restaurant business plan table of contents

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How to write a restaurant business plan

A small restaurant business plan is the roadmap you use to open a successful spot. As a first step to creating yours, ask your friends and colleagues to share restaurant business plan examples. Their restaurant business plan samples can inspire yours.

Once you’ve studied those examples, it’s time to start writing your own. No matter how much thought you’ve put into your concept or how many trusted colleagues have assured you of its greatness, you must write a restaurant business plan. It will prove the viability of your concept to potential investors and provide them with a clear and engaging answer to the question: “Why does the world need this restaurant?”

“The point of a business plan is to show that you’ve done your homework,” says Charles Bililies, owner of Souvla , a fine casual Greek restaurant in San Francisco that has received national acclaim since opening in the spring of 2014.

“You have to show any potential investor that you have an actual plan, you know what you’re talking about, it looks professional, and you’re not just screwing around.”

Quick links Branded cover Table of contents Concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials

1. Branded cover

Include your logo (even if it’s not finalized), the date, and your name.

2. Table of contents

A table of contents in a restaurant business plan provides an organized overview of the document’s structure and content. It typically appears at the beginning of the plan and lists the major sections and subsections with their corresponding page numbers.

The table of contents is important for several reasons. Firstly, it allows readers to quickly navigate through the plan, enabling easy access to specific sections of interest. Secondly, it helps in presenting a professional and well-structured document, showing that you have carefully organized your thoughts and ideas. It also improves readability and comprehension, as readers can easily locate and refer back to relevant information

3. Restaurant concept

Describe your restaurant concept and get the reader excited about your idea. Specify whether the restaurant will be fine dining or more casual. Include an executive summary and go into detail about the food you’ll be serving, inspiration behind your concept, and an overview of service style.

Define clearly what will be unique about your restaurant and include your mission statement. This section should include a market analysis that shows how your restaurant will be similar and different from competing restaurants.

4. Sample menu

The menu is the most important touchpoint of any restaurant’s brand, so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices that are based on a detailed cost analysis. This will:

• Give investors a clear understanding of your targeted price point
• Provide the info needed to estimate check averages
• Show the numbers used create financial projections for starting costs
• Show investors that you’ve done the homework
• Prove you can stay within a budget

This section is most relevant for:

• Fine-dining concepts
• Concepts that have a unique service style
• Owners who have particularly strong feelings about what role service will play in their restaurant.

It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service and restaurant hostess software designed to get guests on their way as quickly as possible, or will it look more like a theater, with captains putting plates in front of guests simultaneously?

If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

6. Management team

Write a brief overview of yourself and the team you have established so far. You want to show that your experience has provided you with the necessary skills to run a successful restaurant and act as a restaurant business owner.

Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full pitch deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant.

Whether you’re planning to cook in a wood-burning oven or are designing an eclectic front-of-house, be sure to include those ideas. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

8. Target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Once you’ve described them in detail, reiterate why your specific concept will appeal to them.

9. Location

There should be a natural and very clear connection between the information you present in the “Target Market” section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighborhoods.

Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there—make the connections clear. You want readers to be confident that your restaurant’s “ideal” diner intersects with the neighborhood(s) you’re proposing as often as possible.

If you don’t have a site , this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, freeway accessibility, outdoor seating , and other important details.

10. Market overview

Address the micro and macro market conditions in your area and how they relate to licenses and permits. At a macro level, what are the local and regional economic conditions?

If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss who your direct competitors are. Talk about what types of restaurants share your target market and how you’ll differentiate yourself.

11. Marketing and publicity

The restaurant landscape is only getting more competitive. Discuss your pre- and post-opening marketing plans to show investors how you plan to gain traction leading up to opening day, as well as how you’ll keep the momentum going.

If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media, your website , and media connections.

12. Specialists and consultants

List any outside contractors you plan to retain, such as:

• General contractor
• PR and marketing

Briefly explain the services they’ll be providing for you, why you chose them, and any notable accomplishments.

13. Business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with an attorney to help you determine what business structure is best for you.

“Step one: write a business plan. Step two: hire a good attorney. In addition to helping me build a smart, sustainable business structure, my attorney was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters,” says Charles Bililies.

14. Financial projections

Let your accountant guide you through this portion of your business plan. It is crucial that whoever you hire to help you with your finances has a wealth of restaurant experience (not just one or two places). They should be familiar with the financial specifics of starting a restaurant and know what questions to ask you.

Before creating realistic financial projections, your accountant will want to know:

• How many seats the restaurant will have
• What your average check will be
• How many covers per day you plan to do

Being conservative in these estimations is key. These three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasizes, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors.

The key projections you can expect to work on are:

• Pro forma profit and loss statement for the first three to five years of operation
• Break even analysis
• Capital requirements budget

Writing a comprehensive restaurant business plan is a crucial step towards opening a successful establishment. By seeking inspiration from examples, demonstrating your expertise, and addressing all the essential components, you can prove the viability of your concept to potential investors.

Remember, a well-prepared business plan demonstrates professionalism and a clear understanding of your goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

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Restaurant Business Plan: What To Include, Plus 8 Examples

• Business Growth & Management , Templates & Guides

Do you want to ensure the success of your new foodservice endeavor? Write a restaurant business plan.

In this article, the experts at Sling tell you why a business plan is vital for both new and existing businesses and give you tips on what to include.

Table Of Contents

What Is A Restaurant Business Plan?

Why is a restaurant business plan important, questions to ask first, what to include in an effective restaurant business plan, how to format a restaurant business plan, efficient workforce management is essential for success.

At its most basic, a restaurant business plan is a written document that describes your restaurant’s goals and the steps you will take to make those goals a reality.

This business plan also describes the nature of the business itself, financial projections, background information, and organizational strategies  that govern the day-to-day activity of your restaurant.

A restaurant business plan is vital for the success of your endeavor because, without one, it is very difficult — sometimes even impossible — to obtain funding from an investor or a bank.

Without that all-important starting or operational capital, you may not be able to keep your doors open for long, if at all.

Even if funding isn’t a primary concern, a business plan provides you — the business owner or manager — with clear direction on how to translate general strategies into actionable plans  for reaching your goals.

The plan can help solidify everything from the boots-on-the-ground functional strategy  to the mid-level business strategy  all the way up to the driving-force corporate strategy .

Think of this plan as a roadmap that guides your way when things are going smoothly and, more importantly, when they aren’t.

If you want to give your restaurant the best chance for success, start by writing a business plan.

Sitting down to write a restaurant business plan can be a daunting task.

As you’ll see in the What To Include In An Effective Restaurant Business Plan section below, you’ll need a lot of information and detail to ensure that the final document is both complete and effective.

Instead of starting with word one, it is hugely beneficial to answer a number of general questions first.

These questions will help you narrow down the information to include in your plan so the composition process feels less difficult.

The questions are:

• What problem does the business’s product or service solve?
• What niche will the business fill?
• What is the business’s solution to the problem?
• Who are the business’s customers?
• How will the business market and sell its products to them?
• What is the size of the market for this solution?
• What is the business model for the business?
• How will the business make money?
• Who are the competitors?
• How will the business maintain a competitive advantage?
• How does the business plan to manage growth?
• Who will run the business?
• What makes those individuals qualified to do so?
• What are the risks and threats confronting the business?
• What can you do to mitigate those risks and threats?
• What are the business’s capital and resource requirements?
• What are the business’s historical and projected financial statements?

Depending on your business, some of these questions may not apply or you may not have applicable answers.

Nevertheless, it helps to think about, and try to provide details for, the whole list so your finished restaurant business plan is as complete as possible.

Once you’ve answered the questions for your business, you can transfer a large portion of that information to the business plan itself.

We’ll discuss exactly what to include in the next section.

In this section, we’ll show you what to include in an effective restaurant business plan and provide a brief example of each component.

1) Executive Summary

You should always start any business plan with an executive summary. This gives the reader a brief introduction into common elements, such as:

• Mission statement
• Overhead costs
• Labor costs
• Return on investment (ROI)

This portion of your plan should pique the reader’s interest and make them want to read more.

Fanty & Mingo’s is a 50-seat fine-dining restaurant that will focus on Sweruvian (Swedish/Peruvian) fusion fare.

We will keep overhead and labor costs low thanks to simple but elegant decor , highly skilled food-prep staff, and well-trained servers.

Because of the location and surrounding booming economy, we estimate ROI at 20 percent per annum.

2) Mission Statement

A mission statement is a short description of what your business does for its customers, employees, and owners.

This is in contrast to your business’s vision statement which is a declaration of objectives that guide internal decision-making.

While the two are closely related and can be hard to distinguish, it often helps to think in terms of who, what, why, and where.

The vision statement is the where of your business — where you want your business to be and where you want your customers and community to be as a result.

The mission statement is the who , what , and why of your business — it’s an action plan that makes the vision statement a reality

Here’s an example of a mission statement for our fictional company:

Fanty and Mingo’s takes pride in making the best Sweruvian food, providing fast, friendly, and accurate service. It is our goal to be the employer of choice and offer team members opportunities for growth, advancement, and a rewarding career in a fun and safe working environment.

3) Company Description

In this section of your restaurant business plan, you fully introduce your company to the reader. Every business’s company description will be different and include its own pertinent information.

Useful details to include are:

• Owner’s details
• Brief description of their experience
• Legal standing
• Short-term goals
• Long-term goals
• Brief market study
• An understanding of the trends in your niche
• Why your business will succeed in these market conditions

Again, you don’t have to include all of this information in your company description. Choose the ones that are most relevant to your business and make the most sense to communicate to your readers.

Fanty & Mingo’s will start out as an LLC, owned and operated by founders Malcolm Reynolds and Zoe Washburne. Mr. Reynolds will serve as managing partner and Ms. Washburne as general manager.

We will combine atmosphere, friendly and knowledgeable staff, and menu variety to create a unique experience for our diners and to reach our goal of high value in the fusion food niche.

Our gross margin is higher than industry average, but we plan to spend more on payroll to attract the best team.

We estimate moderate growth for the first two years while word-of-mouth about our restaurant spreads through the area.

4) Market Analysis

A market analysis is a combination of three different views of the niche you want to enter:

• The industry  as a whole
• The competition your restaurant will face
• The marketing  you’ll execute to bring in customers

This section should be a brief introduction to these concepts. You can expand on them in other sections of your restaurant business plan.

The restaurant industry in our chosen location is wide open thanks in large part to the revitalization of the city’s center.

A few restaurants have already staked their claim there, but most are bars and non-family-friendly offerings.

Fanty & Mingo’s will focus on both tourist and local restaurant clientele. We want to bring in people that have a desire for delicious food and an exotic atmosphere.

We break down our market into five distinct categories:

• High-end singles
• Businessmen and businesswomen

We will target those markets to grow our restaurant  by up to 17 percent per year.

Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you’ll serve in as much detail as possible.

You may not have your menu design complete, but you’ll likely have at least a handful of dishes that serve as the foundation of your offerings.

It’s also essential to discuss pricing and how it reflects your overall goals and operating model. This will give potential investors and partners a better understanding of your business’s target price point and profit strategy.

We don’t have room to describe a sample menu in this article, but for more information on menu engineering, menu pricing, and even a menu template, check out these helpful articles from the Sling blog:

• Menu Engineering: What It Is And How It Can Increase Profits
• Restaurant Menu Pricing: 7 Tips To Maximize Profitability
• How To Design Your Menu | Free Restaurant Menu Template

6) Location

In this section, describe your potential location (or locations) so that you and your investors have a clear image of what the restaurant will look like.

Include plenty of information about the location — square footage, floor plan , design , demographics of the area, parking, etc. — to make it feel as real as possible.

We will locate Fanty & Mingo’s in the booming and rapidly expanding downtown sector of Fort Wayne, Indiana.

Ideally, we will secure at least 2,000 square feet of space with a large, open-plan dining room and rich color scheme near the newly built baseball stadium to capitalize on the pre- and post-game traffic and to appeal to the young urban professionals that live in the area.

Parking will be available along side streets and in the 1,000-vehicle parking garage two blocks away.

7) Marketing

The marketing section of your restaurant business plan is where you should elaborate on the information you introduced in the Market Analysis section.

Go into detail about the plans you have to introduce your restaurant to the public and keep it at the top of their mind.

Fanty & Mingo’s will employ three distinct marketing tactics to increase and maintain customer awareness:

• Word-of-mouth/in-restaurant marketing
• Partnering with other local businesses
• Media exposure

We will direct each tactic at a different segment of our potential clientele in order to maximize coverage.

In the process of marketing to our target audience, we will endeavor to harness the reach of direct mail and broadcast media, the exclusivity of the VIP party, and the elegance of a highly trained sommelier and wait staff.

8) Financials

Even though the Financials section is further down in your restaurant business plan, it is one of the most important components for securing investors and bank funding.

We recommend hiring a trained accountant  to help you prepare this section so that it will be as accurate and informative as possible.

Fanty & Mingo’s needs $250,000 of capital investment over the next year and a half for the following:

• Renovations to leased space
• Dining room furniture
• Kitchen and food-prep equipment
• Liquor license

Projected profit and loss won’t jump drastically in the first year, but, over time, Fanty & Mingo’s will develop its reputation and client base. This will lead to more rapid growth toward the third and fourth years of business.

Most entrepreneurs starting a new business find it valuable to have multiple formats of their business plan.

The information, data, and details remain the same, but the length and how you present them will change to fit a specific set of circumstances.

Below we discuss the four most common business plan formats to cover a multitude of potential situations.

Elevator Pitch

An elevator pitch is a short summary of your restaurant business plan’s executive summary.

Rather than being packed full of details, the elevator pitch is a quick teaser of sorts that you use on a short elevator ride (hence the name) to stimulate interest in potential customers, partners, and investors

As such, an effective elevator pitch is between 30 and 60 seconds and hits the high points of your restaurant business plan.

A pitch deck is a slide show and oral presentation that is designed to stimulate discussion and motivate interested parties to investigate deeper into your stakeholder plan (more on that below).

Most pitch decks are designed to cover the executive summary and include key graphs that illustrate market trends and benchmarks you used (and will use) to make decisions about your business.

Some entrepreneurs even include time and space in their pitch deck to demonstrate new products coming down the pipeline.

This won’t necessarily apply to a restaurant business plan, but, if logistics permit, you could distribute small samples of your current fare or tasting portions of new dishes you’re developing.

