restaurant business

Small Business Guide: How To Create A Restaurant Business Plan

The upcoming decade spells a lot of opportunities for businesses to revive themselves as the world returns to stability. This optimism also applies to the owners of small businesses, who can finally use this green light to take their business ideas and formulate them into a proper plan. However, a business plan is not taken into consideration often. This simple strategic approach can help entrepreneurs get more organized.

Since the food, beverages and hospitality industry differ a lot from the product and services based market, there are not a lot of measuring yardsticks for small business owners aiming to open their own restaurant, chain or franchise. This blog aims to help such entrepreneurs to regroup and create an effective business plan for their establishment with consideration to the unique requirement and demands of a restaurant. Ready to dive into the nitty-gritty? Let’s get started.

What is a business plan?

A good business plan is the foundation and base structure of your business. Based on what you have charted down, it can guide an entrepreneur and the management team through every step of forming and running a business. A business plan is also used as the entrepreneur’s roadmap for organizational structure, workflows, and growth of a new venture. It helps organize and bring all the key aspects of a business to an interrelated course of action.

Business plans can assist a small business owner to acquire funding or onboard new business investors. Such partners like lenders, shareholders and investors need to see that you have a foolproof approach to do what it takes to give them the ROI they want. A business plan is your pitch to all parties you wish to work with.

Structure of an effective business plan:

An effective business plan that covers all the elements of a restaurant consists of the following sections. These are subject to modification depending on how intrinsic and extensive your goals are.

Executive Summary: The executive summary of your business plan comprises the base note and driving force of your restaurant. Here, you talk about the ultimate goal of your restaurant. Start by explaining what the restaurant does, its location, vibe, cuisine, speciality, USP, and other elements in brief that will paint a picture in the mind’s eye of a reader. For creative effect, you can also add sketches and graphics of how you plan the place to look, capturing the vibe and speciality of the place. An executive summary is supposed to be kept brief and to the point, which can all be elaborated upon in the next sections with document automation.
Establishment Description: Here, you get to go into the details of your restaurant or food chain. From the location and seating capacity to all the tiny details that will make your restaurant a success, all of it is mentioned in the establishment description. You can add sample menu lists, event ideas, and more. As a business owner, consider this section the second most important one since this is the dream-seller to your investors. Talk about the industrial advantage that you have and what makes your plan unique from the rest of the competitors. Describe the set-up, kitchen, dining options, and staffing capability with their training to give further clarity. This section also involves all your permits and licencing.
Products and Services: As a restaurant, your products and services are all-encompassing. If you have curated a menu, this is the section to add it to. Add your food and beverage selection as well as the restaurant speciality that will win customers over by tantalizing their taste buds. Since your business plan can be more creatively inclined, don’t feel shy to add visual representation for effect.
Market Analysis: A wise business person knows the market inside out. Your competition will be all restaurants around a particular area, including giant chains. To make your business plan viable, make sure that you have done your research on the performance and figures of these establishments along with a strategy to surpass their success and become a dominant business.
Stock and Inventory Supply: One of the biggest questions for restaurants and hotels is how they plan to source their raw materials and alcohol. If you’re a business that plans to provide an authentic and exotic experience to customers, find the right vendors for organic and ethically sourced produce and meat for your menu. Apart from these, getting your ingredients and spices from wholesalers that give you the best deals with zero compromise on quality is a must. Make sure that you have options so that the fulfilment failure due to unexpected reasons get covered by the other in your inventory supply. For alcohol, you can get in touch and partner with a wholesaler of alcoholic drinks to be your supplier. However, make sure that they have all their paperwork and licensing in order.
Logistics: Deciding upon the logistics of your delivery system whether you plan to partner with third-party brands or have your own team is to be explained here. Make sure to add the percentage cut and revenue that goes into the third-party affiliation for your presence on such food delivery apps and websites here.
Strategy and Implementation: Mention the phases of your execution strategy so that you can regroup and check if your team is going as per plan. This also shows the management and investors how detailed you are in charting your progress. If you haven’t started off yet, it would be wise to have a set of goals to achieve in every phase.
Organization and Management Team: Mention the names of your management team, partners and employees in this section. This makes up the core team from all departments.
Financial plan and projections: Lastly, note down realistic projections for the next few quarters in terms of growth and revenue. Make a contingency plan as per the ongoing pandemic and keep things optimistic yet reserved.

Wrapping Up:

It may take you a while to complete the business plan, but doing it well the first time is necessary for the long-term success of your business. We hope that you have enough ideas to form your own from our structure; Good luck!

How you should invest to grow your restaurant business

In the past, all a restaurant needed to succeed was great food and great commercial restaurant equipment. With the advent of social media, location and menu are not enough to attract and keep a client base.

1. Invest in your web presence online

Customers today are overwhelmed with choices. Online competition is fierce. Your restaurant must stand out from the crowd. Potential customers will find you difficult to find if your web presence is not prominent and well-dispersed. A reputable online marketing company is a good investment for your business’s bottom line, much like an outsourcing bookkeeping service. Restaurants are vulnerable to the word of mouth advertising, just like other service industries.

