10 valuable points for making a business plan for a restaurant

Importance of making a business plan

Jesper Sando Mork I Luxzas Hospitality Solutions

9/15/20241 min read

Do you have a business Plan?

10 valuable points for a business plan

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  1. Secure Funding
  • Estimate Costs: Include expenses like lease, equipment, licenses, payroll, and initial inventory.

  • Funding Sources: Explore loans, investors, personal savings, or grants.

  • Break-Even Analysis: Determine how much revenue is needed to cover costs.

  1. Secure a location
  • Demographics: Ensure the location aligns with your target audience.

  • Foot Traffic: Look for areas with high visibility and accessibility

  • Zoning Laws: Ensure the location complies with local zoning and building codes.

  1. Create a business plan
  • Concept Development - Define your type of restaurant, target market, menu, and dining experience.

  • Market Research: Study the competition, customer preferences, and location demographics.

  • Financial Plan: Project startup costs, operating expenses, and revenue forecasts.

  • Menu Development: Design a menu that aligns with your concept and target audience.

  1. Register the Business and Obtain Licenses
  • Business Registration: Choose a business structure (e.g., Limited Partnership) and register the business.

  • Licenses & Permits: Obtain necessary permits like a food handler’s license, health department permits, and a liquor license if applicable

  • Tax ID & Insurance: Apply for an Employer Identification Number (EIN) and get general liability and property insurance.

  1. Design the Restaurant Layout
  • Kitchen Layout: Optimize for workflow efficiency

  • Dining Area: Create an inviting atmosphere that matches the restaurant concept.

  • Compliance: Ensure the space meets health, safety, and accessibility regulations.

  1. Source Equipment and Vendors
  • Purchase Equipment: Invest in quality kitchen appliances, furniture, and fixtures.

  • Supplier Agreements: Establish relationships with food and beverage suppliers.

  1. Hire & Train Staff
  • Recruitment: Hire chefs, servers, managers, and kitchen staff.

  • Training Programs: Provide training on customer service, food handling, and operational procedures.

  • Payroll and HR: Set up a payroll system and manage employee benefits and labor laws.

  1. Develop a Marketing Plan
  • Brand Identity: Design a logo, create a website, and set up social media profiles.

  • Promotions: Plan a marketing strategy with promotions, events, or opening specials.

  • Online Presence: Use digital marketing, review platforms (e.g., Tripadvisor), and local SEO to drive traffic.

  1. Pass Inspections and Obtain Certifications
  • Health Department Inspection: Ensure the restaurant passes health and safety inspections.

  • Fire Department Approval: Get the fire department to approve fire safety measures.

  • Food Safety Certifications: Ensure staff have proper food safety training and certifications.

  1. Plan the Soft and Grand Openings
  • Soft Opening: Invite a small group to test operations and gather feedback.

  • Grand Opening: Plan a public event with promotions to attract customers and build awareness.