Restaurant Business Plans
restaurant business plans
Restaurant Business Plans – Focus on the Financials
The Financial Analysis section of a restaurant business plan consists of pro forma (projected) financial statements for the business. Before creating these statements, consideration must be paid to these three key concepts:
Capital Expenditures
Likely the most pertinent portion of the Financial Analysis section will be the statement of how much capital the restaurant will need in order start the venture. The trouble is that too conservative of a projection will leave you with an investment amount that is either unattainable or too large (creating excessive interest payments), while an overly conservative projection will leave you vulnerable to running out of funds during startup or operations.
When assessing the cost of capital expenditures, it is best to err on the high side. Attempt to create a comprehensive list of all capital expenditures that your restaurant will need even before it opens its doors. Go beyond the bricks and mortar of the location and include decoration, furniture, tabletop items, serving trays, and kitchen equipment. Also include software – restaurants commonly use POS (point of sale) software as well as software for reservations, table assignment, credit card processing, and bookkeeping. A rule-of-thumb is to include any one-time purchases expected to serve the restaurant for years. Build in a buffer for unforeseen expenses, as running out of money in this stage and attempting to secure another source of funding can be detrimental to the company’s launch and long-term prospects.
Operating Costs and Revenue
Operating costs primarily include COGS (cost of goods sold) and labor costs for a restaurant. These costs can be determined surprisingly accurately after operation begins because they simply aggregate the sum of how much it costs to produce the food you are cooking and how much you must pay your staff. The problem, however, arises when projecting the traffic your restaurant will see on a day-to-day basis and the average purchase per customer. Try to be as realistic as possible and take into account the type of clientele you are attempting to attract, what geographic area you are operating in, and the foot-traffic that your establishment expects.
Cash Flow
The Cash Flow Statement is the most important statement for operating purposes once your restaurant opens. When payments need to be made and a projection of future cash receipts are key to creating reliable projections. Though it may not be necessary for other industries, restaurants often create an unofficial worksheet that projects and monitors weekly cash movements. This is primarily because restaurants have many moving parts such as payroll, sales taxes, and shipments of goods which can create fluctuations from week to week. For example, to achieve the lowest prices from suppliers, you may attempt to purchase in higher quantities, which can put a strain on cash during a week where these large purchases fall, although they might represent supplies which will serve for many weeks or months. Thus, a cash buffer is extremely beneficial to guard against shortfalls for even a profitable restaurant.
About the Author
For more information on how to open a restaurant and additional restaurant business plan tips, call Growthink at 877-BIZ-PLAN. Growthink has helped restaurant entrepreneurs and business owners develop professional business plans and raise capital since 1999.
where can i download a free sample business plan for a small restaurant?
I’m seriously thinking about opening a small Taco Shack in my home town, because there are none open here at the moment, I know it will work, but I just don’t where to begin with the business plan.
