Fillable Printable Restaurant Business Plan Template
Fillable Printable Restaurant Business Plan Template
Restaurant Business Plan Template
R
ESTAURANT
B
USINESS
P
LAN
(C
OMPANY
N
AME
)
(C
OMPANY
N
AME
)
(S
TREET
A
DDRESS
)
(C
ITY
,
S
TATE
Z
IP
C
ODE
)
(C
REATION
D
ATE
)
Here's Your FAST Sample Business Plan
This Restaurant Business Plan has been written to use a starting point for developing your own
business plan. You are free to edit and use this business plan and its contents within your
organization; however, we do ask that you don't distribute this business plan on the web without
explicit permission from us.
Restaurant Business Plan
2
Non-Disclosure and Confidentiality Agreement
The undersigned (‘Recipient’), hereby agrees that all financial and other information
(“Information”) that is has and will receive concerning FastBusinessPlans.com is confidential
and will not be disclosed to any other individual or entity without prior written consent.
The Information shall remain the property of FastBusinessPlans.com and shall be returned to
FastBusinessPlans.com promptly at its request together with all copies made thereof.
Recipient acknowledges that no remedy of law may be adequate to compensate
FastBusinessPlans.com for a violation of this Agreement and Recipient hereby agrees that in
addition to any other legal or other rights that may be available e in the event of a breach
hereunder, FastBusinessPlans.com may seek equitable relief to enforce this agreement in any
court of competent jurisdiction.
__________________ __________________________
Date Signature of Recipient
Restaurant Business Plan
3
T
ABLE OF
C
ONTENTS
1.0
Executive Summary ........................................................................................................... 5
1.1
Business Objectives ..................................................................................................................................... 5
1.2
Mission Statement ........................................................................................................................................ 5
1.3
Guiding Principles ........................................................................................................................................ 6
1.4
Keys to Success ............................................................................................................................................ 6
2.0
Company Description ........................................................................................................ 6
2.1
Ownership .................................................................................................................................................... 7
2.2
Legal Form ................................................................................................................................................... 7
2.3
Start-Up Summary ....................................................................................................................................... 7
2.4
Location and Facilities ................................................................................................................................. 7
3.0
Services................................................................................................................................ 8
3.1
Daily Operations and Production ................................................................................................................. 8
3.2
Competitive Comparison ............................................................................................................................. 8
3.3
Suppliers ...................................................................................................................................................... 9
3.4
Management Controls .................................................................................................................................. 9
3.5
Administrative Systems ............................................................................................................................. 10
3.6
Future Services ........................................................................................................................................... 10
4.0
Market Analysis ............................................................................................................... 10
4.1
Industry Analysis ....................................................................................................................................... 11
4.1.1
Market Size ............................................................................................................................................ 12
4.1.2
Industry Participants .............................................................................................................................. 12
4.1.3
Main Competitors .................................................................................................................................. 12
4.1.4
Market Segments ................................................................................................................................... 13
4.2
Market Tests ............................................................................................................................................... 14
4.3
Target Market Segment Strategy ................................................................................................................ 14
4.3.1
Market Needs ......................................................................................................................................... 14
4.3.2
Market Trends ........................................................................................................................................ 14
4.3.3
Market Growth ....................................................................................................................................... 15
4.4
Positioning ................................................................................................................................................. 15
5.0
Marketing Strategy and Implementation ...................................................................... 15
5.1.1
Strengths ................................................................................................................................................ 16
5.1.2
Weaknesses ............................................................................................................................................ 16
5.1.3
Opportunities ......................................................................................................................................... 16
5.1.4
Threats ................................................................................................................................................... 16
5.2
Strategy Pyramid ........................................................................................................................................ 17
5.3
Unique Selling Proposition (USP) ............................................................................................................. 17
5.4
Competitive Edge ....................................................................................................................................... 17
5.5
Marketing Strategy and Positioning ........................................................................................................... 18
5.5.1
Positioning Statement ............................................................................................................................ 18
5.5.2
Pricing Strategy ..................................................................................................................................... 18
5.5.3
Promotion and Advertising Strategy ...................................................................................................... 19
5.5.4
Website .................................................................................................................................................. 19
5.5.5
Marketing Programs .............................................................................................................................. 19
5.6
Sales Strategy ............................................................................................................................................. 19
5.6.1
Sales Forecast ........................................................................................................................................ 20
5.6.2
Sales Programs ....................................................................................................................................... 20
Restaurant Business Plan
4
5.7
Legal .......................................................................................................................................................... 20
5.8
Milestones .................................................................................................................................................. 20
5.9
Exit Strategy ............................................................................................................................................... 21
6.0
Organization and Management ...................................................................................... 21
6.1
Organizational Structure ............................................................................................................................ 21
6.2
Management Team ..................................................................................................................................... 21
6.3
Management Team Gaps ............................................................................................................................ 21
6.4
Board of Directors ...................................................................................... Error! Bookmark not defined.
