to allocate funds for unforeseen expenses. Keep your budget adaptable and revise it regularly, adjusting based on actual performance.

In financial planning for a restaurant, key metrics include your break-even point, cash flow, and food inventory turnover.

The break-even point determines the sales volume needed to cover costs. Positive cash flow is crucial for daily operations, while a healthy food inventory turnover rate indicates efficient stock management.

Financial planning can vary significantly between different types of restaurants.

For instance, a fast-casual restaurant might focus on rapid inventory turnover and cost-effective ingredients, aiming for high-volume sales. Conversely, a gourmet dining restaurant may have higher ingredient and labor costs, focusing on premium pricing and exceptional customer experiences.

Identifying signs that your financial plan might be off-track is essential. We have detailed these indicators in the “Checks” tab of our financial model. This provides guidelines for swiftly correcting and adjusting your financial plan to achieve relevant metrics.

Red flags include consistently missing sales targets, diminishing cash reserves, or food inventory that either depletes too quickly or accumulates unused. If your actual figures consistently diverge from your projections, it signals the need to reevaluate your financial plan.

Finally, key indicators of financial health in a restaurant's financial plan include a stable or increasing profit margin, a robust cash flow that comfortably covers all expenses, and consistently meeting or surpassing sales targets.

Don't worry, all these indicators are monitored in our financial plan , and you will be able to adjust them as needed.

You can also read our articles about: - the business plan for a restaurant - the profitability of a a restaurant

• Choosing a selection results in a full page refresh.
• Opens in a new window.

View All Topics

Content type.

• Online Courses
• Success Stories
• Training Videos
• Webinar/Podcasts

View All Financial Resources

• Cash Controls
• Credit Cards - Gift Cards
• Discounts - Comps
• Industry Averages
• Insurance - Liability
• Leases - Rent
• Management Reports
• Outsourcing
• Payroll Processing
• Profit - Loss
• Recordkeeping
• Restaurant Relief Stimulus
• Tip Reporting

View All Growth Resources

• Brand Expansion
• Franchising
• Increasing Sales
• Makeover - Remodel
• Multi-unit Management
• Selling Restaurant
• Virtual and Ghost Kitchens
• Volume Purchasing

View All Leadership Resources

• Accountability
• Company Values
• Employee Empowerment
• Employee Engagement
• Employee Recognition
• Employee Retention
• Hospitality
• Mission Statements
• Teambuilding

View All Marketing Resources

• Competition
• Customer Database
• Customer Feedback
• Customer Retention
• Discounting
• Gift Cards - Certificates
• Market Awareness/Advertising
• Menu Design
• Menu Engineering
• Menu Pricing
• Planning - Tracking
• Public Relations
• Social Media

View All Operations Resources

• Back-Office Management
• Bar Management
• Beverage Cost
• Customer Service
• Dining Room Management
• Entertainment
• Guest Experience
• Health - Safety
• Inventory Control
• Kitchen Management
• Labor Scheduling
• Menu Costing
• Portion Control
• POS Systems
• Prep - Production
• Purchasing - Receiving
• Recipe Control
• Repairs - Maintenance
• Service Methods
• Takeout-Delivery-Catering
• Technology - Software
• Theft - Security
• Vendors - Suppliers

View All Staffing Resources

• Disciplinary
• Employee Benefits
• Employee Evaluation
• Employee Handbook
• Employment Agreements
• Hiring - Selection
• Job Descriptions
• Organizational Structure
• Policies - Procedures
• Regulatory - Compliance
• Termination
• Tip Sharing
• Wage Compensation

View All Startup Resources

• Business Plans
• Buying a Restaurant
• Concept Development
• Design - Construction
• Equipment-Furniture
• Financial Projections
• Market Research
• Opening Budget
• Opening Timeline
• Partnerships/Legal Entities
• Preopening Marketing
• Professional Services
• Raising Capital
• Risk Analysis
• Startup Costs
• Learning System
• Resource Library

How to Prepare a Restaurant Business Plan: Financial Section

The Business Plan Financial Section instructional workbook walks you through the preparation of the financial sections of both our Tableservice Restaurant and Quick Service Restaurant Financial Models.

