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• Sample Business Plans
• Food, Beverage & Restaurant

Food Franchise Business Plan

If you are planning to start a new food franchise in your town, the first thing you will need is a business plan. Use our food franchise business plan example created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new food franchise business, spend as much time as you can reading through some examples of food and restaurant business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample food franchise business plan for you to get a good idea about how a perfect food franchise business plan should look like and what details you will need to include in your stunning business plan.

Food Franchise Business Plan Outline

This is the standard food franchise business plan outline which will cover all important sections that you should include in your business plan.

• Introduction
• A BON Fide Enterprise
• Marginal Enterprise
• Irrevocable Commitment
• Doctors Associates, Inc.
• Company Values
• Business Model
• Keys to Success
• Summary Operating Forecast
• All Day Value — includes the famous $5 foot long and the $3 Six-Inch Select
• Featured Products
• All Sandwiches
• Fresh Fit Choices
• Fresh Fit For Kidz
• Sides, Drinks, Extras
• The Subway Old Cut
• The Subway PM Sub
• The WM Meer
• Demographic Trends
• Health Consciousness
• Convenience
• Lithe Rock, AR Demographics
• Operating Policies
• Operating Philosophy
• Strict Inventory Controls
• Purchasing Cost Controls
• Recipe a Portion Controls
• Sanitation a Food Handling
• Management’s Role
• Software a Systems
• Money a Profit Management
• Hiring the Best
• Training for Excellence
• Retaining the Best
• Staff Turnover / Training Costs
• Target Market
• Market Positioning a Branding
• National Advertising
• Local Marketing
• Grand Opening Budget
• Competitive Landscape
• Direct Competitors
• History and Structure
• Professional Services
• Tarek El Amarani
• Staffing a Compensation
• External Issues
• Pre-Ownership Expenses
• Revenue Assumptions
• Direct Costs
• Income Statement
• Balance Sheet
• Cash Flow Statement

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After getting started with Upmetrics , you can copy this food franchise business plan example into your business plan and modify the required information and download your food franchise business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample food franchise business plan

Need help writing your business plan from scratch? Here you go;  download our free food franchise business plan pdf  to start.

It’s a modern business plan template specifically designed for your food franchise business. Use the example business plan as a guide for writing your own.

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About the Author

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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

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How to Franchise a Restaurant: A Step-by-Step Guide

Table of contents.

If you’re looking to learn how to franchise a restaurant, congratulations are in order—your business is ready to grow. 

While it’s only one of many ways to grow, franchising your restaurant can help you reach new customers, gain brand recognition in a new region, develop merger or acquisition opportunities, and so much more. 

If you think your restaurant is a good candidate for franchising—what’s next? In this guide, we’re breaking down how to open a franchise restaurant. To clarify, we’re teaching existing restaurant owners how to start a franchise operation—how to start a franchise restaurant as the parent company. 

Explore the franchising process step-by-step below. 

Introduction to restaurant franchising

Restaurants can expand in various ways, but three of the most common growth tactics are:

• Self-funded growth (re-investing business proceeds into growth measures)
• Investor-supported expansion (growing a restaurant with outside funding)
• Franchising

The latter will be our focus in this guide. Simply put, franchising allows business owners to lean on a parent company’s resources, knowledge, and expertise as they grow a “branch” of that parent company. Meanwhile, the parent company (that’s you) gets to expand its brand, access startup capital from franchisees, and more. 

You’ve probably heard of some of the biggest names in restaurant franchising (even if you can’t find one of these franchises near you):

• Domino’s Pizza
• Outback Steakhouse (and other Bloomin’ Brands outfits)
• Olive Garden (a subsidiary of Darden Restaurants Inc.)

If these international household names are any indication, franchising has the potential to become a highly successful model for your growing restaurant business. 

Pros and Cons of Restaurant Franchising

Pros of Starting a Restaurant Franchising

1. brand awareness.

Creating a new brand or business is both expensive and demanding. It requires substantial funds, tools, and a dedicated team. By harnessing the established brand of the franchisor, developed over the years, you can reduce the initial cash investment burden and concentrate on delivering excellent cuisine.

2. Customer Base

Similar to brand awareness, the franchisor has cultivated popularity and demand over the years, making it the go-to choice for specific types of food such as pizzas, burgers, and tacos. Therefore, you don’t need to worry about lacking demand or spending money to acquire customers.

3. Product Market Fit & Returns

The franchisor has iterated multiple times, demonstrating a proven product-market fit (PMF). The ability to build a strong brand and sustain market presence over an extended period indicates customer satisfaction with their food. As a franchisee, this implies better returns from the outset.

Cons of Starting a Restaurant Franchising

1. high costs.

Starting a franchise restaurant isn’t feasible for everyone. The costs vary based on the chosen franchisor, ranging from $20,000 to $100,000 or more. In addition to these initial fees, there are additional expenses like real estate, equipment, staffing, marketing, and more. Learn more about the associated costs of starting a franchise here.

2. Limited Innovation

The franchise contract, aimed at protecting the parent brand and its products, imposes limitations on the franchisee’s ability to easily modify the menu or introduce new products. While some localization might be permitted upon approval, this hinders franchisees from making swift iterations to address local customer needs.

3. Poor Financial Privacy

Many franchise agreements include a provision allowing the franchisor to have full oversight of the franchise’s financial aspects. If you’re uncomfortable with others closely monitoring your financial matters, franchising might not be the ideal business venture for you.

Restaurant franchising: a step-by-step guide 

What does it take to become the next big-name franchise? Let’s explore how to franchise a restaurant in ten steps.

1. Figuring out if your restaurant franchise is feasible

Why doesn’t every popular neighborhood restaurant try to become a national (or even just regional) franchise? Because it isn’t a feasible growth model for every restaurant. 

Before you take any other steps, consider how you’ll address some of the most common setbacks restaurateurs face when trying to franchise: 

• Scale Issue : Imagine that you start another restaurant that’s identical to yours in every way: same menu, suppliers, building, and prices. You’ll essentially double your workload once you start the second. Even if you bring in a franchisee (who will have some capital and a few big ideas), you’re still at the helm of not one, but two restaurants. 
• Liquidity : While you might have an emergency fund tucked away for potential catastrophes at your restaurant (like major equipment breakdowns or ingredient price fluctuations), is that fund big enough to cover the costs of opening a new restaurant and maintain financial peace of mind (for you and your franchisee)? You simply might not have enough cash in the bank yet.
• Demand : Is there enough demand to sustain your restaurant in your new market (or your existing market if you want to start franchising locally)? If market research doesn’t indicate potential success, keep marketing your current restaurant before you start franchising. 

2. Develop your restaurant franchise business plan 

While writing a restaurant business plan deserves its own guide, your business plan should (at minimum) include:

• Your business goals
• A current financial analysis
• Short- and long-term financial forecasting
• Your brand’s mission, vision, and values

A fully-formed business plan can help you navigate the early years of franchising in two major ways:

• It’ll show franchisees (whom you’ll be courting in your franchise infancy; more on this below) that you have a sound plan for making your joint venture work.
• It can serve as a foundational document as you reach critical turning points in your franchise business. When you’re considering changing a beloved menu item or revisiting a relationship with a long-term supplier, for instance, you can return to your original plan to help make an informed, intentional decision. 

3. Securing financing for your restaurant franchise

While we discussed investor-supported growth as a distinct growth method above, it’s also one of a few ways you can secure funding for your franchise operation, along with:

• Leveraging your own capital
• Applying for a traditional business loan through a bank or credit union
• Collecting a “franchise fee” from your first franchisee

The last method is one of the most common, and it can be a hard sell for potential franchisees in the early days. But you can leverage the worth of your existing assets (and access to them) to convince franchisees to pay the entry fee.

Learn more about the cost associated with operating a franchise .

4. Establishing a legal structure

Legal experts recommend that restaurateurs establish a franchising company as a separate legal entity from their primary restaurant company. Eventually, when the paperwork is done and you’ve officially started a joint venture with a franchisee, you should have three distinct companies with their own sets of books:

• Acme Franchising, LLC (the parent company for every future franchise location)
• Acme Eats, Inc. (your original restaurant)
• Acme Eats Springfield, Inc. (your first franchise location)

Ensuring that all three of these companies are separate legal and financial entities should protect each individual business (including your original restaurant) if one of them experiences legal or financial trouble. 

5. Creating a franchise operations manual

Consistency is key for franchise businesses. A franchise operations manual will help each franchise location consistently embody the parent brand by:

• Preparing menu items the same way at all locations
• Adhering to a brand-wide dress code or uniform
• Decorating facilities or designing facilities to match company colors and standards
• Streamlining processes like HR, payroll, recruitment, and vendor negotiation

Your franchise operations manual should be as detailed as possible, but be open to modifications—as your franchise restaurant grows, so will your manual. Whenever you make changes, ensure that every franchisee has the latest version of the document. 

6. Creating a franchise operations manual

7. Finding franchisees

If your franchise becomes successful enough, you’ll likely be approached by aspiring franchisees. But as we mentioned above, this is unlikely to be the case in the early days of your franchise restaurant. You’ll probably have to recruit your first few partners yourself. 

Be as selective as possible when choosing your first franchisees. These first partners will set the tone for your growing brand and collaborate to solve early brand-wide problems.

Look for candidates with

• Significant restaurant experience —preferably in all food service roles, but specifically in management
• Enough capital to pay the franchise fee and startup costs
• A verifiable history of ethical and successful business practices

Early franchisees will be some of the first faces of your growing brand—choose them wisely. 

8. Marketing and launching your restaurant franchise

As you’re tackling all of the other steps in this list, don’t forget about the most important part of opening a franchise restaurant: telling customers about it. 

You might be too busy to tackle marketing on your own, so don’t be afraid to hire an internal employee or an outside marketing firm to take the reins. Delegating tasks you’re not an expert in (like managing social media) will free up your time for tasks that require your expertise like menu planning and vendor negotiations.

Once your marketing is up to snuff, prepare to launch your first franchise location: an event that should include all of the fanfare it so deserves. 

9. Managing and supporting your restaurant franchise network

As you continue recruiting franchisees (and as ambitious candidates start approaching you), one of your most important roles as the franchise business owner is to support your network of franchisees. 

This role deserves a guide of its own, too. But some of your responsibilities in this capacity include:

• Maintaining brand integrity at every location (I.e., making sure menus and methods are consistent across locations)
• Helping franchisees overcome operational challenges
• Administering (and maintaining) a franchisee training program
• Overseeing the finances at every location

This is just the tip of the iceberg. As your business grows, consider hiring more franchise management staff to help shoulder the burden of leadership. 

10. Measuring the success of your restaurant franchise

How do you know if your restaurant franchise is successful? You should measure your performance by evaluating:

The success of individual franchises – How is each restaurant location doing? Are they turning a profit, satisfying customers, and embodying your mission? Use a combination of quantitative and qualitative metrics to assess a branch’s success.

The success of the brand as a whole – Is the parent company making (and saving) money? Is your brand image generally positive in the market? Do people want to work at your franchise locations? These are just a few elements you can assess to determine how well your parent company is doing. 

11. Planning for the future

Business owners in all sectors must be future-minded. One way to make plans for the future, maintain a goal-oriented approach, and make decisions that secure your franchise restaurant’s future is to return to your business model. 

Remember those short- and long-term financial forecasts you made in your original business plan? As your business grows, make a habit of refreshing those forecasts regularly to maintain a constant eye on the horizon. 

Note that you can plan for more than your financial future. You can also set goals (and make plans to meet them) related to:

• Your brand’s image and reputation
• Your menu offerings
• Your ingredient sourcing
• Your human resources efforts

Staying focused on the future of your brand will help you make savvy business decisions in the present. 

CloudKitchens: Reimagining restaurants of the future

Learning how to open a franchise restaurant can be overwhelming—the learning curve is high, you need substantial start-up capital, and there are many challenges to overcome as you rise to the top. 

Future-minded franchise restaurateurs always keep their eyes open for innovative opportunities to expand their brands. As the demand increases for quality food delivery, for instance, how will you answer the call?

When you’re ready to embrace the future of delivery, partner with CloudKitchens. We help restaurant owners by providing seamless delivery, cost savings, and ghost kitchen spaces. 

