- Information
- AI Chat
Restaurant sample business-plan
Development planning and Project Analysis (ECON3032)
Addis Ababa University
Preview text
RESTAURANT BUSINESS PLAN (COMPANY NAME) (COMPANY NAME) (STREET ADDRESS) (CITY, STATE ZIP CODE) (CREATION DATE) 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 however, we do ask that you distribute this business plan on the web without explicit permission from us. Restaurant Business Plan and Confidentiality Agreement The undersigned here agrees that all financial and other information that is has and will receive concerning FastBusinessPlans 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 and shall be returned to FastBusinessPlans promptly at its request together with all copies made thereof. Recipient acknowledges that no remedy of law may be adequate to compensate FastBusinessPlans for a violation of this Agreement and Recipient here agrees that in addition to any other legal or other rights that may be available e in the event of a breach hereunder, FastBusinessPlans may seek equitable relief to enforce this agreement in any court of competent jurisdiction. Date Signature of Recipient 2 5 5 5 6 Legal .......................................................................................................................................................... 20 Milestones .................................................................................................................................................. 20 Exit Strategy ............................................................................................................................................... 21 Organization and Management ...................................................................................... 21 6 6 6 6 7 Restaurant Business Plan Organizational Structure ............................................................................................................................ 21 Management Team ..................................................................................................................................... 21 Management Team Gaps............................................................................................................................ 21 Board of Directors ...................................................................................... Error! Bookmark not defined. Financial Plan ................................................................................................................... 22 7 7 7 7 7 7.5 7.5 7.5 7 7 7 Important Assumptions .............................................................................................................................. 22 Costs ............................................................................................................................................ 23 Source and Use of Funds............................................................................................................................ 24 Analysis .................................................................................................................................. 25 Projections.................................................................................................................................................. 27 Projected Profit and Loss ....................................................................................................................... 27 Projected Cash Flow .............................................................................................................................. 28 Projected Balance Sheet......................................................................................................................... 30 Business Ratios .......................................................................................................................................... 30 Hourly Labor Schedule .............................................................................................................................. 32 Weekly Sales Projections ........................................................................................................................... 33 4 Restaurant Business Plan 1 Executive Summary The Traditional Restaurant 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 menu. The restaurant will be family owned and operated Jeff and Betty Wright. Together they have over 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 will feature wood accented chairs with blue and white checked table cloths. Dinner style tables will be surrounded wooden chairs with comfortable seating cushions. Sales projections assume 1700 customers per week resulting in weekly sales of just over or annually. This equates to around per square foot in sales annually which positions THR as a highly desirable concept for ownership in a table service market where to per square foot is considered moderately profitable and therefore a good investment. Total start up costs will be of which will be contributed the owners and the remainder will be secured a proposed bank loan. 1 1 Business Objectives The primary objectives of the business plan for Restaurant are below: To be the premier restaurant in western Fort Worth, Texas To provide quality meals at reasonable prices with exemplary service Achieve Cover ratios of 1 at each lunch and dinner serving To achieve Prime Cost Ratios lower than 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 : 1) providing menu items incorporating quality ingredients at reasonable prices, and 2) we will be mindful of the well being of our customers and treating each and everyone with dignity and respect just like we would at our own home! 5 2 Restaurant Business Plan Ownership The restaurant will be owned Jeff Wright. Jeff began his restaurant career at the age of 15 working in a 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 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 Legal Form THR will be organized as a sole proprietorship, wholly owned and operated Jeff Wright Traditional Restaurant. THR is registered in the state of Texas a community property state. 2 Summary The cost to open the restaurant is The majority of the expenses are in furniture fixtures and equipment totally The location requires some and renovation totally and will require approximately 30 days to complete. The Wrights will the work themselves. of the costs will be funded the owners. The source of funds is a combination of liquid assets and marketable securities, primarily from their existing catering business. 2 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 according to the 2010 U. Census Report. The residential population in the immediate area is comprised of a mixture of single family and housing. The median household income is Major employers include Union Pacific and Bank of America. 