Stakeholder Plan (External)

A stakeholder plan is the standard written presentation that business owners use to describe the details of their business model to customers, partners, and potential investors.

The stakeholder plan can be as long as is necessary to communicate the current and future state of your business, but it must be well-written, well-formatted, and targeted at those looking at your business from the outside in.

Think of your stakeholder plan as a tool to convince others that they should get involved in making your business a reality. Write it in such a way that readers will want to partner with you to help your business grow.

Management Plan (Internal)

A management plan is a form of your restaurant business plan that describes the details that the owners and managers need to make the business run smoothly.

While the stakeholder plan is an external document, the management plan is an internal document.

Most of the details in the management plan will be of little or no interest to external stakeholders so you can write it with a higher degree of candor and informality.

After you’ve created your restaurant business plan, it’s time to take steps to make it a reality.

One of the biggest challenges in ensuring that your business runs smoothly and successfully is managing  and optimizing  your team. The Sling  app can help.

Sling not only includes powerful and intuitive artificial-intelligence-based scheduling tools but also many other features to help make your workforce management more efficient, including:

• Time and attendance tracking
• Built-in time clock
• Labor cost  optimization
• Data analysis and reporting
• Messaging and communication
• And much more…

With Sling, you can schedule faster, communicate better, and organize and manage your work from a single, integrated platform. And when you use Sling for all of your scheduling  needs, you’ll have more time to focus on bringing your restaurant business plan to life.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com  today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

Creating a solid business plan is important, as it helps:

• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% (Harvard Business Study) .
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on c ommon elements of an executive summary, including:

• A mission statement  
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

Further reading

• How to write a restaurant executive summary

Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content:  How to Write a Restaurant Mission Statement  

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market .

2. Company description

This is where you carefully introduce the company in the restaurant business plan. Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information. Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description. To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:  

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

  Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

• How to find your restaurant's target market

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

• Top Free Restaurant Menu Makers

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result.  You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more: How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems .

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section . We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

• Important restaurant metrics to track

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

10 minute read

helped business professionals at:

Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology and systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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How to Write a Restaurant Business Plan

A comprehensive business plan is the foundation of every successful restaurant. You need a business plan before you can begin to execute on anything having to do with opening your establishment. A proper business plan is a guide that will help take your idea from concept to reality.

When you begin to seek professional and financial support for your new business, your business plan will be the primary document of reference to describe your concept, market, and potential for profitability. You need a business plan for investors, lenders, consultants, partners, and other team members who will help make your dream of opening a restaurant come true.

In this article, we’ll walk you through every part of how to write a restaurant business plan, explain the function of each section, and provide an example you can use as a starting point.

Before Writing Your Business Plan: Questions to Answer

Before you start writing your business plan, you’ll want to consider a few key things. Knowing the answers to these questions will make writing your business plan and communicating your vision a hundred times easier. Keep the answers to these questions top of mind as you’re writing your business plan.

Who is your business plan for?

Are you approaching investors and lenders, or is your plan specifically for you and your staff? You’ll need to adapt your writing for different audience types, and perhaps place emphasis on certain sections over others depending on your primary audience.

Where will your restaurant be located?

If you don’t yet have a location for your restaurant , you should at least know which neighbourhood your restaurant will be located in. Your restaurant’s location will determine important elements of your business plan, like your competitive analysis, ingredient availability, venue type, etc. If you’re in the early stages of planning, you likely don’t know your exact address, but nailing it as close as you can will guide you in your writing.

What is your venue type?

You should have a clear idea of what kind of restaurant you’re opening , whether it’s an intimate cafe, craft microbrewery, or gourmet food truck. If you aren’t quite sure, you’ll need to decide before you write your business plan. You should know exactly what your venue is going to be as you work through the details of a business plan.

What are your goals?

Do you want to start a food truck and then grow to open a sister restaurant, or do you want to open a full service restaurant and grow to operate a fleet of food trucks? Are you looking to open a burger place with a constant flow of customers? Or maybe you want to be the go-to place for special occasions. Be as specific as you can in your vision, and be clear on exactly what you want to achieve.

What are your credentials?

Have you worked in the restaurant industry before? How well do you know the market? Do you need any additional skills before you start your restaurant? If you’re confident you have the skills, feel free to start. But if you’ve never spent any time in a kitchen or in the foodservice industry, you may want to get some hands-on experience so you know what you’re getting into.

5 Tips on How to Write a Restaurant Business Plan

Before you start writing your business plan, here are some tips to make the process easier.

• Collect materials that are relevant, like links, articles, quotes and information that may benefit you as you are writing, and use them for inspiration or include them within the appropriate sections of your business plan.
• Taking something from concept to creation can be challenging, but try to put everything you see in your imagination down in the most accurate words possible. Go through the business plan template the first time and make tons of notes for each section, then come back to it later and flesh out your ideas further.
• If a section stumps you, make a note and move on, then revisit it later when you have more information or more clarity. Refine and rework. Be sure to add all new developments that are happening, and when you’re confident you’ve said all you can about a section, go back in and edit and re-word until you’re satisfied.
• Use graphics and images to clarify your message when you feel it’s necessary. Consider creating Pinterest boards to keep you inspired and help you get visual. Then, when you are writing your business plan, go back to your boards to pull in graphics that get your idea across better than words.
• Just as Rome wasn’t built in a day, know that your business plan will take time. It can take anywhere from weeks to months to years to get a solid grasp on what it is you’re creating. As time passes and you continue to work on it, you’ll fine-tune your message and have a crystal clear plan on your hands.

Are you confident in your vision, clear on your goals, and comfortable with your skills? Ready to jump in?

Restaurant Business Plan Template

Table of Contents

Your restaurant business plan is going to be a long document. Depending on the nature of your restaurant, your business plan could be anywhere from 10 to 50 pages – so your readers will need to find sections easily. This is where a table of contents comes in. It’ll look something like this:

• Executive Summary – p. 3
• Business Overview – p. 5
• Business Description – p. 7
• The Marketplace – p. 12
• Marketing – p. 20
• Business Operations – p. 25
• Financials – p. 30
• Business Plan Summary p. 37

After you’re finished writing your restaurant business plan, make sure to review your table of contents so that your page numbers are accurate.

Executive Summary While the Executive Summary may live at the beginning of your business plan, it’s the last thing you’ll write. The Executive Summary is a one-page summary of every section in your business plan, so that readers can get a general sense of your entire plan in one page. Remember to keep this section brief yet impactful.

Business Overview

Your Business Overview is simple: it’s a list of basic information about your business, such as your legal name, type of business, business number, etc. You may have some empty fields until you’re closer to actually opening. This list is for quick reference and especially important if you’ll be seeking bank loans or approaching investors:

• Legal name of business
• Trade name of business (doing business as)
• Business address or potential business address
• Current mailing address
• Phone number
• Social media handles
• Structure of business
• Date business was established
• Nature of business
• Banking details (branch and banker’s name)

Quick tip: many of the details in your business overview will be filled out as your business takes shape. fill in what you can as you go. if some of this information is unknown, don’t let it hold you up.

Business Description

Your Business Description is where your restaurant comes to life. Here is where you’ll describe, in detail, what your business is going to look like, where it will be, and the kind of vibe it will have. Your Business Description answers all of the questions that relate to your vision and goals. Be as expansive as you want here – go into as much detail as possible, and don’t be afraid to use visuals! Here’s what to include in your Business Description.

Will your business be run as a sole trader, a partnership, or a company? Who is involved and what is their role? This can be a short paragraph.

Your restaurant concept is your idea . Take the time to describe why your business is special, and talk about what you’ll do differently as compared to other restaurants. Why should people choose your restaurant over another? What kind of experience will you be providing customers?

Mission statement

Your mission statement is one sentence that describes what your restaurant will achieve. Think of your end goal, the ultimate driving force behind your business. Your mission statement should be something that can be displayed on marketing materials, and it should express to people what your business is all about.

Short-term and long-term goals

Here you’ll want to mention any relevant personal goals, then list your short-term and long-term objectives. Think about where you’re going and what you hope to be doing in a couple of years. Your short-term goals describe your first year as a restaurant owner. Long-term goals are larger, like how you plan to scale your business and how you hope to grow. Be descriptive in this section, but also remember to remain realistic and within the scope of your projections in the financial section.

Menu and services

Include a sample menu, or menus, and discuss the details of each, such as times of day offered and the inspiration or rationale for each. If you’re going to offer catering, delivery, or any other services, mention those here. Describe anything else you’ll be selling, such as pre-packaged foods, canned or bottled drinks, or retail items such as t-shirts and hats.

You likely won’t have secured a location or negotiated a lease at this point, so instead mention the neighbourhoods you’re considering for your venue. Answer the following questions here: Which features of the neighbourhood will affect your business? What other businesses are located in the area? What kinds of people live, work, or visit the neighbourhood? Consider and document all effects that the location will have on your business, like access to parking, public transportation, walk score, etc.

Take the time to describe your concept with as much visual detail as you can. Express why these details are important (hint: they should relate back to your branding). If you’re working with a design agency or interior design specialist, mention them and show their proposals or mockups. Business description summary Finally, briefly sum up everything in this section. Your Business Description tends to be a long section, so you’ll need a summary that provides an overview of what you’re going to achieve with your business.

The Marketplace

This section is where you’ll describe the current status of the marketplace for your business. The most important thing to remember about this section is that you’ll need to remain honest and authentic. You won’t do yourself or anyone else any favours by painting an unrealistic picture of the marketplace and how your business fits within it. This section requires a lot of research and critical thinking skills.

Visit your direct competition and gain some intel on their customer experience and menu. Ask people in your prospective neighbourhood about how businesses perform in the area. By gathering as much information as you can, your marketplace assessment will be clear and rooted in reality.

Market segment

This section should provide a quick overview of the size of your customer base. What are the demographics, psychographics, and segments of your target market?

You need to know your target customers. Who will frequent your restaurant and what characteristics do they share? List statistics you’ve gathered about your market and any other relevant information about your potential customers. Make a note of any customer segments within your target demographic that have certain needs over others.

You’ll want quantitative and qualitative research to round out this section. Make sure to talk to people within your target market to gain a clear understanding of their needs and how you can serve them. You’ll also discover other valuable insights through these discussions.

Market trends

Here you’ll want to list relevant statistics about past and current trends within your marketplace. Include anything that relates to the demand for your business, social or economic factors, and trends that have affected similar businesses. If you’ve done research or hired a firm to conduct some for you, mention all the outcomes from that research here.

Competition

So you know other restaurants are your competition, but you’ll need to be specific. Analyse your prospective neighbourhood, and make a list of all your competitors from small to large. Use a critical eye to determine how they differ from your establishment. Categorise your competitors into “direct” and “indirect”. Your direct competitors are those restaurants that are offering similar customer experiences and type of cuisine, while indirect competitors may be different from your restaurant but still compete for your target market’s attention and spend.

Now that you’ve analysed the competition, you should be able to spot how you’ll be able to stand out. What will your restaurant do that no one else is doing? What are your differentiators that will cause the market to take notice of your business?

Opportunities

After you determine your differentiators, you’ll know how your restaurant can fill potential gaps in the marketplace or provide a better option for customers. From the menu to the hours, whatever your restaurant can do better, list it here.

Now, the other side of the coin: what your restaurant may not be able to do better than the competition. Take the time to list these as challenges, provide rationale as to why your restaurant will face these barriers, and how you’ll tackle them once you’re open. Don’t be afraid of honesty here; a candid account of the challenges you’ll face will show readers you’re self-aware and ready to overcome problems with practical solutions.

Marketplace summary

Briefly sum up everything that you’ve talked about in this section, reiterating the demographics of your target market, advantages, and opportunities.

You may be an amazing chef and create exceptional dishes, but without customers and sales, you don’t have much of a business. You need a marketing strategy to get people in the door and coming back. In this section on how to write a restaurant business plan, we’ll get into your strategy: how you’re going to price your meals, how you’ll position yourself to appeal to your target customers, and how you’ll promote your business to let customers know you exist.

Positioning

Describe how you’ll appeal to your target customers and where you will place yourself in the customer’s mind. Use your differentiators in the previous section to guide your positioning strategy. How will you communicate your differentiators to your market? What will you be offering the market that your customers wouldn’t be able to get anywhere else?

Describe your pricing and how it compares to similar businesses. Provide ballpark figures for different menu items and list standard pricing for your type of business. List your competitors’ prices and explain why yours will be higher or lower. Make sure to align this section with your financials so that your food and labour ratios are taken into account when crafting this section.

Online promotion

If you plan on creating and maintaining social media accounts like Facebook, Twitter, and Instagram, explain how you’ll use them to promote your business. Describe your website’s main elements, design style, and who will build it. List all paid digital promotion here such as Google ads, paid social media ads, and any agencies you’ll work with to develop and execute on all digital marketing initiatives.

Traditional promotion

Will you be holding any events, releasing a press release, or taking out any print ads?

Marketing summary

Briefly summarise your overall marketing strategy and what you’ll concentrate on the most: digital, traditional, PR, etc. Let readers know why you think your marketing strategy will work for your type of restaurant.

Business Operations

You’ve described your vision, the market, and how you plan to promote your business. But how will you actually execute your plans? Who will operate your business day-to-day? Here’s where you get into the nitty-gritty details of your business operations.

Introduce everyone on your payroll. List their qualifications, special skills, and job description, with an emphasis on how they will help you reach your goals and the tasks they will do every day. Categorise each staff member into other owners, chefs, managers, servers, bartenders, etc.

Supplier relationships

List your suppliers by type: food, payment, alcohol, cleaning, etc. Note how each supplier serves your restaurant’s needs , and list their credit and payment terms. List all suppliers for the following:

• Waste removal
• Restaurant supplies like dishware and glass
• Paper products
• Payroll service
• Cleaning services
• Plants or landscaping
• Linen service
• Entertainment
• Marketing and advertising
• Technology, such as EPOS hardware and software, mobile delivery apps, loyalty apps, and an internet provider

Your restaurant will need insurance coverage . Do some research to determine mandatory insurance and special coverage, and start to compare costs between insurance providers. List each type of insurance your restaurant will need and what it covers.

What kind of licencing does your restaurant need? List all of the licences and permits required for your restaurant and staff here. Check your local government website for the details and anything else that you are required to obtain in your area.

Business operations summary

Briefly sum up everything that you’ve talked about in the Business Operations section.