Get started with a great site

Your website is often your first opportunity to impress customers. Your website should be user-friendly and professional. This will help you project a professional image that is customer-oriented and professional.

Consider if your site meets the following criteria if you already have one.

Does it load quickly?

Are they visually appealing?

Is it mobile-friendly

Is it simple to navigate?

Are all your important information readily accessible?

Is your menu on the market?

It is a fact that potential customers don’t have to do too much to discover where you are, what your services are, and when you’re available. A restaurant website costs a reasonable amount, depending on the complexity of the site. It can be tempting to save money and choose a website that is cheap, but this is a long-term investment that can bring many customers to your restaurant.

You can hire someone to monitor your social media.

People react emotionally to the experiences they have had, rather than the products they buy. It is not an exaggerated statement to say that customer reviews can make or break you in the restaurant industry. People talk.94% of potential diners base their decision on where to eat based on reviews. They will use those reviews to judge your establishment before they ever set foot in your door. Keep the mood positive by responding to customers’ feedback online. Or, outsource that work to a marketing company.

Encourage diners to leave feedback on your website and maintain accounts with prominent review sites such as Yelp. This will give you the opportunity to thank customers who have been satisfied, to take positive actions to improve dining experiences and to show that your restaurant truly cares about their opinions. This type of reputation management can make all the difference in your online presence. This service is often offered by marketing companies as an addition to other services. This can make it difficult to monitor all mentions of your company online. Hiring someone can help you save time and be a valuable investment.

2. Set aside a budget for marketing

Inbound marketing is crucial to your bottom line. It is an active process and should be maintained regularly. Marketing can include attending events, paying ads, printing marketing materials, and commercials. The best part? Advertising is a deductible expense. This means that it won’t hurt you so much in the end. Make an investment in yourself to increase your revenue.

Your business is the focus of your overall marketing budget. These are some of the things you should consider:

How competitive is your market

How high are your profit margins

Is your business new?

Who are you?

A new restaurant that caters to 20-40-year-olds in a highly competitive marketplace with high-profit margins, should spend more on marketing than a smaller, older restaurant with a narrow market.

Marketing should not be ignored as a financial investment in your restaurant business. Talk to your restaurant bookkeeper about the budget that you can allocate for marketing each quarter, and whether it is worthwhile.

Social Media Marketing: Make the most of it

Real growth takes time. The more you can do for your business, the better.

The faster your establishment grows, the more casual diners will become regulars and regulars will be happy promoters.

A strong social following is one of the best ways to reach new customers and engage with existing customers. Social media can be used to increase sales and professional reputation by sharing relevant content.

Use local food bloggers to your advantage.

Local food bloggers are a great way to improve the quality of your restaurant reviews. Twitter users have created some amazing lists of key industry bloggers.

After you are confident in your food and service, invite some bloggers to visit you. The reviews of your customers next door are great for spreading the word about your establishment. But, the opinions and recommendations from a reliable foodie can make it even more valuable.

3. Outsource your restaurant bookkeeping

Outsourcing restaurant bookkeeping can be a cost-effective financial investment. It saves time and simplifies financial reporting tasks such as payroll. A reliable advisor for future investments is also a good restaurant bookkeeper. You can make informed decisions about where to spend money on marketing for your restaurant business by using accurate financial reports.

This will help you get a realistic outlook for your restaurant’s future and allow you to set growth goals.

4 Ways to improve the cleanliness appearance of your restaurant

Even when you think your restaurant is doing pretty well in the cleanliness department, employing some tips to further improve the situation can’t hurt.

Think about what you want to see when dining out in an eatery or having a meal at someone else’s home. Chances are that a clean environment comes to mind. An unclean restaurant certainly affects the ambiance of the establishment; however, even more crucial is the fact that diners will probably be afraid to return. Even when you think your restaurant is doing pretty well in the cleanliness department, employing some tips to further improve the situation can’t hurt.

Deep Cleaning

If you’re a savvy and caring restaurant owner, you do have the establishment cleaned on a regular basis. However, ask yourself when the last time was that you paid for a real deep cleaning. Surface-level cleanings do not necessarily get out the dust from all of the corners. Schedule a deep cleaning from a professional company for the next day of the week that your restaurant is closed. You’ll most likely be quite surprised and pleased by the results.

Replace Aging Elements

At some point, certain parts of the restaurant fall into a state that is beyond what a deep cleaning can really repair. For example, if the tiles are damaged from decades of usage, they might look dirty as well. New restaurant ceiling tiles or a fresh coat of paint can bring the interior to life in ways that you could not have imagined. These types of repairs and renovations can also allow you to develop a new vibe for the restaurant.

Wash Those Dishes

Diners might be able to look away and forget about it if they see some dust built up in the corner of the bathroom. When they gaze into their glasses and see lipstick or look down at the table only to spot a dirty fork, however, the reaction might be quite different. Make sure that the dish-washing procedures are clean and precisely followed every day of operations.

