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Delicatessen and Bakery Business Plan
Start your own delicatessen and bakery business plan
The Bronx Deli and Bakery
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
The Bronx Deli and Bakery will offer customers New York City deli bakery items and sandwiches. It is a restaurant, a bakery and a coffeehouse all rolled into one. Located in the heart of the growing Willow Creek section of Richmond, the Bronx Deli and Bakery will serve a community of 25,000 residents that is made up of students attending State University and families attracted to the new home construction in the area.
The Bronx Deli and Bakery will have the advantage of the foot traffic in the Willow Creek retail area which is the home of the Willow Creek Arts and Craft Fair, as well as the home of numerous art and craft shops.
1.1 Mission
The Bronx Deli and Bakery is committed to providing a slice of New York in the Willow Creek section of Richmond. We will offer our customers the best sandwiches and bakery items at affordable prices.
Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">
The Bronx Deli and Bakery is located in the heart of the Willow Creek section of Richmond. The owner, Barry Cohn, is opening the Bronx Deli and Bakery in response to the limited number of eating places located in the Willow Creek area. The bakery will offer New York City deli bakery items and sandwiches. We will focus on bringing in the customer who visits the arts and crafts stores and is looking for a warm and comfortable place to relax and enjoy excellent food.
2.1 Company Ownership
The Bronx Deli and Bakery is owned by Barry Cohn.
2.2 Start-up Summary
The start-up cost of the Bronx Deli and Bakery will consist primarily of kitchen equipment and dining set-up. Barry Cohn will invest $80,000. He will also secure a $50,000 SBA loan.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $1,000 |
| Insurance | $1,000 |
| Rent | $1,800 |
| Dining Set-Up | $8,000 |
| Total Start-up Expenses | $11,800 |
| Start-up Assets | |
| Cash Required | $63,200 |
| Start-up Inventory | $5,000 |
| Other Current Assets | $0 |
| Long-term Assets | $50,000 |
| Total Assets | $118,200 |
| Total Requirements | $130,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $11,800 |
| Start-up Assets to Fund | $118,200 |
| Total Funding Required | $130,000 |
| Assets | |
| Non-cash Assets from Start-up | $55,000 |
| Cash Requirements from Start-up | $63,200 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $63,200 |
| Total Assets | $118,200 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $50,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $50,000 |
| Capital | |
| Planned Investment | |
| Barry Cohn | $80,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $80,000 |
| Loss at Start-up (Start-up Expenses) | ($11,800) |
| Total Capital | $68,200 |
| Total Capital and Liabilities | $118,200 |
| Total Funding | $130,000 |
The Bronx Deli and Bakery will offer customers New York City deli bakery items and sandwiches. The menu will include:
- Pastry/desserts;
- Sandwiches;
Market Analysis Summary how to do a market analysis for your business plan.">
In the past ten years, the Willow Creek section of Richmond has grown tremendously. The growing student community combined with the customers of the area’s arts and craft stores are a perfect support base for the Bronx Bakery.
Currently, the area is served by three small restaurants and two coffee shops. None of these restaurants or shops carry the menu items found at the Bronx Bakery. In addition, the bakery is located on Steward Street which is the area’s main street. The foot traffic on Steward Street is very heavy with arts and crafts shoppers and State University students.
4.1 Market Segmentation
The Bronx Deli and Bakery will focus on two significant customer groups:
- Arts and Craft Shoppers: The community is home to a number of artists and craft people that operate the Willow Creek Craft Fair. This creates a festive environment in the Willow Creek central commercial/retail area that attract shoppers each weekend. The Bronx Deli and Bakery is adjacent to the Craft Fair which is one block south of Steward Street. The traffic from the fair to the Steward Street shops goes right past the Bronx Bakery.
- Students: The Bronx Deli and Bakery will be a half block from campus. A significant number of students spend money on food and drink in the Willow Creek area. Last year, it was estimated that students spent $20 million dollars on products, services and entertainment in the Willow Creek area. The bakery’s location will be a convenient place to grab a bite or a sweet on the way to or from classes.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Arts and Craft Shoppers | 15% | 9,000 | 10,350 | 11,903 | 13,688 | 15,741 | 15.00% |
| Students | 10% | 12,000 | 13,200 | 14,520 | 15,972 | 17,569 | 10.00% |
| Total | 12.22% | 21,000 | 23,550 | 26,423 | 29,660 | 33,310 | 12.22% |
Strategy and Implementation Summary
The Bronx Deli and Bakery will promote the store opening. We will have live music and food in front of the bakery opening weekend. The Willow Creek Craft Fair will provide excellent foot traffic for our opening.
