You Need These 5 Strategies In Your Restaurant Business Plan
When starting a business, it’s imperative to take the time to develop a well-thought-out business plan. Having a business plan enhances your chances of success. However, it’s not enough to simply put down your ideas on paper.
Did you know? 26% of restaurants fail in the first year of opening.
Some of the reasons for failure can be avoided altogether or minimized at best. One of the chief reasons the majority of restaurants fail is poor planning and this begins at the business plan level.
The quality and content of your business plan are what really counts. So, we’re going to introduce you to five strategies that can help you find success with your restaurant business plan.
- Establish a clear-cut concept for your restaurant
What type of restaurant do you plan on opening? Do you know what your options are? Fine dining, casual dining, contemporary and family-style are just a few. Having a clear-cut concept will help you chart the way forward with the rest of the plan and will give potential investors an idea of what exactly you’re trying to do.
- Carry out a comprehensive market overview
Carrying out comprehensive market research at the onset can significantly increase your restaurant’s chances of success. Regardless of the type of restaurant you wish to open, you should have data on your competitors in the area, numbers on how well the particular market is doing, and relevant studies concerning challenges unique to this market.
- Identify your ideal customers
After determining your restaurant type, you need to identify your target market. These are the people you hope will patronize your establishment. Determine their age, their culinary interests, and their average income. All these factors will help you choose the right price points, menu ideas, décor, and interior design plans.
- State your potential restaurant location
Location is undeniably one of the most important factors to consider when planning to enter the hospitality industry. The right location should be a place with sufficient foot traffic. It should also feature amenities convenient to customers such as a coat check or free parking.
Take time to study the areas your ideal clients frequent. On a map, highlight potential neighborhoods and streets you think would be a good location for your establishment based on your findings. Visit a few of these highlighted areas to scout buildings that could work in your favor. Once you’ve found one, familiarize yourself with leasing agreement technicalities so you can maximize your chances of success.
- Create a marketing plan for your restaurant
How do you intend to draw customers to your establishment? How will you keep customers loyal and coming back to support you? A pre-opening marketing strategy that clearly outlines how you plan to generate a buzz and a post-opening marketing strategy to keep customers are an absolute must.
Your marketing strategy should demonstrate the channels you will use to get the word out about your business. These channels may be free or paid such as social media platforms, a website, newspaper ads, and flyers.
Are you still in the planning stages of establishing a restaurant? Don’t miss our these Things To Know About The Restaurant Industry Before Starting Your Business