How to Write a Restaurant Business Plan

Business Planning & Feasibility Analysis

Ready to turn your business dreams into reality? It’s time to get serious about planning! Put your ideas, budgets, and strategies down on paper—yes, that means drafting your business plan. 

Similar to how a blueprint outlines the physical construction of your commercial kitchen, a business plan provides the starting point and map to running your business. We’ll cover what goes into a business plan so you can develop a solid understanding of what’s needed as you start your new venture. 

Key Sections of a Business Plan for Commercial Kitchens and Restaurants 

Your business plan will contain nine main sections or elements, including the following:

1. Branded Cover Page

2. Executive Summary

3. Company Overview

4. Industry Analysis

5. Market Analysis

6. Menu and Services

7. Marketing and Sales Strategy

8. Operations Plan

9. Financial Plan 

While not all business plans are written the same, they generally need to include all the above, especially if you’re looking to approach a bank or investor to secure funding. Including these components not only gives your kitchen plans credibility but also helps investors understand your vision and where they can assist. 

Branded Cover Page 

Your business cover page is straightforward. It should include your restaurant or commercial kitchen’s name, logo, contact details, and the date you completed the business plan. While the last two aren’t rocket science, the first two elements matter a lot. 

If you already have a business name and logo, skip to the next section. If not, consider the development of your name and logo seriously. Both carry plenty of significance, as they establish your brand identity, make your business memorable, and, if you do things right, create a positive emotional response and loyalty from customers.

Executive Summary 

Think of your executive summary as a Netflix synopsis, or the description on your menu that speaks to the roots or unique offerings of your commercial kitchen. The goal is to summarize the core aspects of your business through concise statements that capture its essence. 

Think of it as your elevator pitch—a financier or investor should be able to read it quickly and get excited about your business within minutes. Here are some key elements to include in your executive summary: 

• Overview of your kitchen/restaurant concept—i.e., theme or cultural focus.
• Mission statement—explain the purpose of your kitchen’s existence, not what it does.
• Vision—what you hope to accomplish over time.
• Unique selling proposition—what makes your commercial kitchen different from competitors?
• Financial overview—including startup costs and projected returns. 

Company Overview 

Your company overview section will be longer than what’s included in the executive summary. You’ll segue into the nitty-gritty details of your business ownership, its physical characteristics, and your vision for the experience you plan to provide. You want to help an investor or potential stakeholder visualize your kitchen. Here are the main things to cover: 

• Detail your ownership structure (sole proprietorship, partnership, or corporation). 
• Describe your restaurant concept or theme (i.e., fine dining, fast food, cafe, catering).
• Provide location info, design layout, menu items, and hours of operation.
• Explain your vision for the desired customer experience and staff management protocols. 

Industry Analysis 

In this section, you’ll need to put on your analytical glasses. This is where you need to include research on the restaurant industry, demonstrating opportunities and gaps that your kitchen can help fill. Some findings you’ll want to discuss include the following:

• Analysis of the Canadian restaurant industry and local market conditions. 
• Local economic data, demographic trends, and consumer dining habits. 
• Opportunities or challenges present in your local region.

Market Analysis 

The market analysis focuses on your target market, competitors who already deliver services to them, and how you will serve this market differently from your competition. This section further establishes how you’ll stand out to potential diners. It will include the following:

• Defined target market, including their demographics, psychographics, and behavioural patterns. 
• A competitive analysis, detailing your top competitors and how you’ll differentiate your offerings. 
• Data highlighting local traffic patterns and community growth. 

Menu and Services 

Feel free to have a little fun with this section—you’ll get to provide a sneak peek into what your restaurant experience will feel like. It should further expand on your company overview section, explaining what it will feel like to eat in your restaurant or receive food items from the kitchen. Some things you’ll want to mention include the following:

• A menu description, along with a pricing strategy based on cost analysis. 
• Your approach to menu alterations due to seasonal changes or specials (if applicable). 
• How your menu aligns with your kitchen/restaurant concept.

Marketing and Sales Strategy 

Even with a prime location, mouth-watering menus, and eye-catching specials, your restaurant will only garner so much attention with word-of-mouth alone. You’ll need to initiate some marketing and sales tactics so you can attract a steady stream of diners or customers. That will mean putting together a marketing and sales strategy (which you can do in-house or gain assistance externally through a marketing agency). 

You’ll need to provide the following:

• Explanation on how you’ll attract customers through various marketing channels, such as advertising, promotions, social media and digital channels, community events, and more. 
• Mention of potential partnership and collaboration opportunities that could boost your visibility. 

Operations Plan 

The operations plan explains how your restaurant will function, along with other parties involved in its upkeep. In this section, you’ll provide details on the following:

• Daily operations, including operating hours, staffing structure, and customer service approach. 
• Necessary equipment and technology to facilitate your kitchen.
• Supply chain logistics and relationships with vendors.

Financial Plan 

Of course, for a kitchen to survive and thrive, you need steady funds and cash flow to open your restaurant, fuel and sustain its growth, and expand where possible. You must demonstrate that your restaurant has the earning power to cover your overhead, pay off potential debts and liabilities, and generate profits. This section should achieve the following: 

• Detail financial projections, including startup costs, monthly expenses, and sales forecasts.
• Show profit-and-loss statements, cash flow projections, and break-even analysis.
• Identify funding sources, whether personal investments, business, loans, investors, or other. 

Writing Your Restaurant Business Plan 

There’s a lot of ground to cover in your business plan, and you must do it carefully. But the good news is that it doesn’t have to be overwhelming. 

First, several templates are available to help structure your ideas and plans. Secondly, you can apply advanced techniques for conducting in-depth research, such as market or industry analyses, which we’ll explore in the next chapter. Lastly, consider hiring a professional business plan writer to help navigate the process and provide expert guidance.