You’ve now arrived at the most important – and the most daunting – part of your restaurant business plan. This is where you prove that your idea is actually a business that can turn a profit. Complete a financial forecast that takes your concept and translates it into numbers. This exercise is the most important part of your business plan, as investors and lenders will be scrutinising these numbers before they read anything else.

The Breakdown

Your forecast will be broken into four main parts:

• Revenue: Forecasted sales
• Controllable costs: Food and beverage costs as well as cost of labour
• Expenses: Marketing, rent, supplies, utilities, etc.
• Start-Up Costs: What it costs to get you to open, as well as things like capital improvements and training.

We’ve created a downloadable sample forecast that demonstrates what you’ll need to do. Our example is Joe’s Burgers, a small 1,000 square foot quick service restaurant with no alcoholic beverage sales. Once you understand the sample forecast, we’ve included a blank forecast sheet where you can add in your own numbers to project how profitable you’ll be. Notes about the forecast spreadsheet

• Take the blank forecast and “save as” so that if you make a mistake, you can return to the original spreadsheet and start again.
• There are formulas pre-programmed in the cells of the spreadsheet.
• If you are planning to open a restaurant that will serve alcoholic drinks, you will have to figure out your sales mix of the various types: bottled beer, draft beer, liquor, and wine, and the costs associated with each. For example, if your bottled beer cost is 28% and wine cost is 40%, you’ll have an average beverage cost of 34% to add to your forecast.
• If you are going to offer catering or other services, you can create another revenue stream that covers events executed, average spends, revenues, cost of goods sold and labour costs for that source.

Business Plan Summary

Your Business Plan Summary should tie the whole message together. Use this section to highlight how you’re different and what you’re offering, reiterating the most important points about your restaurant.

Sections to include are:

• Why you will succeed: in a few short sentences, repeat how you are different and why your business will work.
• What you need: if you’re asking for money, repeat the ask here.
• A thank you: a quick thanks at the end reminds people that you value their time and input.

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How to Write a Small Restaurant Business Plan + Free Sample Plan PDF

Makenna Crocker

10 min. read

Updated March 18, 2024

Free Download:  Sample Restaurant Business Plan Template

From greasy spoon diners to Michelin Star restaurants, food service has captured the hearts and imaginations of countless culinary entrepreneurs.

In the United States, 90% of restaurant owners operate small restaurants with fewer than 50 employees . And 70% operate in just one location.

If you’re passionate about food and dream of opening a restaurant, you have plenty of company. But cooking skills alone won’t cut it. You need a plan.

In this article, we’ll walk you through writing a small restaurant business plan, from conducting market research to developing promotional strategies and creating a financial forecast. 

Need more guidance? Download our free small restaurant business plan template .

Why write a small restaurant business plan?

Starting a restaurant from scratch isn’t cheap.  Startup costs range from $175,000 to $750,000 and include hefty upfront expenses like:

• Building lease
• Kitchen equipment
• Ingredient sourcing

The financials section of a business plan gives you space to compile these costs into an expense budget and compare them to your revenue projections . These will be invaluable in helping you determine if your restaurant concept is financially viable.

And if you need a bank loan or investor to help fund your restaurant , they’ll want to see a plan that includes financial projections (more on that later).

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• How to write a small restaurant business plan

The business plan is not only where you lay out your plan, vision, and goals for the restaurant – it pushes you to thoroughly research and understand your market , competitors , and customers to make informed decisions. It guides you through the intricacies of opening and running a small restaurant and helps you keep your finances in order.

Here are some tips for writing a small restaurant business plan that sets you up for success.

• Start with a company overview

A good place to start is to think about the big picture. What do you want your restaurant to be? Are you envisioning upscale dining in a candlelit, intimate setting? Or maybe you’re going for comfort food in a family-friendly atmosphere?

Capture the essence of your restaurant with a brief, attention-grabbing overview. Think of the start of your overview section as an elevator pitch. You’re introducing your concept and vision to highlight what will make your business unique .

Just keep it succinct. 

You’ll need to include other important information about your business here, such as the legal structure of your business and the qualifications of you and your management team.

If you’re writing a business for an existing restaurant, you should also cover its history – when the restaurant was founded, who was involved, and milestones it has reached.

• Understand your target market

Conducting a thorough market analysis is key to the success of your small restaurant. In an industry as competitive as the restaurant business, you’ll need to have your finger on the pulse of your dining market if you hope to create a unique offering.

Defining your target market is essential when starting your restaurant, helping answer questions like:

• Is there demand in the local market for your food?
• Who are your primary competitors? 
• Is there building space for lease near where your target customers live or work?
• What types of partnerships with food distributors (wholesalers, farmers, butchers, etc.) will be needed to ensure a steady flow of fresh ingredients?

The first step is to identify who your diners will be. 

It’s unrealistic to try to appeal to every single customer. So, ask yourself who you envision walking through your doors. Are they:

• Adults aged 40 and over, with lots of disposable income and exotic culinary tastes.
• Children, young adults, and families looking for quick, convenient food that doesn’t stretch their budgets.

Of course, these aren’t the only two customer demographics for a restaurant. But you should get the sense that these customer segments have very different preferences.

Read more: Target market example

Understanding your target market involves more than just demographics. Consider their:

• Spending habits
• Daily routines

If you plan to operate in a busy city center, your target market might include working professionals seeking quick lunch options or upscale dining options after work. But if you’re opening in a less visible area near residential neighborhoods, you may be more likely to target families.

• Size up your competition

With a target customer in mind, you need to understand who you’ll be competing with for their dining budget.

Analyzing your competitors is about understanding their strengths, weaknesses, and strategies. 

Start by identifying direct competitors (other small restaurants) and indirect competitors (like fast-food chains or food trucks). Observe how they attract customers, the ambiance they create, and the variety and pricing of their menus.

Get a feel for their operational strategies:

• How much staffing do they have?
• How fast (or slow) is their service?
• What kinds of supplier relationships do they seem to have?

And their marketing tactics :

• How do they engage with customers?
• What deals or promotions do they offer?
• What kind of reviews are they getting online?

Finally, think about their long-term position: 

• Have they expanded or downsized recently?
• Have they changed their operating hours?
• Have they changed their menu?

As you observe these competitors and their customers, ask yourself what they are doing right and where they are coming up short. 

This knowledge will help you identify gaps in the market and opportunities to offer a unique experience.

• Create a detailed operations plan

With so many moving pieces to manage as a restaurant owner, writing an operations plan is just as important as creating a market analysis.

The operations section of your business plan details how your restaurant will function daily. 

It should briefly touch on every aspect of running the business–from staffing needs to how often you will need to buy new ingredients, kitchen equipment, or dining utensils.

Your operations plan will reflect the unique needs of your business, but a typical restaurant operations plan might include:

• Staffing and training: Lay out a staffing plan, with the roles and responsibilities of each team member. Include strategies for hiring, training, and employee retention.
• Equipment and technology: Outline your dining, kitchen, and technology needs, from tables and chairs to ovens and point-of-sale systems.
• Supply chain management: Explain your ingredient sourcing and inventory management strategies and your plan to build relationships with suppliers.
• Customer service policies: Describe how you manage customer service needs and feedback to ensure a positive dining experience.
• Health and safety protocols: Detail procedures for maintaining kitchen hygiene practices and food handling standards to ensure food safety and compliance with health regulations.

Without an operations plan, you’ll lack a documented strategy for managing your kitchen workflow, maintaining customer satisfaction, or even basic tasks like inventory or staffing.

And if you’re writing a business plan to get a bank loan or investment , they’ll want to see that you have a plan for successfully managing the restaurant. 

• Actively market your restaurant

Your small restaurant may serve the most mouthwatering dishes in town, but no one will discover it without effective promotional strategies. 

You need to develop a comprehensive marketing plan to showcase your culinary delights and entice customers through your doors.

Consider both traditional and digital marketing channels to reach your target audience. Traditional methods may include:

• Hosting special events
• Participating in local food festivals
• Partnering with complementary businesses in your community

Digital strategies may include:

• Creating an engaging website
• Building a strong presence on social media platforms
• Utilizing online review platforms to build credibility and foster positive word-of-mouth.

When developing your promotional strategies, consider the following tips:

Be smart about your online presence

Build a visually appealing and user-friendly website that showcases your restaurant’s ambiance, menu, and story. 

Leverage social media platforms to engage with your audience, share enticing food photos, and run targeted advertising campaigns.

Consider promotions

Encourage repeat business by implementing a loyalty program that rewards customers for their patronage. Offer incentives such as discounts to certain customer segments, like seniors, veterans, or students.

Engage with the local community

Participate in community events, sponsor local sports teams or charity initiatives, and establish partnerships with neighboring businesses. 

Becoming an active community member will build brand awareness and loyalty.

Don’t ignore your pricing and financial strategy

According to data from the National Restaurant Association , about 60% of restaurants fail in their first year, and 80% close within five years.

You need to understand your startup and ongoing operating expenses to run a successful small restaurant.

Start by estimating your startup costs , including:

• Site acquisition (down payment if owning the space, initial payment if leasing)
• Building improvements
• Equipment purchases
• Licenses and permits
• Initial inventory
• Menu creation

Then, account for ongoing operating expenses, such as:

• Employee wages
• Mortgage or rent payments
• Ingredient costs

Pricing your menu items strategically is essential to ensuring profitability. Analyze ingredient costs, consider portion sizes, and compare prices in your local market to determine competitive yet profitable pricing.

Conduct a break-even analysis to determine the number of customers you need to serve to cover costs and start generating profits. Regularly review your financials and adjust your pricing as needed to maintain a healthy bottom line.

Consider these financial aspects when developing your small restaurant business plan:

Budget Allocation

Determine how you will allocate your budget across different areas of your restaurant, such as kitchen equipment, interior design, marketing, and staff training.

Prioritize investments that will have a direct impact on customer experience and operational efficiency.

Revenue Streams

Identify multiple revenue streams for your restaurant. This may include revenue from food sales, catering services, private events, or partnerships with local businesses.

Diversifying your revenue sources can help stabilize your cash flow.

Cost Control

Develop strategies to control costs without compromising quality. Efficient inventory management, negotiation with suppliers, and staff training on waste reduction can contribute to cost savings.

Sales Forecasting

Create a sales forecast based on your market research, pricing strategy, and seating capacity. Consider seasonal fluctuations and special events that may impact your restaurant’s performance.

Other information to include in your small restaurant business plan

As a restaurant owner, a few components of your business plan are unique to your industry. 

None of these fit neatly into any one section of a business plan. We suggest addressing them in additional sections or within the appendix .

Restaurant location and layout

Include information about your restaurant’s location . 

Some of this information will be included in your market analysis, but once you’ve secured a location, you should go deeper and analyze factors like:

• Rent and utilities
• Foot traffic
• Parking availability
• Nearby businesses

Explaining the layout of your restaurant – especially your kitchen – is also important. Consider adding photos or diagrams of each room to your plan. 

Diagrams can be especially helpful. You can add in-depth details for seating arrangements in the dining room or how staff should move efficiently throughout the kitchen.

What do many people do before deciding whether to eat at a restaurant? 

They look at the menu.

You can gain or lose customers on the strength of your menu. It affects numerous business areas, from marketing to pricing and operations.

For instance, if you’re running a family-friendly restaurant but your prices are too high, people will see that on your menu and may decide to eat somewhere cheaper. 

On the other hand, if you’re running a fine dining restaurant , but your menu fails to describe your dishes in an appealing way, diners may go somewhere they perceive as having higher quality meals.

That makes the business plan a great place to create menu concepts. 

You can experiment with different offerings, price points, and menu designs until you’re confident about sharing them with customers. 

And since business plans are continuously updated as your business changes—you can see how your menu has changed over time and what’s been most successful.

Download your free small restaurant business plan template

If you’re ready to start a restaurant, you can download our free small restaurant business plan template from our library of over 550 sample business plans . 

Get started today, and discover why businesses that plan grow 30% faster than those that don’t .

More restaurant business plan examples:

• Food truck business plan
• Coffee shop business plan
• Bakery business plan
• Brewery business plan

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

Table of Contents

• Why you need a plan
• Don’t ignore your pricing and financial strategy
• Additional info to include
• Free business plan template

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How to write a restaurant business plan

A solid restaurant business plan is essential to any success that comes your way. The best ones identify, describe and analyse business opportunities while setting a blueprint. Here, we’ve put together a guide for how to write a restaurant business plan so life at your spot starts off on the right foot.  

What your restaurant business plan should cover

When it comes to how to write a restaurant business plan, the strongest ones always include all or most of the components described below. Charles Bililies , founder and CEO of Souvla , advises that first-time restaurateurs read plenty of different business plans for other restaurants, technology and retail companies to get a better sense of layout options, writing styles and clarity of concept. Put the sections that you feel would be most compelling to someone who’s never met you first: the “Management Team” section if you’re coming from high-profile establishments, for example. The goal is for the reader to keep turning the page.

Quick links Branded cover Table of contents Restaurant concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials Useful resources

1. Branded cover

Include your logo (even if it’s not finalised), the date, and your name .

2. Table of contents

Having a table of contents helps you navigate the business plan to easily find what you need. Plus, a table of contents looks more professional and improves readability, which is especially important if potential lenders want to see your business plan before offering any form of finance.

3. Restaurant concept

Describe your restaurant concept and get the reader excited about your idea. Go into detail about the food you’ll be serving, inspiration behind your concept and an overview of service style. Define clearly what will be unique about your restaurant.

4. Sample restaurant menu

The menu is the most important touchpoint of any restaurant’s brand , so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices based on a detailed cost analysis. This will give investors:

• A clear understanding of your targeted price point
• Provide the first building block to figuring out average bill estimations needed to create financial projections
• Show investors that you’ve done the homework needed to be confident that you’ll be able to sell these items at these prices and operate within your budget.

This section is most relevant for:

• Fine-dining concepts
• Concepts that have a unique service style
• If you have particularly strong feelings about what role service will play in your restaurant.

It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service designed to get guests on their way as quickly as possible, or will it look more like theatre, with captains putting plates in front of guests simultaneously? If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

6. Management team

Write a brief overview of yourself and the team you have established so far. You want to demonstrate that the work experience you’ve acquired over the course of your career has provided you with the necessary skills to run a successful restaurant.

Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant. Planning on cooking in a wood-burning oven? Include that. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

8. Restaurant target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Perform a target market analysis to better understand your customers. Once you’ve described them in detail, reiterate why your specific concept will be appealing to them.

9. Restaurant location

There should be a natural and very clear connection between the information you present in the ‘Target Market’ section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighbourhoods . Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there — make the connections clear. You want readers to be confident that your restaurant’s ‘ideal’ diner intersects with the neighbourhood(s) you’re proposing as often as possible.

If you don’t have a site, this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, road accessibility and other important details.

10. Competitive market overview

Address the micro and macro market conditions in your area. At a macro level, what are the local and regional economic conditions? If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss your direct competitors. Talk about what restaurants share your target market and how you’ll differentiate yourself.

11. Marketing and publicity

The restaurant landscape is only getting more competitive, so you need a watertight restaurant marketing strategy to get ahead. Talk about your pre- and post-opening marketing plan to show investors how you will gain traction leading up to opening day, as well as how you’ll keep the momentum going. If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media , your website , and media connections. To help you get started be sure to check out our zero budget marketing checklist .

12. Specialists and consultants

List any outside contractors you plan to retain, such as:

• Main Contractor
• PR & Marketing

Briefly explain the services they’ll be providing for you and why you chose them, along with any notable accomplishments.

13. Restaurant business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with a lawyer to help you determine what business structure is best for you.

“ Step one : write a restaurant business plan. Step two : hire a good lawyer. In addition to helping me build a smart, sustainable business structure, my lawyer was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters”, Charles Bililies explains.

14. Financials

Let your accountant guide you through this portion of your business plan. It is crucial that whoever you retain to help you with your finances has a wealth of restaurant experience (not just one or two places), as they should be familiar with the specifics of restaurant finances and know what questions to ask you.

Before creating realistic financial projections, your accountant will want to know approximately how many seats you’re planning on having, what your average bill will be, and how many covers you expect per day. Being conservative in these estimations is key as these three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasises that, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors. The key projections you can expect to work on are:

• Pro forma profit and loss statement for the first three to five years of operation
• Break even analysis
• Capital requirements budget

Useful tools to build a restaurant business plan in the UK:

If design is not your forte, consider using a free online template. There are plenty of templates available on the web that can aid in this process. Whether you’re a seasoned pro or need help getting started, there are some great options to start from:

• Canva :  Bring your descriptions and its templates will help you do the rest. Canva hosts a library of thousands of free templates to choose from.
• Prince’s Trust free templates:   a collection of free tools and templates to help you build your first business plan
• VistaCreate: The plug-and-play menu design templates are easy to use, and the platform has the option for print and delivery.

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Writing a Restaurant Business Plan: 9 Sections to Include

When you start a business, having a business plan is essential. It helps you map out the direction of your business and your intentions. If you’re planning on opening a restaurant , opening a coffee shop , opening a bakery , or thinking about the cost to open a food truck , you’ll also need to have a restaurant business plan-where you can plan for direct to consumer trends . 

A business plan for types of restaurants like cafes, fine dining restaurants, and pop up restaurants , helps you differentiate your business from others. It sorts out the details in terms of the restaurant concept, design, location, and financials-like flat rate shipping costs. 

Putting thought and research into your potential business venture is crucial. With a business plan, you’ll have all the research in one place with the answers you and your investors need to move forward. It sets you up for long term success. 

So, how do you write a business plan? This article has everything you need to create a restaurant business plan and prove the viability of your idea.

Why Is a Restaurant Business Plan Important?

A restaurant business plan acts as the blueprint for any business venture. It provides an outline for your vision while also explaining in thorough detail how your business will operate. This plan can be shared with other business owners, investors, and stakeholders. 

With a detailed business plan in place, you’ll be able to ensure that no detail is overlooked, and you can successfully grow your business. If potential problems arise during the construction, staffing, licensing, or operational process, your business plan will act as a guide. 

Many restaurants will fail and some of them do because there was no business plan in place. Coming up with a well-thought-out and detailed business plan can be tough and time-consuming. However, it can make the entire process of opening a restaurant less stressful and messy. 

A solid business plan can help bring investors on board and prove that your idea is worth it. It’s what will help you figure out how you’ll reach that break even point and start profiting. 

How to Write a Business Plan for Restaurant

A solid restaurant business plan can vary based on the kind of food establishment you have. You have to take into account different factors of the business including the restaurant style, target or niche market , and location. 

If you’re a newbie to the restaurant industry, the idea of writing your own business plan can seem overwhelming. However, we can help you get started.

Below you’ll learn about some key elements you should include when writing your business plan. A business plan for a restaurant includes: 

• Executive Summary
• Business Concept
• Target Market and Competition
• Sample Menu
• Management and Employees
• Marketing and Advertising
• Financial Aspects

The Executive Summary

This summary should be the first section of your business plan. It plays two roles as it introduces and also summarizes the vision of your business. In the summary, you’ll want to introduce the key elements of your restaurant’s business plan so that the reader is invested. It’s best to add enough detail, but not too much so you can intrigue the reader. 

Within the executive summary, be sure to include the restaurant’s mission statement, the business concept, how you plan to execute the business, potential costs, and a brief ROI analysis . You can also include the core values of the business.

In the business concept section, it’s ideal to go into detail as you describe the restaurant’s concept. What kind of products or services will your restaurant offer? What is the inspiration behind the concept? How is your restaurant's concept unique?

Describe the service style you envision for your business. Identify the kind of food you’ll serve. It’s best to be as clear as possible about how your restaurant is unique compared to others. 

The restaurant industry is quite competitive as it is. Entering it with a new idea can be tricky. This is why it’s important to conduct thorough market research as this is what will help you stand out.

Complete a data-driven market analysis and identify the customers that you’ll attract with your new restaurant concept. Focus on what makes your niche different from other concepts, and how its relevance to the industry as a whole will be beneficial to you.

In this section, you’ll also want to elaborate on what other businesses exist around the location you’re targeting. These restaurants will be your biggest competitors. Include the number of competitors  in the area and explain their concepts. This information will be important for investors to understand how your business will stand out.

Your restaurant menus (see menu meaning ) will be the most important part of your business. Jotting down a list of menu items isn’t enough. You should incorporate a potential menu design and add a logo.

The sample menu in your business plan should include prices that are based on the cost analysis that you’ve done. There are different ways to find out how to price a menu , but in most cases, it will be based on potential food cost and labor cost . The prices will show investors that you’ve done your research and are confident that you can sell the menu items at the price points. 

There are countless types of menu options for you to choose from and the ideal one will be based on your restaurant concept. You can have a prix fixe menu , dessert menu , food and wine pairing menu , digital menu for wine, or table d hote menu . It’s possible to also incorporate a restaurant QR code menu.

A successful restaurant business will need to have restaurant management and staff. These include a restaurant manager , bar management team, wait staff , bar staff , and an inventory control manager .

This section of your restaurant business plan should provide an overview of the team you’ve established so far. It should also highlight any new positions that you may want to add. Include the employee and management work experience and necessary skills when presenting your team. 

Be sure to include the salary or pay that you will be giving each staff member based on their roles. With this information, your investors will get a solid understanding of the potential your restaurant has to succeed.

Within the design section of your business plan, you’ll have the opportunity to show off any ideas you have to your investors. You don’t necessarily have to include professional mock-ups, but it won’t hurt. You can express your vision through a mood board using pictures of ideas or aesthetics that you like. 

The design of your restaurant goes beyond the actual look. It should also include restaurant technology and software that can be essential for the business. If you plan to cook using a wood-burning oven, you should include it in the designs. 

Picking the location is one of the most important aspects of starting a business. This should go hand in hand with the target market that you’ve chosen. You might not have an exact location picked out yet, but you should include some to choose from. 

You should be as detailed as possible about each potential location so that you can explain why it would be the ideal place for your restaurant. Include the typical demographics of the location, the square footage, foot traffic, and any other important information. 

The restaurant marketing and sales portion of your business plan will be crucial. In this section, you should cover the position and brand identity of your business, promotional tools and tactics, as well as sales tactics. 

Your marketing plan must include a promotional strategy for before and after you open your restaurant. Potential options include marketing through social media and creating a website. On that website, you should include an about us page which can be created using an about us page template or by following about us page examples . These will give your restaurant credibility.

It’s possible for you to only have some of your marketing and advertising concepts planned out. However, as you develop more, you should add them to your plan. This will happen as you continue to develop your restaurant business. It's also crucial to use O2O marketing efforts.

The financial aspects of your restaurant business are crucial and a section that your investors will be interested in. You want to highlight the current financial state of your business, include financial projections for one, three, and five years from now, and be sure to reference cash flow and statistical averages. 

Explain what you’ve spent money on already, how much you plan to spend, and on what, how you plan to secure the funds, additional costs that may incur, and potential returns. This also includes when you plan to make a profit. This can be done with a restaurant profit and loss statement or income statement.

Frequently Asked Questions About Restaurant Business Plan

What is a restaurant business plan.

A restaurant business plan acts as the blueprint of your business activities and vision and explains each detail of business operation. Business plans are essential to have before actually starting a business because they can showcase your vision to other business partners and investors. It can also guide you as you start to get your small business off the ground. You may also consider using a business process flow chart template to identify your business processes.

Why Is It Important to Have a Restaurant Business Plan?

It’s important to have a restaurant business plan in place because it creates a roadmap for you to follow. If written correctly, it will include benchmarks for your restaurant business that will allow you to assess the progress of your business. It can also include timelines for all of your restaurant plans and encourage you to work towards achieving your goals. 

What Sections Should I Include in My Restaurant Business Plan?

The sections that you should include in your restaurant business plan are: 

What are the 3 Main Purposes of a Business Plan?

The three main purposes of a business plan are to:

• Define the business's goals and objectives
• Create a roadmap for how the business will achieve those goals
• Attract investment or funding from potential investors or lenders

What are the Common Problems of a Restaurant?

Restaurant owners face a number of challenges, including inventory shrinkage (theft), waste, and high labor costs. They must also deal with inventory turnover , employee turnover rates, which affect customer service and satisfaction.

What Makes a Business Plan Successful?

A successful business plan must be well-thought-out. This means that it should be clear and concise. By taking the time to carefully consider your business goals, you can increase your chances of success.

• QR Code Menu

Table of Contents

The restaurant industry is as dynamic as it is diverse, with various types of restaurants catering to different culinary preferences. For those aspiring to open a new restaurant, understanding this vast landscape is crucial. One of the pivotal steps before diving into this venture is to create a business plan. It not only defines the unique essence of your eatery but also lays out a roadmap for its successful operation. Familiarizing oneself with the different types of restaurants is essential to pinpoint your niche and stand out in a bustling market.

What is A Restaurant Business Plan? 

When you’re planning to open a restaurant, a comprehensive restaurant business plan is your blueprint to success. It serves as a strategic guide, outlining your restaurant’s vision, objectives, and operational procedures. But beyond its functional use for the business owner, a well-crafted plan becomes a tool to attract potential investors.

Writing a business plan requires detailing every aspect of your restaurant dream, from the concept and target demographic to the financial projections and marketing strategies. For restaurant owners, this document encapsulates the essence of their establishment, ensuring they remain on the right track. Moreover, presenting this plan to potential investors offers a clear, organized view of your vision, increasing their confidence in the venture.

Ff you want to get your restaurant off the ground and appeal to both patrons and investors, a restaurant business plan is not just a recommendation—it’s a necessity.

Why A Business Plan Is Important For A Successful Restaurant Business?

Making a restaurant a reality isn’t just about great food or an attractive interior; it’s about laying the groundwork for success with a good business plan. A well-crafted restaurant business plan comes with a slew of benefits, not least of which are:

Clear Vision and Objectives: One of the foremost reasons to plan for your restaurant is to articulate a clear vision and set definitive objectives. This process helps you refine your restaurant ideas, making them more viable in the real world. With a concrete vision, you can maintain a consistent direction and avoid being swayed by fleeting trends that don’t align with your brand.

Financial Planning: Money is the lifeline of any venture. A restaurant business plan provides a detailed financial blueprint, determining startup costs, projecting revenues, and outlining budgetary constraints. It anticipates potential financial hurdles, allowing restaurant owners to make informed decisions. By meticulously charting out every financial detail, restaurant owners can ensure they have the necessary funds to sustain the business, even during lean periods.

Operational Efficiency: Operational hiccups can turn even the most promising restaurant ideas into failures. With a comprehensive business plan, you can optimize staffing, inventory management, customer service, and daily operations. A good plan streamlines the restaurant’s workflow, enhancing efficiency and customer satisfaction.

In a world teeming with culinary ventures, a business plan is essential to stand out. It gives clarity to your vision, ensures sound financial footing, and optimizes operations, paving the way for the restaurant needs to thrive.

Step-by-step Guide To Write A  Restaurant Business Plan

Starting a restaurant is a dream for many, but to make that restaurant dream into a reality, one needs a structured approach. A winning restaurant business plan provides a comprehensive roadmap to bring your vision to life. Here’s how to craft that perfect plan:

1. Executive Summary

The executive summary is a snapshot of your entire restaurant business plan. Typically, it should be concise, about one to two pages long, capturing the essence of what your restaurant is about and what it aims to achieve.

What should you cover in an Executive Summary?

• Introduce your bakery business : Begin by describing the kind of restaurant you’re opening.
• State your mission and vision : Your mission statement reflects your restaurant’s core purpose, while the vision paints a picture of its future.
• Outline your objective : Define the goals for your new business.
• Provide a financial overview : Offer a brief insight into the financial state of your business.

2. Restaurant Business Description

This section provides an in-depth look into what your restaurant is and what it aims to offer to the diner.

What should you cover in the restaurant description section?

• Talk about your bakery concept : Describe your restaurant, its theme, and its unique approach to serving patrons.
• Explain your unique selling proposition (USP) : What sets your restaurant apart?
• Operational model : Explain how you’ll operate your restaurant before and after opening.

3. Market Analysis

Market analysis provides data-driven insights derived from thorough market research. It helps restaurant owners understand their audience and the market landscape.

• Target market : Delve into the demographics of your potential clientele.
• Location : Describe where your restaurant fits geographically and why it’s an ideal spot.
• Competition : Analyze other restaurants in the area and their offerings.

4. Organization and Management

This section presents the business structure and the key players driving your restaurant’s operations.

What should you cover in the organization and management plan?