Here's the table of contents -

This resource provides instructions for preparing the above statements and includes guidelines on industry averages and standards for various operating costs and ratios and other helpful insights and tips on preparing the financial section of a restaurant business plan.

Download the How to Prepare a Restaurant Business Plan: Financial Section

This form is available in the following formats. You must have a compatible program installed on your computer to use them.

• Restaurant Rules of Thumb: How Does Your Operation Measure Up to Industry Averages & Standards?
• How to Create a Winning Restaurant Business Plan
• Business Plan Financial Models - Tableservice
• Pizza Restaurant Business Plan Financial Models
• Sample Full Service Restaurant Business Plan

©2024 RestaurantOwner.com - All Rights Reserved

More From Forbes

Writing a restaurant business plan.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

Introduction

If you're considering opening a restaurant, your first step should be writing a business plan. A well-written business plan can help you raise money, manage your restaurant and succeed. Here's what you need to know about writing one:

Executive Summary

An executive summary is a short but powerful document that can help you to get your point across quickly and effectively. Although it is usually the first section of a business plan, it should be the last piece written. It should be one page at maximum and clearly describe your business plan's critical points in a way that makes sense to anyone who reads it. The purpose of an executive summary is to convince potential investors or lenders that they will profit from investing in your restaurant idea, so avoid unimportant details or lengthy descriptions of how great your food tastes.

An excellent way to write an executive summary is by starting with an introduction paragraph that summarizes what the rest of your plan contains—this helps readers understand why they should continue reading further into the document. Then go into discussing why this particular project is worthwhile; why people need it. How will it benefit them? Next comes some background information about yourself: include any relevant experience or education related to running this business. Finally, end with future goals: where do you see yourself after opening the shop?

Here are some items to include in your restaurant business plan:

Best Travel Insurance Companies

Best covid-19 travel insurance plans, concept validation and business model testing.

Before you launch your business, it's important to validate your concept and test the viability of your business model. You can do this by conducting market research, talking with potential customers, and interviewing industry experts with similar business experiences. You can also test the viability of your plan by completing an "experience economy" analysis. That is, looking at ways people enjoy spending money on experiences rather than goods (such as dining out). For example, if people value experiences over material goods, opening a restaurant may be a good idea!

Labor Costs and Staffing Plan

Labor costs, including direct and indirect labor, are essential to your labor budget. Direct costs refer to wages paid directly to employees, while indirect expenses include benefits like healthcare coverage and payroll taxes. To calculate these figures, you'll need to estimate the number of full-time equivalents (FTE) positions you'll need and their average salaries. This calculation can be tricky because each restaurant has its unique staffing plan based on its size, location, cuisine type, and reputation among customers, not to mention any other factors that might affect staffing decisions (e.g., whether it's open 24/7).

The first step is deciding whether or not you want full-time staff or part-time workers who work only during peak times such as lunchtime rush hour or Friday night dinners out with friends at restaurants nearby yours. As tempting as it may seem, wait to write anything down until after reading through the following sections because several factors are explicitly related to determining how many people we'll need overall.

You want your menu to be focused and simple. Try to add only a few items, as too many menu items may confuse customers, making it difficult for them to choose what they want.

If there are any "signature" items on your menu, include them first when listing off your offerings so that people know what kind of food you serve before even stepping inside the restaurant. Also, incorporating local ingredients into these specialties will help build community spirit around supporting local businesses.

Site selection is a critical factor in your success. After conducting a comprehensive market study, the site selection is based on the data you discover to determine if your customers are in and frequent that area. David Simmonds, Founder and CEO of ResolutRE , a Commercial Real Estate firm in Austin, Texas, states: "More than ever, entrepreneurs opening a restaurant need to analyze what their own customers look like on paper (demographics, psychographics, etc.), so then when they are examining a market, they can find the highest concentration of their customers within that market. From that data, they are able to determine the number of restaurants that the market could support, and from there, create the blueprint for their expansion."

