This is an example of a completed business plan for a restaurant, in this case an upscale modern-day alpine concept in Munich, Germany, with a variety of traditional meals that are prepared with regional and seasonally adequate ingredients, without the use of prefabricated products.
The founder has a wide experience in the food as well as the hospitality business and will manage the various aspects of the company herself. She has already established herself in Munich with excellent local contacts and knowledge
The business plan elaborates on crucial points like the restaurant concept (product range, general business strategy and USP, Vision and Mission), provides a brief overview of the market situation, location and competition as well as a risk analysis. It also gives information regarding potential business partners, the marketing plan, the venue organization and financing.
The financing of a business is an important issue, and being able to present an appropriate and convincing business plan to banks and/or potential investors is a prerequisite for obtaining such financing.
The [Sample Restaurant Business Plan Ltd.] emanates the concept of upscale modern-day alpine hospitality. The experienced founder Mrs. [Sample Restaurant Business Plan] has secured a suitable site, potential staff and suppliers. The dishes are prepared by original home recipes and served in a cozy and refined atmosphere. The most important elements of the concept are the alpine character, variety of traditional menus (regional & seasonal cuisine without prefabricated products), appealing interior decoration, and an excellent location in XX Frauenstrasse in Munich with access to well-paying casual customers. The selected site has XX indoor seats, XX outdoor seats and a courtyard with another XX seats. The founder Mrs. [Sample Restaurant Business Plan] will manage all the aspects of the business. She has been active in food service for X years, has completed training in the hotel business, has been working for some years in Munich and has very good local relationships.
Product Range The restaurant will feature traditional cuisine. Some of the specialties of the restaurant will include: • Schnitzel • Sugared pancake with raisins • Salzburg dumplings The offer consists of lunch menu, business lunch, standard lunch and a varying daily menu. The menus will be based on the products in stock, as every product has to be fresh. The restaurant will be independent of breweries (hence will offer only the best quality beverages in glass bottles). The unique, unfiltered house beer will be a special attraction enhancing the image of the restaurant by endowing it with local charm.
General Business Strategy / USPs The restaurant will differentiate itself from other dining establishments in the area with its particularly down-to-earth atmosphere, high quality and original homemade dishes, giving its guests an exceptional experience. Staffed by highly motivated employees, the Sample restaurant will not be forgotten by its guests. They will keep coming back whenever the opportunity arises. The site of the establishment has a large storefront, where one can “see and be seen”, a key part of Munich entertainment. The interior will be welcoming and cozy, with a large main table and several small tables for 2-4 people. The Sample restaurant will offer only regional and seasonal products produced by local farmers or sold in the area of Munich. The dishes will always be freshly prepared. Customers will know they are getting good and healthy food whenever they come to the Sample restaurant. Acquiring a solid customer base, connections and advertising partners is an important component of the overall business strategy. The founder expects that her personal expertise and focus on a friendly welcome will prove to be the decisive factor pushing her establishment to the top of the list in the area. To achieve this goal, each customer will be approached individually. Staff competence and skills will be highlighted by specific knowledge, such as information about ingredients, recommendations, and more.
Vision/Mission The aim of the restaurant is to become the first choice for a special dining experience in the area. Customers should be fully assured of the quality of service, good management and the product variety so that they’ll come again. In the first three years the restaurant will have up to six staff members apart from the manager herself. The annual revenue in the third year should be around XXX,XXX Euro. In the fourth or fifth year a management holding company could be founded and other venues could open, while the revenue is expected to reach one million Euro by means of creating a loyal customer base, who will recommend the establishment to other people. Go back up
Sample Restaurant Business Plan: The Market
In order to assess the market entry prospects of the (sample) restaurant, we will look at both the consumer confidence in Germany and that in the region of Munich. The local competition and the advantages of the location are reviewed in more detail in the following parts of the business plan. Consumers expressed optimistic attitudes in XXXX and consumer confidence continued to grow. The economic and income expectations as well as the buying power are very high. The dramatic drop in energy prices in XXXX boosted disposable income and encouraged spending. Consumers also see the German economy improving after the downturn in the fall of XXXX. The inclination to save dwindled down to a new record low in January XXXX due to low interest rates and mistrust of banks, with consumers preferring to spend their money. The following graph illustrates this trend.
