Restaurant Business Plan Template
1. Mission statement
2. An overview of the restaurant concept
3. Objectives
4. Financial summary
5. Ownership structure
Everything to include in your restaurant executive summary
Starting your business plan with an enticing executive summary is crucial. It is often the first section that potential investors, lenders or stakeholders will read. It should provide a snapshot of your business, making it compelling enough to encourage the reader to continue reading the rest of the plan.
The executive summary should distill the key points of your entire restaurant business plan into a concise format, making it easier for decision-makers to quickly understand your restaurant business idea. A weak executive summary may result in your whole business plan being ignored.
Highlight the chosen location and why this location is ideal for your restaurant concept.
Stakeholders will be keen to see that you understand the competitive marketplace that you will be opening up within. A detailed market research section should provide an industry overview, with a particular focus on your target market. This section should include trends, growth potential and challenges.
Define your targeted customer demographic, paying particular attention to the age, income level, lifestyle and dining preferences of these potential customers. You should identify the needs and preferences of these diners that your restaurant will cater to. Explain why there is demand for your restaurant in your chosen location. This could include gaps in the market, unmet needs or the popularity of your cuisine within the local demographic.
Discussing the area where your restaurant will be located, why it is strategically chosen and how it will appeal to your chosen target market will be vital. Include evidence for your decision, such as foot traffic or proximity to landmarks / offices. Describe the overall layout, seating arrangement and any particular design elements.
Your competitor analysis section should identify your direct competitors. These aren’t just direct competitors offering the same cuisine; it is any similar dining option that is targeting the same market. Analyze their strengths and weaknesses, as well as their pricing strategies and customer reviews. It is within this section that you should highlight what makes your restaurant unique and how you will differentiate your restaurant from competitors and attract customers.
Consider the legal and compliance regulations for operating a restaurant in your chosen location. List all the necessary licenses your business will require, as well as the health & safety regulations you will comply with, such as food safety standards and fire regulations.
List the required insurances your restaurant business will require, notably public liability, employer’s liability and property insurance.
It is becoming increasingly important to discuss your social and sustainability responsibilities. Highlight any practices that your restaurant will implement that will help to achieve these goals, such as waste reduction or sourcing local ingredients. If your restaurant aims to be involved in the community, include this in your plan.
To round off your business description, outline your growth goals for the future, such as the potential for scaling the business or introducing franchising opportunities.
Ownership and Management
Mention any industry experts such as restaurant consultants who will advise your business.
Potential stakeholders will pay close attention to the ownership and management structure of your restaurant – a key point of any successful business plans prospects.
When discussing the ownership structure, list the owners and their respective stakes. Mention any industry expertise that these owners bring to the role. Within this section, mention the legal structure your business will follow, whether it be a limited company or partnership, for example.
Define the roles and responsibilities of the management, such as the head chef and general manager. Again, highlight the relevant experience and qualifications that these key members of staff bring to the role. Include details of your restaurant recruitment plan, which roles you will be hiring for.
Operations Plan
This section will cover the day to day operations planned for your restaurant. Whilst everyday will have its own surprises that are hard to predict, it is important to be proactive when planning for your logistical future. The sections you should consider when devising your operations plan:
Restaurant Suppliers
Stakeholders will be interested to review your plans for your suppliers. List all of the suppliers you anticipate using, from ingredients such as fish suppliers and beverages through to tableware providers. Mention any contracts or relationships you have with sepcific suppliers such as local farmers or distributors.
Daily operations
Start with the basics, your opening hours. Mention the service process that customers will experience, from arrival to departure. Focus on where they will be seated, how their order will be taken and whether food is to be collected or delivered to the customer.
Outline how you intend to manage your inventory, keeping a track of stock levels and cashflow. This will tie in to your ordering and reording plans for new stock. Don’t forget to mention your waste management plans; do not underestimate how much waste one restaurant can create in a short period of time.
Make sure to include a section on your health & safety protocols, as well as the training that your employees will receive. Detail the cleaning schedules and food handling procedures.
Briefly describe the technologies you will be using, such as your EPOS system and online ordering systems.
Restaurant Marketing and Sales Strategy
Start with your brand identity. Focus on what your USP is, emphasising what makes your restaurant different from the competition. Use this to define your logo and colour scheme. Use this consistently across your branding, from your shopfront to your website and everything in between.
Marketing plan for a new restaurant
As a new restaurant, you want to devise a specific launch strategy. Many new restaurants will trial a soft opening, helping the staff to get used to service before a grand opening event. Your launch strategy plan should focus on how you will bring the customers in from day one. Utilise traditional and digital marketing such as websites, social media, SEO, flyers and advertising boards to start spreading the word.
Your marketing plan should cover how you will value and promote customer engagement. Explain how you will gather and respond to customer feedback, as well as engage with the local community.
Financial Plan
This could be the section that makes or breaks your restaurant. Begin with the start-up costs, splitting this section into two distinct parts; your initial outlay and funding sources.
In the outgoings section, list all of the required funds for opening your restaurant. Consider all property costs, equipment, renovations, furnishings and renovations. Make sure you include details of where your initial funds will be coming from, such as loans, savings or investors.
