Restaurant Business Plan
Thinking of starting a restaurant business? This is one of the most popular types of businesses started in the US. However, starting a restaurant is one of the most complicated, yet lucrative, businesses a person can enter. Having a business plan writer create a customized restaurant business plan may be the best strategy for ensuring success in your restaurant business and increasing the odds of obtain funding from a bank or investor.
Quality Business Plan understands the challenges faced by potential restaurant entrepreneurs. From this, our business plan writers and business plan consultants have done some industry research to help potential restaurant owners gather information needed for a restaurant business plan.
Our company offers so much more as compared to freelance business plan writers. Check out our “Restaurant business plan template”, “How to start a business” and “How to write a business plan” sections for the “do-it-yourselfer” entrepreneur. If you need help with completing your restaurant business plan, just talk with one of our business plan consultants for guidance.
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Our business plan writers are located in Orlando, Fl. We have researched and written business plans for numerous businesses in the US.
Restaurant Business Statistics – Research from our Business Plan Writers
Our business plan writers have done significant research in the restaurant business industry. Through our research, we have identified some pretty significant facts related to the industry. To start, in the 1950s, approximately 25% of money spent on food was restaurant related. Over the years, this percentage has shifted to approximately 50% of all funds spent on food went to the restaurant industry (Atlantice.com). This shows that approximately 50% of the time, people are eating at restaurants as compared to dining in their own home. The reason for this momentous shift may be related to the need for socialization or just for the convenience factor. Regardless, this industry is a significant portion of the US economy and for good reason.
Quick Facts About the Restaurant Industry
Revenues for the restaurant industry in 2017 were approximately $800 billion. These funds were collected from over 1 million restaurants across the country (National Restaurant Association). Customers were serviced by approximately 14 million individuals. This will allow for approximately 1.5 million new restaurant jobs in the next nine years.
The restaurant industry is renowned for their ability to create innovative concepts to better compete with established chain restaurants. To support this thought, approximately 90% of all restaurants owned have less than 50 employees. Further, proximally 70% of all restaurants are single establishments. In other words, the owners have just one restaurant. These facts establish that the industry is fragmented. In a fragmented industry, small businesses dominate as compared to large corporate owned establishments. Within this environment, small businesses are able to flourish based on innovative concepts and designs as well as creative menu items. Of course, the price factor is always important as well.
Restaurant Industry Growth
A final quick fact related to the restaurant industry is about sales growth. Florida is projected to have approximately 6% sales growth for restaurants (Toast.com), which will be the fastest growth in the country. In contrast, North Dakota is projected to have the slowest growth at approximately 2.4%. This shows that in between these ranges, other states will enjoy restaurant sales growth between 3% and 6% for the next year. As a professional business plan writer, most industries are either stagnant or possibly in decline. This is an excellent situation for restaurants but yours. When writing your business plan, make sure to highlight and discuss this important detail.
Success Factor for a Restaurant from Our Business Plan Consultants
Quality Business Plan’s business plan consultants has found specific success factors that have been shown to improve a restaurant entrepreneur’s chances of success.
The first success factor is almost a no-brainer. AZ Central noted menu prices need to exceed food cost or your business is not to be around very long. As I said, this almost seems like a no-brainer. However, this rule is not as hard as fast as it seems. For example, some restaurants are very successful in offering steep discounts on specific menu items such as “Daily Specials”. These types of specials typically cost the company more than they make. However, purchasing other items such as coffee, fountain drinks and say items usually more than makes up for the cost of the discounted menu item. The take away from this is that placing all your menu items below cost is a bad idea. However, in some situations, daily specials may be a lucrative strategy for restaurant entrepreneurs. A great way to avoid falling into the low price trap is by having a professionally prepared restaurant business plan with specific strategies related to pricing and cost.
It's in the Details:
The Business Insider ran an article from an interview with Chef Robert Irvine about the need for attention to details. Attention to details is more than just about how food is prepared and stored. It is about the totality of the restaurant experience for the customer. Our business plan writers have found that successful restaurants agonize over every detail imaginable from the time a customer walks in to the moment they pull their car out of the parking lot. This may seem obsessive. However, it is this type of detail to the customer experience that will keep them coming back time and again in bringing friends and family with them.
Know Your Customers:
As with most industries, customers tastes are continually changing. Unfortunately, our business plan writers have noted that customers taste change more frequently in the restaurant industry as compared to most other industries, with the exception may be a fashion. Because of these fluctuating face, restaurants but ignores need to make sure that their restaurant business plans are continually influx in changing as often as their customers’ taste. By doing this, restaurant entrepreneurs are better able to identify taste change from customers and offer new and exciting menu items to best service this changing demand.
Ready for a professionally prepared restaurant business plan?
Contact Quality Business Plan today for help with a restaurant business plan.