The caribbean is an all inspiring place; one where we often ask ourselves why we haven’t travelled there more, or moved to all together. In this Caribbean Restaurant Business Plan Sample we will walk you through the ins and outs of an exciting restaurant in San Jose, California.
Remember that all business plans are meant to be updated regularly and in order for yours to be successful you must customize it accordingly. We hope this sample business plan sparks your imagination and helps you in planning for your new Caribbean restaurant. If you need any help you can reach out for a business plan review or for our professional business plan writing services.
1.0 Executive Summary
“The Caribbean Spot Inc.” operating as “The Caribbean Spot” (The Company), was incorporated on June 5, 2021 in the state of California by Ms. Joseline Toole, Owner & Restaurant Manager.
When the restaurant opens in January of 2022, The Caribbean Spot will be the only Caribbean restaurant in the Northwest region of San Jose. It will provide the experience of eating at an authentic Caribbean island restaurant with good food, excellent service, and a Caribbean ambiance.
There are currently no other restaurants in the area serving Caribbean cuisine. The growing residential community is craving better food options that aren’t fast-food chains and big restaurant franchises. They want to support local family-owned businesses and restaurants.
Ms. Toole’s hands-on knowledge of Caribbean cuisines, learned by watching her mother in her own restaurant as a child, makes her well-suited to start this venture in the San Jose community. The restaurant menu will feature recipes Ms. Toole learned from her mother. Signature dishes will include baked macaroni pie, green banana salad, fried plantain, rice and peas, stewed chicken, and creole fish.
The Caribbean Spot will get many walk-in customers from the local shopping centres. It will expand its reach into the community through hand-delivered flyers, an active social media presence, and ads on radio and local billboards.
The company is seeking a $134,000 loan through the SBA Loan Program (SBA Loan Program) to cover leasehold improvements of the restaurant, equipment, rent, and yearly insurance.
2.0 Business Overview
In January of 2022, The Caribbean Spot will bring the authentic tastes of the Caribbean to the Northwest region of San Jose, California . As the only Caribbean restaurant in the area, there is no direct competition for this style of food.
The company owner, Ms. Joseline Toole grew up learning how to make authentic Caribbean foods from her mom, who ran a restaurant. After some time in housekeeping and business administration, Ms. Toole knew it was time to open her restaurant and found an ideal location for The Caribbean Spot in the growing residential and shopping region of Northeast San Jose.
The restaurant will have up to 10 seats for in-person dining (if public health restrictions allow) and display fresh, local juices and finger foods in a display counter. The moment you step into the restaurant, you’ll be transported to a tropical Caribbean island with greenery, yellow walls, green palm trees, rattan chairs, and the sound of tropical reggae music playing over the speakers.
The objective of the business is to bring this flavourful Caribbean cuisine to San Jose. As the local community grows, so will the potential customer base. Ms. Toole plans to give back to her community through the business as a local volunteer and community supporter.
“My company’s primary goal is to provide exceptional cuisine combined with a great experience that encourages repeat business. The food will be flavourful, the price reasonable, and the company will always be an advocate for the local community and economy.”
2.1 Industry Overview
America has over 97,000 restaurants, bars, and caterers across the country who generate 85 billion in sales and contribute 4% to America’s GDP. They employ over 1.2 million people (7% of the national workforce). In 2019, the California commercial foodservice industry alone nearly surpassed $10 billion in sales.
When the Pandemic hit in 2020, many in the American restaurant industry were forced to close their doors for over a year or make drastic changes to their business models that impacted their profit potential. It’s estimated that commercial foodservice sales in America fell over 28.7% in 2020. By the end of 2021, we’re expecting to see a recovery of 11.8% year-over-year increase, but still not to post-pandemic levels until 2023
According to the Restaurant’s America’s National Foodservice Industry Forecast, the first three quarters of 2022 are expected to remain lower than 2019 levels, and Q4 2022 will return to pre-pandemic levels and see positive growth in the years following.
With the state’s economic recovery on the rebound already in 2021, the foodservice industry is already seeing a much-needed revenue boost: +10% projected for the end of the year. 2022 is expected to grow 16.5% before returning to 4-5% growth year over year in 2023 and beyond.