7.0
Financial Plan ................................................................................................................... 22
7.1
Important Assumptions .............................................................................................................................. 22
7.2
Start-Up Costs ............................................................................................................................................ 23
7.3
Source and Use of Funds ............................................................................................................................ 24
7.4
Break-Even Analysis .................................................................................................................................. 25
7.5
Projections .................................................................................................................................................. 27
7.5.1
Projected Profit and Loss ....................................................................................................................... 27
7.5.2
Projected Cash Flow .............................................................................................................................. 28
7.5.3
Projected Balance Sheet ......................................................................................................................... 30
7.6
Business Ratios .......................................................................................................................................... 30
7.7
Hourly Labor Schedule .............................................................................................................................. 32
7.8
Weekly Sales Projections ........................................................................................................................... 33
Restaurant Business Plan
5
1.0
Executive Summary
The Traditional Home-Style Restaurant (“THR”) will be a moderately priced 86 seat restaurant
offering family style food and service. Broasted chicken, pot roast, steaks and pork chops along
with classic hamburgers, wraps and generous salads are all on the menu. We will offer specialty
selections including a lighter options and smaller portions for a children’s menu.
The restaurant will be family owned and operated by Jeff and Betty Wright. Together they have
over 25+ collective years experience in the restaurant and catering industry.
The Wrights will be leasing a 3,400 square foot space located at West Roads Shopping Center,
an existing retail center located in Benbrook, a suburb in Fort Worth, Texas. The site was
previously leased as an Italian Restaurant. Although the location was previously utilized as a
restaurant, the former tenant removed the majority of the furniture, fixtures and equipment which
will need to be replaced. The location will also require some additional renovation to update the
lavatories and increase table space in the dining area.
The décor will feature wood accented chairs with blue and white checked table cloths. Dinner
style tables will be surrounded by wooden chairs with comfortable seating cushions.
Sales projections assume 1700 customers per week resulting in weekly sales of just over
$19,777, or $1,028,000 annually. This equates to around $302 per square foot in sales annually
which positions THR as a highly desirable concept for ownership in a table service market where
$200 to $325 per square foot is considered moderately profitable and therefore a good
investment. Total start up costs will be $363,000, $174,000 of which will be contributed by the
owners and the remainder will be secured by a proposed bank loan.
1.1
Business Objectives
The primary objectives of the business plan for Restaurant are below:
•
To be the premier home-style restaurant in western Fort Worth, Texas
•
To provide quality meals at reasonable prices with exemplary service
•
Achieve Cover ratios of 1.00X at each lunch and dinner serving
•
To achieve Prime Cost Ratios lower than 65%
1.2
Mission Statement
Our Mission is to provide a unique and relaxing dining experience – similar to dining at
home. We will strive to achieve this goal by: 1) by providing menu items incorporating
quality ingredients at reasonable prices, and 2) we will be mindful of the well being of our
customers and staff– treating each and everyone with dignity and respect – just like we
would at our own home!
Restaurant Business Plan
6
1.3
Guiding Principles
1.
Being Mindful of our Customers and our Staff
Coinciding with our family values, we will treat both our customers and staff in a
manner in which we ourselves would want to be treated (or better!)
2.