Reduce Clutter

Decorating your restaurant is important; doing so helps to create a certain atmosphere. However, you might have fallen in love with too many trinkets over the years, which has now led to clutter in the restaurant. Clutter can give the appearance of uncleanliness even when the items within the pile are clean. Do keep in mind that clutter can also lead to a build-up of dust and dirt though.

Maintaining a restaurant that both appear clean and actually is clean proves quite important in the field. Make it a priority to get the appearance of your restaurant into the cleanest state possible.

5 Small touches that will move your restaurant from good to great

Owning a restaurant is no easy business, even if you serve high-quality dishes and provide an excellent dining atmosphere.

Owning a restaurant is no easy business, even if you serve high-quality dishes and provide an excellent dining atmosphere. When you want to stay ahead and afloat in an ever-changing and evolving industry, it is important to create a restaurant brand that is sure to impress and generate positive memories for each patron you receive. With a few small touches, you can help to move your restaurant from good to great, solidifying your spot in the food industry.

Updated Menu Materials

Update your restaurant’s menu materials, promotional items, and other printed material regularly using modern and on-brand design. Modern design goes a long way with making first impressions and gaining trust with your patrons, especially if they are dining with you for the first time. So, create enticing, on-brand menus with ready-made menu templates by PosterMyWall and start impressing your customers.

Ambiance

Ambiance matters in a restaurant. Assess your restaurant’s current lighting to determine which changes can be made to help make your diners feel more comfortable or at home, depending on the type of environment you want to create for your restaurant. Consider the type of recessed lighting you are using, table lamps, and even hanging lights and how simple changes may drastically transform the overall atmosphere of the space.

Upgrade Your Food Quality

A restaurant with poor food quality is doomed to fail. Ensuring your restaurant’s food quality is top-notch is vital in order to remain successful while maintaining a positive reputation in your local community. Research and compare local food vendors and suppliers to find a suitable solution that delivers high-quality ingredients within your budget. Consider upgrading your sides, getting higher quality Kaiser rolls or other baked goods, and buying more food locally. Such little touches will make your food noticeability better.

Get Creative with Your Menu

Get creative with your restaurant’s menu offerings by changing the menu monthly or even seasonally. Consider eliminating bulk items or items that do not sell well and condensing your menu altogether, allowing you more opportunity to provide higher-quality ingredients and complete dishes.

Music

Whether you provide live music, personalized music boxes, or music throughout your entire restaurant, consider the type of vibe, ambiance, and atmosphere you want for your restaurant before making your musical selections. Playing just the right type of music can go a long way with creating a positive and memorable experience for diners.

Taking the time to update and upgrade your restaurant with simple touches and changes is essential to remain relevant and in tune with your loyal patrons and first-time diners. With an understanding of the wants and needs of your patrons and the ability to truly immerse yourself into the management of your restaurant, you can truly move your establishment from good to great.

How to encourage walk-in customers as a startup restaurant

If you are a new restaurant owner, then you need a solid customer base to help you create a thriving business.

If you are a new restaurant owner, then you need a solid customer base to help you create a thriving business. Getting more people to stop in and check out the venue is critical to your success. We have four sure-fire ways to get more walk-ins and promote word-of-mouth advertising that will grow your brand below.

Air conditioning

No one wants to sit in a stuffy restaurant waiting for food. This is the ideal scenario for creating a room full of hangry people. Instead, hire a reputable HVAC company to install and service your air conditioning unit. You will be glad you did when the kitchen is comfortable instead of sweltering through the hot summer months.

Digital menu boards

People want to visit restaurants with new things. They like digital menus because they are easy to read. Having the prices organized in a coherent theme makes it quick for people to find what they want. You will speed up ordering times with this technology as well. Using mobile apps is also a good idea. Small Business Chronicle says mobile marketing helps people find your business when they are out in the neighborhood looking for a place to eat or drink.

Online ordering

People like the convenience of ordering in and eating at home. Forbes says this industry will grow to a 200 billion dollar field before it peaks. Every business wants to be a part of this emerging trend, so getting in on it now is the best course of action. You can have the option of simply placing orders online or even pair up with local delivery companies to give home delivery options. This will help you reach a much broader customer base than you could by physical location alone.

Plenty of open seating

For people to come inside, they want to see a place to sit. The restaurant should offer inviting seating, but also remain busy to entice people to come sit down. Using a beautiful table setting as part of the window display is an excellent way to grab the attention of people passing by the restaurant. Enticing them to come in might be as easy as putting a dessert menu on the table or a display close to the window.

When you need more people to visit your restaurant, then a few key tips can improve walk-in traffic. A bright sign with your specials and prices is another good idea. People like knowing what they want when they walk into some place new. It gives them a familiar feeling and helps them connect to your brand. Offering free items or promotions is another way to lure customers in the door.