A restaurant business plan is a first and foremost step for commencing a restaurant business venture. Restaurant business owners spend a lot of time on the concept, their marketing strategies, their menu, providing an attractive ambiance to lure food lovers, managing finances, and other aspects. However, moving ahead without a proper business plan won’t let their restaurant business scale high amidst the competition. All the aspiring restaurateurs should be very clear about their vision of operating a restaurant business. The business plan is more like a blueprint that showcases the idea of a restaurant owner regarding their business. It serves a path on which businesses would walk to execute their dreams on the paper of reality.
Penning down a restaurant business plan would help the restaurateurs to make strides and take wise decisions as per the devised plans. It will act as a guide for restaurant owners to understand what ways they will be following to kick start their restaurant business. Moving ahead with a proper business plan will help the restaurant owners in generating a business proposal. The presentation of a business plan must take place reasonably and feasibly. It’s also crucial to have a restaurant business plan carrying the sustainability factor in the long-run.
While preparing a business plan for your restaurant venture, you need to consider all the possibilities and stumbling blocks concerning the restaurant business. Restaurateurs must know that at what point they want to take their restaurant business plan and how they will be achieving their targets. Before you begin preparing your business plan for the restaurant business, go through this detailed write-up on the restaurant business plan for the insightful information regarding the topic. This article would let you know about the points of consideration for running a restaurant business.
Restaurant Business Plan: Points of Consideration
The preparation of a restaurant business plan must consider these key points in advance-
An Entire Idea of the Restaurant Business Plan
The journey of a restaurant plan initiates from the point of summary of the restaurant business. In different words, we can say that it’s the introductory part of your business. Since it is the entrance point to your business plan for a restaurant, you need to do it right from the very beginning itself. Also, you must focus on keeping it precise as well as easy to comprehend.
Most importantly, it must incorporate essential things such as your mission and vision statement, information related to the past of your restaurant in case if it’s an already established setup, and the future objectives of your business and an in-depth review of ownership and legal formation of your restaurant. The summary of the entire idea dwells in this part. It must catch everyone’s attention as the best beginnings often lead to the best outcomes. To discuss the ethics and core values of the business, this is the best place indeed.
High-Level Elements of the Restaurant Business Plan
Here comes the step in which you have to elaborate your restaurant notion. It’s necessary to unambiguously define what would be that unique selling point that gives your restaurant a competitive edge over its competitors and what can be the reason behind the sure-shot success of this USP factor. The high-level elements of business overview provide information about the restaurant concept, what can make this concept a successful one, how this plan will come into existence, and work for one and all, overall cost incurred and last but not the least element, anticipated return on investment. While sharing the same path along with the concept, you must equip yourself with the answers to the questions mentioned here-
The business overview section includes three ingredients-
Restaurant’s Design and Layout
The restaurant business plan must exhibit the layout and format of the restaurant. The variation in layout and design of a restaurant depends upon the format of a restaurant. For instance, the interior design of a fast-food restaurant is always different from theme-based restaurants. In addition to this, factors like the uniform of the hotel staff, cutlery, kitchen utensils, etc. must go in line with the restaurant’s brand value and its reputation in the field.
Additional points that require attention in context to this point are-
Menu- The Lifeline of Any Restaurant
How can you ignore the menu from the restaurant plan since it’s a lifeline for restaurant visitors by providing them to-go-with options? The survival of the restaurants depends on the quality as well as the variety of food they provide. The sample menu comprises a list of different food items along with its rates under the category- quarter, half, or full. Include only those dishes in the sample menu that you will be serving from the beginning, and in the future, if you wish to include some dishes on the list, you can do it in the future course of time.
After optimizing the menu, dishes that are low on sale will be removed, and highly saleable dishes will be retained, keeping profitability factors in mind. In add ons, you can even introduce new food items in the future. Furthermore, you must try to maintain a balance in your sample menu by encompassing all types of dishes into the list. The qualitative aspect of the food depends upon the skills of the chef. You need to bring skillful and creative chefs on board for the successful running of the restaurant business.
Details about the Management Team
Details about the management team should be there in the restaurant plan. People in the management team are-
A Quest to Find an Ideal Location for the restaurant
Before creating and pitching the business plan, enthusiastic restaurant owners must decide the location that perfectly meets the demands of their restaurant business. One of the major challenges for them is to identify their target audience. In the location analysis section, descriptions related to market conditions must be available. If the location is closer to schools, colleges, and coaching centers, then teenagers will be the probable customers. On the other hand, if the restaurant is inside a mall, it would attract family persons more than any other segment of customers.