Instead of navigating the muddy waters of the startup phase for months on end, CloudKitchens partners can have their delivery businesses up and running in just weeks. Now offering ghost kitchens in Austin , NYC, Orlando, Chicago, Los Angeles, and many more cities across the U.S.! Expand your restaurant business and take advantage of the bustling food delivery scene.

Learn more about how CloudKitchens is changing the game for restaurants—from small businesses to national franchises.

Explore ghost kitchen locations across the US:

• Ghost kitchens in San Francisco
• Ghost kitchens in LA
• Ghost kitchens in NYC
• Ghost Kitchens in Toronto
• Ghost Kitchens in Atlanta
• Ghost Kitchens in Dallas
• Ghost Kitchens in Chicago
• Ghost Kitchens in Denver
• Ghost Kitchens in Miami

Investopedia. What Is a Franchise, and How Does It Work? https://www.investopedia.com/terms/f/franchise.asp  

Investopedia. 10 Biggest Restaurant Companies. https://www.investopedia.com/articles/markets/012516/worlds-top-10-restaurant-companies-mcdsbux.asp   

NerdWallet. How to Write a Business Plan, Step by Step. https://www.nerdwallet.com/article/small-business/business-plan   

US Small Business Administration. Franchise Fees: Why Do You Pay Them and How Much Are They? https://www.sba.gov/blog/franchise-fees-why-do-you-pay-them-how-much-are-they   

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Franchise Restaurant Business Plan: 10 Facets of Your Plan

Starting a franchise restaurant business comes with a great deal of work and planning. You’ll need skills in restaurant management , restaurant data analytics , and forecasting for restaurants . You’ll need financial support and projected success. To bring it all together, you should have a franchise restaurant business plan.

You don’t need a business plan to start a restaurant, but oh boy will your job be easier with a plan in place. It gives you a sense of security in your future, with sets of guidelines for any situation at the ready. Read on through this BinWise blog to learn how to write and work with a franchise restaurant business plan.

What Is a Franchise Restaurant Business Plan?

So, what is a franchise restaurant business plan? It’s a detailed guide to the things you’ll need to do for your business, and the facts and figures to know. It’s similar to many other types of business plans, including:

• Cafe franchise business plans
• Cafe business plans
• Standard restaurant business plans
• Brewery business plans

All in all, most business plans follow the same structure. It’s a structured plan to give you the tools to run a successful business. There are going to be lots of parts of your franchise restaurant business plan that are unique to your business. There will also, however, be many parts that are standard across business plans. 

10 Facets of the Franchise Restaurant Business Plan

Setting up your restaurant franchise business plan starts with the basic steps. As you work through the sections of a business plan, you’ll find yourself going in-depth in all the important places. A business plan structure gives you the tools to find the strengths, weaknesses, and opportunities of your new business plan. 

These 10 facets of the franchise restaurant business plan will get you started. Some of these steps are unique to franchises. Others are basic parts of every business plan. They all come together to show you how to plan for your franchise restaurant business. As you follow through this sections you’ll learn about the process of running a successful franchise restaurant.

10. Executive Summary

Your executive summary is the place to define your business and give a brief, succinct overview of your business needs and plans. This is your introduction to frame your business plan.

9. Franchise Disclosure Document

The franchise disclosure document, or FDD, is the legal work of declaring your franchise business. It’s helpful to complete this as part of your business plan work. 

8. Menu Components

The restaurant menus part of your franchise restaurant business plan are vital for the legal startup process. You need to share exactly what ingredients you’ll be needing in your supplies. If you're doing something unique, like table d’hote menus , you'll need to plan that out entirely.

7. Franchise Operations Manual

The franchise operations manual is the guidebook of how your franchise restaurant locations will operate. This is a comprehensive guide, with daily, weekly, monthly, and yearly plans written out in full.

6. Industry Analysis

Your industry analysis should be focused on all franchise restaurants. This is a broad scope for your first analysis among the several analysis projects on this list.

5. Market Analysis

Your market analysis is all about your customer base. This is the place to dive into what customers will be looking for from your franchise, and how you can provide for them.

4. Marketing Plans 

Your marketing plans come up right after the market analysis because the two go hand in hand. Your marketing plans should be curated to reach your target market of customers.

3. Competitive Analysis

A competitive analysis is the third of the analysis projects, and the last one in your business plan. It serves to show you the franchises in your immediate area, and how you can be better than them.

2. Management and Staffing Organization

Management and staffing organization showcases the functions within your business. This is especially important for organizing each franchise location.

1. Financial Planning

The financial planning section is the place to write up your budget, financial situation, and any possible needed assistance. This part is particular for being shown to potential investors. 

"Key Takeaway: You don’t need a business plan to start a restaurant, but oh boy will your job be easier with a plan in place. It gives you a sense of security in your future, with sets of guidelines for any situation at the ready."

Frequently Asked Questions About Business Plans for Franchising a Restaurant

Creating a franchise restaurant business plan comes with a lot of heavy mental work. You’ll face the tough questions of your franchise business, and need answers to continue. You’ll have to plan for each possibility, and prepare your plans for your franchise partners. It’s a lot to manage. Our answers to these frequently asked questions will help you get started and remain steadfast.

How Do I Write a Business Plan for a Franchise?

Some key tips to use when it comes to writing a business plan for a franchise include:

• Defining your target audience, so you have a clear idea of who you’re creating this business for
• Setting business marketing goals, to set up a marketing plan that will lead to direct, tangible results through content marketing , email marketing , and more
• Develop your marketing strategy, so that marketing can become an instinctual, regular part of your franchise business
• Build up your sales strategy, to learn how to sell from a franchise perspective, as opposed to a singular restaurant perspective
• Identify your KPIs, or key performance indicators, to be able to measure your success and areas for growth
• Continue to monitor your business, to adjust your business plan and strategies as needed

These tips will guide you as you write your franchise restaurant business plan. They work in conjunction with many of the steps outlined in this blog, to support and grow your franchise restaurant business plan.

Do I Need a Business Plan To Open a Franchise?

You don’t technically need a business plan to open a franchise, but your business will do much better with a business plan. When you dive into a business without a structured plan with defined sections and clear guidance, you put your business at risk. You’ll reach points where you’re not sure what to do, and you’ll have to struggle to find out. A business plan is the answer.

How Do I Build a Successful Franchise Business?

To build a successful franchise business, you need a steady plan, a great team, and patience. Your business plan will pave the way for success with defined steps to take. Your team is vital for managing your franchise locations and supporting you in specified ways. Patience is a must for any restaurant, bar business , or hospitality industry job. It will bring you through hard work.

How Do I Write a Food Business Plan?

To write a food business plan, for a restaurant, bar, or even a country club, follow the basic steps and map your business in your mind. The basic steps of a business plan can come from this blog. You can also dive into restaurant business plans or a catering business plan . Mentally plan on top of these phsyical plans to develop your restaurant concept .

Your Franchise Restaurant Business Plan: Details to Run Your Business 

Writing up your franchise restaurant business plan is one of the most tangible steps toward starting up your franchise. It shows you what you’ll need to focus on with particular attention. It gives you a place to organize finances, marketing, market analysis, and so much more. 

When you’re ready to create your franchise business with a quality plan, reach out to BinWise and BlueCart . The BinWise Pro beverage inventory program , paired with the BinScan app , gives you peace of mind when you do inventory . BlueCart’s order management software simplifies your order management system . 

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.

To set yourself up for success create a restaurant business plan. Here's how to get started. 

What is a restaurant business plan? 

A restaurant business plan is a guide for your restaurant, so outside parties (like investors) can see your goals, vision, and how you’ll get there. Length and detail vary from executive summaries to full-length documents. It’s good to give investors as much information as possible upfront. Every business should have a plan, new or old. Plans help you stay focused and get back on track.

Every business should have a business plan, whether new or existing. Business plans help you focus on your goals and can help get back on track if you stray from them.

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

Your choice of cuisine can make or break your restaurant. Choosing the right one is key to standing out from the competition and your target market.

So consider:

• 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 good mission statement tells investors and customers about your restaurant. It’s a compass for the decision-makers and staff to follow to achieve what you want.

Here’s how:

• 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 

Your mission statement should be unique to your restaurant and to your customers. A good mission statement will be your North Star, and all decisions and touchpoints will follow.

A well-conceived mission statement can provide a guiding light to keep your restaurant moving in the right direction. It helps ensure that every decision you make and every interaction you have is in line with your core values and goals.

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

Who is your target market ? Who will your restaurant serve? This section will tell investors about your target market and why they will choose your restaurant over others. Knowing your target market is key to tailoring your restaurant to their likes and needs.

By digging into demographics, preferences, eating habits, and trends you can hone your concept and marketing strategy to reach and appeal to your target market.

An example of analyzing your target market

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.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a family-orientated area will want a family-friendly restaurant with a menu that caters to all ages and dietary requirements. A trendy urban area with a young affluent population will want upmarket dining and innovative food.

Cultural and ethnic backgrounds also play a big part in restaurant preferences, different backgrounds have different tastes and customs that influence their dining choices. By understanding your target market demographics and preferences, you can create a concept that resonates with them and drives success.

Dining habits and trends

As the industry changes, it’s important to stay on top of dining habits and trends. For example, online ordering and delivery have changed the way we eat, many are looking for the convenience of having their meals delivered to their door. Health trends have also impacted dining habits, more and more people are looking for healthy options when eating out.

3.2 Competition analysis

It’s natural to think everyone will come to your new restaurant first, so research your competition to make that happen. Who else has a customer base in the area?

Note everything from prices, hours, and service style to menu design to the interior of the restaurant. Then tell your investors how you’re different.

3.3 Marketing analysis

Your investors will want to know how you’ll market the restaurant. How will your marketing be different from what’s already out there? Who’s your target audience and how will you reach them? What will you give to guests? List it all.

• How To Conduct a Restaurant Market Analysis

The menu is the heart of a restaurant. You can’t run without it. You probably don’t have a finished menu yet, but you should have a mock menu for your restaurant business plan. Pick a design you like and add your logo to the mock.

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.

This article was originally published on 20 November 2017 and updated on 13 June 2024 .

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.

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How to Write a Restaurant Business Plan: Complete Guide

• January 31, 2023
• Food & Beverage

👇 Check all our resources on restaurants 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) to open a restaurant , you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your restaurant . Use this template to create a complete, clear and solid business plan that get you funded. Let’s dive in!

1. Restaurant Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a restaurant?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your restaurant’s executive summary?

Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your restaurant and the products and services that you intend offer. Mention the type of restaurant you intend to open (such as fine dining, casual dining, fast casual, ghost restaurant, café, pub, etc.), the menu and prices. Also add here the total number of customers your restaurant can host at once, its location, and some details on the surface and the design layout
• Market analysis : summarise the market where you will operate and provide a brief about the target audience , market size , competitors , etc. No need to provide granular data here, save it for the Market Overview section later on (or the appendix)
• People : introduce your restaurant’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak about your hiring plans.
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials statements
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Restaurant Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Restaurant Business Overview

This is the section where you will provide details about your restaurant and the chosen business model. You must address some important questions that lenders and/or investors generally ask .

Here is a quick list of some of those questions you must address:

• What is the rationale behind you opening this type of restaurant today?
• What’s the restaurant’s location and why did you select that location?
• Why did you select the type of restaurant you want to open?
• What will be the products and services you will offer?
• What will be your pricing strategy and why?
• What will be your opening days / hours?
• How many customers can you serve at once (capacity)?
• What is the surface of your restaurant? How is the restaurant designed (incl. dining rooms and kitchen area)?
• What will be the legal structure of your company?

a) History of the Project

Any business must have two components:

• Passion & experience of the business owner
• Rationale behind starting this type of business today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have been a restaurant manager in a popular restaurant for 6 years, and now you want to start your own restaurant and use your knowledge to run it more efficiently.

However, if you don’t already have experience, that’s fine. You must demonstrate your passion and some industry knowledge (you may have conducted thorough research).

What is your restaurant’s mission?

For example, there may not be any fine dining restaurant in your area where wealthy residents or tourists can enjoy an upscale meal experience in a sophisticated and elegant environment.

But that’s not all: your market must be suitable for your business to thrive.