Your plan should describe your ideal location . Your chosen location must be close to your target market and similar businesses, such as restaurants or cafes. The site should also have high foot traffic and be accessible by car, bike, and public transportation. Simmonds goes on to say: "Analytics reinforces or disputes instincts. It is a necessary part of the expansion process, whether the restauranteur has 1 unit or 37.

Marketing Strategy

When developing your business plan, think about the marketing strategy you will use. Your plan should consider and explain the following marketing tactics:

• Advertising: You can use print or online ads on social media sites like Facebook and Instagram. Also, consider running commercials on local television stations.
• Public relations: This can include writing articles about your restaurant in local newspapers or magazines, hosting events at your restaurant (such as wine tastings), speaking at community events like Chamber of Commerce meetings with other business owners in the area, participating in charity events related to foodservice industries like Feeding America—the possibilities are endless! The idea is to get people talking about what makes YOU unique so they think of YOU first when ready for their next dine-out experience!
• Social media: Let's face it—most millennials don't even pick up the phone anymore; they prefer texting over talking face-to-face because it feels intimate somehow, and guess what? By interacting directly with customers through social media platforms like Facebook Messenger or WhatsApp (which allows users from all over the world access 24 hours per day, seven days per week), we can offer immediate customer service support during high-demand times such as weekend brunch hours without having employees sitting idle during slow periods throughout weekdays when traffic drops off significantly due the lack of demand generated elsewhere.

Profit and Return on Investment Analysis

• Profit is the difference between your sales revenue and your costs. To calculate it, you need to know the following:
• Sales revenue (how much money you expect to make from selling food)
• Cost of goods sold (the cost of ingredients and supplies)
• Other operating expenses (including labor, rent, and utilities)

The reader of your business plan should be able to find these numbers in your budgeting worksheet and financial projections spreadsheet.

Financial Plan

The financial plan is the most critical part of your business plan. It should clearly show how much money you need to start, run and grow your restaurant.

You will need to show a projected profit and loss statement. The projected profit and loss statement (P&L) shows how much revenue comes in, what expenses are incurred, and what profits are made over time. In addition, the P&L shows all revenue sources, including but not limited to sales of food/alcoholic beverages and income from private parties. It must also project all costs associated with operating the restaurant, such as Cost of Goods (raw materials) and salaries for employees - these include both front-of-house roles such as waiters or bartenders, as well as back-of-house roles like chefs who prepare food during off hours so it can be served fresh upon opening each day - cleaning supplies needed throughout each week, etc., depreciation costs associated with long term assets such as ovens that wear down over time and waste of unused food product.

Multi-Year Projections of Revenue and Costs

Accurate projections are the key to a successful business plan. They help you to understand how much money you will make and how much you will need to make it happen. Projections also help with understanding what your costs will be.

For example, if I were starting a restaurant today and wanted my business plan projections for opening day and going out one, three, and five years.

Then I would look at similar restaurants that serve similar foods, noting their prices, portion sizes, and any specialties they offer, such as breakfast all day or lunch specials every Friday during football season. This research of other restaurants will give you a basis for your projections. Include the documentation of this research in the narrative of the plan.

A Business Plan Is Your Road Map To Success.

A business plan can help you raise money by demonstrating that you have a viable idea for a restaurant. In addition, investors want to see that others are interested in investing in your vision, so they'll be more likely to give you money if they see other investors involved with it as well. An excellent example is when an investor wants to invest but only if another investor does first; this way, both parties feel comfortable investing because they know someone else believes in the project enough to put their own money into it too!

A well-written business plan helps manage restaurants by giving owners information about how much money will be coming in over time, so there aren't any surprises when bills come due every month - which could lead businesses into trouble if left unchecked."