The location is said to be a perfect one if it carries these specialties-
- It must exist in close proximity to a landmark or famous place.
- Accessibility factor, i.e., easy to reach
- The location must be in friendly terms with Google-map.
- A restaurant near a parking area lures the food lovers.
- Give your nod to that location where you can find vendors and suppliers easily.
- Avoiding prospects is never a great idea. Think about it.
Analysis of Target Audience
The intent behind doing target audience analysis is to know what type of customers would visit your restaurant most of the time. To gear up with a comprehensive restaurant business plan, Analysis of the target audience matters the most. You should make yourself aware of the specific food habits of that class of people whom you would be serving. It is essential to properly analyze customers’ behavior. Your marketing approach should appeal to your potential customers.
Identify your Competitors and Go for Research
It’s a challenging task to survive in the crowd of already existing restaurants that has proved its mettle in the field of serving the best food in the area. When it comes to competition analysis, you must analyze the competition in those locations that have existing competitors as well as the prospective ones.
After competition analysis, conduct your market research in the following domains-
Cash Flow Statement
This statement records all the information related to inflow as well as the outflow of cash. It’s not wrong to say that it’s a financial recording methodology necessary for maintaining the finances of your restaurant business. It lends support in the smooth functioning of the business, along with planning for future needs. The restaurant owner needs to carefully track all the incoming and outgoing cash.
Marketing the Restaurant- An Unavoidable Segment for Restaurateurs
While walking on the lane of creating a restaurant business plan, restaurant marketing is one of the much-needed activities to sustain the restaurant business in the long run. Also, you must have a detailed knowledge of your competitors and your market study and strategy beforehand. There should be a balanced budget for both online as well as offline marketing. Restaurant marketing would increase your customers and would help you in becoming a brand.
Day-to-day Operations planning for the restaurant
This section is all about the information related to the day-to-day operations and plans after the restaurant gets inaugurated.
Points covered under this segment are-
- Staff Recruitment and Hiring Criteria
What would be the appropriate amount that you should pay to the persons working at different positions? How would you stand out as the best employer? How many staff members you need for better functioning of your restaurant business? Which person should acquire what position? On what basis, staff will grab the job?
- Policies as well as Procedures in relation to Customer Service
How would you enforce the policies and procedures in the business? How to bring a blissful smile on the face of a guest?
- Cash Management and Process Payroll
How are you going to track inventory and sales, manage the cash, and process payroll?
FSSAI License Requirement: Giving Wings to Restaurant Business Plan
- In all countries, there are rules and regulations regarding the safety and protection of the interests of consumers. To safeguard the consumers’ interest, getting a food license for starting a restaurant business in India is vital.
- It’s imperative to have the knowledge of compliance and requirement related to registration in order to commence a restaurant business in India.
- If you want to enter into any kind of food business or restaurant, complying with the Food Safety and Standards Act, 2006, or FSSAI becomes a mandatory thing.
- Prior to the FSSAI License registration process, the department of FSSAI would make one thing very clear that the restaurant is equipping up with the arrangements needed for smooth running and its compliance as well according to the law of the land.
- Food Safety and Standard Authority of India (FSSAI) lays down specific standards that ensure the standardization and safety of those food products whose manufacturing, production, and sale happens within the country.
A proper restaurant business plan is a must-have thing that restaurant owners should start thinking from the beginning. They must have the entire idea of the overall restaurant business. Furthermore, they need to delve deep into the thoughts of establishing their restaurant at a proper accessible location.
Restaurateurs must know about their competitors if they want to make it big in the field of hotels and restaurants. Before conducting market research, they must gather knowledge about the prevailing competition and its impact on the other restaurant businesses.
In order to manage finance, they must maintain a proper cash flow statement for details regarding the inflow and outflow of cash. It’s mandatory to follow the FSSAI License procedure and apply and obtain an FSSAI License for opening a restaurant. Not only it’s beneficial for the companies but also for the customers as well.
Obtaining a food license is an easy task by getting help from a professional. We, at Corpbiz, will simplify the entire process for you by assisting you in the completion of the legal formalities as well as the documentation process.
Read our article:Who needs FSSAI Registration? Is FSSAI Registration Mandatory?