Gratitude
“An attitude of gratitude” shown to our customers, employees and vendors – because
without their input, service, labor and time, our business would not be here without
them!
3.
Our Service
Provide the warm and friendly service expected from a family-style restaurant
creating an informal, comfortable environment which will make the customers
satisfied and want to return again and again.
1.4
Keys to Success
•
Repeat business
•
Hire top notch chefs and offer training to keep the chef on top of his/her game, and pay
top wages to ensure they stay with us.
. Every customer who comes in once should want to return, and
recommend us. Word–of–mouth marketing is a powerful ally.
•
Location
•
A variety of menu offerings with a “down home” theme, reasonably priced to establish
credibility, but not so high as to limit customers.
. Convenience is essential to us; we need to be close to our market because we
are not trying to get people to travel to reach us.
2.0
Company Description
The Traditional Home-Style Restaurant will be located 7950 Camp Bowie West Blvd, Fort
Worth, Texas. The restaurant will be wholly owned and operated by Jeff and Betty Wright. The
restaurant will serve a variety of classic home-style favorites from pot roast and mashed potatoes
to patty melts and vanilla ice cream.
The restaurant will be open 7 days a week with hours as follows:
Monday 11:00 am – 9:00 pm
Tuesday 11:00 am – 9:00 pm
Wednesday 11:00 am – 9:00 pm
Thursday 11:00 am – 9:00 pm
Friday 11:00 am – 10:00 pm
Saturday 11:00 am – 10:00 pm
Sunday 12:00 pm– 5:00 pm
Restaurant Business Plan
7
2.1
Ownership
The restaurant will be owned by Jeff Wright. Jeff began his restaurant career at the age of
15 working in a quick-service foodservice operation and earned his way through college as
a server and bartender. After earning his degree, he worked for a regional restaurant chain
and an independent fine dining restaurant. In these organizations he held the positions of
Assistant Manager and then General Manager.
Betty Wright received her Culinary Degree from the Art Institute in Dallas
. After
graduation she was employed by a local chain restaurant and then at a Five Star Hotel in
Dallas. Betty will be employed as the Kitchen Manager.
With the high turnover of help for startup restaurants, we will rely on family to fill in where
required until we are off the ground and making a profit.
2.2
Legal Form
THR will be organized as a sole proprietorship, wholly owned and operated by Jeff Wright
d/b/a Traditional Home-Style Restaurant. THR is registered in the state of Texas a
community property state.
2.3
Start-Up Summary
The cost to open the restaurant is $363,000. The majority of the expenses are in furniture
fixtures and equipment totally $110,000. The location requires some build-out and
renovation totally $50,000 and will require approximately 30 days to complete. The
Wrights will sub-contract the work themselves.
$175,000 of the start-up costs will be funded by the owners. The owner’s source of funds
is a combination of liquid assets and marketable securities, primarily from their existing
catering business.
2.4
Location and Facilities
The 3,400 square foot restaurant will be located in a West Roads Shopping Center, a retail
strip center located in the Benbrook suburb of Fort Worth, Texas. The restaurant is located
in a major traffic area, at the intersection of Camp Bowie and Cherry Road.
Benbrook, a suburb of Fort Worth, Texas, has a population of over 51,000 according to the
2010 U.S. Census Report. The residential population in the immediate area is comprised of
a mixture of single family and multi-family housing. The median household income is
$46,532. Major employers include Union Pacific and Bank of America.
Restaurant Business Plan
8
3.0
Services
3.1
Daily Operations and Production
THR will be open 7 days a week for lunch and dinner requiring multiple shifts. Jeff will
write the schedules. The schedules will be written in a manner that will allow the ability to
increase or decrease hourly labor according to sales volume in order to maintain a
consistent labor cost control.
Proper labeling and rotation techniques, accompanied by ample storage facilities will
ensure that high quality prepared product will be sufficiently available to meet the demands
during peak business hours. Replenishment and ongoing preparation will continue during
off peak business hours.
