How to Write a Restaurant Business Plan in 2025 (AI Prompt Included)

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.

• 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 60% 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.

Business plans vary in length and level of detail, 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, your business plan should include a thorough description of the resources allocated to your restaurant's success.

Every business should have a business plan, whether new or existing. Business plans help you focus on your goals and can help get back on track if you stray from them.

- Restaurant expert (Source, Reddit)

Why is a restaurant business plan important? 

It's unlikely that you would be able to secure an investor to help fund your restaurant dream without a proper plan. And even if you do, the lack of proper planning, regulations, and forecasts will set your restaurant up for failure. 

Your restaurant business plan is what is going to map out how you plan on turning a profit from your business as well as where your restaurant fits into the saturated market and how you plan on standing out. A little time and pain early on are worth the reward of a successful restaurant in the long run.

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. 

- Charles Bililies, owner of Souvla

How to write a restaurant business plan

Steps to include in your business plan 

Your restaurant business plan should clearly represent your brand and goals, and you don’t have to build it from the ground up.

Pro tip: Use a professionally crafted template filled with actionable insights to help you create a profitable strategy.

Whichever approach you take, your business plan should cover 12 key components. Here's a breakdown of the essentials for a successful restaurant plan:

1. Executive Summary
2. Company Description
3. Market Analysis
4. Menu
5. Employees
6. Restaurant Design
7. Location
8. Market Overview
9. Marketing
10. External Help
11. Financial Analysis
12. Legal Compliances

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 is your restaurant business plan’s introduction and quick pitch. It’s created to grab attention, especially from investors, and guide them into the full plan. Beyond summarizing your concept, it helps define your restaurant’s identity, shaping customer experience and setting you apart from competitors.

To stand out, focus on key elements that make a strong executive summary:

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

A well-conceived mission statement can provide a guiding light to keep your restaurant moving in the right direction. It helps ensure that every decision you make and every interaction you have is in line with your core values and goals.

Danny Meyer, a renowned restaurateur and CEO of Union Square Hospitality Group

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

1.1 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.

1.2 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 customers.

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.

1.3 Creating a mission statement

A mission statement is your restaurant’s compass - it highlights your purpose, values, and goals while resonating with both investors and customers. It also inspires your team, guiding their efforts toward your vision.

To create a mission statement that truly stands out, follow these 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.

Download your free mission statement template

2. Business description

This is where you carefully introduce the company in the restaurant business plan (and overall business model). Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information.

Then, include the owner's information and a synopsis or explanation of their background. The second section of the company description should outline the restaurant's legal position and its short—and long-term objectives.

Here's an example of the 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].

Tip: Feel free to add this into ChatGPT or Gemini to help you craft a business description section within your business plan. 

3. Market analysis

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

3.1 Industry analysis

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

An example of analyzing your target market

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.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

• Age
• Interests
• Income
• Location

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 will gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also significantly impact restaurant preferences. People from different backgrounds have 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

Staying informed about dining habits and trends is important 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.

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it's 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 Advertising 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.

4. Menu

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 menu for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

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 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.

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 plan 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.

Invest in the right restaurant tools and watch your revenue grow. Request a zero-commitment demo today!

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. 

12. Legal compliance

Legal compliance is critical to any business plan, especially for restaurant owners. It ensures your operations align with local laws, from food safety regulations and health codes to licensing and employment standards. Ignoring compliance can lead to fines, closures, or reputational damage.

Including this in your plan shows professionalism and reduces risks, giving potential investors and partners. A solid understanding of legal requirements also helps you streamline processes and focus on delivering great food and service without unexpected legal hurdles.

Need a ChatGPT prompt to get started? 