• Restaurant ownership information : Detail the type of business entity (e.g., LLC, Partnership) and ownership distribution.
• Profiles of your Restaurant management team : Introduce your core team members, their roles, and their experience in the restaurant industry.

5. Sample Menu

This section is a sneak peek into what diners can expect when they visit.

What should you consider when creating a sample menu?

• Menu items : List down dishes and beverages you’ll offer.
• Unique Selling Proposition (USP) : What makes your menu stand out?
• Menu Pricing : Provide a range or specific prices for your offerings.

6. Marketing Strategy

The marketing strategy outlines how you plan to market your restaurant and drive sales.

What should you cover in the marketing strategy for your restaurant business?

• Define your brand : Discuss the brand identity – from logo to restaurant design.
• Plan how you’ll attract diners, from online promotions to loyalty programs,  SEO for website, and partnerships with local local businesses
• Considering using an  online food ordering system  in your food truck
• Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Business Operations

This section delves into the day-to-day operations of running your restaurant.

What operational issues should you address in your business plan?

• Supply chain : Detail how you’ll procure ingredients and manage inventory.
• Operating hours : What days and hours will you operate? Consider peak meal times and special events.
• Staffing : Discuss hiring, training, and staff management plans.
• Equipment : List the equipment needed to run the restaurant.

8. Financial and Loans

How Much Does It Cost to Start a Restaurant?

Depending on the type of restaurant you’re opening, costs can vary significantly. Starting a bar business, for instance, can range anywhere from $95,000 to over $2 million. Several factors can influence these numbers. The size of the restaurant, its location, and the culinary offerings play crucial roles in the total investment. Want to delve deeper into the specifics? This comprehensive guide on how much it costs to open a small restaurant breaks down the various expenses you can expect.

How Many Ways to Fund Your Restaurant?

For every restaurant dream, funding is a pivotal aspect. From traditional bank loans to seeking angel investors or crowd-funding, there’s a multitude of avenues available for those considering opening a restaurant.

Important Questions to Consider When You Create Your Funding Request

Beyond just how much you plan to spend, you’ll want to include details on projected ROI, repayment strategies, and how the funds will directly help grow your business. Remember, lenders and investors are most interested in understanding how their contributions will help the restaurant flourish and ensure a return on their investment.

9. Financial Projections

Financial projections are a crucial aspect of the business plan, providing a roadmap for operating the restaurant and giving potential investors a clear picture of your business strategy.

Break-even analysis

This analysis tells you when your restaurant may start to turn a profit, balancing out initial investments and operational costs.  It’s essential to understand this when you plan to gain traction and open the restaurant.

To calculate the break-even point, use this formula:  Fixed Costs / (Price – Variable Costs) = Break Even Point  

Projected profit and loss statement

This section should include estimations of your future revenues, costs, and profits over a specific period, helping you and investors visualize the financial health of your restaurant.

Cash flow analysis

A comprehensive cash flow analysis is part of your business plan, showing the movement of cash in and out of your business. This plan can help identify periods of potential cash shortages and allow for strategic preparations.

Restaurant Business Plan Template

As you embark on the journey to make your restaurant dream come true, using a free template for guidance can be invaluable. This example provides a glimpse into what a business plan can look like. However, always remember to choose your restaurant’s features that align with your vision and market demand. For more insights, consider consulting various restaurant business plan examples and business plan samples to get a holistic view.

Mission : “To provide an unforgettable dining experience by blending authentic flavors with a modern twist.”

Vision : “To be the leading global chain offering our signature fusion cuisine.”

Restaurant Description : “DineFusion, an innovative blend of Italian and Japanese cuisines, located at the heart of downtown.”

Costs : Initial investment of $150,000.

Profits : Expected yearly net profit of $75,000 after operating costs.

2. Description of the Restaurant

Restaurant Concept : A fusion of Italian and Japanese cuisines, bringing together the best of both worlds.

Restaurant Name : “DineFusion”

Restaurant Type : Casual dining

Restaurant Location : 123 Downtown Street, Metropolis

Order Fulfillment : Dine-in, takeaway, and online delivery through partnering platforms.

Working Hours : 10 AM – 10 PM daily.

Type of Cuisine : Italian-Japanese Fusion

Offer : From sushi rolls with a twist of Italian herbs to pizzas topped with sashimi. Include a sample menu for a detailed look.

Unique Selling Point : “Where East meets West on a Plate!”

4. Market and Competition Analysis

Market Analysis : 

Target Customer : Young professionals aged 25-40 and tourists.

Size of the Target Customer : Approximately 150,000 individuals fit our target profile in Metropolis.

Competition Analysis : 

Size of the Competition : Collectively serve an estimated 500 customers daily.

Competitors’ Offer : Traditional fusion dishes without the unique Italian-Japanese blend.

Competitors’ Prices : Average meal price is $25.

5. Investment Plan (Detailed Cost Analysis)

Investment Cost :

• Renovation: $50,000
• Kitchen Equipment: $40,000
• Initial Inventory: $10,000
• Licenses and Permits: $5,000
• Marketing and Promotion: $20,000
• Miscellaneous: $25,000

Operating Costs (Monthly) :

• Rent: $5,000
• Salaries: $15,000
• Utilities: $1,000
• Inventory Replenishment: $4,000
• Marketing: $2,000
• Miscellaneous: $3,000

Total Cost : Estimated monthly operating cost of $30,000.

6. Financial Forecast

Based on the expected customer footfall and average ticket size, we anticipate monthly revenues of $60,000, with a profit of $30,000 before taxes.

Owner/Manager : Jane Smith, with 10 years of experience in the restaurant industry.

Chef : Marco Tanaka, a specialist in both Italian and Japanese cuisines.

Supporting Staff : 10 members, including servers, cleaners, and kitchen assistants.

8. Marketing Plan

Our marketing strategy involves an initial launch on social media platforms, collaborations with influencers, and partnerships with delivery platforms. Periodic offers, loyalty programs, and events like “fusion food fests” will help in consistent customer engagement.

Tips For Creating A Successful Restaurant Business Plan 

Opening your restaurant is exhilarating, but to transform your culinary dreams into business a reality, a well-crafted business plan is paramount. Here are some tips to ensure success:

Thorough Research : Before you put pen to paper, conduct in-depth research. Understand your target market, competition, and potential challenges. This will not only guide the rest of your plan but also demonstrate your commitment and seriousness to potential restaurant investors.

Use a Template : If you’re unsure where to begin, use a business plan template to get started. It will offer structure and ensure you cover essential sections of your business plan.

Clarity is Key : Your business plan should be concise yet comprehensive. Avoid jargon. Remember, you may be presenting this to individuals who might not be familiar with restaurant terminologies.

Be Realistic with Projections : Overestimating your future success can be as detrimental as underselling it. Ensure your financial forecasts are realistic and achievable.

Highlight What Sets You Apart : Whether it’s a unique theme, a special dish, or an innovative service model, pinpoint what makes your restaurant stand out.

Seek Feedback : Before finalizing, seek feedback. Whether from industry peers, potential restaurant investors, or mentors, a fresh set of eyes can offer invaluable insights.

Remember, to make a restaurant business plan truly effective, it should be a living document, revised and updated as you gather more information, make decisions, and choose your restaurant’s path forward. Keep refining and adjusting to ensure the best path to make the business a thriving success.

Frequently Asked Questions

1. what should be included in a restaurant plan, 2. what is a strategy plan of a restaurant, 3.  how do i write a business proposal for a food business, 4. how do you write a marketing plan for a restaurant.

A marketing plan for a restaurant should start with an understanding of your target customers. Identify where they spend their time online and offline and strategize accordingly. Outline your brand voice and how you’ll communicate your unique selling proposition. Factor in promotions, advertising campaigns, and loyalty programs. Also, consider modern restaurant technology tools that can aid in marketing, such as CRM systems or social media analytics tools. Ensure that each marketing initiative has clear objectives, a set budget, and methods to track effectiveness.

Opening a restaurant is a thrilling yet intricate endeavor. Every section of the restaurant business plan serves as a roadmap, guiding entrepreneurs towards realizing their culinary dreams. As you choose your restaurant’s concept, location, and design, always revert to your business plan to ensure alignment with your vision. In essence, a meticulously crafted plan not only provides clarity and direction but also instills confidence in potential stakeholders. Remember, success in the restaurant industry goes beyond delectable dishes; it lies in foresight, strategy, and relentless execution.

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Restaurant Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let’s dive in!

Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of the restaurant’s business concept, market analysis , management, and financial strategy.
• Restaurant & Location: Describes the restaurant’s prime location, size, seating capacity, and distinctive design, emphasizing its appeal to the target demographic.
• Supply & Operations: Outlines the supply chain management, focusing on local sourcing and quality ingredients, and details the operational aspects, including kitchen layout, equipment, and front-of-house operations.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the full-service restaurant market.
• Key Trends: Highlights recent trends affecting the restaurant sector, such as health-conscious dining, sustainability, and technology integration.
• Key Competitors : Analyzes the main competitors in the vicinity, showcasing the restaurant’s unique selling proposition in comparison.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for promoting the restaurant to maximize visibility and customer engagement.
• Timeline : Key milestones and objectives from the initial setup through the launch and operational optimization.
• Management: Information on who manages the restaurant and their roles.
• Financial Plan: Projects the restaurant’s financial performance, including revenue, profits, and expected expenses, aiming for profitability and sustainable growth.

Restaurant Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your restaurant’s business plan, offering a concise overview of your establishment and its offerings. It should detail your market positioning, the variety of cuisines and dining experiences you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your restaurant will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your restaurant’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the restaurant’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your restaurant’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Restaurant, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Briefly describe the restaurant’s physical environment, emphasizing its design, ambiance, and the overall dining experience it offers to guests. Mention the restaurant’s location, highlighting its accessibility and the convenience it offers to diners, such as proximity to entertainment venues or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Operations

Detail the range of cuisines and dishes offered, from appetizers and main courses to desserts and specialty beverages. Outline your sourcing strategy, ensuring it reflects a commitment to quality and sustainability, and matches the market you’re targeting.

Highlight any unique culinary techniques, exclusive ingredients, or innovative kitchen technologies that set your restaurant apart. Discuss your operational strategies, including inventory management, supplier relationships, and kitchen workflow, to ensure efficiency and consistency in delivering exceptional dining experiences.

Make sure to cover here _ Restaurant & Location _ Supply & Operations

Market Overview

Industry size & growth.

In the Market Overview of your restaurant business plan, start by examining the size of the restaurant industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key market trends

Proceed to discuss recent market trends , such as the increasing consumer interest in farm-to-table dining, ethnic cuisines, and experiential dining experiences.

For example, highlight the demand for restaurants that offer unique cultural dishes, the growing popularity of health-conscious and dietary-specific menus, and the integration of technology in enhancing the dining experience.

Key competitors

Then, consider the competitive landscape, which includes a range of dining establishments from gourmet fine dining to fast-casual eateries, as well as the rise of food delivery services and meal kits.

For example, emphasize what makes your restaurant distinctive, whether it’s through a unique culinary approach, a niche market focus, or a strong commitment to sustainability and local sourcing.

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Dive deeper into Key competitors

First, conduct a SWOT analysis for the restaurant , highlighting Strengths (such as a unique menu and exceptional customer service), Weaknesses (including potential high operational costs or strong competition in the area), Opportunities (for example, a growing interest in diverse cuisines and healthy eating), and Threats (such as economic downturns that may decrease consumer spending on dining out).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, food blogger outreach, and community involvement, such as local events or charity sponsorships.

Finally, create a detailed timeline that outlines critical milestones for the restaurant’s opening, marketing campaigns, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The management section focuses on the restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the restaurant towards its financial and operational goals.

For your restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

How to Write A Restaurant Business Plan And Milestones

The great restaurant idea around in your head is composed of many parts, all swirling around. And your restaurant business plan-including your restaurant profit and loss statement -is how you’re going to communicate it clearly.

Every investor wants to see a great idea presented in a cohesive, digestible format that convinces them of a sustainable or profitable business. Almost no investors blindly shake hands on an idea alone.

And aside from using it as a tool to land initial investments, a solid restaurant business plan will establish the groundwork for the first few years of a restaurant. It provides a roadmap for the growth and management of your business.

The better and more detailed a restaurant business plan, the better the map. The easier it is to navigate the road ahead and the clearer your path to success. 

Here is everything you need for a clear, effective, and professional restaurant business plan. Investors are out there, waiting to invest. That’s what they do. Why not with you? Let’s give them something to get excited about.

How to Write a Restaurant Business Plan

Step 1: an executive summary.

An executive summary is how to start a restaurant business plan. It’s the introductory part that gives investors an aerial view of the project. Treat the executive summary as the basic foundation for the restaurant proposal.

In many cases, unfortunately, this is the only section an investor will read. So, make it count.

The ideal executive summary is 1–2 pages and includes:

• The overall mission statement of the restaurant . Use clear language to present a concise, unified vision and purpose.
• Introduce the concept using industry-standard language, i.e. a fast-casual Mediterranean restaurant
• Lay out what makes your concept different from similar concepts, i.e. with nightly Mediterranean-influenced live music and wall-to-wall murals of Aegean seascapes
• Cover the basics of the menu , the chef, and the culinary influences of your offerings, and if you're offering something along the lines of table d’hote menus
• Detail the restaurant’s location, target market, and the opportunity in the area
• Funding requirements . Lay out the fundamental financials. List the overall amount of capital you need to open and begin operating, and break down the restaurant startup costs into specific sections. For example, you may use this section to introduce the overall amount of capital your restaurant needs to open and begin operating. From there, breakdown the restaurant startup costs into specific sections. For example, you may need $300,000 to open and $50,000 of that will go to renovating the space. Specify that. Additionally, disclose any fundraising you have done prior to creating the restaurant business plan. If you have contributed a lump sum of your own money, taken a loan from an institution, or entered into agreements with other investors, communicate that here.
• Keys to success . Use this section to lay out exactly what will be the cornerstones of your success. This is the last little bow you’ll put in your executive summary to upsell your restaurant’s concept and your capacity as operator. Also, if you’ve done any financial forecasting, include it here in a simple graph. Numbers speak. And if you can show your investors the numbers you are aiming to hit in the first one to five years, those numbers will speak loudly.

A simple graph for your executive summary can include gross revenue, COGS, employee expenses, operating expenses, and EBITDA (earning before interest, taxes, depreciation, and amortization).