Growth in the industry will be supported and fueled by the growing population of California ’s big urban centers, an increase in disposable income, and overall economic recovery. According to Statistics America, California is expected to lead the country in population growth by 2025 at nearly 10%.
In the coming years, the restaurant industry will have increased pressure and expenses to meet new consumer expectations for health and safety. Added expenses to provide masks and PPE equipment (as required), stepped-up cleaning and sanitization of high touch surfaces, and lost revenue when employees call in sick will all be factors that restaurants need to consider in their budgets going forward.
Restaurants are also starting to take a closer look at profit margins based on the fluctuations in produce and meat prices worldwide. Extreme weather and pandemic-related delays are increasing the cost and availability of food around the globe. Restaurants will need to choose to pass the price increases to customers through rising prices (which could be risky in this highly competitive market) or take a loss in profits.
Despite all the pandemic uncertainty and the world economy, IBIS World predicts that the number of full-service restaurants in America will increase at an annualized rate of 2% over the next five years. The majority of these will be franchised (due to their low barrier to entry), but the community and #BuyLocal trends may favour family-owned restaurants. Hence, The Caribbean Spot, being a local family business, has an excellent opportunity to thrive in the industry in the coming years.
2.2 Mission & Vision Statement
The Caribbean Spot is on a mission to cook homestyle Caribbean favourites and run a restaurant with an authentically immersive experience that combines sight, taste, and ambiance to turn casual diners into raving fans of Caribbean cuisine.
The Caribbean Spot’s vision is to help more Calgarians discover the healthy, flavourful foods of the Caribbean.
2.3 Goals and Objectives
The Caribbean Spot’s ultimate goal is to bring great Caribbean food to San Jose and encourage repeat business. Ms. Toole wants people to feel welcome and feel like they’re getting a taste of the Caribbean without going there.
To help the Company create this authentic experience in San Jose, The The Caribbean Spot has several goals and objectives:
- Increase revenue by 10% between year one and two
- Increase revenue by 25% between years two and three
- To earn customer loyalty in the community (leading to repeat business)
- Begin volunteering and giving back to the local community
2.4 Core Values
The restaurant lives by its core values. All business decisions are weighed by what is in the best interest of the Company, customers, and adherence to the Company’s core values of:
- Quality Service: Quality will create a loyal fan base of “regulars” and repeat customers.
- Great Attitudes: Good attitudes help emphasize the sense of community and small island friendliness vibe.
- Authenticity: Being authentic as individuals and as a brand is pivotal to creating an unforgettable dining experience.
- Community: Being a pillar in the community through volunteering and community stewardship fills our bucket.
2.5 Key Success Factors
The success of restaurants like The Caribbean Spot is based on several key external economic factors:
- Consumer spending: Consumer spending is expected to see a 2022-2027 compound growth rate of 1.84% (or over $120 billion by 2027). As consumer spending increases, so does spending at restaurants and food establishments.
- Corporate Profit: Corporate profit in America is also expected to see a 2021-2026 compound growth of 1.28% (or over $18 billion by 2026). As corporate profits rise, so do wages and disposable income of employees and staff. And when companies are more profitable, they are more likely to order more specialized catering for their company meetings and events.
- Per Capita Alcohol Consumption: Restaurants that serve alcohol will rely on the per capita alcohol consumption. It’s expected to see a low 0.10% compound growth by 2026.
- Household income levels: Households earning $100K or more are more likely to spend money at restaurants. The compound growth rate of this economic factor is expected to be 4.33% (2021-2026).
Several business functions and actions will be pivotal for The Caribbean Spot to succeed, including:
- Providing outstanding, affordable food
- Creating an authentic Caribbean ambiance with the food and in-house dining experience
- Providing excellent quality services with uplifting attitudes
- Listening to customer feedback
- Having a hands-on management team
- Continually reinvesting in understanding the customers.
- Buying in bulk when possible to save costs.
Have Questions? Looking To Get Started?
2.6 Staffing
Hiring the right staff for the restaurant will be a major key to the restaurant’s success. They will be the face of the Company daily, so they need to embody the The Caribbean Spot values and do their jobs honestly and with integrity.