This article has given some insights into how to write a business plan for opening a restaurant. Do your research and learn other aspects of good business plan writing. I know that it can be a lot of work, but I also know that the payoff is worth it. Not only will you have a better understanding of what it takes to open up shop and run it successfully but also potential investors will be more likely to fund your project if they see that you've done your research. And remember: don't be afraid to ask other restaurant owners for help or advice; many of them have been where you are now.

• Editorial Standards
• Reprints & Permissions

• Amortization & Depreciation Schedule
• Balance Sheet
• Bank Financial Models
• Black-Scholes Models
• Capital Budgeting
• Cash Flow Statement
• Corporate Finance
• Cost Analysis
• Debt Schedule
• Discounted Cash Flow (DCF)
• Excel Add-Ins
• Financial Forecasting Models
• Financial Markets
• Financial Modeling
• Financial Projections Models
• Income Statement
• Industry Specific Financial Models
• Inventory Management
• Investment Banking
• Leveraged Buyout (LBO)
• Mergers & Acquisitions (M&A)
• ModelOff Samples
• Monte Carlo Simulation
• Net Present Value (NPV)
• Options Pricing & Valuation
• Private Equity
• Project Finance Models
• Real Estate Financials
• Renewable Energy Financials
• Restaurant Finance
• Retail Finance
• Return On Investment (ROI)
• Scenario Analysis
• Sensitivity Analysis
• Solar Energy Project Finance
• Stock Valuation
• Three Statement Financial Models
• Valuation Models
• Venture Capital
• Weighted Average Cost Of Capital (WACC)
• Wind Energy Project Finance
• 2x2 Four Quadrant Matrix
• Ansoff Matrix
• Asset Management
• Balanced Scorecard
• BCG Frameworks
• BCG Growth-Share Matrix
• Business Development
• Business Model Canvas -
• Business Plans
• Change Management
• Competitor Analysis
• Consulting Interview
• Consulting Proposals
• Crisis Management
• Due Diligence
• Executive Summary
• KPI Dashboards
• Logistics & Supply Chain Management
• Macroeconomics
• Management Consulting
• Market Analysis
• Market Research
• Market Sizing
• McKinsey 7-S Framework
• McKinsey Frameworks
• Microeconomics Excel
• Mission Statement
• Nine-Box Matrix
• Operations Management
• Porter's Five Forces
• Post-Merger Integration (PMI)
• Problem Solving
• SMART Goals
• Strategic Analysis
• Strategic Management
• Strategic Partnerships
• Strategic Planning
• SWOT Analysis
• Value Chain Analysis
• Value Creation
• Waterfall Charts
• Cohort Analysis
• Design Thinking Process
• E-Commerce Financial Models
• Entrepreneurship
• Growth Hacking
• Lean Startup
• Lifetime Value (LTV)
• Marketplaces
• Mobile App Finance
• Raising Capital
• Software-as-a-Service (SaaS)
• Startup Boards
• Startup Business Plans
• Startup Cap Tables
• Startup Financial Models
• Startup Investors
• Startup Lifestyle
• Startup Pitch Decks
• Startup Studios
• Startup Valuation
• Advisor Agreements
• Articles Of Incorporation
• Code Of Conduct
• Employee Contracts
• Intellectual Property (IP) Agreements
• Internal Audit
• Non-Disclosure Agreements
• Operating (or Founder) Agreements
• Sales & Purchase Agreements (SPA)
• Shareholder Agreements
• Startup Term Sheets
• 4Ps & 7Ps Marketing Mix
• Advertising
• Branding & Brand Management
• Business Email
• Business Networking
• Corporate Communication
• Customer Acquisition
• Customer Centric Design
• Customer Success
• Digital Marketing
• Growth Marketing
• Inbound Marketing
• Industry Landscape Analysis
• Lead Generation
• Marketing Plans
• Net Promoter Score (NPS)
• Outbound Sales
• Personal Branding
• Product Launch
• Product Life Cycle
• Public Relations
• Public Speaking
• Search Engine Optimization (SEO)
• Social Media
• Strategic Marketing
• Career Advancement
• Chief Of Staff
• Corporate Event Management
• Cross Cultural Management
• CV (Curriculum Vitae) / Resume
• Decision Making
• Effective Communication
• Gantt Charts
• Health & Safety
• Human Resources
• Job Descriptions
• Organizational Charts
• Organizational Culture
• Performance Reviews & Appraisals
• Personal Development
• Productivity
• Project Management
• Quality Management Plans
• Remote Work
• Task Management
• Team Management
• Training Excel
• Artificial Intelligence (AI)
• Blockchain Technology
• Cryptocurrency
• Cybersecurity
• Data Analysis
• Data Mining
• Data Science
• Digital Privacy
• Electrical Engineering
• Genetic Engineering
• Google Sheets Models
• Machine Learning
• Mathematical
• Neural Networks
• NFT Investment
• Physics Excel Models
• Product Management
• Python In Excel Models
• Research And Development (R&D)
• Statistical
• Dissertation Writing
• Essay Writing
• Exam Revision
• Primary Education
• Student Life
• Study Note-Taking
• University Research
• Coronavirus (COVID-19)
• Dynamic Arrays
• Eloquens Authors
• Miscellaneous
• Politics & Politicians