We will advertise in the university daily student newspaper as well as the local area advertising flyer. In the advertisements for the market opening, we will have 2 for 1 specials on pastry and sandwiches. We will continue this discount for the first month of operation.
5.1 Competitive Edge
The Bronx Bakery’s competitive edge is:
- Location: The Bronx Deli and Bakery is located in the heart of the Willow Creek section of Richmond. The foot traffic in the Willow Creek retail area is very strong. The weekend arts and craft fair will provide excellent foot traffic. In addition, Stewart Street is a major walk way for students going to and from classes at State University.
- New York Focus of Menu: The menu for the Bronx Deli and Bakery is a perfect addition to the arts and craft focus of the businesses in the area. We offer the customer a chance to step out of Richmond and into a New York City deli, complete with the sights and sounds. Lunch becomes an event and even the purchasing of a bakery item, to go, leaves the customers smiling.
5.2 Sales Strategy
The sales strategy of the Bronx Deli and Bakery is simple. The key to customer satisfaction is providing an exceptional product at affordable prices in an environment that is as entertaining as the food.
5.2.1 Sales Forecast
Cost control is a critical focus of our sales forecast. We will adhere to the following gross margin % for menu items:
- Coffee drinks: 14%
- Lunch items: 30%
- Bakery goods: 26%
The following is the Bronx Deli and Bakery’s sales forecast for three years.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Bakery | $127,000 | $145,000 | $165,000 |
| Sandwiches | $247,000 | $272,000 | $302,000 |
| Drinks | $48,500 | $52,000 | $55,000 |
| Total Sales | $422,500 | $469,000 | $522,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Bakery | $32,400 | $38,000 | $42,000 |
| Sandwiches | $82,900 | $86,000 | $96,000 |
| Drinks | $6,060 | $6,400 | $7,000 |
| Subtotal Direct Cost of Sales | $121,360 | $130,400 | $145,000 |
Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">
Barry will manage the daily operation of the Bronx Deli and Bakery. He has ten years of experience working in the restaurant industry. Before relocating to Richmond, Barry was manager of two deli/bakeries in New York City. Barry was the Bakery Manager for Zoey’s Deli and Bakery for six years, managing a staff of five. During that time, the business grew by 15% each year.
6.1 Personnel Plan
Besides Barry Cohn, the Bronx Deli and Bakery will have a staff of seven:
- Kitchen staff (3);
- Waiters/waitresses (2).
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Barry Cohn | $33,600 | $36,000 | $39,000 |
| Kitchen Staff | $84,000 | $89,000 | $94,000 |
| Waiters/Waitresses | $39,600 | $41,000 | $43,000 |
| Baking Staff | $48,000 | $51,000 | $54,000 |
| Total People | 9 | 9 | 9 |
| Total Payroll | $205,200 | $217,000 | $230,000 |
Financial Plan investor-ready personnel plan .">
The following is the Financial plan for the Bronx Deli and Bakery.
7.1 Break-even Analysis
The following table and chart shows our Break-even Analysis.
