Many of the restaurants that open every day are a culmination of someone’s dream. The owners turned their passion for food and entertaining into a business. However, the dream is usually very different from reality. Low profits, long hours, and intense stress are just some of the reasons why restaurants close shop all the time.
One reason why restaurants fail is their owners treat it as less a business and more of a passion project. They often fail to appreciaate the real costs of opening and running a restaurant and are unable to deal with problems and unexpected expenses that pop up every day. If you are looking for a restaurant business opportunity, it is not enough to have a passion for the business. You also need a proper plan.
1. Formulate your restaurant identity
Your restaurant should have a clear sense of identity. Your customer should be able to identify right away what kind of restaurant it is and what type of food to expect. Without a focus, you will find it more challenging to attract and retain customers. In the business plan, you should state right away your concept, why you chose that particular concept, and why you think it is the right one.
For instance, are you aiming for a casual, fine dining, fast food restaurant? Each restaurant type has pros and cons, and it all depends on the kind of food you are selling and your brand identity. Do not spare any details when explaining the style and concept.
You should also talk about the food. What cuisine are you trying to sell? How familiar are you with your chosen cuisine? What dishes do you want to serve? Are you looking to serve traditional food, or do you have a flair for experimentation? These are just some of the questions that you should be able to answer.
2. The mission statement
Lead with your restaurant’s mission statement. What are you trying to achieve? The mission statement is your restaurant’s guiding star. The roots begin from the statement, and you will be able to gauge your restaurant’s growth better if you know what metrics you are looking for.
3. Writing the menu
The menu is the soul of the restaurant and brand, so you should be able to convey your restaurant’s concept and execution through the menu’s composition and design.
Your business plan should have a menu mockup, including all the dishes you are planning to serve, pictures, and even prices. Hire a designer to ensure your menu looks professional and appealing. The costing is crucial because it gives your investors an idea of your restaurant’s price point and how you are going to earn a profit.
4. The competition
You should be able to identify your competition if you want to be able to defeat them. In this portion, talk about how you are going to differentiate yourself from other restaurants. You should be able to explain how your competitors do their business and how to set yourself apart.
Your restaurant’s business planallows you to understand better what you are trying to achieve and how you are going to achieve it. Always refer to it when making significant decisions that will affect your restaurant. It also gives you an idea of what path to follow and how to reach your goals.