Germany Consumer Confidence
Source: Statista, ifo-Konsumklimaindex
Consumers expect that the German economy will continue developing favorably in the coming months. It is clear that the lower energy prices play an important role. Low energy prices combined with a significant depreciation of the euro act as a stimulus package, encouraging business investment as well as export. German companies are also optimistic about the economy, as the high level of the ifo business climate shows. The hospitality industry is relatively resistant to the crisis on one hand, but on the other hand it is dependent on consumer spending, meaning that the current data are to be taken very positively overall. Specifically in Munich there are numerous other factors that make the success of the planned startup even more likely. Munich is still the leading retail location in Germany according to data of CBRE, one of the largest and most renowned real estate consulting companies in the world. Rent in prime locations is as much as XXX Euro / m² (XXXX). This dominant position results from important economic conditions: Munich and Stuttgart have the lowest unemployment rates in Germany. The average per capita purchasing power in Munich in XXXX was XX XXX Euro, which is the highest in all major German cities. The regions of Starnberg (XX,XXX Euro per capita) and Munich (XX,XX Euro per capita) are two of the four with the highest purchasing power in the immediate vicinity of the Bavarian capital.
Tourists also contribute to the high retail turnover in Munich, especially from China and Arab countries. A recent study by BBE Handelsberatung shows that overnight guests in Munich spend around 1 billion Euro in the inner city annually. The Russians are another important group of tourists. Many of them come for medical treatment. These factors underlie the fact that Kaufingerstrasse and Neuhauser Street were two of the busiest shopping streets in Germany in XXXX. Even neighborhoods in these areas benefited from this tendency. Overall, retail trade in Bavaria in XXXX generated a real increase in turnover of X.X%. The number of employees rose by X.X%. The following table illustrates the strong position of Munich and makes a comparison with other German cities.
Overall, the results of the market review from different perspectives give the planned restaurant a positive outlook. In all likelihood the venue will become popular with customers very quickly and this will turn into a sustainable trend. Word-of-mouth will bring new customers and the growing customer base will provide a reliable source of revenue for the restaurant.
Sample Restaurant Business Plan: The Location
The very well-off people of Munich are always on the lookout for special entertainment options. XX Frauenstrasse (Street), where the restaurant will be rented is close to popular shopping areas with many specialist shops and catering establishments. The street is right on Viktualienmarkt and is easy to reach. Integrated window frames, lots of light and high ceilings will also entice potential customers. The building also has a large basement available to store goods on site. The following map section shows the attractive location within walking distance of numerous Munich hubs.
Source: Google Maps
The fact that these premises are vacant is important motivation for the founding. Mrs. [Sample Restaurant Business Plan] is certain that she will be able to do better business here than at other relevant / available locations.
Sample Restaurant Business Plan: Competition Review
The restaurant will have to deal with stable competition no matter its location – there will always be a lot of other entertainment venues in the area. Their product focus isn’t always the same, though, and they don’t have craft beer. Often the service is neither personalized nor especially competent. The following venues are potential key competitors:
Hacker Pschorr Viktualienmarkt (Bavarian cuisine, but too many prefabricated products)
Goldenes Kalb (steak house)
Fisch Witte (offers only fish dishes, very expensive)
Tian (only vegetarian food; hotel restaurant: fear of entering)
Cafe Nymphenburg Sekt (alpine but no kitchen license)
As in most industries, three factors play an essential role in whether a business in gastronomy will succeed or fail: quality, price and marketing. The restaurant will not allow any shortfalls in these areas and turn special attention to communication with the client. Customers expect high-quality service. This is why the founder herself should be right behind the counter. One usually has only one opportunity to satisfy a guest. If this opportunity is missed, they will just go somewhere else. Moreover, you risk getting a bad rating on Yelp or Google Places. The new realities of the Internet are another reason to be one hundred percent present with each individual customer and meet all their needs. Face-to-face communication with the customer will give a face and a friendly voice to your establishment that he’ll remember with pleasure. This personal touch is a decisive factor behind your success in the highly competitive environment.
Sample Restaurant Business Plan: Risk Analysis
The operational risk is the main one the founder will have to reckon with. For example, it is important to start generating income as soon as possible to cover high fixed costs like rent and electricity. Moreover, the investment cost in the dining facilities will reduce the available liquidity. The product is fresh and perishable. You will then have to sell a sufficient quantity. The founder must assess the effectiveness of the available marketing investments by observing the competition over a longer period of time and doing a comprehensive analysis. Health, contingency and occupational accident insurance must be checked very thoroughly to guarantee legal protection. Insurance against damages and theft is also recommended. Given the nature of the business project, it is extremely important not to compromise on performance and to focus on quality, attention to hygiene and reliability. This is the only way to create the right ambience and gain loyal customers. You will need a well-designed website and local search engine optimization, which is why positive reviews are of paramount importance given that they are communicated on review sites (ex. Google Places, Facebook etc.). The numerous challenges of the business model are very likely to be overcome given the experience and qualifications of the founder.
Sample Restaurant Business Plan: Partner/s
The founder already has numerous business contacts with potential suppliers. Some of these suppliers are friends of the founder, making them particularly reliable and flexible. Moreover, the long-year friendship of the founder and supplier guarantees that only the freshest goods will be offered in the restaurant and supplied directly from the region.