Restaurant financial projections
Your financial projections section should include:
- Sales forecasts: Break these forecasts down into realistic time periods, such as month 1, the first 6 months, the first year, then by year 3 and year 5.
- Cost of goods sold (COGS): Estimate the cost of ingredients and supplies
- Profit and loss statement: Project the income, expenses and profitability over time, such as year 1, 3 and 5
- Cash flow statement: Outline when you expect cash inflows and outflows, as well as how you will cover any cash flow gaps such as through the use of merchant cash advances or purchase order financing.
- Breakeven analysis: Calculate your breakeven point and when you can expect to become profitable.
Budgeting and financial management
For most restaurants to succeed, a tight ship must be run financially. Ensuring your budgeting is realistic and consistent could be vital to the success of your business. Within your financial management section, detail your operating budget on a monthly basis. Cover your outgoings such as rent, utilities and payroll.
It would be wise to include details of any contingency funds or financial safety buffers you will have available to cover unexpected expenses.
Within this section, mention how you will run your accounting and bookkeeping.
If your new restaurant requires finance or funding, specify the total amount you require to fund the business. If you already have this funding secured, include the full details of your repayment plan.
Legal & Regulatory Compliance
Business Registration
- ☐ Register with Companies House (for Ltd)
- ☐ Register with HMRC for tax and VAT
- ☐ Choose and register business name (check trademarks)
Licensing & Permits
- ☐ Alcohol Premises Licence (if serving alcohol)
- ☐ Food Business Registration (register 28 days before opening)
- ☐ Music Licence (PRS & PPL)
- ☐ Pavement Licence (for outdoor seating)
- ☐ TV Licence (if displaying TV)
Health & Safety Regulations
- ☐ Food Hygiene Rating (register with Environmental Health)
- ☐ Food Safety Management System (HACCP)
- ☐ Health and Safety Policy
- ☐ Risk Assessments (fire, equipment, slips, etc.)
- ☐ Fire Safety Procedures and Certification
Employment Laws & HR
- ☐ Employer Liability Insurance
- ☐ Right to work checks (including proof for non-UK workers)
- ☐ Minimum Wage Compliance
- ☐ Pension Auto-Enrolment
Financial Planning & Taxes
A. Initial Funding & Capital Investment
Sources of Capital
- ☐ Personal savings or investment
- ☐ Bank loans (evaluate interest rates and repayment terms)
- ☐ Commercial Finance
- ☐ Government grants and funding schemes (e.g., Start Up Loans UK)
- ☐ Private investors or venture capital
- ☐ Crowdfunding platforms (Kickstarter, Indiegogo)
- ☐ Partnering with co-owners or silent partners
- ☐ Seek angel investors in the hospitality industry
Startup Costs Breakdown
- ☐ Property deposit and lease negotiations
- ☐ Fit-out costs (interior design, kitchen equipment, furnishings)
- ☐ Technology setup (POS systems, website development, online ordering systems)
- ☐ Licensing fees and regulatory compliance
- ☐ Staff recruitment and training costs
- ☐ Marketing and launch event costs
- ☐ Initial working capital (to cover expenses for the first 6-12 months)
B. Budgeting & Financial Forecasting
Creating a Detailed Budget
- ☐ Estimate fixed costs (rent, utilities, insurance, salaries)
- ☐ Estimate variable costs (food and beverage, cleaning supplies, maintenance)
- ☐ Set aside funds for unexpected expenses (emergency repairs, seasonal variations)
- ☐ Allocate a portion for marketing and ongoing promotions
- ☐ Factor in loan repayments or interest on borrowed capital
Sales Forecasting
- ☐ Estimate daily, weekly, and monthly sales targets based on seating capacity, pricing, and local demand
- ☐ Plan for peak and off-peak sales periods (e.g., weekends, holidays, special events)
- ☐ Include delivery and takeaway sales projections
- ☐ Revise sales forecasts regularly based on actual performance
Break-Even Analysis
- ☐ Calculate fixed and variable costs to determine break-even point
- ☐ Determine how many customers or covers are needed to cover all costs
- ☐ Recalculate break-even point if new costs arise or pricing changes
- ☐ Use this analysis to set realistic profit margins
C. Cash Flow Management
Managing Cash Flow
- ☐ Set up a cash flow forecast (track income and expenses on a weekly/monthly basis)
- ☐ Monitor daily sales and compare to projections
- ☐ Ensure timely invoicing and payments from any third-party services (e.g., catering or event bookings)
- ☐ Maintain enough working capital to cover at least 3 months of expenses
- ☐ Plan for seasonal fluctuations and adjust staffing and ordering accordingly
Working Capital
- ☐ Ensure enough liquidity to cover short-term obligations (wages, utilities, food supplies)
- ☐ Maintain a buffer for unexpected events (e.g., equipment failure, unexpected repairs)
- ☐ Set aside cash reserves to cover loan repayments and interest
Payment Terms & Vendor Relationships
- ☐ Negotiate favourable payment terms with suppliers (e.g., 30-day credit terms)
- ☐ Avoid upfront payments where possible to maintain liquidity