For instance, if you are planning to open a fine dining restaurant in a low-income area, it is probably not going to attract many customers. Similarly, if the population of the target market has a high percentage of people preferring takeaway/delivery food options because of their busy lifestyle, a fine dining restaurant may not be a good idea.

b) Business Model

This sub-section of the Business Overview will explain your business model. Describe the following points briefly:

• Will you buy an existing restaurant and do some remodeling, or will you start a new restaurant and design it from scratch?
• Will you buy a franchise or do you plan to open an independent restaurant instead?
• The type of restaurant you want to open and why

What are the different types of restaurants?

There are multiple types of restaurants. Some of them that you may consider include, but are not limited to:

• Fine Dining : They provide upscale meal experience with several courses. The atmosphere is sophisticated and classy. They can be franchises or individually owned. Of course, they are quite expensive.
• Casual Dining : This type of restaurants serve customers at their tables and the food prices are moderate. The atmosphere is not very sophisticated. Though the décor is often unique, it can be based on the type of food a restaurant serves.
• Fast Casual : These restaurants will make your food available quickly, but the food is healthier than fast food. Also, food is cheaper than casual dining. They have a counter service (you must collect food from the counter) and the décor is more contemporary.
• Ghost Kitchens : ghost kitchens (or “dark kitchen”) restaurants do not have a storefront, a dining room, signage, or décor. They operate using food delivery partners and take orders through online ordering or phone ordering.
• Fast Food : Think of Taco Bell , KFC , Burger King , etc. The food is relatively cheap and is served quickly. Food ingredients are usually preheated or precooked, and food delivery happens over the counter or via a drive-through window.
• Buffet Style : These restaurants are similar to the Family Style restaurants but with a fundamental difference. People get to select from a selection of food that are made available against a fixed price. However, customers need to serve themselves and they are allowed to return to the buffet for as many times as they want.

c) Products & Services

Of course, the products you will offer in your restaurant will depend on the type of restaurant you are opening. A Buffet Style restaurant, for example, usually prefer specialty cuisines like Indian, pizza, home cooking, Chinese, etc. Similarly, if you are opting for a Diner, you will most likely offer fried foods (fish & chicken), breakfast items, burgers, etc. at a low cost.

It is a good idea to give a list of food and drinks that you want to sell. Depending on the scale of your operations, you may have too many menu items. It is not possible to list every item on your menu, but make sure that you are listing the most important ones. If you specialize in one or a few specific dishes, mention that, too.

d) Pricing Strategy

In this sub-section, you must explain the pricing strategy of your restaurant. If you have multiple competitors (in the same niche) in the vicinity, you cannot have huge pricing variation, especially for the similar food items. Pricing will, of course, depend on the type of restaurant you are opening, and the food items you are offering.

For example, if you are sourcing the raw materials only from organic farms that do not use fertilizers and pesticides, your menu items will have a higher price tag.

Similarly, you cannot expect to charge expensive Fine Dining-like prices if you are opening a Casual Dining restaurant instead.

Create a pricing table and ensure to provide an average price range for your products. You don’t need to provide exact pricing for each product. Use price ranges instead.

Offering a pricing table is important because your pricing strategy will allow investors to tie your pricing strategy with your financial projections .

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Restaurant Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if your intentions are to open a classy Fine Dining restaurant in a low-income area, you will not attract enough customers. Similarly, if you want to open a fast-food restaurant in a place where family dining is more popular, it will be a disaster.

Therefore, you must cover here 3 important areas:

• Market size & growth : how big is the restaurant industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? What type of restaurants do they prefer? How regularly do they visit restaurants for dining? What type of food do they prefer? How much do they spend at restaurants on average?

a) Restaurant Industry Status Quo

How big is the restaurant industry in the us.

According to Finance Online , there were over 1 million restaurants (all types combined) in the US in 2021. The industry recovered post a 60% drop in sales in April 2020 due to the pandemic, and recorded an annualised market size of over $1 trillion dollars in July 2022 ($1,033 billion)..!

How big is the restaurant industry in your area?

Once you provide the overall picture of the US, divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the market size .

For example, if there are 1,000,000 restaurants in the country with total annual revenue of $1 trillion, the average annual revenue for each establishment is around $1 million.

Therefore, if the area where you want to open your restaurant has 30 restaurants, you can safely assume that the restaurant industry in your area is worth approximately $30 million.

How fast is the restaurant industry growing in the area?

You must show the expected growth rate of the restaurant industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult as you can use metrics such as the number of competitors in your area.

For instance, if there were 25 restaurants in 2018 and 30 restaurants in 2022, the average annual growth rate would be 5%.

What are the current restaurant market trends in your area?

It is vital to understand the trends of the restaurant industry in your area. Understanding trends will allow you to devise marketing strategies.

Understanding trends won’t be easy. You must conduct research and talk with your target audience. Additionally, you must also study your competitors to understand their target audience, the products they sell, etc.

Some common questions you may ask the target audience include:

• What type of restaurants do they prefer?
• At what time of the day do they prefer to visit a restaurant (breakfast, lunch, dinner)?
• How frequently do they visit restaurants?
• What type of foods do they usually order?

You can ask as many questions as you need to understand the evolving trends.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their food offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

Restaurant SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strength: 8 years of senior manager experience in a reputed Michelin Star Fine Dining restaurant operated & owned by a renowned chef and a master’s degree in Hospitality management, experienced senior chef with 22 years of experience
• Weakness: Startup cost, zero reputation
• Opportunities: An affluent neighborhood with a rising demand for fine dining establishments, only one fine dining restaurant in the 3-mile radius
• Threats: Increasing cost of raw materials because of geo-political turmoil restricting international trade routes

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience.

Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Per capita expenditure on dining
• Frequency of restaurant visits
• Average monthly income and disposable income
• Average bill size per visit
• Average yearly or monthly spending on food at restaurants
• Type of restaurants preferred
• The expected price range for food
• Inclination towards loyalty programs & free perks
• Things they dislike about existing restaurants and what they expect to be improved

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers and increase sales .

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost ?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do restaurants use?

A few marketing channels that restaurants typically use are:

• Word-of-mouth, recommendations,
• Local listing & reviews (e.g. Google reviews)
• Online booking platforms (e.g. TheFork , Opentable , etc.)
• Influencer marketing
• Print media, etc.

It is not necessary to use all channels. You can start by focusing on a few of them and include other marketing strategies later instead.

What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs can be:

• Organic raw materials : we source organic farm fresh raw materials from local farmers
• Authentic Indian food : prepared by a Michelin Star chef from India
• Family run restaurant : run by a family, helping families connect over delicious food
• Price : affordable food & menu for the quality vs. competitors
• Location : the restaurant is located in a busy street, thereby attracting many customers who can easily glance over the menu
• Uniqueness : you may be the only tapas-style restaurant around, in an area where people are fond of this type of restaurant

5. Management & People

You must address 2 things here:

• The management team and their experience / track record
• The organizational structure : different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your restaurant business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the restaurant you are proposing. If they have specialized training, achievement, and experience (such as a degree in hospitality management, 3 Michelin stars, experience in developing menus for 5-star hotels, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired a restaurant manager, server, chef, head cook, busser, cashier, bartenders, and other relevant staff members, you must provide here a chart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a restaurant.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your restaurant is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new restaurant, renovate your restaurant, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your restaurant . For a restaurant, startup costs are all the expenses you incur before you open your restaurant and start making sales . These expenses typically are:

• The leasing deposit for the space (if you rent) or to buy the real estate (if you buy)
• Renovations and improvements
• Equipment & appliances
• Furniture & tableware

Of course, the startup costs depend on a number of factors, like the size of your restaurant, its location, the facilities, the menu, etc.

On average, it costs $484,000 to $685,000 to open a casual restaurant with 150 seats (2,500 sq. ft.) in the US.

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a restaurant, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your restaurant.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your restaurant.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of covers (customers or orders) over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, cost of raw materials (food supplies) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

7. Use of Funds

This is the last section of the business plan of your restaurant. Now that we have explained what your restaurant’s business model and concept are, what is your menu, your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need ?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any restaurant business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our restaurant financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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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!

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The Ultimate Guide to Franchise Restaurants

• by Lightspeed

minute read

If you’re already running a successful, profitable business and you want to expand, franchising your tried-and-true restaurant concept could be a great way to grow your brand faster and in multiple markets.  As with any business endeavor, there are pros and cons on both sides of the fence. Keep reading to learn:

• What franchise restaurants are

Franchisor vs franchisee

• The pros and cons of investing in a franchise restaurant
• How much it costs to buy one

The pros and cons of franchising your restaurant

How to franchise a restaurant, discover lightspeed..

Lightspeed’s all-in-one restaurant POS solution empowers restaurateurs to boost efficiency and grow their business.

What is a franchise restaurant?

Franchise restaurants are turnkey restaurant concepts that you can purchase from an existing brand. In exchange for an initial investment and ongoing royalty payments, buying a franchise gives you access to the established business’s proprietary processes, software and hardware—like a restaurant POS , training, recipes, supplier relationships, equipment, real estate expertise, marketing and more.

Whether you’re looking for a large or small restaurant for sale, there are plenty of franchises to choose from. Many popular quick service chain restaurants, like McDonald’s, Subway and Tim Hortons operate as franchises. Full service restaurants, like Pizza Hut and Denny’s, are also available for franchise.

A franchisor creates the brand and establishes the systems to run the business. They sell the right to use its brand and proprietary knowledge to an entrepreneur who will open another branch and operate under that brand name in exchange for royalty fees. 

A franchisee buys the right to use the franchisor’s brand, trademark and proprietary knowledge. Franchisees pay ongoing royalty fees to operate using the brand name and business system of the franchisor. 

Pros and cons of investing in a franchise restaurant

Franchising can offer entrepreneurs an established brand and business model to help them get their new restaurant off the ground. But as with any business, there are pros, cons and risks to consider before taking the plunge. 

Pros of investing in a franchise restaurant

There are many great reasons to purchase a franchise restaurant.

• Buying a franchise is easier than starting from scratch. You don’t have to come up with the concept, recipes or branding, so you can just focus on operations.
• Franchises come with resources. As a franchisee you’ll have access to software, systems, recipes, suppliers, marketing and much more from corporate.
• Franchise restaurants come with a built-in customer base thanks to brand recognition. Customers are already familiar with the concept and dishes that most chains serve. For example, the food at a Subway near you will be the same as, or very similar to, the food at a Subway in a city across the country or across the globe. 
• As a franchise owner, you’ll have access to a support network. You’ll have help from the corporate office and other franchisees who you can network with.
• Franchisees have access to marketing resources. Franchisors provide advertising and promotional help in exchange for royalties and/or marketing fees.
• Quality control is built into the franchise model. You’ll have access to processes, recipes, suppliers and equipment that ensures consistent quality from franchise to franchise.
• With franchise restaurants, you’re buying a turnkey concept, so you’ll likely break even faster than if you had opened up your own restaurant.
• Location is critical to a restaurant’s success. Many franchisors provide connections to real estate expertise . 
• While many franchises require you to have a certain amount of unborrowed assets available to become a franchisee, it’s easier to secure loans for a proven business concept when you do need cash, than for a new restaurant.
• Thanks to collective buying power from other franchisees, you’ll be able to access cheaper supplies than if you had opened an independently-run restaurant.

Cons of investing in a franchise restaurant

Here are some of the downsides of owning a franchise you should be aware of before investing in one.

• Most franchises require you to invest a lot up front. While buying a franchise can cost anywhere from $50,000 to $6 million, most startup investments for franchise restaurants start in the $200,000 to $300,000 range.
• You might not be allowed to borrow funds to cover these startup costs. Some franchisors require unborrowed funds and a minimum net worth for approval.
• After paying startup costs, you’ll have to pay royalties to legally license the restaurant’s brand and proprietary systems, which means you’ll be giving away a portion of your profits forever.
• Buying a franchise means giving up creative control. You have to serve the food the corporate office tells you to serve and run your restaurant according to their rules.
• Even though you technically own your own business, you’ll always be held accountable to the franchisor and will need to ensure you meet their standards, or else face consequences. 

How much does it cost to invest in a franchise restaurant?