To create a restaurant business plan, you can use the following prompt:

"Create a detailed restaurant business plan that includes the following sections:

1. Executive Summary: Overview of the restaurant's concept, mission, and vision.
2. Business Description: Type of restaurant, target market, and food & beverage offerings.
3. Market Research: An analysis of local competitors, customer demographics, and market trends.
4. Marketing Strategy: Approach for attracting and retaining customers, including promotions and digital presence.
5. Operations Plan: Daily operations, staffing needs, supplier information, and any technology integrations (e.g., POS systems).
6. Financial Plan: Projected startup costs, revenue forecasts, break-even analysis, and funding requirements.
7. Management and Ownership: Team structure and roles, ownership model, and leadership approach."

Pro tip: Just be aware that your AI-generated restaurant business plan will appear very generic. Fill in all the relevant blanks, and add personality to the mix. 

How to sell a restaurant idea and master your business plan presentation

Once your business plan is polished and ready, it's time to become its number one expert. Investors want to see that you know every nook and cranny of your business and are confident you can make it happen.

When you're ready, email your business plan to anyone in your network who might be interested in investing. With any luck, you'll get some interest, and investors will want to meet to discuss your restaurant.

Some investors might want a pitch presentation alongside the printed business plan. Use a professional template from Google Sheets or PowerPoint, and practice until you can nail the presentation without notes.

Be prepared for any questions, both the expected ones and those that come out of left field. If you don’t know an answer on the spot, it’s fine to say you’ll find out and get back to them quickly.

Takeaways

A well-crafted restaurant business plan is the backbone of your restaurant’s success, providing clarity on everything from the concept to the customer experience.

By taking the time to carefully map out each part, you set yourself up for easier access to funding, stronger customer appeal, and greater chances of achieving your goals.

Remember, your business plan isn’t set in stone, it’s a tool that should grow with your business. Regularly updating it ensures you're staying on track and adapting to new opportunities and challenges.

FAQs

Why is a restaurant business plan important? 

A restaurant business plan is necessary for securing investors, ensuring proper planning, and setting your business up for success. It outlines how you'll turn a profit, stand out in a crowded market, and navigate challenges. Investing time upfront can lead to long-term rewards.

How to write a restaurant business plan

To write a restaurant business plan, start with a template tailored for the industry, like our customizable one available for download. Conduct a market analysis to understand your customers and competition. Explore the key elements of a successful plan below.

What is the most important thing to open a restaurant? 

Opening a restaurant is a complex venture, but the most important thing is a clear and solid business plan. While passion for food and hospitality is essential, a business plan lays the foundation for everything else. It helps you define your restaurant concept, target market, financial strategy, and operational details.

How to start a food business with little money? 

Six steps to launch a small food company:

1. Choose the category of food products you want to offer.
2. Verify the ideas you have for products.
3. Create a plan for your business.
4. Get to work developing your brand.
5. Establish your web store.
6. Locate and expand your following.

Does a restaurant need a business plan? 

Without one, it might be extremely difficult or perhaps impossible to get finance from a bank or investor for your restaurant venture. For this reason, having a business plan is essential. You might find it difficult, if not impossible, to remain in business for very long without the crucial beginning or operating capital.

How many pages can a business plan be?

15 to 20 pages.

A business plan, which is usually 15 to 20 pages long, is a written document that describes your company's operations, goals, and proposed course of action. It outlines the chances you're pursuing, the tools you'll need to reach your objectives, and your definition of success.

How to create a restaurant budget?

To create a restaurant budget, estimate your revenue based on market research and sales forecasts. Calculate fixed costs (e.g., rent, utilities, salaries) and variable costs (e.g., food, beverages). Set aside a contingency fund for unexpected expenses. Regularly review your performance against the budget to make adjustments and keep finances on track.

How to write a mini business plan?

To write a mini business plan, start with a quick summary of your idea, goals, and objectives. Highlight your target market, competition, offerings, marketing approach, and sales strategies. Add a snapshot of your financial projections and wrap up with your operational plan, including milestones and key roles. Keep it clear and concise to share your vision effectively.

How to write a business plan for fast food? 

Start your fast food restaurant business plan with an executive summary of your concept, menu, and goals. Include your target market, competitive edge, marketing strategies, operations, and financial projections. Highlight startup costs and funding needs for a clear roadmap to success.