Jeff Wright will be responsible for ordering, receiving and maintaining sufficient inventory
to meet production demands. Ordering schedules will be staggered with perishable
products being ordered multiple times per week to preserve freshness. Standard grocery
and supply orders will be ordered less often, according to a predetermined schedule and
storage capacity.
Mr. Wright will rely on operational checklists to verify that each work shift has been
properly prepared for and to insure the operational standards are followed before, during
and after work shifts.
The restaurant layout, including the dining room, kitchen and serving line, has been
designed for efficiency and flexibility to accommodate the fluctuation in customer traffic
and peak meal periods.
Upon arrival, guests will be greeted immediately by either the assistant manager or a server
and asked for the seating preference. Drink orders will be taken and guests can munch on
our complimentary rolls. Once the customer’s order is taken, the order will automatically
be printed to a requisition printer located in the grill area. The grill cook will use the
printed ticket to keep track of orders and place the meal under the heating lamps until the
order is complete. The kitchen preparation line has been designed to be operated by a
minimum staff of 1 line cook and a maximum of 4 cooks. This design allows line staffing
to be adjusted to the business volume. Shift changes for all staff will involve cleanup,
restocking and preparation. All monies will be settled at the end of each shift. The closing
shift will involve designated closing duties that will leave the restaurant clean and fully
prepared for the next day.
3.2
Competitive Comparison
The US restaurant industry includes about 480,000 restaurants with combined annual
revenue of about $400 billion. Major companies include Brinker International which owns
Chili’s Grill & Bar) and Maggiano’s, Ruby Tuesdays McDonald's; YUM! Brands (KFC,
Restaurant Business Plan
9
Pizza Hut, Taco Bell); and Darden Restaurants (Olive Garden, Red Lobster). The industry is
highly fragmented: the 50 largest companies hold just 20 percent of the market.
Local competitors within a five mile radius are as follows.
•
Hedarys Restaurant - This is a full service family restaurant established in 1977. The
5,000 SF restaurant run as a sole proprietorship, has 17 employees and generates $1.7
million in revenue annually. Prices are higher than THR and range from $8.00-$20 per
entrée.
•
Applebee’s - this is a chain restaurant offering standard fare. The food quality is average.
Entrées range from $6.99 - $20.
•
Chili’s – this is a chain restaurant also offering standard fare. Food choices are varied
and prices range for $8-$21.
•
Barbeque Ben’s – This is sole proprietorship offering primarily barbeque item. Although
the food offering does not compete directly with the subject, the restaurant targets the
same neighborhood families and has been operating at the single location since 1978.
Entrée range from $8.99-$12.
•
Cracker Barrel – located along Interstate 30, the restaurant is not located within the
target market area. However due to its menu offering of home comfort food, the
restaurant attracts a similar market, although Cracker Barrel’s attract the tourist business
as well. Entrées range in price from $7.99-$14.
3.3
Suppliers
Because of their years of experience combined with their existing catering business, Jeff
and Betty Wright have established relationships with qualified suppliers. These suppliers
can provide reasonably priced products, delivered according to the schedule.
3.4
Management Controls
The Wrights will practice sound management procedures in order to control costs, insure
quality of product and provide friendly customer service. The following systems will be
used by management:
Order Guide: The restaurant will use an item specific order guide to track order history
and maintain designated levels of product in inventory.
Weekly Inventory: Management will conduct a weekly inventory to determine valuation
for use in the preparation of weekly profit and loss reports.
Daily Inventory Tracking: Daily inventory will be taken on specific items. Movement
will be compared to sales data to ensure designated products have been properly accounted
for.
Restaurant Business Plan
10
3.5
Administrative Systems
With a limited staff, it is crucial that the Wrights remain current with daily cash outlay.
The purchase of a POS system will immensely help them with these daily administrative
reports:
Daily Cash Control
.
Sales and receipts recorded by the POS system will be compared to
actual cash and credit card deposits on a daily basis. Acceptable over/short amounts will be
limited to $5.00 per day. Discrepancies greater than $5.00 will prompt management to
conduct an immediate audit to account for the difference. Monthly totals will be compared
to actual P&L statements for accuracy. Cash, debit card and credit card receipts will be
deposited in a deposit.