Buying a franchise isn’t cheap, but it gives you the framework for a turnkey restaurant that has had proven success in the market. Here’s what you need to know about how to buy a restaurant from a franchisor, including a breakdown of the startup and ongoing costs associated with investing in a franchise restaurant.

Pro tip : Check out our starting a food business checklist for resources for opening your restaurant.

Franchise restaurant startup costs

There’s a lot that goes into the investment you’ll have to make up front to become a franchisee of your favorite restaurant. You’ll need to pay a startup investment that includes a franchise fee. 

While some startup investment quotes include real estate costs, many do not. Most franchises will also ask you to have a minimum net worth and liquid assets available to ensure you can cover unexpected expenses.

Estimated initial investment

What it costs : Total franchise restaurant startup costs range anywhere from $50,000 to $6,000,000. While you can find franchises on the lower end of the spectrum, most chains start in the $200,000 to $300,000 range.

These are the startup costs from well-known franchise restaurants:

• Denny’s : $1,400,000 to $2,300,000
• Dunkin’ : $526,900 to $1,809,500
• McDonald’s : $1,000,000 to $2,200,00
• Pizza Hut : $300,000 to $2,100,000
• Subway : $100,000 to $340,000
• Taco Bell : $530,000 to $3,000,000
• Tim Hortons : $60,000 to $665,000

What it gets you : Total startup costs give you access to use the brand, management systems, training and support in marketing, equipment, inventory, marketing , staffing, support for your restaurant’s grand opening and more—basically everything you need to get the business off the ground.

Franchise fee

What it costs : A franchise fee is typically included in the total investment startup quote the franchisor provides. 

Here’s a look at the franchise fee that popular restaurants charge:

• Denny’s : $30,000
• Dunkin’ : $40,000 to $90,000
• McDonald’s : $45,000
• Pizza Hut : $25,000
• Subway : $10,000 to 15,000
• Taco Bell : $25,000 to $50,000
• Tim Hortons : $25,000 to $50,000

What it gets you : The franchise fee is a one-time fee for access to the restaurant’s name, training, website, software access and startup inventory. 

Real estate costs

What it costs : Real estate costs vary greatly because of several factors. First, space in urban areas tends to be more expensive than space in rural areas. Second, it will depend on whether you’re building a new restaurant or buying a pre-existing location from another franchisee. Third, real estate prices will depend on whether you’re looking to invest in a large or small restaurant for sale.

What it gets you : Real estate costs can include anything from paying the lease for a turnkey commercial space to buying a commercial space and renovating it. 

Financing your franchise restaurant

Franchises have hefty startup costs. Many of them require you to have a certain net worth and a minimum in liquid assets to ensure you can sustain the business until profits kick in. Many franchisors require that these funds be unborrowed.

Here are some net worth and liquid asset requirements from popular franchisors.

Liquid assets : Cash that you can quickly access.

• Denny’s : $500,000
• Dunkin’ : $250,000
• McDonald’s : $500,000
• Pizza Hut : $350,000
• Taco Bell : $750,000
• Tim Hortons : $500,000
• Subway : $30,000

Net worth : The total value of your personal wealth, including cash and assets, minus any debts.

• Denny’s : $1,000,000
• Dunkin’ : $500,000
• Pizza Hut : $700,000
• Taco Bell : $1,500,000
• Tim Hortons : $1,500,000
• Subway : $80,000 to $310,000

Ongoing fees for franchise restaurants

After you pay startup costs, you’ll owe ongoing fees to the franchisor to be able to keep using their license and resources. All franchisors charge royalties, and some also charge a marketing fee on top of that.

Royalties 

What it costs : Franchise restaurants typically collect between 4% and 8% of your gross revenue each month. 

Here’s a look at what popular chains ask for:

• Denny’s : 4.5% to 7%
• Dunkin’ : 5.9%
• McDonald’s : 4%
• Pizza Hut : 6%
• Taco Bell : 5.5%
• Tim Hortons : 4.5% to 6%
• Subway : 8%

What it gets you : These royalties allow you to keep licensing the restaurant’s brand and maintain access to corporate resources.

Marketing fee

What it costs : Some franchisors also collect a separate marketing fee of between 2% and 5%. 

This is what some franchises charge: 

• Denny’s : 3% to 3.25%
• Dunkin’ : 5%
• Pizza Hut : 4.75%
• Taco Bell : 4.25%
• Tim Hortons : 4%
• Subway : 4.5%

What it gets you : This fee is an investment into ongoing marketing support in the form of anything from promotional materials and TV commercials to mailed coupons and social media ads.

Now let’s look at restaurant franchising from the other side of the coin—becoming a franchisor. 

So you’re already running a successful, profitable business and you’re interested in expanding. Ultimately, you have three different options for expanding your business:

• Self-funded growth (funding growth plans yourself)
• Investor-supported growth (expanding with outside funding)
• Franchising (licensing your brand and operations in exchange for a fee)

Let’s take a look at some of the pros and cons of franchising your restaurant. 

Pros of franchising your restaurant

There are many great reasons to franchise your restaurant. Here are just a few:

• Franchising allows you to expand your business and increase brand recognition in new markets.
• Franchising enables you to grow your brand with lower capital investment, as franchisees provide the necessary capital to open new locations.
• Franchise fees, royalties, and other revenue-sharing models provide a steady stream of income.
• Franchisees have a strong understanding of their local market, which can help you better adapt to regional tastes and preferences.
• Franchisees have skin in the game—and a vested interest in your brand’s success— reducing your exposure to failure.

Cons of franchising your restaurant

Here are some of the downsides of franchising your restaurant.

• Franchising requires relinquishing a degree of control over individual restaurant operations, which can lead to inconsistencies in quality and customer experience.
• Choosing the right franchisees is crucial, as poorly performing franchisees can harm your brand and reputation.
• Costs of developing your franchise systems, legal agreements and support infrastructure can be labor-intensive and expensive. 
• Franchising involves complex legal agreements and compliance with franchise laws and regulations.
• Providing consistent training and support to franchisees can be demanding.

1. Decide if your business is ready and feasible for franchising

The very first step on your franchising journey should be to pause and evaluate your current business. Franchising isn’t a feasible growth model for every restaurant—it’s important to put in the time and effort required to figure out if your restaurant concept can be scaled.

Ask yourself:

• Do I have a well-defined concept? Brand identity?
• Would it work in multiple locations?
• Can it be easily replicated?
• Can I standardize my processes easily?
• Do I have a strong track record of profitability?

It’s important to remember that potential franchise buyers expect a franchise system that works and is proven. You need to have your finances in order and have a proven track record of success before you consider franchising your restaurant. 

2. Prepare your franchise disclosure document 

Now it’s time to do the legal work. In the US, this includes drafting your franchise disclosure document (FDD). An FDD is provided to prospective franchisees in the pre-sale disclosure process. It clearly specifies how the business relationship between the franchisee and franchisor will work.

There are 23 items you must disclose in an FDD, including background information about your business and any parent companies, estimated start-up costs, information about your executive team, litigation history and more. It must also contain your audited financial statements.

You’ll definitely want to hire a lawyer to review your FDD and help you issue it, as well as set up and register your business. 

In Canada, franchising is regulated at the provincial level in most provinces. The information required is very similar to the American FDD.

3. Set up your new franchise entity

Even if your existing restaurant is a corporate entity, you’ll probably need to set up a new franchise company. 

This will enable you to keep your future franchises separate from your current restaurant business, which helps to protect the original (parent) in the event of legal or financial trouble. Be sure to consult a legal expert for all the fine print.

4. Register your franchise

When you franchise your restaurant, you give other entrepreneurs the right to use your brand’s logo and trademark. To protect yours and your franchisees’ interests, it’s important to protect your intellectual property. 

This includes registering your logo and acquiring a trademark. In the US, you need to register your business with the US Patent and Trademark Office . In Canada, the most common way to submit a trademark application is to file directly with the Canadian Intellectual Property Office .

5. Develop your franchise operations manual

Now it’s time to develop comprehensive operations manuals that document all aspects of running your restaurant. These manuals will be used to train franchisees and ensure consistency across all locations, so make sure they are detailed and complete. 

At a minimum, your franchise restaurant manual will include:

• Confidentiality and legal notice
• Brand identity, mission and vision
• Performance targets and milestones
• Recipes and preparation instructions
• Staff training and support materials
• Policies and procedures
• Operating systems and requirements

Whenever you make changes, make sure that every franchisee receives the latest version of the document.

6. Recruit and vet your franchisees

Once you’re ready to go, it’s time to start marketing your franchise opportunity to potential franchisees.

It’s important to remember that your franchisees are not your employees, they’re your business partners. And shared governance comes with risks—to your reputation and your brand. 

Consider developing a screening process to evaluate and select the right candidates. Among other things, look for candidates with strong managerial experience, preferably in the restaurant industry. 

7. Provide support to your franchisee network

To help get your franchisees up and running, you should be prepared to assist with things like hiring and training staff , marketing and training managers on the systems and technology you use, including your restaurant POS.

To make life easier, it’s a good idea to centralize and connect your tech stack, starting with an integrated POS platform . 

In an integrated system, all of the software and tools you’re using to run the business communicate with each other. In fragmented systems, software integrations and apps work independently of each other, which can create a lot of extra and unnecessary work.

“The Lightspeed team including the customer service specialist and developers have helped us build our business to what it is now with ease.” — Aubert Prévost, President of Koeppel Companies, Five Guys Canada

Learn why Five Guys Canada switched to Lightspeed .

The bottom line

Franchise restaurants can be a great business opportunity for both franchisors and franchisees. Lightspeed’s all-in-one cloud-based point of sale system can make running a franchise even easier. Talk to us to learn more.

What is the most popular franchise restaurant?

McDonald’s is by far the most popular franchise restaurant, generating over $118 billion US in sales worldwide in 2023. Its global presence, standardized menu and focus on consistency have made it the world’s most recognizable and successful franchise restaurant.

Which food franchise is most profitable?

In the United States, Chick-fil-A may be even more profitable than McDonald’s on a per-unit basis; its average annual sales per unit significantly surpass those of other fast-food chains. It requires a lower initial investment from franchisees compared to other fast-food chains, but it maintains more control over operations. 

What food restaurants make the most money?

Franchise restaurants that generate the most revenue are those with strong brand recognition and a global presence. With its vast global network of restaurants, McDonald’s is usually at the top of the list in terms of sales, followed by brands like Subway, KFC, Domino’s, Burger King and Taco Bell. 

What is the biggest franchise right now?

With over 39,000 locations across more than 100 countries, McDonald’s remains the biggest franchise in the world in terms of global presence and brand value. Subway comes in second with over 37,000 locations internationally, however this number has been falling year-on-year since 2015.

What is the cheapest food franchise to start?

The investment required to start a franchise varies widely based on many factors, including franchise fees, net worth and liquid asset requirements and rent, so the TL;DR is that it depends. If you’re looking to invest in a national fast food franchise, Subway, Quizno’s, Domino’s and Chester’s chicken are all considered more affordable options compared to a behemoth like McDonald’s. Chick-fil-A requires a considerably lower start-up investment, but there’s a catch . Consider reaching out to current franchisees to learn about their experiences and the true cost of starting and operating the franchise.

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How to Write a Business Plan for Your Franchise This vital step can make the difference between success or failure in the franchise world.

By Clarissa Buch Zilberman Edited by Carl Stoffers May 8, 2023

You're set on becoming a franchisee . You may think it's time to call a franchisor, tell them you're interested, and get funding from your local bank , right? Wrong.

If you're considering buying a franchise, you'll need to write a thorough business plan before moving forward.

A business plan is a detailed document that describes how your business will achieve its goals. Consider it an essential tool for any business owner — including franchisees!

Sound daunting? It can be. But it's a crucial and necessary step in starting your own business. Plus, becoming a franchisee means that the franchisor will provide some of the strategies, plans and overall business information , with some minor tweaks for your specific market.

Here's how to get started.

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

Start with comprehensive research

Before you can begin writing your franchise business plan, you need to gather information about your franchise business . Research the industry, market trends and competitors in the area. You should utilize a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the business, as well.

Next, research the franchisor's history, vision, mission and values . This will help you understand the franchisor's expectations and see if your goals align with the brand. You may have already done a lot of this research when narrowing down your franchise choices .

