Restaurant Business Plan: It's Easy with Franchising

28/10/2018 18:00 | Food franchises

restaurant business plan

If you're considering opening up a new restaurant, you'll need to write a high-quality business plan if you're to attract investment and ensure you're sufficiently prepared. Fortunately, this process is considerably easier with franchising. This is because an experienced franchisor is on hand to help you draft the document and include all the necessary facts and figures. However, there's still a little work to be done. Here, we take a look at what it takes to create a restaurant business plan for your new franchise.

What is a franchise business plan?

A franchise business plan is an account of how you believe your business will achieve success. It includes research into the market you're entering, discloses how much you profit you expect to make and explains how you expect to make it. The business plan is an essential part of any finance application. If you need to borrow to set up your business, you'll have to submit a comprehensive business plan thats capable of convincing the lender that your venture has a reasonable chance of success.

However, business plans also help you determine whether the business is going to turn a decent profit. Until you take a good, hard look at the market realities and crunch the numbers, you cant know whether its all going to work out. A business plan allows you to make an informed investment decision and gives you something to work towards if you do choose to go ahead with the venture.

Restaurant business plan sample

To draft a comprehensive business plan, you'll need to perform research in different areas. While various sources will often suggest that a business plan should contain different sub-headings and sections, weve created a basic list below.

1. Introduction

The introduction should aim to provide a quick summary of what the business is, what its going to do, and what market it will operate in. This doesnt need to be long or overly-complex, as youll expand on everything later in the plan.

2. Product or service

In section two, youll describe and detail the products and services your business is going to offer. In the restaurant industry, this is likely to be a specific type of food, such as Italian cuisine or takeaway sandwiches. However, all restaurants also offer a service, too. Its a good idea to mention what kind of service you want your employees to provide and what kind of relationship with customers you want to develop. Do you want to keep it relaxed, lighthearted, and jokey? Or does your business want to lean towards the greater gravitas provided by formal customer service?

3. Management

This section will explain the management structure you intend to adopt, and which individuals will occupy certain management roles. It may be that youre going it alone and youll be the only one in a management position. On the other hand, you may have a partner or be bringing in others to help with franchise management. Either way, its important that you detail the experience and qualifications that make each management figure suitable for the job.

4. Market analysis

This involves performing extensive research into your future business' market and industry. You'll need to look at how big the market is, who the largest competitors are, how you're going to distinguish yourself from the competition, and what the future holds for the market. Knowing what challenges and opportunities lie ahead is key to understanding whether or not your business has a good chance of success, so it's necessary to dedicate considerable resources to this aspect of the research.

5. Marketing

In this section, you'll explain how you plan to attract customers and develop your brand. You'll need to establish where you're likely to focus your advertising efforts, what will make your brand stand out compared to others, and how youre going to develop and retain a loyal following.

6. Financial forecasts

The financial forecast section is often described as the most crucial part of the business plan. This is primarily because it contains the financial projections that establish how profitable your business is likely to be and whether lenders can expect to get their money back. It will include profit and sales forecasts, as well as a detailed breakdown of how these figures were reached. Finally, it will provide a predicted repayment schedule for any money borrowed to finance the restaurant.

7. Financial demands

The final section establishes the amount of capital that youll need to get the business off the ground and turning a profit. This will include how much personal investment youre making, how much youll need to borrow, and what start-up costs there will be. With both this and the previous section youll be able to request help from the franchisor. Though there are some legal restrictions on what claims they can make about expected profits, the franchisor will be able to provide you with figures that help you complete both of these sections.

Business plan examples restaurant

Though not necessary, a restaurant business plan often includes a number of other elements. For instance, many include a sample menu. This should be designed as if it were to be presented to a customer, as this gives you the opportunity to integrate your logo and brand identity, as well as allowing you to price items.

Location will also feature heavily in a restaurant business plan. If youre aiming to reach a particular demographic, youll need to ensure that this type of customer can easily access the restaurant.

Finally, a restaurant business plan will also often include a list of other specialists you're likely to employ. In fine-dining contexts, the most important figure will be the chef. Who are you going to hire as the head of the kitchen? However, you'll also need to consider whether someone is going to assist with PR and marketing and roles such as interior design. In all cases, you should explain what makes the chosen individual suitable for the position.

Other recent articles
Did you enjoy this article? Please rate this article
Be the first to rate this article


post a comment

Characters remaining: 250