| Break-even Analysis | |
| Monthly Revenue Break-even | $32,365 |
| Assumptions: | |
| Average Percent Variable Cost | 29% |
| Estimated Monthly Fixed Cost | $23,068 |
7.2 Projected Profit and Loss
The following table and charts highlight the projected profit and loss for three years.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $422,500 | $469,000 | $522,000 |
| Direct Cost of Sales | $121,360 | $130,400 | $145,000 |
| Other Production Expenses | $0 | $0 | $0 |
| Total Cost of Sales | $121,360 | $130,400 | $145,000 |
| Gross Margin | $301,140 | $338,600 | $377,000 |
| Gross Margin % | 71.28% | 72.20% | 72.22% |
| Expenses | |||
| Payroll | $205,200 | $217,000 | $230,000 |
| Sales and Marketing and Other Expenses | $7,000 | $10,000 | $13,000 |
| Depreciation | $1,440 | $1,440 | $1,440 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,800 | $4,800 | $4,800 |
| Insurance | $6,000 | $6,000 | $6,000 |
| Rent | $21,600 | $21,600 | $21,600 |
| Payroll Taxes | $30,780 | $32,550 | $34,500 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $276,820 | $293,390 | $311,340 |
| Profit Before Interest and Taxes | $24,320 | $45,210 | $65,660 |
| EBITDA | $25,760 | $46,650 | $67,100 |
| Interest Expense | $4,459 | $3,501 | $2,501 |
| Taxes Incurred | $5,958 | $12,513 | $18,948 |
| Net Profit | $13,903 | $29,197 | $44,211 |
| Net Profit/Sales | 3.29% | 6.23% | 8.47% |
7.3 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $422,500 | $469,000 | $522,000 |
| Subtotal Cash from Operations | $422,500 | $469,000 | $522,000 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| Subtotal Cash Received | $422,500 | $469,000 | $522,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $205,200 | $217,000 | $230,000 |
| Bill Payments | $189,370 | $226,386 | $246,000 |
| Subtotal Spent on Operations | $394,570 | $443,386 | $476,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $9,996 | $9,996 | $9,996 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $404,566 | $453,382 | $485,996 |
| Net Cash Flow | $17,934 | $15,618 | $36,004 |
| Cash Balance | $81,134 | $96,752 | $132,756 |
7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $81,134 | $96,752 | $132,756 |
| Inventory | $14,630 | $15,720 | $17,480 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $95,764 | $112,471 | $150,235 |
| Long-term Assets | |||
| Long-term Assets | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $1,440 | $2,880 | $4,320 |
| Total Long-term Assets | $48,560 | $47,120 | $45,680 |
| Total Assets | $144,324 | $159,591 | $195,915 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $22,217 | $18,284 | $20,392 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $22,217 | $18,284 | $20,392 |
| Long-term Liabilities | $40,004 | $30,008 | $20,012 |
| Total Liabilities | $62,221 | $48,292 | $40,404 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($11,800) | $2,103 | $31,300 |
| Earnings | $13,903 | $29,197 | $44,211 |
| Total Capital | $82,103 | $111,300 | $155,511 |
| Total Liabilities and Capital | $144,324 | $159,591 | $195,915 |
| Net Worth | $82,103 | $111,300 | $155,511 |
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812, Eating Places, are shown for comparison.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 11.01% | 11.30% | 7.60% |
| Percent of Total Assets | ||||
| Inventory | 10.14% | 9.85% | 8.92% | 3.60% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 35.60% |
| Total Current Assets | 66.35% | 70.47% | 76.68% | 43.70% |
| Long-term Assets | 33.65% | 29.53% | 23.32% | 56.30% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 15.39% | 11.46% | 10.41% | 32.70% |
| Long-term Liabilities | 27.72% | 18.80% | 10.21% | 28.50% |
| Total Liabilities | 43.11% | 30.26% | 20.62% | 61.20% |
| Net Worth | 56.89% | 69.74% | 79.38% | 38.80% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 71.28% | 72.20% | 72.22% | 60.50% |
| Selling, General & Administrative Expenses | 67.99% | 65.97% | 63.75% | 39.80% |
| Advertising Expenses | 1.66% | 2.13% | 2.49% | 3.20% |
| Profit Before Interest and Taxes | 5.76% | 9.64% | 12.58% | 0.70% |
| Main Ratios | ||||