Here are some examples of free restaurant business plans:
Restaurant Business Plan 1 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Restaurant-v1.html
Restaurant Business Plan 2 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Restaurant-v2.html
Restaurant/Bar Business Plan 1 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-02/Restaurant-Bar-v1.html
Restaurant/Bar Business Plan 2 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-02/Restaurant-Bar-v2.html
Sample Restaurant Business Plan (steakhouse) http://www.bplans.com/spv/3228/2.cfm
Sample Restaurant Business Plan (organic restaurant) http://www.bplans.com/spv/3259/index.cfm
|
|
Darlings of Design $1.99 … |
|
|
Salome in Manhattan $1.99 … |
|
|
Outside of Paradise $3.83 Musical comedy stars Phil Regan as an American bandleader who inherits a castle in Ireland. After moving to the Emerald Isle, he plans on renovating the property into a restaurant–much to the dismay of a pretty local who also owns a piece of the land. With the help of some hamburgers, can he make his dreams come true? With Penny Singleton, Bert Gordon; songs include “Sweet Irish Sweetheart of Min… |
|
|
Double Side Sidewalk A Frame Chalkboard menu board $69.00 This is one of our best selling products. We sell more than 2000 pieces per year. We offer the best quality at very competitive price. Our A-frame chalkboard measures 20″x39″ with double side 17″x28″ writing area. The frame is made of durable and well finished wood. You can create your message on the signboard. It’s perfect for restaurants and shops. This chalkboard is only for regular chalks, DO … |
|
|
The Food Truck Handbook: Start, Grow, and Succeed in the Mobile Food Business $12.21 How to start, grow, and succeed in the food truck business.Food trucks have become a wildly popular and important part of the hospitality industry. Consumers are flocking to these mobile food businesses in droves, inspiring national food truck competitions and even a show dedicated to the topic on The Food Network. The relatively low cost of entry as compared to starting a restaurant, combined… |
|
|
Anatomy of a Business Plan: The Step-by-Step Guide to Building a Business and Securing Your Company’s Future $8.96 From envisioning the organizational structure to creating the marketing plan that powers growth to building for the future with airtight financial documents, this guide provides the tools to create well-constructed business plans. Beginning with the initial considerations, this handbook offers proven, step-by-step advice for developing and packaging the components of a business plan—cover … |
|
|
The Restaurant Manager’s Handbook: How to Set Up, Operate, and Manage a Financially Successful Food Service Operation 4th Edition – With Companion CD-ROM $32.50 The multiple award-winning Restaurant Manager s Handbook is the best-selling book on running a successful food service. Now in the fourth completely revised edition, nine new chapters detail restaurant layout, new equipment, principles for creating a safer work environment, and new effective techniques to interview, hire, train, and manage employees. We provide a new chapter on tips and IRS regula… |
|
|
Microsoft Streets & Trips 2011 $36.00 Plan your perfect tripfrom sightseeing to fuel stops.ProductInformationStreets & Trips is map and travel planning software witheasy-to-use tools that help you get to your destination whether acrosscountry or just across town. Generate maps and directionstailor your route and find interesting stops along the way – withoutneeding Internet access. Quickly optimize your trip to savetimeand… |
|
|
Microsoft Streets & Trips with GPS Locator 2011 $46.48 Whether you are a heavy-duty traveler, or even if you are just planning simple trips with the family – do it all with Streets & Trips with GPS Locator. This product is faster and easier to use GPS locator than with previous editions of Streets & Trips and it plugs directly into the USB port on your laptop PC. Ready to use immediately…. |
|
|
Garmin City Navigator North America for Detailed Maps of the United State, Canada and Mexico (DVD) $70.51 Garmin DVD maps are easier to plot routes compared to preprogrammed MicroSD cards. DVD maps require a PC or Mac computerDVD maps are easier to plot routes compared to pre-programmed MicroSD cardsRequires separate purchase of blank MicroSD/SD card for most devices (not sold thru QBP)… |
|
|
Business Plans to Game Plans $14.96 This book is in New – Excellent condition |
|
|
Business Plans $20.33 No Synopsis Available |
|
|
Business Plans Kit for Dummies $38.22 No Synopsis Available |
|
|
Business Plans for Dummies $26.7 No Synopsis Available |
|
|
Business Plans Made Easy $16.62 No Synopsis Available |
|
|
Business Plans for Filmmakers $28.61 No Synopsis Available |
|
|
Business Plans Handbook $194.72 This book is in Used condition |
|
|
Business Plans That Win $$$ $9.75 This book is in New – Excellent condition |
|
|
Business Plans That Work $14.96 This book is in New – Excellent condition |
|
|
Bankable Business Plans $18.71 This book is in New – Excellent condition |
|
|
Business Plans That Work, by Timmons $12.71 This book is in New – Excellent condition |
|
|
The Complete Book of Business Plans $16.46 This book is in New – Excellent condition |
|
|
Action Plans for the Small Business $21.94 This book is in Used condition |