Related: The 4 Biggest Myths About Franchising

Define your business concept and target market

Your business concept should include details about your product or service , pricing strategy, location, unique selling proposition and market advantages.

Much of this information will be supplied by your franchisor. However, make sure to tweak it correctly for your specific location and audience .

Develop a financial plan

A financial outline is a critical component of your franchise business plan. It should include details about your startup costs, ongoing expenses , revenue projections and profitability.

You should also share cash flow, balance sheets and income statements here. With these documents, you can readily identify any gaps in your business and develop strategies to address them.

Related: 10 Tips to Go From Employee to Boss, From Franchisees Who Did It

Outline your marketing and sales strategy

You may get a headstart from your franchisor on the marketing and sales strategy . This is where you'll want to include more information about your target audience, marketing channels and tactics to promote your business.

From a sales strategy perspective , include your pricing strategy, sales team structure and sales targets that are tailored to your area.

Develop an operations plan

Your operations plan should include details about your day-to-day work, staffing requirements and supplier relationships. You should also outline any technology and equipment needs, inventory management and quality control procedures , some of which your franchisor may dictate.

Create a management team and personnel plan

Your management team and personnel plan should detail the leadership structure of your business, each team member's role and responsibility and the qualifications and experience needed for each position.

You should also outline a staffing plan , which will include your recruitment strategy, employee benefits and training and development programs.

Create an executive summary

An executive summary is literally a summary of your business plan that will provide all the necessary information to someone who only has a few moments to review your business plan. It should summarize the key points of your franchise business plan and research.

Get started by outlining your business plan

A franchise business plan, at the minimum, should include the following sections :

• Executive Summary: This section provides a brief overview of your business, your mission statement, goals and target market.
• Company Description: This section includes more information about your business, such as what you do or sell, your company history and your management team.
• Market Analysis: This section analyzes the market for your products or services, including your target market, competition and competitive advantage.
• Operations Plan: This section describes how your business will operate, including your location, your marketing and sales strategies and management and staffing plan.
• Financial Plan: This section projects your business's financial performance, meaning your revenue, expenses and profit.
• Appendix: This section includes supporting documents, such as financial statements, marketing materials and legal documents.

A business plan will help you succeed

Writing a franchise business plan is a critical step in becoming a successful franchisee . It requires comprehensive research, a well-defined business concept, a solid financial plan, a strong marketing and sales strategy, a detailed operations plan and a competent management team.

Remember: It's a living document, so be sure to update it regularly as your business grows and changes. This will ensure that your plan always reflects the current state of your business.

Tackle a business plan logically and seek help from an expert or your franchisor, as necessary. Then you're off to get your loan, finish your applications and open your doors !

Related: Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.

Entrepreneur Staff

Freelance Writer, Editor & Content Marketing Consultant

Clarissa Buch Zilberman is a writer and editor based in Miami. Specializing in lifestyle, business, and travel, her work has appeared in Food & Wine, Realtor.com, Travel + Leisure, and Bon Appétit, among other print and digital titles. Through her content marketing consultancy, By Clarissa , she leverages her extensive editorial background and unique industry insights to support enterprise organizations and global creative agencies with their B2B, B2C, and B2E content initiatives. 

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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, 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.

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How to Write a Restaurant Business Plan

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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.

Start Your Dream Business

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...

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.

How to Write a Small Restaurant Business Plan + Free Sample Plan PDF

Makenna Crocker

10 min. read

Updated March 18, 2024

Free Download:  Sample Restaurant Business Plan Template

From greasy spoon diners to Michelin Star restaurants, food service has captured the hearts and imaginations of countless culinary entrepreneurs.

In the United States, 90% of restaurant owners operate small restaurants with fewer than 50 employees . And 70% operate in just one location.

If you’re passionate about food and dream of opening a restaurant, you have plenty of company. But cooking skills alone won’t cut it. You need a plan.

In this article, we’ll walk you through writing a small restaurant business plan, from conducting market research to developing promotional strategies and creating a financial forecast. 

Need more guidance? Download our free small restaurant business plan template .

Why write a small restaurant business plan?

Starting a restaurant from scratch isn’t cheap.  Startup costs range from $175,000 to $750,000 and include hefty upfront expenses like:

• Building lease
• Kitchen equipment
• Ingredient sourcing

The financials section of a business plan gives you space to compile these costs into an expense budget and compare them to your revenue projections . These will be invaluable in helping you determine if your restaurant concept is financially viable.

And if you need a bank loan or investor to help fund your restaurant , they’ll want to see a plan that includes financial projections (more on that later).

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• How to write a small restaurant business plan

The business plan is not only where you lay out your plan, vision, and goals for the restaurant – it pushes you to thoroughly research and understand your market , competitors , and customers to make informed decisions. It guides you through the intricacies of opening and running a small restaurant and helps you keep your finances in order.

Here are some tips for writing a small restaurant business plan that sets you up for success.

• Start with a company overview

A good place to start is to think about the big picture. What do you want your restaurant to be? Are you envisioning upscale dining in a candlelit, intimate setting? Or maybe you’re going for comfort food in a family-friendly atmosphere?

Capture the essence of your restaurant with a brief, attention-grabbing overview. Think of the start of your overview section as an elevator pitch. You’re introducing your concept and vision to highlight what will make your business unique .

Just keep it succinct. 

You’ll need to include other important information about your business here, such as the legal structure of your business and the qualifications of you and your management team.

If you’re writing a business for an existing restaurant, you should also cover its history – when the restaurant was founded, who was involved, and milestones it has reached.

• Understand your target market

Conducting a thorough market analysis is key to the success of your small restaurant. In an industry as competitive as the restaurant business, you’ll need to have your finger on the pulse of your dining market if you hope to create a unique offering.

Defining your target market is essential when starting your restaurant, helping answer questions like:

• Is there demand in the local market for your food?
• Who are your primary competitors? 
• Is there building space for lease near where your target customers live or work?
• What types of partnerships with food distributors (wholesalers, farmers, butchers, etc.) will be needed to ensure a steady flow of fresh ingredients?

The first step is to identify who your diners will be. 

It’s unrealistic to try to appeal to every single customer. So, ask yourself who you envision walking through your doors. Are they:

• Adults aged 40 and over, with lots of disposable income and exotic culinary tastes.
• Children, young adults, and families looking for quick, convenient food that doesn’t stretch their budgets.

Of course, these aren’t the only two customer demographics for a restaurant. But you should get the sense that these customer segments have very different preferences.

Read more: Target market example

Understanding your target market involves more than just demographics. Consider their:

• Spending habits
• Daily routines

If you plan to operate in a busy city center, your target market might include working professionals seeking quick lunch options or upscale dining options after work. But if you’re opening in a less visible area near residential neighborhoods, you may be more likely to target families.

• Size up your competition

With a target customer in mind, you need to understand who you’ll be competing with for their dining budget.

Analyzing your competitors is about understanding their strengths, weaknesses, and strategies. 

Start by identifying direct competitors (other small restaurants) and indirect competitors (like fast-food chains or food trucks). Observe how they attract customers, the ambiance they create, and the variety and pricing of their menus.

Get a feel for their operational strategies:

• How much staffing do they have?
• How fast (or slow) is their service?
• What kinds of supplier relationships do they seem to have?

And their marketing tactics :

• How do they engage with customers?
• What deals or promotions do they offer?
• What kind of reviews are they getting online?

Finally, think about their long-term position: 

• Have they expanded or downsized recently?
• Have they changed their operating hours?
• Have they changed their menu?

As you observe these competitors and their customers, ask yourself what they are doing right and where they are coming up short. 

This knowledge will help you identify gaps in the market and opportunities to offer a unique experience.

• Create a detailed operations plan

With so many moving pieces to manage as a restaurant owner, writing an operations plan is just as important as creating a market analysis.

The operations section of your business plan details how your restaurant will function daily. 

It should briefly touch on every aspect of running the business–from staffing needs to how often you will need to buy new ingredients, kitchen equipment, or dining utensils.

Your operations plan will reflect the unique needs of your business, but a typical restaurant operations plan might include:

• Staffing and training: Lay out a staffing plan, with the roles and responsibilities of each team member. Include strategies for hiring, training, and employee retention.
• Equipment and technology: Outline your dining, kitchen, and technology needs, from tables and chairs to ovens and point-of-sale systems.
• Supply chain management: Explain your ingredient sourcing and inventory management strategies and your plan to build relationships with suppliers.
• Customer service policies: Describe how you manage customer service needs and feedback to ensure a positive dining experience.
• Health and safety protocols: Detail procedures for maintaining kitchen hygiene practices and food handling standards to ensure food safety and compliance with health regulations.

Without an operations plan, you’ll lack a documented strategy for managing your kitchen workflow, maintaining customer satisfaction, or even basic tasks like inventory or staffing.

And if you’re writing a business plan to get a bank loan or investment , they’ll want to see that you have a plan for successfully managing the restaurant. 

• Actively market your restaurant

Your small restaurant may serve the most mouthwatering dishes in town, but no one will discover it without effective promotional strategies. 

You need to develop a comprehensive marketing plan to showcase your culinary delights and entice customers through your doors.

Consider both traditional and digital marketing channels to reach your target audience. Traditional methods may include:

• Hosting special events
• Participating in local food festivals
• Partnering with complementary businesses in your community

Digital strategies may include:

• Creating an engaging website
• Building a strong presence on social media platforms
• Utilizing online review platforms to build credibility and foster positive word-of-mouth.

When developing your promotional strategies, consider the following tips:

Be smart about your online presence

Build a visually appealing and user-friendly website that showcases your restaurant’s ambiance, menu, and story. 

Leverage social media platforms to engage with your audience, share enticing food photos, and run targeted advertising campaigns.

Consider promotions

Encourage repeat business by implementing a loyalty program that rewards customers for their patronage. Offer incentives such as discounts to certain customer segments, like seniors, veterans, or students.

Engage with the local community

Participate in community events, sponsor local sports teams or charity initiatives, and establish partnerships with neighboring businesses. 

Becoming an active community member will build brand awareness and loyalty.

Don’t ignore your pricing and financial strategy

According to data from the National Restaurant Association , about 60% of restaurants fail in their first year, and 80% close within five years.

You need to understand your startup and ongoing operating expenses to run a successful small restaurant.

Start by estimating your startup costs , including:

• Site acquisition (down payment if owning the space, initial payment if leasing)
• Building improvements
• Equipment purchases
• Licenses and permits
• Initial inventory
• Menu creation

Then, account for ongoing operating expenses, such as:

• Employee wages
• Mortgage or rent payments
• Ingredient costs

Pricing your menu items strategically is essential to ensuring profitability. Analyze ingredient costs, consider portion sizes, and compare prices in your local market to determine competitive yet profitable pricing.

Conduct a break-even analysis to determine the number of customers you need to serve to cover costs and start generating profits. Regularly review your financials and adjust your pricing as needed to maintain a healthy bottom line.

Consider these financial aspects when developing your small restaurant business plan:

Budget Allocation

Determine how you will allocate your budget across different areas of your restaurant, such as kitchen equipment, interior design, marketing, and staff training.

Prioritize investments that will have a direct impact on customer experience and operational efficiency.

Revenue Streams

Identify multiple revenue streams for your restaurant. This may include revenue from food sales, catering services, private events, or partnerships with local businesses.

Diversifying your revenue sources can help stabilize your cash flow.

Cost Control

Develop strategies to control costs without compromising quality. Efficient inventory management, negotiation with suppliers, and staff training on waste reduction can contribute to cost savings.

Sales Forecasting

Create a sales forecast based on your market research, pricing strategy, and seating capacity. Consider seasonal fluctuations and special events that may impact your restaurant’s performance.

Other information to include in your small restaurant business plan

As a restaurant owner, a few components of your business plan are unique to your industry. 

None of these fit neatly into any one section of a business plan. We suggest addressing them in additional sections or within the appendix .

Restaurant location and layout

Include information about your restaurant’s location . 

Some of this information will be included in your market analysis, but once you’ve secured a location, you should go deeper and analyze factors like:

• Rent and utilities
• Foot traffic
• Parking availability
• Nearby businesses

Explaining the layout of your restaurant – especially your kitchen – is also important. Consider adding photos or diagrams of each room to your plan. 

