How to start a restaurant business?

Target Audience

Who is your customer?

How do you define your customer?

  • Visit the competitor’s restaurants in the area and collect data on the profiles of the customers
  • Consult the censuses to get the idea of the characteristics of the populace in different states/regions/cities
  • Create a survey based on the preliminary information you have about your target audience or discuss in the specially designed focus group format

How do you choose the type of restaurant and its concept?

How do you compose the business plan?

  • Restaurant concept
  • Choosing Location
  • Market Analysis
  • Menu Design
  • Restaurant Design
  • Hiring employees
  • Marketing campaign
  • Financial planning
  • What is your target audience? (industry analysis)
  • What are your main competitors? (competition analysis)
  • How do you plan to reach your audience? (marketing analysis)
  • determine the cost of each meal based on its ingredients;
  • categorize the menu items according to their profitability and popularity (you can do that in the 2X2 matrix);
  • based on the two previous steps, apply the promotion techniques to some meals, or lower the price for another.
  • outdoor advertisements
  • social media posts
  • discounts and loyalty program
  • promotion through the influencers
  • affiliate marketing
  • website creation and constant updates
  • special events to announce about the restaurant launch

How can financial planning help your restaurant business?

  • It helps to predict your financial flows
  • It assists you in adjusting the restaurant’s financial reality
  • It avails for the perfect pitch of your restaurant business to investors
  • SBA loan programs
  • Peer-to-peer lending services
  • Bank loans
  • Crowdfunding (Kickstarter)
  • Angel investor or investor
  • revenue breakdown of your restaurant business (what brings you the bulk of revenue?)
  • predicted levels of profitability of your restaurant (what is the increment rate of your income?)
  • cash flow (what are the financial inflows and outflows in your restaurant business?)
  • break-even analysis (when will you start getting the positive net profit after tax?)
  • benchmark KPIs (how is your financial outcome compared with the industry outcome?)
  • top expense categories (what takes a lot of your resources?)
  • sales assumptions (when should you expect more/less of customers?)

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500+ Financial Model Templates— finmodelslab.com

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FinModelsLab

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500+ Financial Model Templates— finmodelslab.com

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