Weekly Prime Cost Report. Jeff Wright will prepare a weekly report that shows the gross
profit margin after cost of goods sold and labor cost has been deducted from the sales
revenue. The prime cost for this type of restaurant is expected to range from 60% to 65%.
Proper control of the prime cost is the single most effective measure of management’s
ability to operate the restaurant
.
Purchasing Records/Payables. A part time bookkeeper will process and record invoices
and credits daily. Reports detailing cash expenditures, payments by check, and accounts
payable transactions will be readily available. Check disbursements will be prepared by the
bookkeeper. Check signing authority for the general operating account will be given to the
general manager.
Payroll Processing. Payroll checks will be issued bi-monthly. Jeff Wright will run reports
from the time & attendance system, make necessary adjustments, and prepare for transfer
to the payroll system. Payroll will be processed by a payroll processing service.
3.6
Future Services
THR has future plans to provide catering services for family reunions, weddings and other
events desiring a “home-style” menu. This could potentially become a large portion of
gross sales. The Wrights are targeting Year 2 and at that point, a sales agent would be
hired to directly market the products for daily delivery or catered functions.
4.0
Market Analysis
The restaurant industry is a large and diverse business: Restaurant-industry sales are forecast to
reach $580.1 billion in 2010 – an increase of 2.5 percent over 2009. Restaurant-industry sales
are projected to total $604 billion in 2011 and equal 4 percent of the U.S. gross domestic
product. The overall economic impact of the restaurant industry is expected to exceed $1.7
trillion in 2011. On a typical day in America in 2010, more than 130 million people will be
foodservice patrons. Sales at full service restaurants reached $184.2 billion in 2010. Sales at
limited service restaurants increased to $164.8 billion in 2010, while snack and non-alcoholic-
beverage bar sales rose to $24.7 billion. (National Restaurant Association).
Restaurant Business Plan
11
The US restaurant industry includes about 480,000 restaurants with combined annual revenue of
about $400 billion. Major companies include McDonald's; YUM! Brands (KFC, Pizza Hut, Taco
Bell); and Darden Restaurants (Olive Garden, Red Lobster). The industry is highly fragmented:
the 50 largest companies hold just 20 percent of the market. (First Research).
The industry consists of full-service restaurants (FSR) and limited service eating places, which
include quick-service restaurants (QSR); cafeterias; buffets; snack bars; and nonalcoholic
beverage bars. (First Research)
4.1
Industry Analysis
This analysis is based on the Standard Industry Code (“SIC”) 5812: Eating and Drinking
Places Establishments primarily engaged in the retail sale of prepared food and drinks for
on-premise or immediate consumption. It is also based on the North American Industry
Classification System (“NAICS”) 722110 - Full-Service Restaurants.
This industry comprises establishments primarily engaged in providing food services to
patrons who order and are served while seated (i.e., waiter/waitress services) and pay after
eating. These establishments may provide food services to patrons in combination with
selling alcoholic beverages, providing carry out services, or presenting live nontheatrical
entertainment.
Demographics, consumer tastes, and personal income drive demand. The profitability of
individual companies can vary: while QSRs rely on efficient operations and high volume
sales, FSRs rely on high-margin items and effective marketing. Large companies have
advantages in purchasing, finance, and marketing. Small companies can offer superior
food or service. The industry is labor-intensive. (First Research)
Wages form a significant proportion of operating costs. The existence of a statutory
minimum wage in most states increases the need for players to keep other costs as lean as
possible, which in turn increases the importance of suppliers. A slight complication is that
in some states, foodservice employers are able to treat tips received by their staff as
contributing to their wages; in such states, this policy reduces the impact of the minimum
wage from the employers' perspective. (Data Monitor)
Annual revenue per worker is less than $50,000.
Restaurants compete with companies that serve meals or prepared foods, including grocery
stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete
with home cooking.
Among FSRs, most establishments focus on Italian cuisine, steak, or seafood. Hamburger
joints make up a majority of QSR locations, along with pizza parlors and sub sandwich
shops. Industry revenue is roughly evenly split between FSRs QSRs.