Restaurant Finance Templates

What is a Restaurant Financial Plan?

A Restaurant Financial Plan is a type of evaluation of the current and future finances for a restaurant company. It is an important document which helps to decipher the level of finance that your business needs, whilst also predicting the viability of business operations. When creating a financial plan, it is common to meet with a finance professional in order to calculate tax and assets, among other things.

Why make a financial forecast for a restaurant?

Creating a financial forecast for a restaurant allows you to assess whether or not, and to what extent, your project is likely to be profitable . Analysing every detail of the restaurant enables you to ensure that your plan is financially viable and by listing the required investments for starting a business you will be able to set out the necessary money to get your business off the ground. Moreover, building a financial forecast will indicate what you can expect over the next three years, thus permitting you to plan the development of your business with confidence.

What is important in a Restaurant Financial Plan?

There are a number of key aspects to a Restaurant Financial Plan. It is normal to include:

A pro forma profit and loss statement . This is also known as a pro forma income statement and is simply a statement of revenue and expenses that are made by the business.

A break-even analysis . This analyses the amount needed to be collected in revenue in order to cover business costs.

A capital requirements budget . This is the budget for large or substantial expenses that are to be made. For a restaurant, this could be costs such as purchasing cooking equipment, or restaurant furniture and fixtures.

Within these sections, there are a range of financial predictions and costings that need to be made. This can include:

• Calculating rental costs, electricity, permits, and licensing;
• Costing and pricing of the menu;
• Revenue forecasting, prediction and objectives for the quantity of food and beverages to be sold.

What types of Restaurant Financial Plan Templates are there?

There are a number of useful calculations that can be made to aid the creation and running of a restaurant business:

A declining balance sheet , this is a type of document which, when calculated, shows how much can be spent each day, keeping record of expenses. It therefore shows remaining budget.

Food Inventory Management sheet . It is essential for a restaurant owner or manager to keep track of their food and beverage stock levels. Using an inventory management sheet is thus an extremely useful tool for doing so.

Restaurant Financial Model . This model helps to calculate the viability of a restaurant business, running predicted finance data to give a clearer understanding of the potential figures.

To find out more, please refer to these sites which offer useful information into starting and running a restaurant business:

Chef's Resources offers a wealth of information in running a restaurant

How to do a financial forecast for a restaurant

This webpage gives a step by step method of creating a business plan for your restaurant business

Find out about the main areas for capital budgeting for your restaurant with this webpage

If you'd like to download ready-to-use restaurant templates, look no further than the wealth of available tools below on Eloquens.com. To contact us , please message the Eloquens Team via our channel page

Most popular Templates

Restaurant Financial Model

Restaurant Financial & Business Plan

CEO First 100 Days Plan

F&B P&L Quick: Restaurant / Bar Fast P&L - Excel File

Fine and Casual Dining - Financial Projection Template

Food & Beverage Business Plan Financial Model Template, Profit & Loss (P&L): 1 -5 Outlets - Excel File

Have a Restaurant Finance Template to share?