Front Counter Attendant ($15 per hour)
On a daily basis, Front Counter Attendants are expected to greet guests, take orders, serve food and handle customer payments. Employees must be professional, multi-task, handle high-stress restaurant environments, and have food service experience or be trainable. There will be one full-time and one part-time position available.
Kitchen Helper ($15 per hour)
Their job is to assist the cook in the kitchen with food preparation and serve food. This may include seasoning meats, making salads, and making juice. Employees must be professional, can handle high-stress kitchen environments, and have professional kitchen experience or be trainable. There will be one full-time and one part-time position available.
Cook ($17 per hour)
Their job is to cook all meals and replenish supplies throughout the day as needed. There will be one full-time and one part-time position available.
2.7 Management Team
The business is a Sole Proprietorship under the direction of Ms. Toole. She has previous experience in business as the owner of a local cleaning business, so she is familiar with what it takes to manage and grow a business. She also has a diploma in Business Administration Management.
Ms. Toole was taught the fine art of authentic Caribbean cuisine growing up and helping in her mom’s restaurant. Many of the recipes for The Caribbean Spot are her mother’s recipes.
Ms. Toole has always been entrepreneurially minded. She studied business in school and spent time learning about business and customer service as a restaurant dishwasher, car rental agent, and waitress at a hotel. She graduated with honours in Business Administration Management and started her own cleaning business. These experiences have helped her understand business from different angles.
Joseline Toole
PERSONAL STRENGTHS:
- Good communication skills – willingness to listen and adapt to new ideas
- Can work independently and as a team to achieve company goals.
- Able to multitask with my time management skills
- Connect well with a range of individuals from various mediums
EDUCATION:
2011 Business Administration Management Diploma, Reeves College, San Jose California
1996 High School Diploma, Corinth Secondary School, St. Lucia
EXPERIENCE:
Housekeeping Manager, 2014- Present
Room Attendant Solara Resort and Spa, 2012-2014
- Clean guest rooms upon departure
- Restock Rooms of amenities
- Answer guest queries
Sales Representative, CMP Automotive, 2011-2012
- Call to make appointments for vehicle servicing.
- Answer customer queries
- Booking appointments
Waitress, Sandals Grande St. Lucia, 2009
- Train new team members complying with the procedures and fundamentals of the resort.
- Provide exceptional service to guest
Sales Representative, AVIS Rent-A-Car, 2007-2008
- Acquire customers at various locations
- Accept credit card, travellers’ cheques and cash payments
- Construe the company’s rules and regulations
Cashier, Jn Marie & Sons, St. Lucia, WI, 2000-2007
- Accept payment for goods
- Address customer concerns and queries
Cook, Key Largo Pizzeria, St. Lucia, WI, 1996-2000
- Prepare appetizers
- Weekly stock taking
3.0 Products & Services
The Caribbean Spot wants to make authentic Caribbean food more accessible to the cuisine-savvy Calgarians. Meals will be priced moderately for between $10-15 per plate but will be partially dependent on the cost of meat, fish and chicken when the restaurant opens in 2022.
To ensure freshness, customers will order and pay for their meal at the counter or via a service like Skip the Dishes, and then it will be made fresh to order. The restaurant will accept all major credit and debit cards.
To build awareness of the business in the community, The Caribbean Spot may use a local peer-delivery service like Skip the Dishes. Prices for orders through peer-delivery platforms may be adjusted to compensate for the fees charged by the delivery service platform.
3.1 Products
All foods will be Caribbean or Caribbean inspired. The menu may evolve in response to the price of meat and produce and to cater to more in-season produce when possible.
The restaurant will serve several signature dishes based on family recipes from Ms. Toole, including baked macaroni pie, green banana salad, fried plantain, rice and peas, stewed chicken, and creole fish.
In addition, the restaurant also plans to have the following items on its menu:
- Stewed pork
- Curry chicken
- Lamb soup
- Chicken roti
- Rice and beans/peas
- Ground provisions (root vegetables)
- Steamed vegetables
- Green salads
- Bakes
- Saltfish
Every menu item is authentically made and will provide guests the feeling of being in the Caribbean without actually going there. At launch in 2022, the restaurant will only serve lunch and dinner, but in the future hopes to expand to offer authentic Caribbean breakfast options and expand into catering once demand grows.
