Creating a successful restaurant business plan: a step-by-step guide

Are you opening a restaurant? Creating a business plan is high on your to-do list. According to an American study, restaurants that use a business plan are less likely to close within a year, because they increase their margins. Roadmap, profitability tool: find out how to make a success of your business plan in this comprehensive guide.

🤓 Don't miss our article: 8 things I wish I'd known before opening a restaurant!

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How much can your restaurant earn from digital marketing after 3 months? Use our study to find out!

What is a business plan? 

A must in the world of entrepreneurship, a business plan is an accounting document. A veritable compass, it serves as a roadmap for managing a restaurant.

In the restaurant sector, the business plan presents :

• The restaurant concept ;
• Market trends;
• Short-, medium- and long-term objectives ;
• Financial forecasts (sales, margins, profits) ;
• The marketing strategy for attracting customers ;
• Cost structuring (rent, salaries, raw materials, etc.).

According to a Harvard studycreating a business plan before you start would increase your chances of success by 16%.

Simply put: the business plan gives concrete form to your ambitions and sets the course for your restaurant project.

By creating a business plan, you will naturally be able to : 

• Identify your target market (who are your customers, what are their needs, what are the trends in the restaurant business);
• Analyze your competitors (their strengths and weaknesses) and justify how your concept offers a unique value proposition;
• Plan your operations, from menu design to staff management;
• Develop a marketing strategy to attract and retain customers;
• Plan your finances and secure your budget to ensure your profitability over time and define your margins and ratios.

What is the purpose of a restaurant business plan?

From the outset and on a day-to-day basis, the business plan will help you :

• Clarify your project. Lay down your ideas, clearly define your concept, your target customers and your budget;
• Convincing investors and banks. In the eyes of a third party, the business plan testifies to your seriousness and enables you to defend the relevance of your project. It is therefore indispensable for obtaining a loan and/or approaching investors. It is proof that your strategy is sound and that your financial forecasts are viable.
• Anticipate obstacles. A business plan helps you identify potential challenges (competition, seasonality, high costs, inflation) and develop strategies to overcome them.
• Measure your progress. With clear financial and operational objectives, you'll be able to monitor your restaurant's performance, adjusting your actions accordingly to protect your restaurant's sales.

Creating a restaurant business plan step by step

Ready to get down to business?

The classic business plan for a restaurant is as follows: 

• Executive summary
• Company description
• Market research
• Menu
• Personnel management
• Marketing strategy
• Financial forecasts
• Appendices

Executive summary 

The executive summary is the introduction, summary and pitch of your business plan.

62% of investors won't read the rest of a business plan if there's no executive summary!(Source)

An executive summary is essential: 

• It is eagerly awaited by bankers and investors;
• It increases your chances of obtaining financing by 40%;
• It allows you to understand the plan at a glance;
• It summarizes the core of your project.

Our tips for success: 

• Write it last ! Once your project and the figures are clear ;
• The executive summary must be catchy and convincing. Imagine pitching your restaurant idea to an investor;
• Explain in one sentence why your project is unique and differentiating;
• Highlight the most impressive figures, such as sales forecasts.

Restaurant description

It must include : 

• Full name(s) of the owner(s) of the establishment ;
• A brief description of the owner's experience;
• The establishment's official name and address;
• The restaurant's concept (type of cuisine, ambience, "gourmet, mid-range, fast-food" positioning, etc.);
• Possibly a floor plan of the restaurant and/or a "moodboard" of what you imagine in terms ofdecorating ideas.

Tip: for the restaurant description, be concise but very catchy. Emphasize what you offer that's different. For example: "The first 100% vegetarian Vietnamese restaurant in Paris."

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You can copy and paste the format below: 

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Restaurant description 

Restaurant name

Restaurant address

Contact: [restaurant phone number] | [restaurant email]

Owner's name

Owner's experience 

Restaurant legal status

Market research

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Market research is crucial: it provides 3 proofs that your restaurant will be a success.

These 3 proofs are : 

• The target. If there's an offer, there must be a demand! Who are your potential customers? Age range, gender, purchasing power, tastes...

Don't be afraid to put your money where your mouth is. For example: "According to INSEE, 30% of Parisians are vegans and 50% prefer takeaway delivery. That's why our restaurant..."

• The competition: who are they? How will you differentiate yourself?

For example: "in the 13th arrondissement, there are no vegan Asian restaurants. In New York, ahead of food trends, restaurant X with the same offer attracts more than x customers a month."

Analyze 2 types of competitors: neighboring restaurants (those around you) and sister restaurants (those doing the same thing as you). 

• Industry trends: what are the food trends of the moment? And those of tomorrow?

For example: "In 2025, according to study x, the number of vegetarians and vegans in Paris will increase by x percent."

As a restaurateur, location is everything. The location of your establishment changes absolutely everything. A vegan Vietnamese restaurant in the countryside around Orleans, for example, makes less sense than one in Paris. 

The menu

If you're a restaurateur, your menu is at the heart of the project.

Don't panic: your business plan menu is obviously not definitive. Rather, it serves as a typical example.

Above all, give an idea of what you're going to offer, in what quantities (number of starters, main courses, desserts, drinks) and, above all, at what prices.

Setting your prices is essential to anticipate your margins and ratios (average ticket, menu engineering, etc.).

We recommend our article on estimating your restaurant's ideal food cost.

Personnel management 

Along with raw materials, salaries will be your main expense item. 

A healthy ratio is to devote around 25-35% of your sales to staff costs. But don't forget that service is crucial to the success of your restaurant.

Answer the following questions: 

• How many employees will you be hiring? 
• What will their roles be? 
• What kind of contracts will they have (permanent, fixed-term, part-time, extra, etc.)? 
• What will your internal organization look like?

Looking to build a team? Discover how to recruit staff for your restaurant.

Marketing strategy

It's impossible not to have a marketing strategy to promote your restaurant. A shop window is no longer enough!

Estimate your marketing budget: a reasonable ratio is between 5 and 10% of your sales.

Make a list of the essential strategies you want to implement and their objectives: 

• A media strategy ;
• A strategy of influence ;
• Local SEO to reach the top of search results;
• Visit social media to capture and retain your customers.

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💫 To find out more, take a look at our guide to digital restaurant communications !

Financial forecasts

Let's talk numbers! 

The financial plan is one of the most important parts of your business plan. It will enable you to estimate your ideal profit margin.

It proves the economic viability of your project. A banker or investor will spend time on this part.

List in tabular form :

• The financing plan: credit or investments to cover your start-up costs and day-to-day expenses;
• Budget forecast: estimate your opening costs (works, equipment, initial stock) and operating expenses (rent, salaries, raw materials). 
• Forecast sales;
• Break-even point: i.e., when will your restaurant be profitable? 

Now that your business plan is complete, you have : 

• Lay down all the ideas for your restaurant (concept, target, team, menu, etc.);
• Answers to all the questions an investor or banker could ask you.

💪 Now all you have to do is get started!

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Final tip: don't miss out on AI (Artificial Intelligence) to make your restaurant profitable! We explain how👇

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