How to Write a Business Plan for a Restaurant or Food Business

Creating a business plan for a restaurant or food business requires careful planning.

Your dream of opening a restaurant or food business can become reality with a solid business plan. A business plan is the most important written document you can create, according to the Global Entrepreneurship Institute. It is designed to help you secure capital for your restaurant or food business from a bank or investor. By following a standard outline, you can increase your chances of securing the investment you need.

Instructions

1. Write an executive summary. In eight to 10 paragraphs, describe your business. Write a mission statement, state your expectation of profitability and include the vision of your restaurant or food business. You can write a brief history behind the idea as well.

   For example, the executive summary for a restaurant or food business might include “XXX Restaurant expects to reach profitability in six months due to an aggressive marketing campaign.” Or you could state, “Our mission is to provide a quality dining experience for tourists who visit the downtown area, and we are committed to …”

2. Write four to five paragraphs of business description. Note the location of your restaurant or food business. Include hours of operation and information about the type of service you will offer. Here's an example: “XXX Restaurant will be open for nighttime dining from 6 to 9 p.m., Monday through Friday. We will be located in the business downtown district and offer a Cajun-style menu.”

3. Write a market analysis. Research three or four competitors within 10 miles of your proposed location. List their names, hours of operation and type of business. An example sentence might read, “Lee Restaurant serves breakfast and lunch but does not offer customers a formal dining area. The restaurant is located …”

4. Create a sales and marketing strategy. Choose at least four marketing methods. Detail how you will use these methods to inform the public of your restaurant or food business. An example sentence might be, “We will advertise XXX Restaurant using a television advertisement and public relations professional.” Marketing methods include a website, business cards, web banners and a listing in the phone book.

5. Create an operations section of five or six sentences. Include a short description of how the restaurant or food business will operate day to day. For example, “James, the head chef, will monitor sous chefs in the kitchen during the preparation process each morning.” Or you could write, “Our hostess will walk the restaurant each hour during dining."

6. Create a financial spreadsheet. Include all costs associated with your restaurant or food business. Estimate the cost of rent, utilities, telephone service, equipment, supplies, payroll, insurance and marketing. Include a line for start-up capital and include a forecast of expected expenses and income for the first year.

Tips & Warnings

• Proofread and spell-check the business plan for clarity and accuracy. Include a table of contents.

• Some business start-ups hire an accountant to draft a financial projection.

• Include an appendix for research documents, handouts and statistical data.

References

• Global Entrepreneurship Institute: How To Write A Business Plan
• Bloomberg Businessweek: Building a Better Business Plan
• Entrepreneur: Elements of a Business Plan