Restaurant Business Plan

Are you looking to open a restaurant and need to know what all details the restaurant business plan should include? It is imperative that you work on the business plan to highlight the important areas to catch the attention of investors. The business plan must be precise and talk about the nuances of setting up the business with a focus of growth and expansion. To write a restaurant business plan which is detail sensitive yet catchy you should follow the following rules that should be a part of the plan.

Summary of the Restaurant Business

Your restaurant business plan should start with a review of the outline of your idea that goes about as a prologue to your business. This is the door to your marketing strategy thus it is fundamental to get it concise and catchy.

It ought to incorporate things, for example, your statement of purpose, vision and goals of the business, current, and future plans that will be incorporated in the business. The plan ought to be a diagram of your business involving all-around methodologies.

The types of expenses and projections in a restaurant business plan are as follows:

Expenses type


Capital expenses

Fixed and non-recurring

Operating Expenses

salary, depreciation on equipment, rent, electricity,  are operating expenses

Revenue per person

The revenue per person who enters the restaurant.

Cost Projection

The finance layout for expenses and costs

Business Overview

A business overview portrays the idea of the business. You ought to have the option to obviously characterize what might be the USP of the restaurant and why it will work. You ought to give an explanation for the idea of your eatery, why the idea will be fruitful, your arrangement to make it a reality, its expense, and the foreseen rate of profitability. While settling on the idea, you need to answer the following questions personally:

  1. What is the uniqueness of the plan that separates it from the rest?
  2. What is the foundation of the context or theme of the restaurant?
  3. The aim of the business and who all will this business cater to?
  4. How to target clients and what strategy will be used in building the clientele?
  5. How will the restaurant serve the purpose of the customers?

Menu Presentation

A reference menu is significant for your field-tested strategy. You can include some essential dishes from all cooking styles you need to serve, the beverages you need to have on the menu and the like. It must also include a variety of mocktails and cocktails. Since this is as yet an arrangement under procedure, the menu doesn’t need to be finalised. It can simply be a diagram of what your menu would resemble.

Analyzing Target Audience

It is imperative to do a Target Audience Analysis to concoct an exhaustive Restaurant Business Plan. You should know who your restaurant will serve, which class they would have a place with, their particular nourishment propensities and their ways of managing money. The point of doing an intended interest group investigation is to realize which segment of the populace is destined to go to your restaurant. Break down the client segment and the conduct of clients that you are expecting to target. 

For instance, in the event that you are opening up a restaurant in an area encompassed by PGs and lodgings, it will be better in the event that you are running a drive-through joint, a takeaway joint or easygoing feasting serving at a lower cost and with increasingly out of control insides. 

In the event that you are intending to open up a restaurant in a neighborhood or where there are a great deal of corporate workplaces, they will as a rule have higher spending limits. So, relying upon that you can go for easygoing feasting or high end food.

Competition Analysis

Competition is perhaps the greatest test of restaurant business. Be that as it may, the competitiveness can likewise positively affect the business, as it would acquire clients. Likewise, in the event that you don’t have any competitor in a territory, it might imply that it is not where the restaurants are serving, so you should investigate the area before finishing it for your restaurant. You ought to recognize and incorporate the rundown of eateries with comparable ideas as yours in your Restaurant Business Plan.


While making an impressive business plan, the most significant point to recollect with regards to funds is to be practical. You ought to have an individual fiscal summary and asset report set up, with the ordinary income proclamation. The business owner ought to know about all the money inflows and should deliberately monitor all the cash that is charged and credited in the business accounts. The break-even is imperative as only it will decide about the sustainability of the business. Most of the time, the new restaurant owners become excessively aggressive and they begin expecting great income from the primary day itself like Rs 10,000 on the main day and to a similar extent on different days. This over-suspicion may end up being unsafe in light of the fact that there may be an extraordinary situation when there probably won’t be a solitary client.

Restaurant Business Plan FAQs:

1. What are the types of marketing plans?

Online and offline are the types of marketing to promote the restaurant on different applications and delivery vendors.

2. Are cost projections important in business plans?

Yes cost projections provide a bird eye view of expenses involved in the plan.

3. What are the types of restaurants businesses?

The restaurant businesses include fine dining, cafe and bar, cafe outlet, take-away care, take-away restaurant.

4. How to select the location of the restaurant?

The location is the prime factor for the restaurant business and it should be wisely selected where there are business opportunities available.

5. What is capital in a business plan?

The capital is the total investment done in the business.

6. What is a cash flow statement in a business plan?

The product and services section of the business plan highlights the final product and the service your organization will be providing to the customers. You will need to discuss the market share and demand available in the market.

7. Should I add an insurance amount in the expenses?

Yes, insurance amount should be a part of capital expenses.

8. What are the important parts of finances involved in the business plan?

It involves initial investment, working capital, and insurance.

9. How menu presentation impacts the customer?

Menu is the first thing that customer gets the hand on after setting down in the restaurant. The presentation can have a positive impact on the customers.

10. What is a step by step procedure to open a Restaurant Business in India?

The applicant must undergo the following steps to start a restaurant business: • Concept, Theme and Dining of the restaurant should be pre-decided • Investment funds and capital should be arranged for • Evaluating the interim costs of the restaurant • Location of the Restaurant and Thorough research on competitors • Licenses and Legal formalities to be complete • Workforce and employment of staff • A Stellar menu needs to be prepared • Contacting suppliers and vendors • The right kind of technology • The appropriate ambience

11. What kinds of licenses are required by the vendor before opening a Restaurant?

The vendor needs to apply for the following licenses which could be heft on his pocket and quite time consuming as well: • A Trade License from the local Municipal Corporation • Food Safety and Standards Authority of India (FSSAI) License • GST Registration and GSTIN Number • Professional Tax License • License of Liquor (not compulsory) • Business Registration

12. What kind of Staff should be employed in a restaurant?

The following three categories should be considered: • Kitchen Staff – A mix of both skilled and unskilled workers like chefs, food prep staff, support and cleaning staff etc. • Service Staff – Waiters, housekeeping boys who are properly trained and possess great communication skills should be hired • Management Staff – The restaurant’s Manager, head-chef, Cashier, Manager of the store are the key-employees of any restaurant. Educated, experiences and skilled employees should be hired for these top-notch positions at the restaurant.

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