Step 2: In-Depth Business Description 

The next step in how to draw up a restaurant business plan is diving into your restaurant’s specifics.

In this section, you’ll bring your restaurant to life for your investors. Section by section, illustrate what makes your restaurant stand out and the value you’ll be bringing to its guests.

The Restaurant Experience And Vision

When a guest enters your restaurant, how do they feel? Is your restaurant dark and moody with wood furniture , lush red velvet, and French music playing in the background? Does your restaurant have sunny outdoor seating with an unparalleled view of the ocean and playful, colorful decor?

Set the stage. Paint a picture. Transport the reader of your restaurant business plan to your restaurant. Use this section to draw your investor in and show them what’s so special about your idea.

Consider also how you want your guests to feel. If you are offering healthy, fresh fare, you might want your guests to leave feeling light, happy and ready for a day outside. Are your servers knowledgeable sommeliers? Do you want your guests to settle in for a long evening of fine dining or are you a fast casual restaurant?

Close your eyes and take the time to envision your restaurant. Paint the picture of your mission statement by showing and telling your investor about it.

Restaurant Design

Here’s where you visually present some of the things you were just describing. Depending on how far you are along in the process, this section can have varying levels of detail.

You can have a full-blown professional mock-up of the restaurant and bar equipment layout , bar layout , including kitchen equipment, bar glasses , POS systems, lighting, and more.

Or you can include a mood board, which is a collage of images that will inspire the restaurant’s aesthetic. This option is typically less exciting for an investor, because it means you’ve got more work to do on the design front. But it’s certainly better than nothing. And if you don’t have a physical space yet, you won’t be able to get specific with a layout.

Introduce the Menu

Use this section to showcase your restaurant menu to investors. Write a brief introduction describing the cuisine. Does it come from a certain geo? Do you adhere to a particular dietary restriction? Is it meant to evoke a specific time or place? Will it be a QR code menu or a traditional paper menu?

Include all of your menus in this section. If you intend on serving Lunch, Dinner and Brunch, include all of the menus, along with their ingredients and preparations.

Step 3: Labor and Operation Details

Here you’ll cover hours of operation, payments accepted, portion controls, management techniques, training programs, labor, and money management.

The devil is in the details here. Try to cover these as thoroughly as possible. The less questions investors have, the better.

Operations:

• Hours of operation
• Days of operation (holidays, etc.)
• Inventory and food cost controls (like setting par level inventory )
• Recipe controls
• Cross utilization of inventory
• Sanitation schedules, including a bar cleaning checklist with glass and surface cleaner supplies from Bar Keepers Friend or Branch Basics.
• Food handling
• Management systems
• Software used (scheduling, reservation management, point of service, etc) 
• Training and staff education
• Money management

Addressing these seemingly minute details may seem excessive when constructing a restaurant business plan. However, having these plans in place will demonstrate the sincere consideration you have put into making your restaurant dream a reality. Additionally, once funding is secured, it will set you up for success.

Now introduce your team.

If you’re going to be heavily involved, as an owner, tell the investors more about yourself. Let your story, your passion, and your experience color your restaurant. Consider the unique point of view you bring and demonstrate this to the potential investors. If there are other key players the investors should know about, introduce them here as well.

Then move on to how the overall staff will be constructed. Having a clear idea of your team’s makeup demonstrates your deep understanding of what your restaurant needs and what it is going to cost to staff it.

Your team breakdown might look something like this:

• General manager
• 2 assistant general managers
• Kitchen or BOH Manager
• 2 lead cooks
• 2 line managers
• 2 prep cooks/ line cooks (see a line cook job description here)
• 3 bartenders

Consider adding how staffing might look for different meals, days of the week, and times of the year. You can break down the cost of labor for a slow Monday lunch in February as opposed to a Saturday night dinner in June.

Step 4: Market Analysis

You know what most restaurant failure has in common? Insufficient market analysis. A lot of things can make or break a restaurant, no matter how great the food, ambiance, and concept may be.

Before considering a certain restaurant location, make sure you have an active, ready-to-engage target market waiting for you and you'll need to perform a swot analysis for restaurant . Check out a restaurant swot analysis example to get some ideas for how to do one.

Target Market

What does your restaurant’s target market look like?

Are they well-to-do business people who work across the street from your location? Are you opening in a foot traffic area with lots of young families?

Assess your target market, find out where they live, and find a great location from which to serve them.

Some characteristics you might want to consider in searching for a target market are:

• Dining habits
• Style and tastes
• Value beliefs
• Marital status
• Religion (and any corresponding dietary restrictions)

Neighborhood Analysis

The analysis of the neighborhood is also important and will feed directly into your target market. Consider using results from the latest Census to include in your restaurant business plan.

Answer questions like:

• How many people live within walking distance?
• How many people live within an easy driving distance?
• Will most of your customers dine with you for brunch on the weekend?
• Is your location close to a cluster of businesses making it a busy lunch spot?
• Are there any major universities or large institutions nearby?

This is a great place to include some visual elements. Consider including maps of the area. A zoomed-in map showing the surrounding area, whether a neighborhood or a city block, can illustrate the opportunity for foot traffic.

A bigger map showing surrounding freeways, parks, hotels, and institutions can provide a glimpse into nearby opportunities, as well.

Analysis of Surrounding Businesses & Competition

There will likely be restaurants, coffee shops, and other venues around your new restaurant.

Make sure to communicate what restaurants are in the area. Obviously, you won't want to open a Mexican restaurant in an area with several successful ones. However, if you are opening a Mediterranean restaurant in the middle of a neighborhood that is serving other cuisines, it might be a perfect fit for a highly trafficked area.

Major Venues and Institutions

A large institution could have a huge impact on your restaurant.

Make note of any large institutions and what they might bring to your restaurant. If a major university is nearby, they likely have a consistent stream of visitors on a daily basis.

This will also add season highs for your restaurant come commencement ceremonies. If your restaurant is located by a major theater or auditorium, you might have a nightly influx of pre-show or post-show guests

Use this section as an area to highlight these neighbors that could be a huge benefit to your restaurant. And that brings us to marketing

Step 5: Marketing Strategy

Whether you are opening the 900th franchise of a popular restaurant or a brand new cafe, you need a marketing strategy.

Positioning and Branding

By this point in your restaurant business plan, you’ve likely told the story of your brand, both visually and through text.

Use this area to contrast your brand, your mission statement, your values, and what you hope to bring to the community at hand against the businesses already present in the community.

You’ll also lay out your restaurant marketing plan timeline here, which will start months before your opening.

Marketing Timeline

This specific, actionable marketing includes:

• Advertising in local and regional newspapers and magazines
• Creating a website and social media account that reflect the restaurant’s brand and mission statement
• Public relations push to increase awareness prior to opening, including story coverage in local newspapers
• Partnerships with nearby major institutions, venues, gyms and hotels
• Strategies to attract new customers
• Strategies to retain existing customers through loyalty programs
• Strategies to create “evangelist” customers who will both return and spread the word
• Utilizing restaurant SEO strategies and Facebook Advertisements targeting your specific geography and target market.

Utilizing social media in tandem with word of mouth will allow you to spread the word without necessarily breaking the bank.

In terms of timing your marketing strategy, sooner is better. The minute your permits, funding, and groundbreaking are underway, alay your marketing foundation.

Tease some of your menu on Instagram.

Allow your followers to see the progress of renovations.

Having an engaged audience through the building process will translate into a record-breaking opening day.

Step 6: Financial Outlook

This section reiterates the numbers. State the overall amount of capital needed to open and operate. From there, break down where the funds will be allocated to align with the vision your business plan detailed.

This section will require robust figures and numbers, so do your research.

Funding Requirements & Capitalization Plan

This is where you will show how you turn your investors’ capital into a financial return on a decided timeline. After breaking down the startup costs of a restaurant, show how you intend to make money.

Like we noted earlier, create an outline showing your financial forecasts. Create this by using these figures:

• Gross revenue
• Cost of goods sold
• Employee expenses
• Operating expenses
• EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortization)

Your EBITDA will show what your projected earnings are before taxation. Consider laying these out over the course of the first five years, with a steady increase on your bottom line earnings.

Additionally, break these numbers down according to meals. Your brunch revenue assumptions will differ from your lunch and dinner revenue assumptions.

The more figure-based predictions you can provide in this section, the better.

Step 7: Milestones For Restaurant Business Plan

Finally, you’ll use the last section to project the completion of the fundamental parts of opening your restaurant. 

It should look something like this:

*See where bars buy liquor and how to stock a bar .

What about a small restaurant business plan.

There is no meaningful difference between a large and small restaurant business plan. In spirit, they aim to communicate the exact same things. That your idea is unique and brings value to its community.

Anything specific to a small restaurant business plan will organically surface throughout the plan itself. It will infect the way you analyze your market, your competition, your strategy, your menu, etc. Everything. 

If you’re trying to figure out how to make a small restaurant business plan, follow the steps above and be true to your business’s identity. Then it’ll be a small restaurant business plan.

It applies largely to how to open a bar , too.

Restaurant Business Plan: Achieved

Your restaurant business plan doesn’t just reflect the potential of your restaurant. It reflects your potential as a business owner. It can make or break your opportunity.

There is no shortage of stories documenting restaurant failure due to missed details, overconfidence, or plain old neglect. Creating a comprehensive restaurant business plan will not only gain you capital.

When done right, a great restaurant business plan sets you up for success, allows you to avoid common pitfalls, and gives you something to revisit when making future business decisions. It's also a good way to figure out how to drive restaurant sales . Good luck out there!

• Guide: MoSCoW Method

Daniel Croft

Daniel Croft is an experienced continuous improvement manager with a Lean Six Sigma Black Belt and a Bachelor's degree in Business Management. With more than ten years of experience applying his skills across various industries, Daniel specializes in optimizing processes and improving efficiency. His approach combines practical experience with a deep understanding of business fundamentals to drive meaningful change.

• Last Updated: September 24, 2023
• Learn Lean Sigma

The MoSCoW Method transcends being just a prioritization tool; it is a strategic approach for navigating the intricate decision-making in project management. This methodology excels by offering a structured framework, facilitating discussions among stakeholders to assess and align on the relative importance of various tasks and features in a project.

Central to MoSCoW is its acronym, denoting four priority categories – Must have, Should have, Could have, and Won’t have. This classification is crucial in managing stakeholder expectations, directing the project team’s focus towards critical elements, and charting a clear course for project advancement.

Table of Contents

What is the moscow method.

The MoSCoW method is used as a prioritization tool, but it is more than just that; it is also a strategic approach to handling complex decision-making processes that you can encounter in project management. This method shines by offering a structured framework for stakeholders to discuss, debate, and ultimately agree on the relative importance of different tasks or features within a project.

The uniqueness of the MoSCoW method is within its acronym, which represents four priority categories. Must have, Should have, Could have, and Won’t have. This structure is key to managing stakeholder expectations and ensuring that a project team focuses on the most crucial elements first, setting a clear path for project progression.

The MoSCoW Categories

In the ‘ Must have ‘ category, you find the key activities that are essential to your project . These are non-negotiable and pivotal for the project’s success. This category often comprises items that, if omitted, would make the project irrelevant or non-compliant with essential criteria like legal standards or core objectives.

Should Have

Moving to the ‘ Should have ‘ category, we encounter important elements that, while not critical to the project’s existence, greatly enhance its value and effectiveness . These are features that stakeholders strongly desire, and their inclusion could significantly enhance the project’s outcome . However, their absence wouldn’t label the project a failure.

The ‘ Could have ‘ category is where you place desirable but less critical elements . These are often enhancements that would be nice to include but aren’t vital to the project’s success . The inclusion of these elements is usually subject to resource availability and project timelines.

The ‘ Won’t have ‘ category is often misunderstood but is crucial for setting realistic boundaries. It includes elements that, although potentially beneficial, are beyond the scope of the current project phase or constraints. This clear demarcation helps manage expectations and focus on what’s achievable within the project’s constraints.

How to Apply the MoSCoW Method: A Step-by-Step Guide

Implementing the MoSCoW Method in a project requires a systematic approach, ensuring that all aspects of the project are considered and aligned with the prioritization framework. Here’s a detailed look into each step of implementing this method:

Step 1: Gather Requirements

The first step in the MoSCoW method requires gathering a list of the tasks , activities, features, or requirements you need to prioritize in your project. For this step, you should engage with all relevant stakeholders , including project sponsors, end-users, and technical teams. This ensures that the requirements reflect a wide range of perspectives and needs.

To help decide the categorize of each task in a later step you should understand the overall goals of the project . You will also need to gain an understanding of technical, business, time, and resource constraints right from the start. This helps in setting realistic expectations for what can be achieved.

Step 2: Categories Each Requirement

The next step is to, as a team with the relevant stakeholders, run a categorization session . Doing this with the stakeholders involved will help to gain buy-in and support for the project as well as a shared understanding of priorities. 

Each requirement’s placement in the MoSCoW categories should be a subject of discussion. Different stakeholders may have varying views on what is a ‘ Must have ‘ or ‘ Should have ‘, and these need to be reconciled.

For each decision, documenting the rationale behind the categorization can be valuable, especially for future reference or when explaining decisions to others not involved in the process.

Step 3: Review and Adjust

You will need to ensure the decisions of the categories are balanced and achievable within the scope once all are allocated. You may find that you still have too many must-haves and should-haves that either some activities need to be downgraded or a consideration to go back to decision-makers and create a case for more resources of time to achieve what is needed.

Step 4: Use as a Guiding Tool

You should continue to use the MoSCoW prioritization to inform decisions throughout the project lifecycle. This helps maintain focus on what’s most important . Prioritization can guide where to allocate resources and effort, especially when under constraints.

Step 5: Update as Necessary

Finally, regularly revisit the MoSCoW categorization , especially after major milestones or significant changes in the project environment. Also, be prepared to adjust the priorities in response to new information, stakeholder feedback, or changes in the external environment.

Implementing the MoSCoW Method is an exercise in strategic planning and adaptive management. It begins with a comprehensive gathering of project requirements, engaging a broad spectrum of stakeholders to ensure a multifaceted view of the project’s needs. The heart of the process lies in the collaborative categorization of these requirements, balancing differing perspectives to establish a shared priority framework.

As the project progresses, this method serves as a dynamic guide, directing resources and decision-making effectively. Regularly revisiting and adjusting these priorities ensures the project stays aligned with evolving objectives and constraints, making MoSCoW an indispensable tool for successful project management.