7 Restaurant Business Plan 3 Services 3 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 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 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 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 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 Competitive Comparison The US restaurant industry includes about restaurants with combined annual revenue of about billion. Major companies include Brinker International which owns Grill Bar) and Ru Tuesdays YUM! Brands (KFC, 8 3 Restaurant Business Plan 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 the POS system will be compared to actual cash and credit card deposits on a daily basis. Acceptable amounts will be limited to per day. Discrepancies greater than will prompt management to conduct an immediate audit to account for the difference. Monthly totals will be compared to actual 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 to Proper control of the prime cost is the single most effective measure of ability to operate the restaurant. Purchasing A part time bookkeeper will process and record invoices and credits daily. Reports detailing cash expenditures, payments check, and accounts payable transactions will be readily available. Check disbursements will be prepared the bookkeeper. Check signing authority for the general operating account will be given to the general manager. Payroll Processing. Payroll checks will be issued 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 a payroll processing service. 3 Future Services THR has future plans to provide catering services for family reunions, weddings and other events desiring a 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 Market Analysis The restaurant industry is a large and diverse business: sales are forecast to reach billion in 2010 an increase of 2 percent over 2009. sales are projected to total billion in 2011 and equal 4 percent of the U. gross domestic product. The overall economic impact of the restaurant industry is expected to exceed 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 billion in 2010. Sales at limited service restaurants increased to billion in 2010, while snack and bar sales rose to billion. (National Restaurant Association). 10 Restaurant Business Plan The US restaurant industry includes about restaurants with combined annual revenue of about billion. Major companies include YUM! Brands (KFC, Pizza Hut, Taco 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 restaurants (FSR) and limited service eating places, which include restaurants snack and nonalcoholic beverage bars. (First Research) 4 Industry Analysis This analysis is based on the Standard Industry Code 5812: Eating and Drinking Places Establishments primarily engaged in the retail sale of prepared food and drinks for or immediate consumption. It is also based on the North American Industry Classification System 722110 Restaurants. This industry comprises establishments primarily engaged in providing food services to patrons who order and are served while seated (i., 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 items and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. The industry is (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 their staff as contributing to their in such states, this policy reduces the impact of the minimum wage from the perspective. (Data Monitor) Annual revenue per worker is less than 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. 11 4.1 Restaurant Business Plan Barbeque 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. range from 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 attract the tourist business as well. range in price from Market Segments THR will appeal to a broad base of consumers in both the residential and business community. The location selected for THR was chosen primarily to appeal to the growing number of households in the area. The suburb of Benbrook located in western Forth Worth, TX has a population of over according to the 2010 U. Census Report. The residential population in the immediate area is comprised of a mixture of single family and housing. The median household income is for 2010 and estimated to be for 2015. (US Census). Major employers include Union Pacific Railroad and Bank of America. Decision. Info) 13 4 Restaurant Business Plan Market Tests For the past 10 years, Jeff and Betty have been catering Their menu is very popular with family reunions. More often than not, the couple gets asked to open a restaurant so that patrons can return again and again. Through Constant Contact (an online marketing program) the couple has stayed in touch with their host and hostesses, and has been asked to return to provide catering services to several repeat events. Catering as also grown word of mouth. The couple also a blog attracting foodies nationwide and globally, swapping recipes, compiling the most sought after comfort recipes, and identifying current trends, for example, providing expanded menus for children and for those with food allergies. The Wrights already have a customer base through their catering business and local blog visitors. These customers will be the first to be contacted when they announce the grand opening of the brick and mortar restaurant. 4 Target Market Segment Strategy Jeff and Betty Wright selected the subject area for its restaurant primarily because of its location to the very busy intersection of Cherry Street and Camp Bowie. The restaurant located in a retail strip center is located on side of Camp Bowie. This will encourage families tired from a day of work to stop in for a home cooked meal they can enjoy without the cleanup! Cherry Road which runs North and South is connected to the busy Interstate 30 corridor, mile north of the shopping center. Camp Bowie which runs East and West connects to the newer western suburbs of Fort Worth. 4.3 Market Needs The Benbrook area is in great need of a family style restaurant. This section of Camp Bowie is commonly referred to as food The selection of fast food is vast the area is limited on its family restaurant choices. nearest competitor, The Hedary Restaurant is located over 5 miles away from the location. Further, established in the the Hedary customers are older than the targeted family group THR focuses on. 4.3 Market Trends According to the National Restaurant Association, the top 10 trends for are: 1) locally sourced meats and seafood, 2) locally grown produce, 3) sustainability as a culinary theme, 4) nutritious dishes, 5) items, (networked locally grown like a Craigslist for restaurants) 14 Restaurant Business Plan point during their lives, and more than one out of four adults got their first job experience in a restaurant. At THR we believe that our restaurant will provide job opportunities both for the entry level applicant was well as for the worker searching for flexibly in job hours. We will pay our employees a competitive salary and believe we can do so meticulously keeping our records, including daily review of the Prime Cost Report, and utilize Cost Accounting Systems, to prevent inventory shortfalls. We will be proactive with our employees scheduling regular performance reviews, and provide bonuses and other incentives to motivate our staff. We will also provide our employees with the most current training programs regarding safe food handling, and worker protection. (Additional information regarding our employees is explained in Section 6 which follows). THR will also remain current with current industry marketing tends. In addition to a website with our menu, map and driving directions, we will also have a Facebook page and utilize other social media such as Twitter. We will team up with Groupon and Yelp. We will offer a loyalty club and birthday club which recent