What should a business plan include?
A business plan should be between ten and 20 pages in length (excluding appendices).
The following main sections should be included in a business plan:
- Executive summary
- Team presentation
- General project presentation
- Business model
- Choice of legal status
- Business forecasts
- Appendices to the business plan.
Executive summary
As its name suggests, the executive summary is a brief presentation of your restaurant project, including its strong points and added value. The executive summary should be a maximum of one to two pages in length.
This introduction should capture the reader’s attention, making them want to continue reading. The text should therefore be catchy and carefully considered.
Team presentation
The business plan must also include a presentation of the project owner (restaurant owner) and their team (partners, chef, etc.).
It is important to highlight in this section, the background of each person involved, including their experience, training and expertise. The objective here is to demonstrate that your project is being piloted by qualified individuals with complementary skills. You should also specify the role and responsibilities of each person in the future restaurant.
General project presentation
This section should summarise the main features of your project, describing the following, in particular:
- The genesis of the project: How did the idea for your restaurant come about? What is your project’s story? What motivates you?
- The concept: What type of restaurant do you want to operate (fast food, food truck, franchise, dine-in, takeaway, etc.)? What type of cuisine will you offer (local, exotic, gourmet, molecular, etc.)? What atmosphere do you want to create (family, sophisticated, etc.)? What is your ultimate vision? How does your restaurant idea add value?
- The target: What type of customer are you looking to attract? What specific needs does your project meet?
Business model
Another important component of the restaurant business plan is the commercial and economic strategy, or the business model.
This section should include :
- A presentation of your offering and dishes (starters, main courses, desserts, beverages, etc.), as well as potential services (delivery, hosting of events, children’s playground, etc.). Remember to include your star dishes here.
- The price range of your food and drink items, as well as potential specialities, menu options, special offers, daily specials, etc.
- A description of your restaurant space: its location and strong points.
- Your marketing strategy and how you intend to generate word-of-mouth and attract customers: website, social media, specialised press, flyers, etc.
- The main conclusions and key figures of your market study: current state of the restaurant sector, direct competitors, target customers, supply and demand in the catchment area, market segmentation, chosen positioning, etc.
Choice of legal status
Choosing your legal status is one of the administrative formalities that must be completed before you can open.
In your restaurant business plan, remember to specify the status you have chosen, and to justify this choice using solid arguments.
You should also mention the tax and social security system associated with your particular legal status, as well as the distribution of responsibilities and capital, in accordance with the status’ terms.
In the restaurant sector, the limited liability company model (SARL) is often preferred, although the simplified stock company model (SAS) is also popular. Further, sole proprietorship or micro-enterprise models are more adaptable over the short term if you want to quickly test the water.
Business forecasts
The business forecasts are arguably the most important part of a restaurant business plan, especially since lenders and investors will pay particular attention to this section.
This section should outline a number of elements, presented in financial tables:
Forecast profit & loss (P&L) statement
This table details: - Estimated revenues (estimated number of covers in line with the restaurant’s maximum capacity, average price per meal, average ticket per customer, etc.). - Estimated expenses (restaurant rent or purchase price, cost of raw materials, payroll, tax, loan repayments, energy costs, kitchen equipment, insurance, licences and operating permits, etc.). With the profit and loss analysis, you can calculate the break-even point for your restaurant (i.e. the revenues required to cover all costs) and estimate future profits over the next three years.
Provisional balance sheet
This accounting document shows the company’s : - Assets (what the company owns: financial assets, tangible assets and intangible assets – patents, trademarks, goodwill, forecast receivables, etc.). - Liabilities (what the company owes: suppliers, debts, bank loans, etc.). The provisional balance sheet provides an overall view of a company’s forecast capital and enables, in particular, the working capital requirement (WCR) to be calculated.
Cash flow plan
A cash flow plan should be drawn up for the first 12 months of activity, listing all the restaurant’s incomings (finance sources, estimated number of sales per day, etc.) and outgoings by main expenditure item (bank loan repayment, payment of VAT, premises, purchase of equipment, purchase of licences and operating permits, etc.).
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