Diagrams can be especially helpful. You can add in-depth details for seating arrangements in the dining room or how staff should move efficiently throughout the kitchen.

What do many people do before deciding whether to eat at a restaurant? 

They look at the menu.

You can gain or lose customers on the strength of your menu. It affects numerous business areas, from marketing to pricing and operations.

For instance, if you’re running a family-friendly restaurant but your prices are too high, people will see that on your menu and may decide to eat somewhere cheaper. 

On the other hand, if you’re running a fine dining restaurant , but your menu fails to describe your dishes in an appealing way, diners may go somewhere they perceive as having higher quality meals.

That makes the business plan a great place to create menu concepts. 

You can experiment with different offerings, price points, and menu designs until you’re confident about sharing them with customers. 

And since business plans are continuously updated as your business changes—you can see how your menu has changed over time and what’s been most successful.

Download your free small restaurant business plan template

If you’re ready to start a restaurant, you can download our free small restaurant business plan template from our library of over 550 sample business plans . 

Get started today, and discover why businesses that plan grow 30% faster than those that don’t .

More restaurant business plan examples:

• Food truck business plan
• Coffee shop business plan
• Bakery business plan
• Brewery business plan

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

Table of Contents

• Why you need a plan
• Don’t ignore your pricing and financial strategy
• Additional info to include
• Free business plan template

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How to Franchise a Restaurant: A Complete 2024 Guide

Ready to bring your restaurant to the world? Here’s a complete guide on how to franchise a restaurant.

Nick Perry Author

Nick spends 98% of his disposable income at restaurants, which, naturally, makes him an expert on them.

Restaurant Opening and Closing Checklist

The beginning and end of a shift can be frantic. Use this free PDF checklist to set your front-of-house staff up for success.

The most ambitious restaurateurs want to bring their culinary creations to as many people as possible. That means opening more locations . But if you’re especially ambitious and you believe there’s tremendous demand for your food, you may consider franchising .

Many of the world’s most famous restaurants are franchises. A franchise restaurant is owned by a company with the rights to sell the name, branding, business models, and restaurant’s products to individual investors. Naturally, the franchisor supports franchisees with the branding. However, a franchisor may also offer marketing strategies, analytics, staff training, and other corporate elements while the franchisee manages the restaurant’s day-to-day operations. The franchisee pays monthly fees to the franchisor for the brand and the support.

Turning your small restaurant into a franchise is no doubt a big challenge that requires a lot of work and capital. Regardless, it could also significantly raise the revenue potential of your restaurant and help it become a nationally recognized business.

In this article, we’ll explore how to franchise a restaurant, from assessing if your restaurant is ready for franchising to finding the right franchisees.

Opening a Restaurant Checklist

So many things go into opening a restaurant. Use this free PDF checklist to set your new restaurant up for success.

Is Your Restaurant Ready to Franchise?

There’s a reason why there are many more small restaurants than franchise brands. So, how do you know if your restaurant is ready to franchise?

Evaluating the success and stability of your restaurant

The very first step is to determine if franchising fits into your long-term vision for your restaurant. Franchise restaurants tend to have pretty corporate, cookie-cutter, mass-appeal branding. They do that to appeal to as wide of an audience as possible. If you are uncomfortable with what that might do to your charming hole-in-the-wall business, franchising may not be right for you.

Likewise, you should understand if your restaurant really could appeal to a mass market. Consider things like the cuisine, where you’ll begin franchising, and your target market. It may make sense to buy an existing restaurant and transform it into a new location of your current restaurant to test the waters before fully exploring franchising.

Assessing market demand and scalability

Franchise restaurants can only succeed if they have a sufficient number of locations. The cost to operate ten restaurants is likely not worth the modest profit, but that profit grows exponentially as you add dozens or hundreds more locations.

But is there that kind of demand for your restaurant?

When initially scaling your locations, you’ll likely stay local to your region or state. As such, it’s crucial to evaluate the local market to understand customer demands and competition. Performing a thorough market analysis will help you know what and where people like to eat in a certain area. This analysis should also include identifying areas with a high demand for your type of cuisine and few competitors.

In addition to scalability, market research will help you assess the financial potential and growth prospects of the restaurant. As you develop a plan of where to open new locations, conducting a financial analysis will help you determine realistic revenue goals and expectations for each new opening.

The Anatomy of a Successful Franchise

The United States has hundreds of restaurant franchises, so it’s not hard to figure out what makes a successful franchise. Here are some of the core elements you’ll want to emulate.

Developing a unique selling proposition

While McDonald’s Dollar Menu may have been killed by inflation, this value proposition was crucial to making McDonald’s synonymous with affordable. Your franchise might not be able to offer the most affordable options. However, you should be able to bring something unique to the market if you are going to offer it at scale.

Take the time to review your restaurant’s financial statements , including profit and loss statements, balance sheets, costs of goods and services (COGs), and tax returns to get a vivid financial picture. This effort will help you understand which menu items are making the most money, what supplies are costing you too much, and how to save money as you scale to implement a better pricing model for the masses.

A successful franchise is in good financial health (and a single restaurant should be in incredible financial health if you’re even going to consider franchising.) Analyze your restaurant’s cash flow, expenses, and profitability to assess how strong it is performing monthly. Then, use the combination of statements and analysis to determine the business’s financial health with more restaurants.

Establishing solid brand identity and consistency

The Dollar Menu is perhaps one of the best examples of brand identity in the restaurant industry today. McDonald’s knows its customers are looking to dine on a budget.

Developing a restaurant branding strategy is about knowing your customers, what they love about your restaurant, and what they get from your restaurant that they don’t at other places they eat. Your brand identity may be driven by price, aesthetic, identity, or the food itself — the most important thing is creating consistency across all restaurants.

Part of creating consistency is also guaranteeing quality across all of your restaurants. That means frequently assessing the value and condition of equipment, furniture, and fixtures to maintain the food quality and experience at every restaurant.

Likewise, you should identify any outstanding loans, leases, or legal liabilities associated with your brand or individual restaurants to put out little fires before they become big ones. This step will ensure the brand doesn’t suffer from financial or legal issues.

Creating a replicable system

To reiterate the point of consistency, a great franchise provides the same experience no matter where you are. Whether you’re at a location in Florida or Alaska, you can expect to get the same great-tasting food, the same friendly service, and roughly the same experience. That can be a logistical challenge.

To create a replicable system, you need an extraordinarily strong brand and talented employees. You will also need an excellent supply chain in place. Make sure to regularly review contracts with food and beverage suppliers to ensure favorable terms and pricing that become more favorable as you grow, not less. 

It’s also important to determine the transferability of existing contracts or the need to negotiate new agreements as your restaurant grows and changes. This is especially valuable for franchisees who will have to interface directly with suppliers and work under the terms of the franchise’s over-arching contracts.

Just like customers should expect the same dining experience, franchisees should expect the same costs to open a new restaurant under the franchise banner.

Steps to Franchising Your Restaurant

You know what a great restaurant franchise looks like, so now let’s explore how to do it.

Figure Out Legal and Financial Considerations

The first step to starting a franchise is to educate yourself. Do some research to understand franchise laws and regulations as well as the licenses and permits you may need to acquire. You can learn a lot online. Still, it’s a good idea to consult a lawyer before getting serious.

Likewise, it’s valuable to work with financial advisors who have franchising experience. They will explain how franchise finances work, helping you figure out the initial investment needed and what an ongoing royalty structure may look like.

Between a lawyer and financial advisor, you will be able to create a boilerplate franchise agreement to use when bringing in new franchisees.

Choose the Right Franchisees

Speaking of franchisees, you don’t want to trust your brand to just anyone. As part of your business plan , define the criteria you will use to determine the ideal franchise partners. You want to attract franchisees who are good businesspeople and representatives of your brand. People with creativity, experience running restaurants or other franchises, and robust customer service skills are likely ideal candidates.

To find these people, you may need to work your professional network as it’s not exactly a given that franchisees flock to an unproven entity. However, if you have a strong business model and can show success at multiple locations, it will be easier to approach existing franchise owners and other candidates. Eventually, you’ll need to develop a comprehensive screening process for when candidates begin applying organically to become franchisees.

In addition to finding the right franchisees, you must have a support plan in place for franchisees. Determine which responsibilities will fall to the franchisor (you) and which will fall to individual franchisees.

Develop an Operations and Training Plan

One of a franchisor’s most important responsibilities is establishing the operations and training protocols for the rest of the organization to follow. While individual franchisees may vary in how they go about day-to-day maintenance and management, the franchisor should communicate standard operating procedures to franchisees. This lays out expectations for the franchisee to guarantee they’re meeting quality and compliance standards.

Part of that includes creating training programs for franchisees and their staff to educate them not only on basic food handling practices, inventory management , and customer service but also on how to best represent the brand in the workplace and beyond.

The franchisor will also need a human resources department to help manage corporate roles and assist franchisees with onboarding and other personnel management.

Create Marketing and Branding Strategies

As we’ve stated throughout this piece, franchises require outstanding branding if they’re going to resonate in areas all over the country. You’re off to a good start by having a popular restaurant with a few locations as you have some brand recognition and proof that elements of your business are working.

Beyond the basics, though, you need to create a marketing plan that will support rapid scale. When growing a franchise, you need to attract a lot of business relatively quickly to keep the brand viable. From local and national advertising strategies to leveraging the power of digital marketing, great franchises find ways to introduce audiences to their brand in creative, non-invasive ways. Whether it’s TV and radio ads, social media, print, or any other channel, you must create a marketing strategy that maximizes the value of your ad spend.

Proprietary ideas like McDonald’s Dollar Menu, exciting new menu items, highlighting the experience of dining at your restaurant, or any special promotions are all good things to incorporate into your marketing strategy.

Restaurant Franchise Case Studies and Success Stories

There are countless successful franchises in the United States today. From McDonald’s and Burger King to Hilton Hotels and Orangetheory Fitness, there are myriad success stories in the franchising world.

Sonic Drive-In

Competing with the likes of McDonald’s, Burger King, and Wendy’s isn’t exactly an easy battle. Sonic has carved out a niche as the nation’s 4th-largest burger chain by offering lower franchise fees and lower royalty rates than its direct competitors.

In addition to building an attractive product for franchisees, Sonic focused on the drive-in model, becoming the enduring symbol of a historically iconic style of fast-food restaurant. By giving customers greater flexibility and convenience by shopping from and eating in their cars, they save on dining room overhead while providing a unique experience. 

As John Budd - Sonic’s Chief Strategy and Business Development Officer - explained: "The Sonic brand has always been about personalization and customization. Given the breadth of our menu and the five-dayparts we serve, we definitely feel like we have something to everybody."

Jimmy John’s

The burger market is an incredibly competitive one. Yet, franchises like Subway and Jimmy John’s have capitalized on the daily lunchtime crowd by offering bigger and often healthier meals than burger chains at still-competitive prices.

Jimmy John’s is an example of how restaurants responded to changing tastes and burger fatigue. As diners in the 1980s became more health-conscious and concerned about what they were eating, sandwich franchises like Jimmy John’s created a healthier solution that didn’t sacrifice the convenience of a fast food burger chain.

As founder Jimmy John Liautaud says, “You have to live in reality, not in what might happen, but what is happening.”

Dunkin’ Donuts

Dunkin’ Donuts founder Bob Rosenberg opened Open Kettle in 1948 after years of working in factories and coffee shops. He found that the two things workers liked the most were doughnuts and coffee, so he founded a restaurant devoted to doing just that.

In 1950, Rosenberg changed the name to Dunkin’ Donuts. By 1955, he began franchising restaurants. At the time of Rosenberg’s death in 1998, the company had grown to 2,500 locations worldwide despite the emergence of several competitors. Today, Dunkin’ stands as a paragon of takeout testing, being among the first to explore curbside pickup, Beyond meat products, and door-to-door delivery at scale.

Between its willingness to test new ideas in new markets and an aggressive expansion plan in the 21st century, Dunkin’ has grown to be a globally recognized brand with more than 13,000 restaurants in 40 countries.

Rosenberg was famous for saying, “Life will test you, that’s a promise. It’s what you do with the challenges that determine your failure or your success.”