reports indicate increases earnings as much as 5.1 Strengths Prime location with easy access from Interstate 30 Exceptional staff with the can do attitude. Combined 25 years in the restaurant industry Because owner has catering industry experience, he already has established a customer market and approved vendors Due to our small size, we believe we can provide exceptional quality hand selecting our market specials when compared to our larger corporate competitors The same concept holds true in our staffing requirements, hand selecting our employees we will strive to offer unsurpassed service when compared to our larger competitors 5.1 Weaknesses Recruiting and retaining quality employees Tight margins will allow little wiggle room for error 5.1 Opportunities Little barriers to entry allows for immediate business opportunities Offer additional catering services 5.1 Threats Government mandates (restaurant operation, food safety, and worker protection at the federal level and health, sanitation, safety, fire at the local level) Rising operating costs sales volume 16 5 Restaurant Business Plan Supermarkets and convenience stores Consumers that believe that meals at home are healthier than those prepared in restaurants. Strategy Pyramid Strategy: Be the Benbrook premier Food Restaurant in Customer Satisfaction. Tactics: First create our signage on the front of restaurant will bring customers to us and once inside, we will immediately acknowledge the customer with the warmest and most sincere greeting and begin the service process anticipating repeat customers. Programs: Provide employee training on customer service and offer ongoing training programs for employees keeping them current on industry trends and food safety. Keep track of progress through performance reviews and offer employees incentives attracting and retailing customers. Employ Mystery Shoppers. Employ the use of surveys both at the table and online. 5 Unique Selling Proposition (USP) THR will be able to offer meals for a reasonable price in a comfortable setting. The average check price is expected to be between which appears in line with industry standards below (First Research). Because of our current expertise with vendors, and our excellent credit, we can negotiate better credit terms than say someone brand new starting a restaurant. We will also be able to keep our menu reasonably priced offering menu items that take advantage of seasonal produce further reducing price. Finally we will keep our prices in check meticulous monitoring of our controllable expenses keeping close eye on our Prime Cost Report and Inventory. initially employing family members who will work for lower and reduced wagers, for example, we can further reduce our controllable expenses. 5 Competitive Edge competitive edge is in its people. We truly believe that your business is not only as good as your products (meals) but the quality of your staff as well. Our staff is a reflection of us. Initially, we intend to employ our family members who will work for lower and reduced wages. Our long term goal is to hire team members that are truly hand selected and have the same honest to goodness family values we do. And unlike our big chain competitors, because of our lean size, we can turn on a dime when economically pushed and make changes quickly allowing us to be proactive. (Whereas our corporate competitors have to adhere more closely to their company policies thus impeding their reaction time) 17 Restaurant Business Plan 5.5 Promotion and Advertising Strategy The restaurant will be located in a strip center at the busy intersection of Cherry road and Camp Bowie. With easy access to Interstate 30 (less than mile south) and located on the home (Western Corner) of the intersection. We will have Signage on the West Roads Shopping Plaza as well as signage over our entrance Word of Mouth We already have a database of existing catering customers and will rely heavily on this method to attract and grow new business. Participate with Costco as Small Business of the Month We will leave our menu, a fishbowl for business cards and a small display with the retailer announcing us as new entrants in the local restaurant arena. Direct Mail Bulk mailing either directly to potential customers or including a postcard in a mailing. Event Marketing plan on joining our local chamber of commerce and utilizing their networking services for our grand opening 5.5 Website We will stay current with industry trends and have a webpage, Facebook page and Twitter site. Our menu, map, and hours of operation will be easily accessed. In the future we may consider fax or email orders as well a phone application. 5.5 Marketing Programs Our initial marketing campaign will consist of contacting our databases clients and notifying them of our grand opening. We will seek the use of a local mailing service program to assist us in the implementation of the campaign we will meticulously keep our database current and use the Constant Contact program Loyalty and Birthday Club members will notified of upcoming special menu items and to alert them of our catering service. 5 Sales Strategy Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20 customers that have a problem in a restaurant will tell management about it. It will be our goal to provide a wonderful meal combined with superior customer service. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle guest complaints. Jeff and Betty will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management. All guest complaints will be acknowledged the staff and referred to management. Programs will be in place for all types of guest complaints. More serious complaints will be documented 19 Restaurant Business Plan and kept on file. Customer feedback will be accomplished customer surveys or the use of mystery shoppers. 5.6 Sales Forecast We are expecting a conservative increase in sales revenues annually over the next 3 years. The growth is adjusted for inflation. With the addition of catering revenues, sales will increase in Year 2 and in Year 3. The following table shows expected Sales Forecast for the next 3 years: Table 5.6 Annual Sales Forecast Annual Sales Forecast Sales Food and Beverage Revenues Additional Revenues Total Sales Controllable Costs COGS Payroll Total Prime Cost Controllable Profit 5.6 Year 1 Year 2 Year 3 Sales Programs We will encourage our employees to grow our customer base and provide incentives and regular bonuses to employees for referrals and repeat customers. These initiatives are still in the planning stages as we gear up to hire and staff. They will play an active role in our employee culture. It is also anticipated that as we grow our catering business, along with our lunch business group, we will hire a sales director to facilitate this portion of the business. The sales director will be compensated similarly to their national peers (national Restaurant Association) 5 Legal Initially we will be formed a sole proprietor: Jeff Wright Traditional Home Style Restaurant. The State of Texas is a community property state. Over time, the couple plans to form a Limited Liability Company. 5 Milestones Our initial milestones are as follows: 20
Restaurant sample business-plan
Course: Development planning and Project Analysis (ECON3032)
University: Addis Ababa University
- Discover more from:
