Restaurant Business Plan

1. Restaurant Business Plan http://www.virtualrestaurant.com/sample.htm http://www.networksolutions.com/smallbusiness/wp-content/uploads/Guide_to_Writing_a_Killer_Business_Plan.pdf

2. Company Description Many times with a business plan it is good to have a 1‐2 page section on the basics of the company. This section is good in some cases to answer what your company does and the problems it is fixing. The “Company Description” section is also a great place to discuss vision and overall goals. Think of it like a birds‐eye view of the company as it currently exists and where you envision it to be in the future.

3. Company Description Continued Mission – What are the guiding vision points for this company? Company Description – This is a paragraph or two that is the core message and history of the company and if people read only this they should get what you are trying to do. • Goals and Objectives /Future Plans‐ This is the place for major milestones including revenue, customers and other important metrics. List out the goals of your business (short, mid, long term). • Company History – This is where you get to tell a bit of a story: How you came up with the idea, is there any personal history with this concept, who are the owners, etc. • Company Highlights – If you have been around for a while and have some great accomplishments this is a wonderful place to highlight it and demonstrate the track record of the business. If you are a new company (like you are), discuss what makes you unique from your competition and/or discuss why I should invest in your restaurant.

4. Industry Analysis Begin with an overview of the industry. Provide statistics and historical data about the nature of the industry and growth potential for your business based on economic factors and conditions. This section should not be longer than eight lines. List the major competitors in your industry with a brief summary of their operations and similar products or services. This section can be broken down into sections, with three to four lines per business. Provide a forecast for your industry. Compile economist data and industry predictions for the next five, 10 and 20 years. This may include graphs of statistical data to better convey the message. Restaurant Trends. List potential stumbling blocks. Write a brief paragraph about factors that might negatively impact your business and what you foresee in the short-term and long-term future.

5. Industry Analysis Continued http://www.restaurant.org/pdfs/research/state/connecticut.pdf http://www.nytimes.com/2013/01/02/dining/after-crispy-pig-ears-10-trends-for-2013.html?ref=dining&_r=0

6. Target Market The target market section of your business plan must clearly identify the current and prospective buyers of your Company’s products and/or services. Your goal in preparing the target market section is to demonstrate to readers that you clearly understand who your customers are and how your products/services directly meet the needs of the marketplace. Properly identifying your potential customer base also helps to drive overall marketing and sales strategies that you will include within other sections of your business plan.

7. Target Market Continued Geographic/location: Where are your customers located? While technology has made location less of an issue for many companies, it doesn’t mean you should overlook the importance of defining the geographic location of your customers. Clarifying these issues also helps to ensure that your marketing and sales strategies/budgets properly match your goals to capture market share. Market Size: How large is your target market? 10 million potential consumers ready to purchase your product? Or a small handful of very large target customers? Look at the competition. Look at the population of your current location. Demographics: The demographic traits of your customers often vary: Consumer - Income, Age, Occupation, Gender, Single/Married, Ethnic Group, Education

8. Target Market Continued http://darienct.areaconnect.com/statistics.htm http://quickfacts.census.gov/qfd/states/09/09001.html

9. Marketing Plan When writing the business plan, the Marketing Plan section explains how you're going to get your customers (target market) to buy your products and/or services. You need to constantly refer to who your target consumer is in order to write an effective marketing plan. Remember the 5 P’s discussed in class

10. Marketing Plan Continued 1. People: This is your target consumer. Briefly discuss what was previously stated in the target market section. Just summarize.

11. Marketing Plan Continued • 2. Product: This part of the marketing plan focuses on the uniqueness of your product or service, and how the customer will benefit from using the products or services you're offering. Use these questions to write a paragraph summarizing these aspects for your marketing plan: • What are the features of your product or service? • How will your product or service benefit the customer?

12. Marketing Plan Continued 3. Price: The pricing strategy portion of the marketing plan involves determining how you will price your product or service; the price you charge has to be competitive but still allow you to make a reasonable profit. Your prices should be competitive with your competition. You don’t need to price every component of your menu just discuss the overall pricing strategy and CONSTANTLY REFER TO YOUR TARGET MARKET

13. Marketing Plan Continued 4. Place: This was already discussed in a previous section. Just explain the location of your restaurant and tell the reader to refer to the target market section for statistics.

14. Marketing Plan Continued • 5. Promotion: this is the focus of the marketing plan section. Essentially the promotion section of the marketing plan describes how you're going to deliver your Unique Selling Proposition to your prospective customers. • So think first of the message that you want to send to your targeted audience. • What percentage of your annual advertising budget will you invest in each of the following: • the Internet • television • radio • newspapers • magazines • telephone books/directories • Billboards • bench/bus/subway ads • direct mail • cooperative advertising with wholesalers, retailers or other businesses

15. Marketing Plan Continued • Promotion: • Your Business' Web Site: Discuss whether you will have a website • Sales Promotion - If it's appropriate to your business, you may want to incorporate sales promotion activities into your advertising and promotion plan, such as: • offering free samples • coupons • point of purchase displays • product demonstrations • You may want to discuss opening night and whether you will have a big event as your “grand opening”.

16. Operations The operating plan section describes the physical necessities of your business' operation, such as your business' physical location, facilities and equipment.

17. Operations Continued General: Do an outline of your business' day to day operations, such as the hours of operation, and the days the business will be open. If the business is seasonal, be sure to say so (or if the deck is only open part time, explain). The physical plant: What type of premises are they and what is the size and location (how many square feet)? If it's applicable, include drawings of the building, copies of lease agreements, and/or recent real estate appraisals (see poster). Employee training: Describe who will be training your employees and how they will go about doing so. Equipment: The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost. Inventory: Explain how you'll keep track of inventory. Cost: Give details of product cost estimates.

18. Management and Organization • Key Employees: Provide details on the owner’s experience, education and other skills that relate to the business. Include each owner’s percentage of ownership and explain how each owner is involved in the company. • Managers: Identify each of the company’s departments and include the management position that is responsible for the departments. Provide a detailed description of each of the manager’s primary functions and responsibilities. • Expound on the skills and experience each manager requires, including educational requirements, professional experience and language skills. Define the salary scale that will apply to each manager and identify any additional management costs, such as training and benefits.

19. Management and Organization Continued Define the number of employees who will report to each manager and outline the process your business will follow to replace the manager during any absences. Address concerns, such as who will be immediately responsible for the functions during the manager’s absence and how quickly the manager can be successfully replaced at the time of his exit.