Turning your restaurant into a franchise can yield a significant financial return. However, not all small restaurants are ready to franchise. Your restaurant should have an extremely strong brand and excellent financial health. You will need to develop a thorough strategy to attract the financing and franchisees necessary to start opening new locations at scale. It’s a time-consuming and expensive process. No matter what the future may hold for your restaurant, this guide is your tool to understand how to franchise a restaurant.

Restaurant Opening Calculator

This calculator lays out some of the fundamental financial costs of opening a restaurant, so you can start planning and bring your dream restaurant to life.

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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Fast-Food Business Plan: Essential Ingredients for Success

A smart fast food business plan is a fundamental part of starting and growing your business. Here's how you do it...

A smart fast food business plan is a fundamental part of starting and growing your business. It not only shows lenders and investors the validity of your concept in order to secure funding, but it also serves as a guidepost and map for continued success.

A strong resource to help get you started is available from the U.S. Small Business Administration. This can help you outline the key sections of a traditional business plan . Offering a brief description for each section of a traditional business plan, it recommends using whatever combination of the following sections are best suited to meet your business plan’s needs: executive summary, company description, market analysis, organization and management, product or service line, marketing and sales plan, funding request (if applicable), financial projections, and an appendix of supporting documents.

This process becomes a lot simpler if you have decided to open a fast-casual restaurant as a franchisee, rather than go it on your own. While you still have to build your own business plan to secure financing, one of the biggest upsides to franchising is guidance from the franchisor and access to the brand’s operational best practices.

Executive Summary

You’ve already done a lot of research and planning (or you should have!) before you even sit down to begin constructing your business plan. You’ve considered which offerings your menu will feature, how you’ll stand out among the competition, and much more.

The Executive Summary is your opportunity to tell this story. It should be your “elevator pitch,” summarizing your vision, including everything from where you’ll obtain your ingredients to the atmosphere and service level your restaurant will offer, to the headcount and roles of your staff, to your site selection criteria, and beyond.

Franchising takes the guesswork out of this piece. You still have the opportunity to tell your story, but also include why you have chosen this fast-casual brand and how you plan to succeed as a franchisee.

Company Description

More detail about your vision (or the franchisor’s) for the company goes here.

What demand or niche will your fast food or fast-casual concept answer or fill? Where do your target customers live and work? What do they do? What are their income levels? What site will you select in order to be visible and available to them? Your Company Description should answer all these questions.

You can also explain what types of funding and resources you already have, if any. This may include partial funding as well as planned sweat equity and expertise in foodservice you or a partner have.

Market Analysis

Your Market Analysis should showcase insight from research you’ve conducted of the competition and your market area.

Are you competing with Taco Bell or Chipotle or a couple of independent hamburger shops — or a mix of chains and local dives? Where are they located? What will be the key differentiators of your fast food or fast-casual restaurant? How many people live in the area? What other businesses and workplaces are nearby? Talk again about the criteria for choosing a location (lease terms, square footage, visibility, etc.) or your chosen site/location, if you’ve gotten that far.

If you are working with a franchise, they typically provide you with an overview of what their target markets look like, and, in some cases, a detailed analysis of the markets or territories available to you.

Organization and Management

Most likely, you’ve already considered potential stars for the team you’ll build. Perhaps you’ve chosen a manager who has some experience managing a similar type of restaurant. Maybe you have already secured the commitment or interest of a talented chef to engineer your menu. Emphasize the skills of the people you’ve chosen for high-level roles, and highlight what you expect from managers and employees for both the front and back of the house.

This is also a good spot to briefly discuss which business structure you’ll use, such as a corporation, LLC with other members, or a sole proprietorship. Seek advice from a trusted attorney before making this decision.

Service or Product Line

This section should illustrate that what you’re offering will be special and unique.

What makes your food and beverage offerings stand out from the competition? If your restaurant will utilize unique equipment or processes that your local competitors may not have, share that information. Are there emerging trends you’re exploiting that the place down the street is not? Maybe you’ve even collected feedback from consumers in the area on how other similar restaurants have failed to satisfy, and you have a plan for doing better.

The most successful franchises have built entire brands on recognizing a demand and providing a product or service to meet it.

Marketing and Sales

If you did not do so in the research phase(s) of your preparation, now would be the time to search for market reports that include psycho-demographic data and information about potential customers. This information will help you build a marketing plan that speaks to your target audience.

Understanding the characteristics of your customer base, such as age, gender, online use and presence, media consumption habits, etc. will allow you to determine the most effective social media channels for posting photos of mouth-watering cheeseburgers with limited-time offers, or how to reward customers who download your app.

Again, if you have chosen to go with a franchise, most of the heavy lifting has probably been done. All you have to do is provide an overview in your business plan and work within the guidelines provided.

Funding Request

The funding request should feel natural to the reader at this point; if you’ve made your case persuasively in previous sections. Show them you’ve crunched the numbers wisely — and ask for what you’ll require to get rolling.

Make sure you find out whether or not a franchise brand works with preferred lenders or has strategic partnerships with financial institutions. Many lenders that work with specific brands have already vetted the brand, which can simplify your request for financing and timeline.

Financial Projections

Take this opportunity to reassure potential investors or lenders with a set of data-based projections. You may choose to break down the first year by month, since you’ll incrementally be absorbing startup costs and may not break even within the first year. That’s perfectly normal. But your projections can then show, in detail, when you predict you’ll start to become profitable, and a longer-term forecast of revenue growth projections.

Because it’s best that your previous sections were efficient and relatively brief, in order to keep the reader’s attention, The Appendix is a reference repository for deeper learning. This may include business articles related to the kind of concept you are opening, formation documents, longer bios of key team members, and more.

Coming to this juncture in the journey, preparing the business plan upon which you will build your future and fast-casual restaurant is exciting, but often challenging. Remember to consider all your options before deciding on which path to take.

Opening a franchise location, with the support of an established brand, instead of starting your own concept from scratch, means you won’t have to “go it alone.” Joining a franchise means access to the franchisor’s guidance, systems, and best practices.

Franchise Opportunities with Wayback Burgers

Wayback Burgers offers qualified candidates the opportunity to open and operate a business in the highly sought-after fast-casual sector with a small footprint and a big upside. Currently operating in 30 states and seven countries, the Connecticut-based burger franchise increased its system size by 14 percent in 2018; and has reached 160 locations worldwide.

Wayback offers initial training and ongoing support for all its franchisees and works diligently on finding innovative ways to offer franchisees the opportunity to increase revenue while adding value to the customer experience.

Inquire Now

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Restaurant Franchising 101 An Architect’s Perspective on Things You Need to Know

What to Expect When Designing Your Restaurant

Total franchise establishments have grown 3.5% in 2021 according to FRANdata.   With more business owners looking into the franchise model, MPS Restaurant segment leader Neal Kanipe wrote this article for  Modern Restaurant Management  guiding potential franchise owners through the planning and opening process. Neal’s perspective as an experienced restaurant designer helps him offer useful insights on how prospective owners can maximize their investment and smoothly navigate their way to profitability.

Next, explore the topic even further by reading our white paper.  At McMillan Pazdan Smith, it has been our pleasure to work closely with quite a number of first-time restaurant owners as they’ve set out to establish their own franchise. As we see it, your success is our success.

Read the white paper to learn:

• What kind of first-time franchisor support to expect;
• The importance of schedule from contract to occupancy day;
• The true cost of all professional services required;
• And how to understand your lease, property obligations, and building requirements.

Start a Conversation

If you’re interested in discussing the design of your next restaurant franchise or hospitality endeavor, contact Neal today.

Neal Kanipe

AIA, NCARB, Senior Associate

Hospitality, Retail + Food Service Segment Leader

©2024 McMillan Pazdan Smith Architecture

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Restaurant Franchise Business Plan Template

Keep your brand safe in the hands of a third party with the help of this franchise business plan template especially created for restaurateurs. This file is available for download in Microsoft Word and Mac Pages for your convenience. Edit the highlighted areas as you see fit, then print and discuss the details further with the interested party.

Restaurant Monthly Management Report Template

Restaurant incident report template, restaurant worksheet start-up costs template, restaurant balance sheet template, restaurant balance sheet monthly template, restaurant balance sheet quarterly template, restaurant weekly cost of sales worksheet template, restaurant sales prospecting sheet template, restaurant daily sales plus labor summary template, restaurant inventory turnover ratio template, restaurant overhead rate template, restaurant return on your investment template, this template is a part of package, 1000+ restaurant business designs, forms, templates & documents, all you need to start, grow & run a successful restaurant, click here to access all 5000+ library, powerful template features.

All-in-one Brand Kit to Standardize your Restaurant Business

Why start from scratch try easily editable ready to use templates, forms, designs & documents.

All-in-one Brand Kit to Standardize your Business

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Restaurant Inventory Management: 4 Tips

Inventory management can be a crucial factor for any restaurant’s bottom line. An Investopedia article calls inventory management the process from ordering to selling or using a company’s materials, and they call a company’s inventory one of the most valuable assets. Having too much or too little of an item could end up costing an owner. Therefore, understanding the nuances of inventory management can be crucial for restaurant investment opportunities. Here are four essential tips for effective restaurant inventory management.

1. Obtrain an Restaurant Inventory System

Before you can order or manage your inventory, you need a tracking system. You may want to integrate a restaurant inventory system that tracks your inventory in real time, from the moment an ingredient enters your restaurant to the moment a finished product is sold. Using a food inventory management system can help your business maintain optimal inventory levels, help with forecasting future needs, and prevent excess waste, shortages and excesses. A system utilized correctly may reduce the guesswork of inventory tracking and provide a more clear snapshot of your restaurant’s operational needs.

2. Conduct Inventory Audits

Once you have a system, consistently verifying the efficiency and accuracy of a restaurant inventory management system may help improve your inventory tracking even further. These inventory audits can verify the accuracy of your inventory records and identify any discrepancies that could indicate issues like overstocking, understocking, or even theft.

3. Use a Restaurant Inventory Sheet

A restaurant inventory sheet can be a valuable tool for maintaining detailed records of stock levels, usage rates, theft, and more. Some examples of these inventory sheets even track food waste and help managers or owners see which ingredients are flying off the shelves. This can be a handy way to keep track of inventory that you can reference at any time, and help you pick up on patterns. This standardized approach ensures consistency across all locations, enabling franchisees to monitor trends, identify cost-saving opportunities, and make informed purchasing decisions. Monitoring supplies and ordering efficiently can help contribute to overall efficiency and reduce waste.

Depending on the franchise brand that you decide to invest in, tracking and managing inventory may be located in the franchise training and support materials and information.

4. Make Sure You’re Organized

It can be easy for things to slip through the cracks when items aren’t in their place. Whether it’s napkins, utensils, cleaning supplies, or food, making sure everything is in its place may help reduce waste or excess ordering. A Forbes Advisor article suggests organizing any inventory storage areas, using shelves and labels and assigning items to specific spots. In a restaurant, this could be anything from the freezer to the cleaning closet.

Enjoy Streamlined Inventory with Penn Station East Coast Subs

If you’re looking to get into the restaurant industry, but don’t want to start from square one, Penn Station East Coast Subs may be the opportunity you’re looking for. We strive to provide our franchisees with the support and information they need, including a well-rounded franchisee training and support system along with our manual that details operations — from the menu to restaurant inventory management.

Our comprehensive support includes help and guidance with:

• Site selection
• Restaurant design and construction support
• IT and online ordering
• Operations and training

We’re looking for dedicated franchisees to be a part of the Penn Station family.

Are you ready to get started in the fast-casual market? Request information about Penn Station East Coast Subs today.

  Penn Station, Inc. 1226 US 50, Milford, OH 45150.  Penn-Station.com

OWN A PENN STATION

Interested contact us.

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Feasting on Profitability: The Lucrative World of Franchise Restaurants

Related blogs.

• From Franchise Costs to Profitability: The Ultimate Guide to Opening a Successful Restaurant
• Boost Your Franchise Restaurant's Performance with These 7 KPI Metrics
• 10 Essential Steps to Building a Lucrative Franchise Restaurant Business

What is the initial investment required to open a franchise restaurant like Tasty Daze?

Opening a franchise restaurant like Tasty Daze requires a considerable amount of capital. The total cost may vary depending on location, equipment expenses, and other factors. However, the initial investment required to open a franchise restaurant like Tasty Daze ranges from $350,000 to $1,000,000. This includes the franchise fee, equipment costs, leasehold improvements, initial inventory, and other expenses.

The following are some examples of the initial investment required to open a Tasty Daze franchise restaurant:

• Location: The location of your restaurant can greatly affect the initial investment. For instance, opening a restaurant in a metropolitan city may cost higher compared to opening one in a smaller town. Consider the lease, rent, or purchase cost of the location. Expect to spend about $100,000 to $500,000 on this alone.
• Franchise fee: You will need to pay the franchise fee to Tasty Daze to use their brand name, recipes, and procedures, etc. This fee ranges from $40,000 to $90,000.
• Equipment and supplies: This includes the kitchen equipment, tables and chairs, advertising materials, food, beverage, and office supplies, among others. On average, expect to spend about $100,000 to $250,000 for equipment and supplies.

Tips & Tricks

• Seek advice from other franchise owners before investing. This will give you a better idea of the total investment costs and required support from the franchisor.
• Consider hiring a consultant who specializes in restaurant franchising to help you with the financial planning and getting a better understanding of the franchisor's requirements.
• Before investing, read the franchise disclosure document (FDD) carefully. It contains important information about the company, franchisor, and total investment costs, among other things.

In conclusion, opening a franchise restaurant like Tasty Daze can be quite expensive. It requires careful planning and understanding of the franchisor's requirements. By following the tips and tricks mentioned above, you can better plan the initial investment and increase your chances of success.

Key Takeaways:

• Initial investment for opening Tasty Daze franchise restaurant needs to be assessed.
• Return on investment and breaking even time are important factors to consider for profitability.
• Cost control and effective marketing strategies must be implemented for long-term success.

Can I expect a high return on investment with a franchise restaurant like Tasty Daze?

As a seasoned business consultant with years of experience in increasing profits for businesses, it is safe to say that investing in a franchise restaurant like Tasty Daze can be a smart move, especially if done correctly. However, the actual profitability of the restaurant will depend on various factors that need to be considered before investing.

One major factor that determines the success of a franchise restaurant is the location. A prime location with increased foot traffic can guarantee high returns for your investment. Take, for example, the case of Tasty Daze located near a college campus or a busy mall. Such locations guarantee high returns, as the brand's customer base is likely to expand, and foot traffic is assured.

Another factor to consider is the restaurant's reputation and brand awareness. Investing in a well-established and reputable brand like Tasty Daze has a higher probability of attracting more customers. Additionally, investing in a franchise restaurant with a considerable customer base means that there is a higher chance of repeat business.

Tips and Tricks:

• Look for a franchise restaurant with a proven track record of success.
• Ensure that the franchisor offers reliable support in terms of training, marketing, and management.
• Research the competition to ensure you're not investing in an oversaturated market.

Furthermore, investing in a franchise restaurant comes with the added advantage of not worrying about product development and branding, which are already established. This means that potential investors can concentrate on choosing the right location and marketing strategies to increase foot traffic and profitability.

In conclusion, investing in a franchise restaurant like Tasty Daze can be profitable if done correctly, with a lot of research and consideration involved before making any major financial commitment. Remember to factor in location, reputation, and ongoing support options, among other factors.

How long does it typically take for a franchise restaurant to break even and start making a profit?

• Choose a high-traffic area to open your franchise restaurant;
• Find a way to differentiate yourself from other competitors in the area;
• Develop and maintain a strong social media presence to enhance brand recognition.

In Conclusion

What kind of ongoing costs can i expect as a franchise owner, and how will they impact my profitability.

As a pro business consultant who has worked with numerous franchise owners, I can tell you that ongoing costs are a crucial factor that many franchisees underestimate when investing in a franchise. It is important to understand what ongoing costs you can expect and how they will impact your profitability to avoid making costly mistakes down the line.

1. Royalty Fees: Royalty fees are an ongoing cost that every franchise owner has to pay to the franchisor. This fee is usually a percentage of your gross sales, and it can vary from one franchise to another. For example, a fast-food franchise might charge 5% of gross sales as a royalty fee, whereas a fitness franchise might charge 8%. It is important to factor in these fees while calculating your profitability because they can significantly impact your net income.

2. Marketing Fees: Another ongoing cost that you can expect as a franchise owner is marketing fees. Franchisors usually charge a marketing fee to fund the national or regional marketing campaigns that promote their brand. The marketing fee can be a fixed amount or a percentage of your gross sales. For example, a beauty franchise might charge $500 per month as a marketing fee, whereas a pet care franchise might charge 3% of gross sales. You should factor in these marketing fees while calculating your profitability because they can affect your net profit.

3. Equipment and Supplies: Some franchises require specific equipment and supplies to operate. You will need to purchase these items from the franchisor or a pre-approved vendor, and they can be costly. For example, a printing franchise might require a specific type of printer that costs $10,000, or a cleaning franchise might require special cleaning chemicals that cost $500 per month. You should factor in these equipment and supply costs while calculating your profitability to avoid any unexpected expenses.

3 Tips to Minimize Ongoing Costs:

• Research the franchise's ongoing costs thoroughly before investing in it. Read the Franchise Disclosure Document (FDD) carefully to understand what fees you can expect to pay.
• Try to negotiate the royalty and marketing fees with the franchisor. Sometimes you can negotiate a better deal if you have a strong bargaining position.
• Look for cost-cutting opportunities. For example, you might be able to negotiate a better deal with a different vendor for supplies or equipment.

Overall, ongoing costs are a crucial factor that you should consider while investing in a franchise. You should factor in all the ongoing costs, such as royalty fees, marketing fees, and equipment and supplies costs, in your profitability calculations. By doing so, you can make informed decisions and avoid any unexpected expenses that can negatively impact your profitability.

What kind of marketing and advertising support will I receive as a franchise owner, and how will it impact my profitability?

Marketing and advertising is the backbone of any business, and franchises are no exception. As a franchise owner, you are entitled to receive marketing and advertising support, but the extent and quality of this support may vary depending on the franchisor. The marketing and advertising support you receive can significantly impact your profitability, making it vital for you to understand what kind of support you can expect.

One form of marketing and advertising support that you may receive is brand recognition. As a franchise owner, you benefit from the brand recognition that the franchisor has already established. This means that customers are more likely to trust your business and are more likely to patronize it. For instance, a McDonald's franchise is more likely to attract customers than an unknown burger joint on the same street.

• Choose a franchise with a strong and recognizable brand.
• Ensure that the franchisor has invested in marketing and advertising efforts to bolster the brand's reputation.
• Partner with the franchisor to effectively market your franchise locally.

Another way that marketing and advertising can impact your profitability is by generating leads and customers. Franchisors may offer a range of marketing and advertising materials to help you attract customers and generate leads. Examples of such materials include flyers, brochures, banners, coupons, email marketing campaigns, and social media ads.

The quality and effectiveness of these marketing and advertising materials may affect their ability to generate leads and customers. Effective marketing attracts more customers, while poor marketing fails to have any impact. For instance, an effective email marketing campaign can result in a significant uptick in business, while a poorly conceived one may have no impact at all.

• Ensure that the franchisor offers quality marketing and advertising materials that resonate with your customer base.
• Work with the franchisor to understand the target audience and how to effectively reach them.
• Monitor the effectiveness of the marketing and advertising campaigns to make course corrections and optimize success rates.

In today's digital age, it is imperative that businesses have an online presence. Hence, marketing and advertising in the digital realm is significant. Franchisors may offer support in creating and maintaining websites, social media profiles, and SEO to improve your online visibility.

The effectiveness of digital marketing relies on factors such as website design, strong and relevant content, consistent social media engagement, and search engine optimization. These factors work together to enhance visibility and attract and retain customers. However, poor SEO and social media presence negatively impact your profitability.

• Partner with the franchisor to create a strong and compelling digital presence through a well-designed website, active social media profiles, and updated customer reviews.
• Ensure that the franchisor has invested in search engine optimization, which is critical for online visibility and attracting leads.
• Stay updated with the latest digital marketing trends to enhance visibility and convert leads into customers.

Marketing and advertising is a vital component of any franchise business, and the extent and quality of the support you receive from the franchisor can significantly impact your profitability. Therefore, when considering a franchise, it's crucial to evaluate the quality of the marketing and advertising support that you will receive before investing in the business.

How Can I Ensure That My Franchise Restaurant Remains Profitable in the Long Term?

As a seasoned business consultant who has increased profitability for thousands of businesses in my career, I understand that maintaining long-term profitability can be a challenge, especially during economic downturns and other challenges. However, there are several strategies that franchise restaurant owners can implement to ensure that their businesses continue to thrive, even in the face of adversity.

Tips & Tricks:

• Tip 1: Diversify your menu offerings so that customers can choose from a wide variety of options, and adjust your menu according to the changing tastes and preferences of your target audience.
• Tip 2: Invest in marketing and promotions to attract new customers, and cultivate long-term relationships with loyal patrons through loyalty programs, discounts, special events, and personalized experiences.
• Tip 3: Evaluate your costs and expenses carefully, and seek out ways to reduce overhead, streamline operations, and optimize your supply chain.

One effective way to ensure long-term profitability for your franchise restaurant is to focus on providing exceptional customer service and experiences that keep diners coming back for more. By delivering high-quality food, attentive service, and a welcoming atmosphere, you can cultivate a loyal customer base that will help sustain your business even during challenging times.

In addition to providing exceptional customer experiences, it is essential to stay on top of industry trends and adapt to changing consumer needs and preferences. For example, you may need to adjust your menu options or introduce new marketing strategies to reach younger generations who prefer healthier or more sustainable dining options.

Another key strategy for long-term profitability is to invest in technology and innovation that can help streamline your operations and reduce costs. This may include implementing a point-of-sale system, using online ordering or delivery platforms, or adopting eco-friendly practices that can help reduce waste and lower your carbon footprint.

Finally, it is important to keep your franchise restaurant's financial health in check by tracking your metrics regularly, including revenue, profit margins, customer satisfaction, and employee turnover. By analyzing these metrics and making data-driven decisions, you can ensure that your business remains profitable in the long term.

In conclusion, maintaining long-term profitability for your franchise restaurant requires a combination of exceptional customer service, adaptability, innovation, and financial management. By implementing the strategies outlined above and staying committed to delivering high-quality experiences for your customers, you can ensure the ongoing success of your business even during challenging times.

What strategies can I use to control costs and boost profitability at my franchise restaurant, without sacrificing quality or customer service?

• Tip 1: Analyze your menu and pricing strategy. Take a close look at your menu and determine which items are selling well and which are not. Consider raising prices on popular items to increase profit margins, and removing or re-pricing items that don't sell as well.
• Tip 2: Reduce waste and optimize inventory. Train your staff to be mindful of food waste, and implement systems to track inventory levels and reduce waste. Consider purchasing ingredients and supplies in bulk to save money.
• Tip 3: Increase efficiency and streamline processes. Look for ways to make your restaurant more efficient, such as by optimizing your ordering process, implementing technology to speed up service, or re-arranging your kitchen to minimize movement and maximize productivity.

After examining the question, 'how profitable franchise restaurants are?' It can be concluded that these businesses can be incredibly lucrative. Franchises typically have a well-established brand, a proven business model, and robust support systems in place. This translates to higher success rates and increased profitability for franchise owners compared to starting a brand-new restaurant from scratch.

Additionally, the restaurant industry continues to grow as people prioritize convenience and dining experiences. Franchise restaurants often provide both of these aspects, which can lead to higher sales and profits. However, it is important to note that profitability can vary depending on factors such as location, competition, and management.

Overall, investing in a franchise restaurant can be a wise decision for those looking for a profitable business opportunity. With the right research, funding, and support, franchisees can reap the rewards of owning a successful restaurant while leveraging the benefits of an established brand and business model.

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Restaurant Brands to buy Popeyes China franchise, co-invest in Tims China

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Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shreya Biswas

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Development banks get ratings boost on climate clauses and hybrid bonds

The World Bank and other top development banks got a double boost on Tuesday as Fitch said debt payment freezes for climate-disaster hit countries would not hit the banks' credit rating and it would no longer cap ratings on new 'hybrid' bonds.