• Kuhn, J., 2009. Decrypting the MoSCoW analysis.   The workable, practical guide to Do IT Yourself ,  5 .
• Ahmad, K.S., Ahmad, N., Tahir, H. and Khan, S., 2017, July. Fuzzy_MoSCoW: A fuzzy based MoSCoW method for the prioritization of software requirements. In  2017 International Conference on Intelligent Computing, Instrumentation and Control Technologies (ICICICT)  (pp. 433-437). IEEE.

Q: What types of projects is the MoSCoW method best suited for?

A: The MoSCoW method is versatile and can be used for various types of projects, ranging from software development and website redesign to manufacturing and logistics. It’s particularly useful for projects with multiple stakeholders and those that require a clear understanding of task priority.

Q: How often should the MoSCoW list be reviewed and updated?

A: The frequency of reviewing the MoSCoW list depends on the project’s complexity and how often its circumstances change. For fast-paced projects, a weekly or bi-weekly review might be necessary. For more stable projects, a monthly review could suffice.

Q: Can the MoSCoW method be integrated with other project management techniques?

A: Absolutely! The MoSCoW method can be used in conjunction with other project management methodologies like Agile, Scrum, or Lean Six Sigma. It serves as a prioritization tool that can easily be incorporated into other frameworks to make them even more effective.

Q: What should I do if stakeholders disagree on the categorization of tasks?

A: If there’s disagreement on task categorization, it’s useful to have a facilitated discussion to reach a consensus. You can also use a weighted scoring system to quantitatively assess each task’s importance, which can help in making more objective decisions.

Q: Are there any tools or software that can help in applying the MoSCoW method?

A: While the MoSCoW method can be applied using simple tools like whiteboards and Post-It notes, there are also specialized project management software that offer built-in MoSCoW categorization features. These tools can be particularly helpful for larger or more complex projects.

Daniel Croft is a seasoned continuous improvement manager with a Black Belt in Lean Six Sigma. With over 10 years of real-world application experience across diverse sectors, Daniel has a passion for optimizing processes and fostering a culture of efficiency. He's not just a practitioner but also an avid learner, constantly seeking to expand his knowledge. Outside of his professional life, Daniel has a keen Investing, statistics and knowledge-sharing, which led him to create the website learnleansigma.com, a platform dedicated to Lean Six Sigma and process improvement insights.

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A Gentleman in Moscow

Quick recap & summary by chapter.

The Full Book Recap and Chapter-by-Chapter Summary for A Gentleman in Moscow by Amor Towles are below.

Quick(-ish) Recap

The Prologue introduces Count Alexander Ilyich Rostov, a Count who became a revolutionary hero due to a poem he wrote. On June 21, 1922, after the Russian Revolution, Rostov manages to avoid a death sentence due to his status as a revolutionary hero, but his noble birth means he is still sentenced to house arrest at the Metropol Hotel, where he has been living for many years.

In Book One , Rostov begins his house arrest and moves into a humble, small room at the Metropol. Rostov meets Nina, who is a long-term guest of the hotel. Nina is 9. Nina teaches Rostov about the inner workings of the hotel and eventually gives him a passkey for the hotel. Rostov also meets the Bishop, a waiter who Rostov dislikes because he's bad at his job.

In Book Two , Rostov meets up with Mishka, his old friend, who is romancing a woman named Katerina. Rostov also meets Anna Urbanova, an actress who Rostov makes love to. The Bishop gets promoted and continues to be a thorn in Rostov's side. As the years pass, Rostov becomes depressed and decides to kill himself. Nina is also now 13 and will be leaving the Metropol soon. However, the night of Rostov's planned suicide, Rostov comes across Abram, the hotel handyman, and they chat the rest of night, so he doesn't go through with it.

In Book Three , it's now 1930. Rostov, who has very discerning tastes, has been helping out at the restaurant (The Boyarsky) with Emile (head chef) and Andrey (maître d'). They call themselves the Triumvirate and meet daily to plan out the restaurant's activities. Anna and Rostov begin seeing each other on and off. Rostov also befriends Osip, a Soviet official who wants Rostov to teach him the ways of the privileged classes.

Nina comes to visit. When she returns years later, she has a young daughter Sofia, but her husband has been arrested and sent to Siberia. She asks Rostov to watch Sofia temporarily, but Nina never returns. Rostov and the rest of the hotel staff help to raise Nina. When Nina is 13, she falls down the stairs playing a game with Rostov and he finally leaves the Metropol to rush her to the hospital. Osip arranges for Rostov to return discreetly to the hotel. Meanwhile, Mishka gets sent to a labor camp in Siberia. When he gets out he is weak, and he (a former revolutionary) is critical of the revolution.

In Book Four , Sofia is now 17 and plays piano very well. Her piano teacher is a man named Viktor. Rostov also meets Katerina, who informs him that Mishka has died. Rostov admits to her that Mishka was the one who wrote the poem that made Rostov famous. Katerina leaves Rostov with Mishka's last project, a subversive book of quotes about the famine in Russia.

In Book Five , Sofia is headed to Paris soon for a piano perforance. Rostov has been planning escape. Rostov asks a man to deliver a letter to Richard, an American who once approached him to ask him to be a spy (Rostov refused, but befriended Richard). Rostov oversees an important dinner at the hotel, analyzing how the men are seated to understand the power dynamics in the room. Before Sofia leaves, Rostov gives her a map.

Through a carefully executed plan, Rostov is able to lock the Bishop in a storage room in the basement. Meanwhile, in Paris, Sofia finishes her performance and uses the map to find Richard's house. She gives Richard a package with the seating arrangement information that Rostov collected (e.g. valuable intelligence about the Russian power dynamics). In exchange, Richard orders barrage of phone calls to be placed to the Metropol, causing a fracas that allows Rostov to escape.

In the Afterword , we learn that Viktor and Rostov met up after the escape. The men are dressed similarly, and Viktor boards a train that serves as a diversion. Rostov returns to his home. His mansion was burned down, but he enters a nearby tavern where a woman is waiting for him (described as "willowy", which implies it's Anna).

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Chapter-by-Chapter Summary

The book opens with a poem (“ Where Is It Now? “) written in 1913 by Count Alexander Ilyich Rostov . It’s followed by a court transcript from June 21, 1922. The Bolsheviks (pro-revolution) put Rostov on trial. The poem made him a revolutionary hero, but his upbringing is clearly noble. They decide that they won’t execute him, but they sentence him to house arrest in the Metropol Hotel (where he was already living) for the rest of his life.

1922, An Ambassador

Rostov is escorted back to the Metropol, but to a much smaller room than before, originally built for the hired help. He’s allowed to fill it with his belongings, but anything that doesn’t fit is now property of the State. Rostov deliberates and keeps mostly items with sentimental value. The last object he grabs is a pair of scissors that once belonged to his sister, Helena .

Andrey (maître d’ of the hotel restaurant, the Boyarsky), Vasily (hotel concierge), and Marina (hotel seamstress) show up to see him, and they drink and talk and toast to the Metropol.

Rostov then goes to his desk which he kept and unlocks a secret latch in the desk legs where some gold coins are stored.

An Anglican Ashore

The next morning, Rostov asks a clerk to deliver a letter to Konstantin Konstantinovich . He tries to read the essays of Michel de Montaigne which he has been meaning to do, but Konstantin shows up. Konstantin agrees to send out three notes, and later in response, three items (pillow, linens, soap) are delivered to Rostov. That night Rostov gets dinner at the best restaurant in the hotel, the Boyarsky.

An Appointment, An Acquaintanceship

Rostov goes to his barber appointment. A man gets annoyed with Rostov and clips off part of his moustache. Rostov goes ahead and asks the barber to shave off it all off, since it’s a symbol of aristocracy which he no longer is.

For lunch, Rostov goes to the less upscale hotel restaurant, the Piazza . The waiter there is the Bishop , who Rostov thinks is bad at his job. Rostov helps out a couple nearby by recommending a better wine pairing for their meal than what the Bishop recommends.

He is approached by Nina , a 9-year-old girl whose father is a Ukrainian diplomat. She says she’s seen him before, but wants to know what happened to the moustache. She asks him a bunch of questions, and the Count ends up telling her a story about a duel that once began in the lobby of the hotel. He tells her about a pair of pistols the hotel manager kept behind a secret panel in his office.

Anyway, Around and About

Nina soon calls on Rostov for tea and ask him about princesses. He tells her about royal drama and courtly manners.

Nina teaches Rostov about the inner workings of the hotel. Nina managed to obtain a passkey for the hotel at some point, and she uses it for her adventures and to snoop on people. She takes him to the basement, shows him the furnace and electrical room, and she even shows him the storage room for the hotel’s silver.

Inspired by their adventures, Rostov discovers a secret room attached to his room.

An Assembly

Nina and Rostov go spy on a Bolshevik assembly. Rostov notes the many similarities between the Bolsheviks and the old order. After, Mr. Halecki , the hotel manager, talks to Rostov. He says that the hotel staff must no longer refer to Rostov using honorifics such as “Your Excellency” as they were previously accustomed to. Rostov says it’s fine.

When Halecki steps out of the office, Rostov sees that the pair of dueling pistols are still hidden in Halecki’s office.

Archaeologies

Mishka (Mikhail Fyodorovich Mindich) , Rostov’s friend from University, comes to see him at the hotel. Mishka is a writer. The two catch up and reminisce about Mishka staying with the Count’s family over various summers. They remember Helena , Rostov’s sister.

In late December, the Count gives Nina a Christmas gift of his grandmother’s opera glasses. Later, he sees Nikolai Petrov , a former prince, who is now working as a musician. The chat. They also plan to get together. (Via footnote, we’re told that this never happens. The Bolshevik police will soon find that Nikolai has kept of photo of the Tsar and send him to be sentenced. He gets a relatively light punishment of a “ Minus Six “, being barred from the six largest cities in Russia.)

That night, the Count opens Nina’s present to him which is her passkey for the hotel.

1923, An Actress, an Apparition, an Apiary

It’s been one year since Rostov’s house arrest. Rostov meets up with Mishka, who is excited about a woman named Katerina . Rostov feels a twinge of jealousy over his friend’s comparative freedom.

Anna Urbanova , an elegant actress with two borzoi dogs shows up at the Metropol and invites Rostov to dinner. The two eat and make love. As he heads back to his room, he sees an open window with a ladder that leads out to the roof. He climbs up and chats with the handyman Abram who is out there.

1924, Anonymity

As time passes, Rostov begins to feel invisible at the hotel. Nina is busy with schoolwork. Mishka has also been busy lately, editing an anthology and romancing Katerina. The USSR has recently been recognized by other countries and the hotel has been filled with foreign guests.

At the Boyarsky, Rostov helps Andrey to narrowly avoid a socially-fraught seating arrangement. Rostov has always been good at managing seating arrangements. Rostov is dismayed to discover that his waiter is the Bishop, who has been promoted to work at the Boyarsky, likely due to nepotism. Furthermore, Andrey thinks that it was the Bishop who put in a complaint that the Metropol’s various wines were against the ideas of the revolution. Now, they can only serve unlabeled wines, sold as simply red or white.

Depressed, Rostov grabs a bottle of wine with an insignia he recognizes, the Châteauneuf-du-Pape, to take with him. He decides he will drink it on the 10th anniversary of his sister Helena’s death and then kill himself.

1926, Adieu

On the 10th anniversary of his sister’s death, Nina is 13. She and a boy are testing out the rules of gravity and doing other scientific experiments, so she declines dinner with Rostov. She will be moving soon. Mishka has also left with Katerina to go to Kiev. Abram, the handyman he occasionally chats with, plans to retire. Rostov sees small signs that the world outside is changing quickly.

Rostov meets Charles Abernathy , a British aristocrat, at the hotel bar, the Shalyapin , and they chat. Rostov tells him the story about the birthday party of Princess Novobaczky .

Rostov and his friend arrived late due to being run off the road by a Hussar (means light cavalry) officer. His friend also slips on ice on the way in. The Hussar is at the party and is clearly interested in the Princess, though Rostov ends up talking with her. After dinner, Rostov’s friend wants to play cards instead of dancing due to his fall. Rostov and the Hussar join him, and Rostov wins a lot of money. Rostov smugly forgives the Hussar’s debt, and the Princess hears about it and offers him a dance to reward his generosity.

Bitter about being shown up, the Hussar courts Helena, Rostov’s sister, breaks her heart and sexually assaults her handmaiden. Rostov challenges him to a duel, where the Hussar’s arm is injured. Rostov gets sent out of Russia, to Paris, for a while for injuring the Hussar. When Helena later gets sick with scarlet fever, Rostov is still stuck in Paris and is not able to see her before she dies.

After parting ways with Charles, Rostov goes to the roof to kill himself as planned, but is interrupted by Abram. They chat until late and he goes to sleep. The next day, he goes to have a chat with Andrey.

1930, Arachne’s Art

Four years later, he’s still alive. Rostov has been working at the Boyarsky with Emile (head chef at the Boyarsky) and Andrey and is now head waiter. They have daily meetings where they strategize on how to acquire rare ingredients and deal with other restaurant issues. They refer to themselves as the Triumvirate .

The Bishop is now an assistant manager to Mr. Halecki. Wine labels were eventually able to come back to the Metropol. Mishka is in St. Petersburg now, broken-hearted after Katerina left him for another. Rostov sees a girl he recognizes as Nina, who has hasn’t seen in years. They catch up for a while. She says she’s leaving the next day to help collectivize farms. He confides in Marina, the hotel seamstress, that Nina seems passionate but overly serious now.

Rostov then returns to his room where Anna is waiting for him.

An Afternoon Assignation

The narrator fills us in on Anna’s past. Before, she was a successful actress, but things changed. Some people objected to the content of her movies as being anti-communist and when talkies (movies with speech) arrived, people didn’t like the sound of her husky voice. Her career was over. Because all her fancy possessions belonged to the state, she couldn’t keep them and was soon living very humbly.

In November 1928, eight months after being kicked out of her mansion, Rostov and Anna ended up seeing each other for the second time. From then on, they ended up seeing each other on and off for the next year and a half.

Anna was able to resurrect her career, but in different types of roles with her as a hardworking woman (as opposed to playing princess-y type roles before). She got her mansion back, though she has been humbled either way.