Learn more about digital publishing

Can't find what you are looking for?

Or browse through the Catalog

Think of someone who could publish?

%product_add_cart_title%

Contribute: $USD help %product_add_cart_label%

No thanks, I just want to %product_skip_link%

View all Eloqoons

New to Eloquens? Create an Account

Create an account

Why should I sign up with LinkedIn? help

Are you using this Best Practice for...

• Business help
• Consulting help
• Student / Non-Profit help

Restaurant Financial Projections Business Plan Example

The financial projections section of your business plan is where you forecast your sales, expenses, cash flow, and capital projects for the first five years of your small business’s existence.

This is a critical section for readers of your business plan. It tells them:

• How you expect your startup to perform financially
• When you expect your new business to be profitable
• How profitable you expect it to be

These are things you’d want to know as an investor, right? It’s up to the reader to decide whether they think your forecast is feasible.

Additionally, as an entrepreneur, it forces you to consider, thoroughly, what the first five years of business might look like. This will give you a good plan to work off of, will help you to be proactive, and will increase your likelihood of success.

Finally, the financial projections are the foundation of your funding request. Of course, your funding request, after all, is the primary purpose of your business plan.

Without knowing how much cash you need to launch and operate early-on, you won’t know how much you need to ask for. The funding request relies heavily upon financial projections, particularly the capital budget.

An example of a funding request, for this same business, will be posted separately.

This example of financial projections is built off of two previous posts:

• “How Do You Calculate Funding Requirements?” 3 Easy Steps
• What Financial Information s/b Included in a Biz Plan + Why?

In this example, I’ll refer to a start-up restaurant. The restaurant is called Diner, LLC.

A special thanks goes out to this website/post for inspiration on what it takes to launch a start-up restaurant.

Download the restaurant financial projections spreadsheet

If you’d like to download the spreadsheets I used to make these financial projections for a restaurant that can be done below. Keep in mind that these were (hastily) built off of budgets for a manufacturing company and tweaked for the restaurant industry. However, they should serve as a good starting point.

Learn more about the captial budget (CB) here.

Learn more about the operating budget (OB) here.

Learn more about the financial/cash budget (FB) here.

Complete the form below and click Submit. Upon email confirmation , the workbook will open in a new tab.

Startup restaurant financial projections

The financial projections for Diner, LLC provide a well-thought-out, cohesive, and comprehensive forecast of the restaurant’s performance from initial funding through the fifth year of operation. These forecasts will validate the feasibility of the concept and the appeal of an investment in this venture.

The financial projections for Diner, LLC include an initial capital budget for all of the fixed assets and other costs necessary to launch the restaurant.

Additionally, five years of pro forma income statements are included. These pro forma income statements are built off of a detailed five-year operating budget.

Furthermore, five years of pro forma balance sheets are also included. These pro forma balance sheets are built on five years of detailed cash flow analysis.

For the purpose of brevity, not every detailed budget is included in this business plan. However, all are available for decision support, upon request.

Items in italics represent those directly referenced in the financial projections.

Startup restaurant capital budget

The capital budget summarizes Diner, LLC.’s forecasted operational and cash flow results over the next fifteen years. It takes into account:

• Fixed assets needed to operate the restaurant
• Launch costs necessary to begin operations
• To cover unanticipated expenses

Fixed assets necessary to operate Diner, LLC. are estimated to cost $157,500.

The salvage value after fifteen years is estimated at $23,625.

On average, all assets are assumed to have a depreciable (and useful life) of fifteen years.

Fixed assets will be depreciated using the straight-line method.