- ☐ Regularly review supplier contracts and terms to manage costs effectively
- ☐ Maintain positive relationships with suppliers to avoid disruptions
D. Profit Margins & Cost Control
Food & Beverage Cost Control
- ☐ Calculate food cost percentage (ideal range: 25-35%)
- ☐ Regularly review menu prices and ingredients costs
- ☐ Monitor portion control to reduce waste and maintain consistency
- ☐ Negotiate bulk buying discounts with suppliers where possible
- ☐ Use seasonal ingredients to reduce costs
Labour Cost Control
- ☐ Calculate labour cost percentage (ideal range: 20-30%)
- ☐ Optimise staff scheduling to match peak service times
- ☐ Consider part-time or temporary staff during busy periods to reduce fixed wage costs
- ☐ Cross-train staff to improve flexibility and reduce overtime
- ☐ Monitor productivity and identify areas for efficiency improvement
Overhead Cost Control
- ☐ Track and reduce utility bills (energy-saving appliances, smart metres)
- ☐ Regularly review insurance policies and utility contracts to ensure competitive pricing
- ☐ Minimise waste in areas like cleaning supplies, packaging, and non-essential purchases
Gross Profit Margin Monitoring
- ☐ Calculate gross profit margin for each menu item
- ☐ Remove or adjust underperforming items that yield low margins
- ☐ Regularly monitor gross profit margins and adjust pricing strategies
- ☐ Compare menu prices with competitors while maintaining profitability
E. Financial Reporting & Monitoring
Regular Financial Reporting
- ☐ Set up monthly profit and loss statements (P&L)
- ☐ Track key performance indicators (KPIs):
- Revenue per cover
- Average spend per customer
- Food and beverage cost percentage
- Labour cost percentage
- Profit margins
- ☐ Compare actual performance against forecasts
- ☐ Identify trends in sales, expenses, and profitability
Balance Sheet Management
- ☐ Track assets (cash, equipment, inventory) and liabilities (loans, debts)
- ☐ Monitor cash flow from operations, investing, and financing activities
- ☐ Review balance sheets quarterly to ensure financial health
Bookkeeping & Accounting
- ☐ Hire an accountant or use accounting software (Xero, QuickBooks, etc.)
- ☐ Ensure accurate record-keeping of all expenses and revenues
- ☐ Reconcile bank statements monthly
- ☐ Prepare for year-end tax filing and financial statements
F. Financing & Loans
Managing Loans & Debt
☐ Ensure timely repayment of loans or lines of credit
☐ Refinance high-interest loans when possible to reduce interest payments
☐ Negotiate favourable terms with lenders to extend repayment timelines if needed
☐ Track interest rates and explore refinancing options to reduce costs
Credit Control
☐ Establish a credit line with suppliers to manage cash flow
☐ Regularly review and improve your restaurant’s credit score
☐ Avoid overreliance on credit and maintain a healthy balance between equity and debt
G. Taxes & Regulatory Compliance
VAT Compliance
☐ Register for VAT if annual turnover exceeds £90,000
☐ Keep detailed VAT records and submit VAT returns on time (quarterly)
☐ Claim VAT on eligible purchases (e.g., food, equipment, supplies)
☐ Review VAT schemes (e.g., Flat Rate Scheme for small businesses)
Income & Corporation Tax
☐ Submit annual tax returns on time (Self-Assessment for sole traders, Corporation Tax for Ltd companies)
☐ Take advantage of available tax reliefs (e.g., capital allowances for equipment)
☐ Set aside funds for income or corporation tax to avoid penalties
☐ Hire an accountant to manage complex tax filings and deductions
Payroll & National Insurance Contributions
☐ Set up a PAYE system to handle employee income tax and National Insurance contributions
☐ Ensure all staff are paid at least the minimum wage or living wage
☐ Submit payroll data to HMRC monthly
☐ Stay compliant with pension auto-enrolment and contributions
H. Long-Term Financial Planning
Growth & Expansion Planning
☐ Plan for expansion (opening new locations, offering catering services, etc.)
☐ Reinvest profits into the business for growth opportunities (e.g., marketing, new equipment)
☐ Explore franchising or partnerships to scale operations
☐ Conduct market research to assess demand for expansion
Exit Strategy
☐ Plan an exit strategy (sale, franchising, or succession planning)
☐ Build up business equity and goodwill to improve future valuation
☐ Consider future investors or a merger as part of long-term financial planning
Insurance Requirements
Essential Insurances
☐ Public Liability Insurance
☐ Employer’s Liability Insurance
☐ Contents Insurance (equipment, furniture, etc.)
☐ Buildings Insurance (if you own the premises)
☐ Stock Insurance
☐ Business Interruption Insurance
☐ Product Liability Insurance (for food quality issues)
☐ Cyber Insurance (if using online payment systems)
Appendices
- Resumes of key team members
- A sample menu
- Floor plan of seating arrangement and kitchen setup
- Market research data such as surveys or reports
- Supplier agreements
- Legal documents such as lease agreements
Need help with the business plan for your restaurant?
Give Mill Wood Finance a call – the finance partners of Find a Restaurant
Phone Number
01273 523690