An Alliance

Back in present day, the Triumvirate is preparing for a private function. Rostov learns that the guests have requested him specifically.

He finds Osip Ivanovich Glebnikov there, a Soviet official, who knows all about Rostov’s background and history. He’s there to ask for Rostov’s assistance. In order to help manage diplomatic relations with the French and English, he wants Rostov to teach him English and French. He also wants insights into the privileged classes. Rostov agrees.

The Triumvirate has recently gotten together a number of rare ingredients for a bouillabaisse, a dish they’ve been wanting to prepare. They have a run-in with the Bishop when he rudely inquires about what they’re doing.

After the delicious meal, they chat and celebrate. Rostov drunkenly misplaces a letter from Mishka. Unbeknownst to Rostov, Mishka reports in the letter that a Poet Laureate of the Revolution has killed himself (an ominous piece of news, indicating the shifting social circumstances going on in Russia).

The narrator notes that collectivization of the farms ends up going poorly for Nina and her group. It results in a million farmers being exiled and massive food shortages, which tests Nina (and the others’) loyalty to the party.

1938, An Arrival

The thirties are a difficult time for Russia, with famine, overcrowding, limits on personal expression and the like. The Bolsheviks start trying to bring back more luxurious and glamorous aspects of life, like nicer clothes and accessories.

Nina shows up one day at the Metropol. It’s been many years, and she is now married and has a daughter, Sofia , who is about 5 or 6. Her husband was arrested, and sentenced to corrective labor in Siberia. She is going to move there and needs help watching Sofia until she is settled. She asks Rostov for his help, and he agrees despite not being in the best position for the job.

Adjustments, Ascending, Alighting

With Sofia as his charge, Rostov has to figure out what to do with her. He needs to learn how to care for a child. He turns his bed into a bunk bed so she will have space to sleep. Sofia turns to be a obedient, but playful child and likes playing games. Marina agrees to watch Sofia for the afternoon, and suggests a hotel chambermaid that can help in the future. Rostov has a meeting with Osip, but Rostov is unprepared. Osip is angry, but understanding when Rostov explains why.

Mishka shows up. He’s upset over his publisher’s censorship of an anthology of Chekhov’s letters that he has been working on for years. Rostov tells him he did the right thing by just accepting it.

However, afterwards Mishka ends up going back and making a scene. He is questioned by the police and sent to Siberia. As for Nina, she never returns from Siberia and Rostov never sees her again.

The Kremlin eventually gets a report that Rostov has a child with him. However, due to his relationship with Anna and her affair with the Commissar, they assume Sofia is an illegitimate child of Anna and the Commissar. The report is buried and locked away.

1946, Antics, Antitheses, an Accident

Eight years later, Russia is on the mend post-WWII. The Bishop is now the manager of the hotel, and he summons Rostov to inquire about a prank involving a trio of geese that ended up on the fourth floor, near the room of a Swiss diplomat. The Bishop accuses Sofia, now 13. Rostov is indignant. At the same time, he knows that the geese were originally in the kitchen of the Boyarsky, and that Sofia saw the same diplomat complain about the freshness of the poultry to the staff. Andrey notes that the dumbwaiter is covered in feathers.

Mishka shows up, looking haggard post-Siberia, though he has been sentenced to a Minus Six (exile from the six largest cities in Russia) and shouldn’t be here. As Rostov and Mishka catch up, it’s clear how out of step the Bolshevik’s ideas are from Mishka’s, who was once a revolutionary. He notes how the greatest poets in Russia have stopped writing and how Russia has become too adept at destruction. When Rostov discusses the same topic with Osip, Osip says that progress always comes at a great cost. He notes how America was built on the backs of slaves.

Later, Rostov chats with Richard , an American aid-de-camp to a general and hotel guest who saw the geese incident. The two become quick friends. Richard thinks it’s impossible to predict what parts of history and culture will live on to become immortal.

That night, Rostov sees Sofia and anticipates that she will play a game where she tries to secretly rush to whatever location he’s headed to and arrive before him. Rostov back to his room to try to beat her at her own game, but Rostov soon finds out that she has fallen on the stairs. Rostov takes her and leaves the hotel for the first time in over 20 years.

Rostov rushes to the hospital. He directs the taxi to what once was a state-of-the-art facility, but is now worn down. An unqualified doctor is about to perform surgery, but two visiting surgeons appear and take over. Sofia will be okay.

Osip shows up with Marina, saying that Marina will watch over Sofia, but he’s arranged for Rostov to discreetly return to the hotel. Osip explains that he found out because it’s his business to keep an eye on people of interest (presumably, he was the one who brought the surgeons there as well). Rostov thanks him for the favor. Rostov returns to the hotel to find that Richard has left him a gift of a phonograph and records.

Andrey’s son died in battle in WWII. He and his wife are grieving his death. He also knows that eventually the authorities will realize their apartment is too large for their reduced family. In time, they will be forced to leave their home and will be moved into a smaller apartment.

1950, Adagio, Andante, Allegro

Sofia is 17. She has grown up to be demure and sympathetic. Rostov hears from Vasily (the concierge) that Sofia is with a man, Viktor Stepanovich , and he marches angrily into the ballroom to separate them. Rostov is quickly informed that nothing improper is going on. Viktor is giving Sofia piano lessons. Sofia plays, and Rostov is shocked at how good she is. She says it was meant to be a birthday surprise for him. Viktor actually studied at the Conservatory once, but now conducts the hotel restaurant’s orchestra to make ends meet.

At lunch, Rostov comes across an architect. There’s no longer a need for architects in Russia, so now he sketches buildings for a travel agency. Rostov also meets up with Richard, who he is now close friends with. As they chat, Rostov recalls a story about the moths of Manchester . They are an example of speedy evolution, of a species having to adapt to their new circumstances quickly. (This is reminiscent of the people in this chapter who, like Rostov, have had to adapt quickly to new circumstances.)

1952, America

Anna has shifted to stage acting, which means she is now around for months at a time. Rostov and Sofia play a game during lunch, and Sofia mentions that Rostov should invite Anna. Rostov pretends to not know Anna until Sofia tells him that she and Anna have been acquainted for years.

A professor staying at the hotel invites Rostov for a meeting, which he discovers is a clandestine meeting with Richard, who he hasn’t seen in two years. Richard wants Rostov to spy for the Americans. With Stalin’s health in question, the Americans need information on the power hierarchy in Russia in order to prepare diplomatically for the shift in Russian leadership.

Rostov gently refuses, and the matter is put to rest. Soon, Stalin passes away, and a battle is brewing between Malenkov and Nikita Khrushchev to be the next leader of Russia.

1953, Apostles and Apostates

The Bishop makes changes to the order-taking process at the Boyarsky, and when Rostov complains, Rostov also lets slip that the Triumvirate has daily meetings about the restaurant’s operations.

Meanwhile, Sofia wins a piano competition. Sofia, Anna, Rostov, Andrey and Emile celebrate in Rostov’s room afterwards, but the celebration is cut short. Vasily enters to warn them that the Bishop is on his way up because someone is looking for Rostov. The Bishop enters with Frinovsky , the director of the Red October Youth Orchestra. He invites Sofia to join the orchestra in Stalingrad, noting that it’s not optional. However, Anna intervenes by saying that Nachevko , the Minister of Culture is interested in Sofia’s talents (a lie), so Frinovsky lets it go.

Later, Katerina, Mishka’s love interest, introduces herself to Rostov for the first time. She tells him that she and Mishka reunited, but he died a week ago. When Katerina refers to both Rostov and Mishka as fine poets, he corrects her. Rostov never wrote a poem in his life. Instead, he reveals that the poem that saved his life (“ Where Is It Now? “) was written by Mishka. They published it under Rostov’s name because they were worried Mishka would be killed for writing something so revolutionary, but Rostov’s nobility would protect him. Ironically, the poem ends up saving his own life instead.

Katerina leaves Rostov with Mishka’s final project, a chronological compilation of quotes about bread from famous Russian authors, including the censored quote that landed him in Siberia. It’s a rebellious project because it contrasts with all the famine the Bolsheviks caused in Russia.

1954, Applause and Acclaim

Sofia is now headed to Paris in six months, which they all marvel at since for a very long time Russians were not permitted to leave the country. When Sofia thinks about staying here instead, Rostov tells her he has done her a disservice by not conveying to her that the world outside is worth exploring, even if he’s stuck in here.

The Bishop now attends the Triumvirate’s daily meeting and micromanages them. Rostov has been formulating a plan to escape from the hotel. Sofia’s tour spurs him further into action.

Achilles Agonistes

(The book now starts describing the actions Rostov is taking to prepare for his escape, but doesn’t divulge what the plan actually is.)

Rostov leaves a note with the front desk and goes to the barber, despite not needing a shave. Soon, a bell boy shows up asking for the barber to come immediately. With him gone, Rostov steals a bottle that the barber refers to as the “ Fountain of Youth ” from the cabinet.

Ever since Sofia’s plans to head for Paris were in place, Rostov has been busy preparing. He bought her a suitcase and guidebook, has been teaching her French and Marina has sewn her a dress.

Now, Rostov returns to his room, pulls out the guide book and finds a map of the 8th arrondissement (municipal district) of Paris. He carefully draws a line. He then grabs his copy of the essays of Michel de Montaigne and begins cutting out hundreds of pages.

Arrivederci

In May, after he sees an Italian couple leaving the hotel, he breaks into their room using the passkey that Nina once gave him. He steals an outfit. He later returns to steal a hat and some nesting dolls as well. That night, he notes that he has almost all the components he needs for his plan.

When he sees an American salesman, Webster , wave to the same professor who once lured him into a meeting with Richard, Rostov makes his acquaintance. Rostov asks Webster to deliver a letter to Richard, who he suspects Webster may know.

Sofia has a fitting for the dress that Marina made and Rostov sputters and gets overprotective when he sees it is backless. After, he meets with the Triumvirate plus the Bishop. There is an important dinner for the Council of Ministers and the Presidium that Rostov is supposed to oversee, but the Bishop assigns it to Andrey instead. This is problematic because overseeing the dinner is required as part of Rostov’s plan.

An Announcement

Andrey reports having tremors in his hand (later we find out it was a lie), so Rostov ends up doing the dinner anyway. Rostov is glad when he’s told there is no seating plan. He thinks to himself that because of rigid hierarchy of the Russian bureaucracy, the people will know exactly where they need to sit and that says everything you need to know about the power hierarchy in Russia.

At 9, the doors open with Malenkov and Khrushchev at the head of the table. Rostov listens intently as he serves. They make a demonstration. A power plant has finally finished construction and will now provide power to half of Moscow. The people watch as the lights go out across Moscow and then flicker back on, now drawing power from the newly opened plant.

On June 16, Rostov is making final preparations with Sofia, having explained to plan to her the night before. Sofia comes in later, telling him that her venue has been changed. Rostov fetches a new map and redraws the path.

That night, Rostov and Sofia reminisce over dinner. He tells Sofia how sad he will be without her, and he gives her a photo of himself from when he was younger for her to keep. She teases him for the huge moustache. Rostov tells her about the moustache being cut off and how that led to him meeting Nina.

At ten, all the hotel staff see Sofia off for her trip. Rostov hugs her and she leaves.

An Association, Antagonists at Arms (And an Absolution)

While Osip and Rostov have seen each other less over the years, Osip is in town now and they get together to watch Casablanca.

On June 20, Rostov serves a Finnish couple. He asks them for their room number since he needs to steal a Scandinavian passport as part of his plan. After he gets the passport, he returns to find the Bishop in his room.

The Bishop has found the discarded map with the path drawn on it. The Bishop heads down to tell the authorities, but when he gets to his office, Rostov is somehow sitting there waiting with a gun in his hand (reminiscent of the game Rostov used to play with Sofia). The gun is one of the dueling pistols stored in the office.

Rostov demands the key to the files in the office (where the Bishop has documented all the flaws of the hotel staff). He has the Bishop destroy the files on his friends and then locks him up in a storage room in the basement (in the process, they end up visiting all the rooms Nina once showed him).

On June 21, it has been exactly 32 years since his imprisonment. He follows his normal routine, except for stealing an American journalist’s fedora and raincoat. He gathers only the essentials in a rucksack.

In Paris, Sophia has finished her performance. She cuts off her hair using Helena’s scissors and uses the “Fountain of Youth” stolen from the barber to dye her hair where one part of it is white. She puts on the clothes stolen from the Italian couple. She exits and walks according to the map that Rostov prepared.

Sofia marvels at the monuments in Paris, and eventually she finds the house of Richard and his wife. Richard hands her a package, which is the copy of Montaigne’s essays that has been filled with gold coins. In return, Sofia hands Richard her bag. In a seam is a piece of paper with the notes on the dinner of the Council of Ministers and the Presidium.

(In other words, Rostov has offered Russian intelligence in exchange for help. Richard had previously wanted information on who would be in power after Stalin. Rostov notes that the seating arrangement points to Khrushchev and Malenkov being in power. But the fact that only Khrushchev knew where the dinner would held pointed to his dominance over Malenkov.)

The final piece of the puzzle is for Richard to confirm Sofia’s arrival. As instructed by Rostov, he has men call into the Metropol at midnight. The calls on 30 different phones causes pandemonium. In addition to letting Rostov know Sofia is safe, it also presents an opportunity for Rostov to escape during the fracas, wearing the journalist’s clothes.

Afterwards…

That same day, just before midnight Viktor Stepanovich awaits Rostov. They meet up.

By the next morning, the KGB has been alerted to Rostov’s disappearance. The Bishop is also nowhere to be found and rumors have arisen that Sofia went missing in Paris.

While Andrey and Emile wonder if Rostov escaped, two letter are delivered from Rostov where he thanks them for their friendship as well as gifting them with a few gold coins.

Later that day, a chief security administrator (Osip, as indicated by a scar above his left ear) in Russia is reviewing a file when a young man tells him about the situation involving Rostov at the Metropol. He’s also informed that they found the Bishop locked in a storage room. They were able to gather that a Finnish passport was stolen along with some clothes. It was confirmed that a man wearing those clothes boarded a train to Helsinki.

We then find out that the stuff about Finland was a diversion — Viktor is the one who got on that train to misdirect the police.

Rostov is in the Nizhny Novgorod province, his home province. He sees that his mansion has been burned to the ground. He heads toward a tavern instead where a willowy woman (presumably Anna) sits waiting.

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