You would think great food and hard work are sufficient to succeed in the restaurant business. However, there is so much more behind the scenes like proper training, operational manuals and a creative marketing plan. Above all, an effective business plan is your roadmap to future restaurant success. A business plan provides direction and makes you consider opportunities and pitfalls before you open the doors. Much like an actor getting a script to how the story of the movie should flow, a business plan is your script on how the restaurant should operate.
Why this is critical step skimmed through or completely forsaken by restaurant owners? Unfortunately, many restaurateurs don’t seem to understand the crucial need of a restaurant business plan and how its proper execution will pan out its success. A business does two things. First, you show your bank or investors that you have a concise plan to start a new restaurant, and how to get it running. Second, you will learn the ins and outs of being a restaurateur altogether. There are numerous elements that go into running a successful restaurant business which include the local market and your competition. As a restaurateur, it is vital you know these things beforehand.
Also, if you are a new restaurant owner, a business plan will give you step by step directions on what needs to be done and what your current focus should be. For instance, you may encounter problems you didn’t even think of, but having a business plan helps you tackle unforeseeable situations like tax laws or health codes will make your job as a restaurateur that much easier.
Most business plans have similar parts, but a restaurant consultant can make your plan unique and winnable. You can gear your business plan to suit the specific type of restaurant you plan to operate.
Once the executive summary has been written, you want your potential investors to understand the style, design and concept of the restaurant. Why are you suited to this type of venture? What is your experience in the industry? Why are you perfect for this job? These are questions you need answers for before submitting your business plan to a potential investor or bank.
The next section would have to explain the population base, the local competition, the location you want to create the restaurant in and other market research. The business plan should also incorporate whom you plan to serve and give an explanation for your customer base.
The business plan needs to touch on your competition. There is competition everywhere and although you may think customers would prefer a new restaurant to the existing ones, don’t be so certain. Existing restaurants have got their own customer base and may be thriving. Luring customers away from existing restaurants is never easy. You need to plan for that. You need to explain how you plan to compete with established businesses.