| Current | 4.31 | 6.15 | 7.37 | 0.98 |
| Quick | 3.65 | 5.29 | 6.51 | 0.65 |
| Total Debt to Total Assets | 43.11% | 30.26% | 20.62% | 61.20% |
| Pre-tax Return on Net Worth | 24.19% | 37.47% | 40.61% | 1.70% |
| Pre-tax Return on Assets | 13.76% | 26.14% | 32.24% | 4.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 3.29% | 6.23% | 8.47% | n.a |
| Return on Equity | 16.93% | 26.23% | 28.43% | n.a |
| Activity Ratios | ||||
| Inventory Turnover | 10.91 | 8.59 | 8.74 | n.a |
| Accounts Payable Turnover | 9.52 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 33 | 28 | n.a |
| Total Asset Turnover | 2.93 | 2.94 | 2.66 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.76 | 0.43 | 0.26 | n.a |
| Current Liab. to Liab. | 0.36 | 0.38 | 0.50 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $73,547 | $94,188 | $129,843 | n.a |
| Interest Coverage | 5.45 | 12.91 | 26.25 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.34 | 0.34 | 0.38 | n.a |
| Current Debt/Total Assets | 15% | 11% | 10% | n.a |
| Acid Test | 3.65 | 5.29 | 6.51 | n.a |
| Sales/Net Worth | 5.15 | 4.21 | 3.36 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
| Sales Forecast | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | |||||||||||||
| Bakery | 0% | $8,000 | $9,000 | $9,000 | $11,000 | $11,000 | $11,000 | $10,000 | $9,000 | $10,000 | $12,000 | $13,000 | $14,000 |
| Sandwiches | 0% | $15,000 | $16,000 | $17,000 | $19,000 | $20,000 | $22,000 | $20,000 | $19,000 | $22,000 | $24,000 | $26,000 | $27,000 |
| Drinks | 0% | $3,000 | $3,500 | $4,000 | $4,000 | $5,000 | $5,000 | $4,000 | $3,000 | $3,000 | $4,000 | $5,000 | $5,000 |
| Total Sales | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Bakery | $2,000 | $2,200 | $2,200 | $2,800 | $2,800 | $2,800 | $2,500 | $2,400 | $2,500 | $3,000 | $3,500 | $3,700 | |
| Sandwiches | $5,000 | $5,400 | $5,600 | $6,500 | $6,800 | $7,400 | $6,800 | $6,500 | $7,400 | $8,000 | $8,500 | $9,000 | |
| Drinks | $400 | $460 | $500 | $500 | $600 | $600 | $500 | $400 | $400 | $500 | $600 | $600 | |
| Subtotal Direct Cost of Sales | $7,400 | $8,060 | $8,300 | $9,800 | $10,200 | $10,800 | $9,800 | $9,300 | $10,300 | $11,500 | $12,600 | $13,300 | |
| Personnel Plan | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Barry Cohn | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Kitchen Staff | 0% | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Waiters/Waitresses | 0% | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 |
| Baking Staff | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Total People | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | |
| Total Payroll | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | |
| General Assumptions | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Pro Forma Profit and Loss | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Sales | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Direct Cost of Sales | $7,400 | $8,060 | $8,300 | $9,800 | $10,200 | $10,800 | $9,800 | $9,300 | $10,300 | $11,500 | $12,600 | $13,300 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $7,400 | $8,060 | $8,300 | $9,800 | $10,200 | $10,800 | $9,800 | $9,300 | $10,300 | $11,500 | $12,600 | $13,300 | |
| Gross Margin | $18,600 | $20,440 | $21,700 | $24,200 | $25,800 | $27,200 | $24,200 | $21,700 | $24,700 | $28,500 | $31,400 | $32,700 | |
| Gross Margin % | 71.54% | 71.72% | 72.33% | 71.18% | 71.67% | 71.58% | 71.18% | 70.00% | 70.57% | 71.25% | 71.36% | 71.09% | |
| Expenses | |||||||||||||
| Payroll | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | |
| Sales and Marketing and Other Expenses | $1,000 | $1,000 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Rent | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | |
| Payroll Taxes | 15% | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $23,485 | $23,485 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | |
| Profit Before Interest and Taxes | ($4,885) | ($3,045) | ($1,285) | $1,215 | $2,815 | $4,215 | $1,215 | ($1,285) | $1,715 | $5,515 | $8,415 | $9,715 | |
| EBITDA | ($4,765) | ($2,925) | ($1,165) | $1,335 | $2,935 | $4,335 | $1,335 | ($1,165) | $1,835 | $5,635 | $8,535 | $9,835 | |
