Restaurant Business Plan – How to Create it in 5 Min
Want to start your own Restaurant, Bar or Coffee Shop? Then you need a Restaurant Business Plan!
Discover, how you can set up a simple restaurant business plan in 5 minutes or less by using our free business plan app.
You can read this tutorial first or you can start using the app intuitively and come back later, if you have any questions. Let´s start to craft your new business plan.
A Numbers Game
Running a Restaurant successfully is a numbers game. You need to know the numbers to find your path to a profitable business. Therefore, your budget is a core piece of your whole business plan.
Test Various Scenarios
The way you create your business plan, is to start somewhere, to test various scenarios and to improve your plan, until it shows the results you are looking for.
Aim for a certain Profit
At the end you need to make a profit with your business. Otherwise, you have to shut it down within a short time. One of your goals should be to define certain profit you want to achieve and to develop a way, to reach it.
Use the free App
Our free business plan app can help you with this task. You can easily move the sliders to set certain values (i.e. sales, opening days, customers per day, various costs).
Start with your best Guess
If you are not sure about a certain value, then start with an industry average or simply with your gut feeling. Your first inputs are probably not perfect. But that´s OK. Put in your best guess first and improve it step by step.
1. Opening Days per Week [ restaurant business plan ]
How many days per week will your restaurant be open for guests? Put in a number, i.e. 5 days per week.
2. Customers per Day
How many customers do you expect to serve per day? Set the number by moving the slider, i.e. 123 customers per day.
3. Sales per Customer [ restaurant business plan ]
How much money does the typical customer spend in your restaurant? This will depend very much on what you offer and how you present it. Define the average sales number, i.e. 15 $.
4. Cost of Goods
How much of your sales do you have to spend for goods? i.e. 30%.
5. Wage Costs [ restaurant business plan ]
How much are the average wage costs per employee per month, including ancillary wage costs. i.e. 2.000 $.
6. Number of Employees
How many employees will you need? i.e. 2.
7. Sales per Employee [ restaurant business plan ]
The App shows you the Sales per Employee in $. Keep an eye on this value, as it should be between 5.000 and 7.000 $ per month in order to operate profitable.
Keep the box checked, if you work full time in your business. Your work will be included in sales per employee.
8. Monthly Rent
How much do you spend for the rent of the restaurant? i.e. 2.100 $.
The app calculates the rent in % of sales. This value should be in the range of 7 to 10 %.
9. Other Fixed Costs [ restaurant business plan ]
You also need to cover costs of energy, fees, insurance, operating costs, marketing, administration, maintenance, depreciation, leasing and interest. The benchmark is 18 to 25 % of sales. i.e. 22 %.
10. Monthly Budget
As a result of your inputs the app shows you the numbers for sales, cost of goods, personnel costs, rent, other fixed costs and profit.
Sales are extrapolated to one month with an average of 30.5 days.
Get more Insights from “PROFIT – The Restaurant Owners Handbook”
Starting and running a restaurant is a complex task. In this practical handbook you learn
- How to get more Customers
- How to increase Sales and
- How to lower Costs