The effective tax rate, for purposes of calculating a depreciation tax shield, is estimated at 21% throughout the capital budget.

A discount rate of 10% is used to calculate NPV and other capital budgeting metrics. This discount rate considers the cost of borrowing (6%) and adds an additional risk premium of 4%. 6% is the estimated interest rate for an SBA 7(a) Small Loan and is calculated by adding 2.75% to the current Prime Rate (3.25%).

Initial Additional costs include launch costs that can’t be depreciated. E.g. professional services, organization & development costs, and other pre-opening costs.

Additional costs for Year 01 through Year 05 are pulled directly from the operating budget. Additional costs for Year 0 6 through Year 15 are assumed to grow at a rate of 3% per year after Year 05 .

Additional revenue for Year 01 through Year 05 is also pulled directly from the operating budget. Additional revenue for Year 06 through Year 15 is assumed to grow at 3% per year after Year 05 .

Over the course of fifteen years, the Summary of the capital budget shows:

• Net present value ( NPV ) of $194,167
• Internal rate of return ( IRR ) of 22%
• Modified internal rate of return ( MIRR ) of 14.4%
• Payback period of 3.71 years
• Profitability index of 1.79

It’s worth noting that if the restaurant were to be sold at the end of fifteen years, the NPV would be considerably higher – accounting for the proceeds from a sale.

Startup restaurant operating budget

In the operating budget, Diner, LLC.’s sales, ingredients (cost of sales) payroll, and other overhead expenses are forecasted by month. Additionally, annual amounts are shown in a Pro Forma Income Statement . Each individual component of the budget is analyzed and forecasted separately in an attempt to be as comprehensive and realistic as possible.

Restaurant operating budget Year 1

Year one of operations is characterized by low initial sales that grow quickly throughout the first 12 months of business. The first month of profitability is estimated to be Month six – September 2021.

As such, the Profit margin is very low for the year overall but, it is expected that the year will be profitable.

The Sales Budget breaks down the expected Unit volume and Dollar Sales for each category of products sold. These categories are:

• Non-alcoholic beverages
• Alcoholic beverages

Each individual product in a category will have a different price, of course. However, for the sake of simplicity, items were grouped by category and an average Sales Price is estimated.

Sales prices will initially be set higher than average. At or near the “indifference price point.” At this price point, the number of customers that consider the price a bargain should be close to the number that feel it’s starting to get expensive.

This is done with the hopes that the Diner, LLC.’s novelty, image, and quality will still provide a perceived value for customers. Additionally, pricing as high as practical will help to offset the low initial Unit Sales after launch.

Restaurant operating budget year 2

Year two of operations is characterized by a leveling off of Unit Sales after reaching near practical capacity at the end of year one.

Additionally, it’s anticipated that Sales Prices will remain the same throughout the year after being on the high side in year one.

However, in spite of rising costs, overall sales are expected to increase significantly due to consistent demand throughout year two.

As mentioned, most costs, including ingredients, are expected to increase by an average of 3% in the second year.

As with sales categories, for the sake of simplicity, ingredients are grouped together into categories. Their costs represent an average of all the ingredients contained in a category.

Restaurant operating budget Year 3

In year three, unit sales are expected to continue to remain level. Sales Prices are anticipated to increase by approximately 5% to offset increased costs. Diner, LLC. is expected to have its highest year of profitability yet.

As was the case in year two, payroll is again expected to increase. This is due to an increase in wages and salaries of roughly 3%. It is Diner, LLC.’s intent to incentivize customer service and quality through above-average employee compensation.

In years one and two, the staff is expected to consist of:

One General Manager and one Assistant Manager , along with Cooks , Waitresses/Bartenders , and Hosts as needed, part-time, depending on sales volume. The General Manager and Assistant Manager are expected to cover any staffing shortcomings.

In year three, however, it is budgeted to add a second Assistant Manager position to relieve some of the responsibilities of the other managers.