| Interest Expense | $410 | $403 | $396 | $389 | $382 | $375 | $368 | $361 | $354 | $347 | $340 | $333 | |
| Taxes Incurred | ($1,588) | ($1,034) | ($504) | $248 | $730 | $1,152 | $254 | ($494) | $408 | $1,550 | $2,422 | $2,814 | |
| Net Profit | ($3,706) | ($2,413) | ($1,177) | $578 | $1,703 | $2,688 | $593 | ($1,152) | $953 | $3,617 | $5,652 | $6,567 | |
| Net Profit/Sales | -14.26% | -8.47% | -3.92% | 1.70% | 4.73% | 7.07% | 1.74% | -3.72% | 2.72% | 9.04% | 12.85% | 14.28% | |
| Pro Forma Cash Flow | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Subtotal Cash from Operations | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | |
| Bill Payments | $521 | $15,586 | $14,413 | $14,342 | $17,841 | $17,558 | $18,630 | $15,064 | $14,500 | $18,013 | $20,544 | $22,359 | |
| Subtotal Spent on Operations | $17,621 | $32,686 | $31,513 | $31,442 | $34,941 | $34,658 | $35,730 | $32,164 | $31,600 | $35,113 | $37,644 | $39,459 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Long-term Liabilities Principal Repayment | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Spent | $18,454 | $33,519 | $32,346 | $32,275 | $35,774 | $35,491 | $36,563 | $32,997 | $32,433 | $35,946 | $38,477 | $40,292 | |
| Net Cash Flow | $7,546 | ($5,019) | ($2,346) | $1,725 | $226 | $2,509 | ($2,563) | ($1,997) | $2,567 | $4,054 | $5,523 | $5,708 | |
| Cash Balance | $70,746 | $65,727 | $63,381 | $65,107 | $65,333 | $67,842 | $65,279 | $63,282 | $65,849 | $69,903 | $75,426 | $81,134 | |
| Pro Forma Balance Sheet | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $63,200 | $70,746 | $65,727 | $63,381 | $65,107 | $65,333 | $67,842 | $65,279 | $63,282 | $65,849 | $69,903 | $75,426 | $81,134 |
| Inventory | $5,000 | $8,140 | $8,866 | $9,130 | $10,780 | $11,220 | $11,880 | $10,780 | $10,230 | $11,330 | $12,650 | $13,860 | $14,630 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $68,200 | $78,886 | $74,593 | $72,511 | $75,887 | $76,553 | $79,722 | $76,059 | $73,512 | $77,179 | $82,553 | $89,286 | $95,764 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $0 | $120 | $240 | $360 | $480 | $600 | $720 | $840 | $960 | $1,080 | $1,200 | $1,320 | $1,440 |
| Total Long-term Assets | $50,000 | $49,880 | $49,760 | $49,640 | $49,520 | $49,400 | $49,280 | $49,160 | $49,040 | $48,920 | $48,800 | $48,680 | $48,560 |
| Total Assets | $118,200 | $128,766 | $124,353 | $122,151 | $125,407 | $125,953 | $129,002 | $125,219 | $122,552 | $126,099 | $131,353 | $137,966 | $144,324 |
| Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $15,105 | $13,939 | $13,747 | $17,257 | $16,933 | $18,127 | $14,584 | $13,903 | $17,330 | $19,800 | $21,593 | $22,217 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $0 | $15,105 | $13,939 | $13,747 | $17,257 | $16,933 | $18,127 | $14,584 | $13,903 | $17,330 | $19,800 | $21,593 | $22,217 |
| Long-term Liabilities | $50,000 | $49,167 | $48,334 | $47,501 | $46,668 | $45,835 | $45,002 | $44,169 | $43,336 | $42,503 | $41,670 | $40,837 | $40,004 |
| Total Liabilities | $50,000 | $64,272 | $62,273 | $61,248 | $63,925 | $62,768 | $63,129 | $58,753 | $57,239 | $59,833 | $61,470 | $62,430 | $62,221 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) |
| Earnings | $0 | ($3,706) | ($6,120) | ($7,296) | ($6,718) | ($5,015) | ($2,327) | ($1,734) | ($2,886) | ($1,934) | $1,684 | $7,336 | $13,903 |
| Total Capital | $68,200 | $64,494 | $62,080 | $60,904 | $61,482 | $63,185 | $65,873 | $66,466 | $65,314 | $66,266 | $69,884 | $75,536 | $82,103 |
| Total Liabilities and Capital | $118,200 | $128,766 | $124,353 | $122,151 | $125,407 | $125,953 | $129,002 | $125,219 | $122,552 | $126,099 | $131,353 | $137,966 | $144,324 |
| Net Worth | $68,200 | $64,494 | $62,080 | $60,904 | $61,482 | $63,185 | $65,873 | $66,466 | $65,314 | $66,266 | $69,884 | $75,536 | $82,103 |
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Restaurant Business Plan Template & PDF Example
- July 23, 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
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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.
