Restaurant Business Plan FAQs

DMD Restaurant Consultants helps new restaurants with everything from developing a business model to deciding on a concept. One of the first steps to opening a successful restaurant is writing a business plan. Browse the FAQs to learn about restaurant business plans, or contact us with additional questions.

What is a restaurant business plan?

A business plan is a document that outlines your direction and intentions for your new restaurant. It will establish goals, explain your concept, delve into market research, and explore financials.

Why do I need a restaurant business plan?

A restaurant business plan shows that you have carefully considered profitability and the practical details of running your business. A well-written business plan is crucial to getting buy-in from banks, investors, and business partners. They want to know that you have a concrete strategy for success before investing time or money into your restaurant.

In addition, it’s a living document that helps you stay true to your vision and meet your business goals. For example, you may lose sight of the big picture while working on finding a location and getting the necessary licenses and permits. Referring to your business plan will help you keep the end goal in mind and see how all the pieces fit together.

How do I write a business plan for a restaurant?

Before you sit down to write a business plan, you’ll need to conduct market research, calculate start-up costs, and have a solid understanding of your brand. If you don’t know what type of food you’ll serve or have a staffing estimate, you’re probably not ready to create a strategic plan.

Start by gathering all your existing documents and noting where there are gaps in the information. Have you decided on a location but haven’t researched competitors in the area, for example? Business librarians can be an excellent resource for this type of research if you don’t know where to start.

What are the parts of a restaurant business plan?

There are ten main sections that you will need to include in your business plan:

A branded cover page
An executive summary
A company overview
A breakdown of your team
A sample menu
Your market analysis
A marketing plan
An outline of business operations
Your financials
Supporting documentation

For descriptions of what to include in each section, download our free business plan guide.

Can I use a restaurant business plan template?

Yes, free or paid business plan templates are a great starting point, but make sure you find one that is specific to the restaurant industry. A good template will lay out the necessary sections in an attractive format and allow you to plug in the necessary information.

How should I present a restaurant business plan?

If you are planning to present your business plan to investors or partners, make sure you know the plan extremely well. Avoid notecards since this could indicate a lack of confidence. Prepare answers to obvious questions, and admit when you don’t know an answer. In this situation, however, it’s crucial to find the answer and follow up.

If possible, practice your presentation with a trusted friend or business mentor before pitching to investors. They can also help you brainstorm audience questions.

Who can help with my restaurant business plan?

As mentioned above, business librarians are a great resource for market research and can direct you to helpful content on creating business plans. In addition, a business coach or mentor can help you brainstorm and review your business plan for errors, which can be especially helpful if they are in the hospitality industry. Lastly, restaurant consultants like DMD are business plan experts and can guide you through each step of the writing process.

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