The restaurant can offer an authentic Bavarian dining experience with local dishes, which are made using only the highest-quality ingredients. The enterprise will thus be operating in the premium price segment, also due to the location in part. High fixed costs make it difficult to lower prices, which is why the venue has only limited possibilities to launch special promotions. It can offer discounts on certain seasonal products in the initial period after opening or on special days.
Given the strong competition already mentioned, the sample restaurant will choose its marketing mix so as to build the best status on the broadest possible front. The target group – tourists and families – is well-defined. Well-designed storefronts, a pleasant interior, online advertising and to some extent magazine and outdoor advertising have been identified as good marketing methods to make the presence of the newly opened restaurant known. The founder should also design eye-catching business cards and flyers. We have planned public events with costumes and stilts, at which we will also distribute flyers. The founder has a huge Facebook contact network and has already set up a website at……: The founder is familiar with cutting-edge POS and will utilize Orderbird software, which provides further options for digital marketing. For example, the program offers interfaces to social media platforms. The founder plans to give discount coupons to guests who allow posts of advertisements of her restaurant to their Facebook wall.
Pictured: Sample Restaurant Logo
Since the location of the restaurant in a busy district of Munich promises a lot of pedestrian traffic, it can be assumed local advertising will prove quite lucrative. It is possible to promote the venue with car stickers and similar measures such as distribution of promotional gifts in pedestrian areas. The Internet presence and local search engine optimization will be an important component of success for the long-term success of the sample restaurant, as they will be a permanent source of information and contact platform around the clock, thereby fulfilling quite important functions. In Munich there are numerous markets and events in the neighborhood, at which the sample restaurant can rent a booth/stand. These events create opportunities for direct sales and promote the shop via flyers and displays. The company may obtain contact information of potential customers and do some legal e-mail marketing by using sweepstakes. To this end we could put a plexiglass box with some completed entry flyers to encourage visitors to fill in a survey too. Organizing events such as guided beer tasting tours or movie nights planned on social networking sites and event pages are also among the effective marketing activities. We can post free invitations on websites like Facebook (using local groups), meetup.com or CouchSurfing.
Sample Restaurant Business Plan: Venue Organization and Financing
About the Founder
Mrs. [Sample Restaurant Business Plan] will open and manage the sample restaurant. Her qualifications are suitable for this business. She has completed training in hotel management and has worked in some of the most exclusive hotels in Munich and in the administration for Bayern FC. She has worked in the gastronomy industry since XXXX. In this time she has worked in some trendy gastronomies where she has been responsible for staff management and also at various festivals as a freelance waitress. Mrs. [Sample Restaurant Business Plan] describes herself as a hard-working leader personality with excellent communication skills and also has many contacts in Munich. This mix of expertise and soft skills ensures her success in overcoming all challenges as the manager of the sample restaurant.
To save resources in the initial phase, there will be only one waiter/waitress, one chef / cook and 1-2 temps in the summer along with the manager of the restaurant. The waiter is responsible for taking orders and has direct contact with the guests at all times. He / she will also set the tables, serve orders, prepare the checks, clean up and be responsible for general maintenance tasks. He/she will also tap the beer. The chef prepares all the dishes. Before and after carrying out his main job responsibilities he also has to take stock and do general clean-up, maintenance and organization work. The temps have various service tasks, stock work and tidying / cleaning. More full-time staff will join the team as soon as the operational infrastructure is in place and there is a loyal customer base generating predictable and stable revenue. The main responsibility is carried out by the founder and manager. Apart from the management and accounting, she will be working on the busiest stations at any given point in time.
The Ltd. legal form is selected based on the premise of avoiding personal liability and entering the market with a reputable form. Other advantages are that more shareholders can join a Ltd. and the costs of founding and operating an enterprise in this legal form are easy to predict. The form is also a juridical entity, meaning that contracts and accounts can be signed and opened in the name of the Ltd., which later makes it easier to sell among other things. Some disadvantages of this legal form are the slightly higher notary fees and the costs of drafting the partnership agreement. In addition, it must be ensured that no actions are taken that could be construed as gross negligence, because in this case the managing partner may also carry private liability. The accounting and expenses for tax consulting services are usually a bit higher than those for joint partnerships. In conclusion, we can say the Ltd. provides some tax benefits and can also serve one well as a tax “piggy bank” for a rainy day. You can develop hidden assets / reserves because profits are not distributed as they would be with other business partnerships. The corporate tax is lower than the income tax levied on joint partnerships.
Chief Operating Officer Mrs. [Sample Restaurant Business Plan] is planning to provide equity contribution in the amount of XX,XXX Euro. Target debt financing in the amount of XXX,XXX Euro is intended to complement the contribution, thus creating the material basis for a fast, uncomplicated market launch.
The necessary routine work related to taxes, electricity, Internet and telephone bills and bank statements is assigned to an accountant on a month basis. Also, a tax consultant is entrusted with the preparation of VAT returns and financial statements.
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