Restaurant Business Plan Executive Summary Example
Business Overview
The business overview should detail the restaurant’s specific features, such as its seating capacity, ambiance, and supply chain practices. It’s important to emphasize how the restaurant caters to its target demographic through its strategic location and operational model.
Example: “[Your Restaurant Name],” located in [specific area or neighborhood], covers [total square footage] sq ft and includes a main dining area, bar, and outdoor patio, offering a total of [number of seats] seats. The restaurant’s commitment to quality is reflected in its locally sourced produce and sustainable supply chain practices, catering to a diverse clientele.
Market Overview
This section involves analyzing the size, growth, and trends of the full-service restaurant market. It should address the industry’s digital transformation, health-conscious dining preferences, and eco-friendly practices, positioning the restaurant within the broader market context.
Example: “[Your Restaurant Name]” enters a U.S. full-service restaurant market valued at $293 billion. The restaurant’s focus on technology, healthier menu options, and sustainability aligns well with current market trends and consumer preferences, setting it apart from six main competitors in the area.
Management Team
Detailing the management team’s background and expertise is crucial. This section should highlight how their experience in culinary arts and restaurant management contributes to the success of the restaurant.
Example: The Executive Chef and Co-Owner of “[Your Restaurant Name]” leads menu development and kitchen operations, ensuring high-quality food preparation and presentation. The General Manager and Co-Owner manages daily operations, staff, customer service, and financial aspects, ensuring a seamless dining experience.
Financial Plan
This section should outline the restaurant’s financial goals and projections, including revenue targets and profit margins, providing a clear picture of its financial aspirations and health.
Example: “[Your Restaurant Name]” aims to achieve $2.7 million in annual revenue with an 11% EBITDA margin by 2028. This financial goal is supported by a focus on quality dining experiences, strategic marketing, and operational efficiency, positioning the restaurant for growth in the competitive full-service restaurant market.
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.
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.
Competitive Landscape
A competitive analysis is not just a tool for gauging the position of your restaurant in the market and its key competitors; it’s also a fundamental component of your business plan.
This analysis helps in identifying your restaurant’s unique selling points, essential for differentiating your business in a competitive market.
In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.
Identifying Competitors in the Restaurant Industry
To comprehensively understand the competitive landscape, start by identifying both direct and indirect competitors in your area. Direct competitors are restaurants offering similar cuisines or targeting a comparable customer base. For instance, if your restaurant specializes in authentic Mexican cuisine, other nearby Mexican restaurants are direct competitors. Indirect competitors may include food trucks, cafes, or even fast-casual eateries offering diverse menus that overlap with your offerings.
Leverage digital tools like Google Maps, Yelp, or food delivery apps to map out the locations of your competitors. Reviews and ratings on platforms like TripAdvisor and social media can offer valuable insights into competitors’ strengths and weaknesses . Positive reviews highlighting exceptional service or a unique dining experience at a competitor’s restaurant can signify an area of focus for differentiation and improvement.
Restaurant Competitors’ Strategies
To conduct a comprehensive analysis, delve into various aspects of your competitors’ operations:
- Menu Offerings: Assess the breadth and uniqueness of dishes offered by competitors. Take note if any local restaurants are gaining traction by focusing on farm-to-table ingredients, regional specialties, or offering innovative fusion cuisines, as these aspects often indicate emerging market trends .
- Service and Ambiance: Evaluate the overall customer experience. Identify if there’s a competitor renowned for its fine dining experience, another known for its trendy and vibrant atmosphere, or one that excels in providing a casual, family-friendly environment. These elements significantly contribute to a restaurant’s success and differentiation.
- Pricing and Positioning: Compare pricing strategies . Determine whether competitors are positioned as budget-friendly eateries or if they adopt a more upscale approach with premium pricing, highlighting gourmet ingredients, or exclusive dining experiences.
