Five Things to Know As You Write Your Restaurant Business Plan

I’ve been writing business plans as a full time business since 2011. Over the course of my career, I have written over 2 dozen restaurant business plans.
Running a restaurant is one of the most difficult businesses anyone can select. Most blogs would take time to focus on the failure rate; however, I want to help you focus on what it takes to be successful.
Here are 5 financial questions I believe every restauranteur should answer in their business plan:

1. How many daily visitors should you have? Did you know the average Panera has 600 patrons daily? The average Starbucks has 500 visitors daily. In my single location restaurants, I like to ensure clients make money with 125-150 patrons each day. There are some locations that are busier on the weekend and others that are located near commercial businesses and are busier during the weekday. However, you should have a daily “count” you’re always striving for.
2. How much will the average person spend in your restaurant? What’s your price point? Will a person buy dinner and wine? Will their ticket be $10 or $50? It’s important to include this within your business plan.
3. How much marketing and advertising money is needed to help you reach your daily goals? When I counsel restaurant owners, I always suggest they think about the number of daily visitors they want and how much each person will spend in their locales. It’s also important to think about how the restaurant will attract and retain loyal patrons. Oftentimes, a location with 500-600 patrons coming in weekly is all an entrepreneur needs.
4. What’s my break-even point? How many patrons do you need to keep the lights on and payroll current? That’s your break-even point.
5. Will I have enough money (and cash) to pay my sales and income taxes? When writing a business plan, it’s important to have enough sales to pay yourself AND Uncle Sam. My daily visitor goals should include enough money to pay both sales and income taxes.
   Many people try to overcomplicate business. I believe simple is always better. Focusing on a few numbers every day is all you need to be successful.