Restaurant operating budget Year 4

With Unit Sales , for all practical reasons, expected to be maxed out, Sales Prices would need to be increased in year four in order to achieve meaningful revenue growth.

As is typical, all costs are expected to increase by 3%, on average, in year four.

One exception is the Rent/Occupancy expense. When operations are initiated, Diner, LLC. is expected to enter into a three-year lease. At the beginning of year four, the lease will have expired and a new lease will need to be signed. A 10% increase in Rent/Occupancy expense is anticipated.

Restaurant operating budget Year 5

By the end of year five, Diner, LLC. is expected to remain profitable. That is, as long as Sales Prices are kept adequately above costs without sacrificing demand.

In order for the Diner, LLC. to grow from this point, the opening of a new location or another type of expansion would need to take place.

Startup restaurant cash budget

The cash budget forecasts the timing of cash collections and cash disbursements. This is done in an effort to ensure that Diner, LLC. remains solvent.

Obviously, the nature of the restaurants’ business model is such that cash collections are always made at the time of sale. So, no Accounts receivable are ever anticipated to be on the books.

However, ingredients, payroll, and overhead are not necessarily paid for in the same month but those expenses are incurred. Therefore, the timing of cash flow out will not necessarily correspond with expenses on the operating budget.

The cash budget is where a Desired ending cash balance is specified. Additionally, details on any financing ( long-term and/or short-term ) and savings account balances are also addressed.

Restaurant cash budget Year 1

In the time leading up to the first month of operation, a considerable amount of money will need to be borrowed by Diner, LLC. to pay for pre-opening expenses. The Beginning cash balance is set at $43,500 in order to offset low initial sales.

Pre-opening ingredient purchases, payroll, and overhead expenses are estimated and accounted for.

The timing of cash payments is estimated by assigning a % pmt of current (& prior) month for each expense type.

Restaurant cash budget Year 2

The increase in Unit Sales for year two is expected to help turn negative equity positive. Additionally, prudent cash management is expected to contribute to the security and solvency of Diner, LLC.

Maintaining an Ending cash balance of $24,000 every month puts the restaurant in a position where it doesn’t need to rely on any short-term or long-term financing . It also facilitates the ability to put excess cash into a liquid investment account. This investment account is available to offset negative, unforeseen, events. Or, to put towards future growth and expansion.

Restaurant cash budget Year 3

Year three is expected to see the continued reduction of debt and a subsequent increase in assets and equity . Certain balance sheet items like inventory , Accounts payable , and Accrued expenses are expected to increase in line with increasing costs as outlined in the operating budget.

All ratios at the end of year three are expected to be relatively healthy. At this point, Diner, LLC. is expected to still have a relatively high Debt to equity ratio. This ratio is expected to continue to decrease, however.

Restaurant cash budget Year 4

Throughout year four, assets and equity will continue to grow.

Cash and short-term investments begin to make up a considerable portion of assets .

The year four pro forma cash flow statement offers a different perspective than the income statement and balance sheet . It shows how it’s anticipated to be cash positive from operating activities and how the majority of that cash will be used to pay down debt and put into a short-term investment account.

Restaurant cash budget Year 5

By the completion of the fifth year of operation, equity is estimated to be between $250,000 and $300,000. Cash balances continue to grow at approximately $1,000 per year, in order to account for increasing expenses.

Barring unforeseen events, Diner, LLC. should be expected to adequately cover expenses and to deposit a considerable amount of cash receipts into short-term investments .

This growing investment account will serve as a margin of safety for unforeseen circumstances and/or will allow for expansion or other projects – should that course of action be chosen.

• Korolyov, Moscow Oblast /
• Bon Bon Coffee, Lermontova Street, 10к1

Bon Bon Coffee

Ignore other places, discover the Russian menu at this bar.

Restaurant menu

Frequently mentioned in reviews, ratings of bon bon coffee, visitors' opinions on bon bon coffee.

Similar restaurants nearby

Tasty dishes in korolyov.

Restaurant features in Korolyov