- Marketing Channels : Analyze how competitors market their restaurants. Do they leverage social media platforms for promotions, engage in collaborations with local influencers, or host special events or themed nights? Understanding their marketing tactics provides insights into effective promotional strategies that resonate with the target audience .
- Operational Efficiency: Observe if competitors have adopted technological advancements such as online reservations, mobile apps for ordering, or contactless payment systems. These innovations not only streamline operations but also contribute to an enhanced customer experience.
What’s Your Restaurant’s Value Proposition?
Reflect on what uniquely distinguishes your restaurant from the competition. It could be your innovative fusion of cuisines, a strong emphasis on locally sourced and sustainable ingredients, or perhaps a distinctive ambiance that reflects a particular cultural theme or historical narrative.
Listen attentively to customer feedback and observe emerging industry trends to identify gaps or unmet demands in the market. For instance, if there’s a growing interest in plant-based dining experiences and competitors have not tapped into this niche, it could present an opportunity for your restaurant to cater to this demand and stand out.
Consider how your restaurant’s location influences your strategy. A downtown location might warrant a focus on quick service and catering to office lunch crowds, while a suburban setting could embrace a more relaxed, family-friendly dining environment.
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.
Marketing Channels
Utilize various marketing channels to engage with your audience and attract new patrons.
Digital Marketing
- Social Media: Utilize social media platforms such as Instagram, Facebook, Twitter, and TikTok to showcase your restaurant’s ambiance, signature dishes, behind-the-scenes glimpses, chef profiles, and customer testimonials. Regularly engage with your audience by responding to comments, hosting interactive polls, or sharing user-generated content.
- Email Marketing: I mplement an email marketing strategy to build a loyal customer base. Offer incentives such as exclusive recipes, promotional offers, or early access to special events in exchange for subscribing to your newsletter. Regularly communicate with your subscribers, sharing updates, promotions, and stories that resonate with your brand.
- Website and SEO: Maintain an informative website showcasing your menu , chef profiles, reservation options, and reviews. Optimize it for local SEO to ensure visibility in searches related to your cuisine and location.
Local Advertising
- Printed Materials: Distribute well-designed flyers in nearby neighborhoods, advertise in local magazines, and collaborate with tourism centers or hotels for exposure.
- Community Engagement: Sponsor local events, collaborate with food bloggers or influencers, and participate in food festivals or charity events to increase brand visibility and community involvement.
- Partnerships: Forge partnerships with complementary businesses (such as wine shops or local farmers’ markets) for cross-promotions or collaborative events.
Promotional Activities
Engage potential customers through enticing offers and events.
- Special Offers: Launch promotions like ‘Chef’s Tasting Menu Nights’ or ‘Happy Hour Discounts’ to attract new diners and retain regulars.
- Loyalty Programs: Implement a loyalty system offering rewards for frequent visits or referrals, such as a free appetizer or dessert after a certain number of visits.
- Events and Special Occasions: Host themed nights, seasonal menus, or exclusive culinary events to create buzz and attract diverse audiences.
Sales Channels
Efficiently manage sales channels to maximize revenue and customer satisfaction.
In-Restaurant Upselling
- Menu Strategies: Highlight premium dishes or chef’s specials, offer wine pairings or dessert suggestions, and train staff to upsell without being pushy.
- Merchandising: Display branded merchandise, specialty sauces, or cookbooks for sale to complement the dining experience.
Online Ordering and Delivery
- Online Ordering Platform: I mplement an easy-to-use online ordering system for takeout or delivery orders. Offer exclusive online discounts or bundle deals.
- Delivery Partnerships: Collaborate with food delivery services or establish in-house delivery for customers’ convenience.
Reservation Management
- Reservation System: Utilize an efficient reservation platform to manage bookings. Offer incentives for off-peak reservations or special occasions.
Membership and VIP Programs
Developing membership and VIP programs can cultivate a loyal customer base and drive recurring revenue:
- VIP Memberships: Create exclusive membership tiers offering perks like priority reservations, chef’s table access, or private event invitations.
- Reward Programs: Develop a digital loyalty system where customers earn points for every dollar spent, redeemable for discounts, exclusive menu items, or special events.
Strategy Timeline
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.
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.
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
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