4.0 Operations
The success of a restaurant depends on its location in proximity to its target customers and other competing businesses. The business will lease a 1,022 sq ft space at:
550 Sun Boulevard, San Jose CA
This location was chosen because there are no other Caribbean restaurants in the area, and the neighbouring businesses are not direct competitors with the same cuisine. The local residential community is growing with several new developments and nearby shopping plazas already in the area or in development. The restaurant will attract local residents who want to support local and walk-by guests shopping at the nearby shopping plazas.
The restaurant will operate from 11 am to 7 pm on weekdays, 9 am to 5 pm on Saturday, and be closed on Sundays. On weekdays, the cook will arrive at 7 am to begin preparations for the day, and the remainder of the staff will start their shift closer to opening.
4.1 Equipment
Aside from standard kitchen and point of sale units, no additional equipment will be required. The Company will be leasing the space, but will own all fittings, fixtures, furnishings.
4.2 Inventory
Aside from ingredients needed for meals, no inventory will be kept on-premises. Whenever possible, the Company will source food from importers directly from the Caribbean. All additional ingredients will be bought locally or in bulk from Costco.
4.3 Health & Safety Guidelines
As a restaurant, The Caribbean Spot will follow all local food, health, and safety guidelines to keep staff and customers safe and healthy:
- The restaurant will be regularly disinfected, especially high-touch areas
- Staff and guests will be encouraged to wash or sanitize their hands often
- If required by public health, physical distancing will be kept between staff and customers and PPE and protective barriers will be installed if needed.
- Staff will be pre-screened for health before every shift and encouraged to stay home if showing signs of illness.
- Contactless food delivery will be available.
In addition, the Company will obtain all required business and health and safety permits and licences, including:
- Food handler’s permit
- Foodservice license
- Business License
- Building Health Permit
- Business registration
5.0 Market Overview
The restaurant industry saw many trends change and adapt during the COVID pandemic. In the coming years, the restaurant and fast food industries are expecting to see:
- Americans are eating out at restaurants and eateries more.
- Rising and fluctuating food costs and labour increases will play a key role in business profits or the cost to the customer.
- The expected economic growth is expected to increase disposable spending for Americans.
- The market is fragmented, with many single-location and independent restaurants in the market.
Other trends expected, due in part to the increased health and safety scrutiny from the pandemic, include:
- More touchless delivery and pick-up options
- Simpler menu offerings replacing extensive menus that require considerable labour to support them.
- More “ghost kitchens” (where restaurants share or work out of a kitchen owned by another business) so the business can cut costs and provide faster delivery.
- More open kitchen concepts where diners can see their food being cooked (to create more transparency).
Restaurants’ budgets for cleaning and sanitization are expected to remain higher than pre-pandemic levels. Due to public health rules and guidelines, diners will demand frequent cleaning of high touch surfaces, PPE and protective barriers, and increased expectations around staff and diner hygiene. These increased expectations will add to restaurant budgets in the years to come.
5.1 Competition
In the immediate area surrounding the location of The Caribbean Spot, there are no other Caribbean restaurants. There are several other fast food establishments (start-up businesses) and a coffee shop franchise (2 years in business) in the immediate area. While they are a potential competition because they are restaurants, they would likely attract a different clientele than The Caribbean Spot. The three closest competitors in the Sage Hill area include:
5.2 Competitive Advantage
The Caribbean Spot is the only authentic Caribbean restaurant in the Northwest area of San Jose, making it the local go-to for this type of cuisine in the area. The pricing will be comparable with other family-owned specialty restaurants in the state.
Dining at The Caribbean Spot is about more than flavourful food. It’s about recreating an authentic Caribbean eatery experience from the moment you step through the doors. It’s not about serving as many customers as possible every hour. It’s about giving every guest individualized attention and care and listening to their feedback and accolades.
5.3 Risk Analysis
Risk: Rising Food Costs
The cost of produce and meats fluctuates based on seasonal trends and the current market value of these products. This can affect the profitability of set-price meals. To mitigate this risk, there is a buffer worked into the meal prices to account for average predicted fluctuations. When needed, menu prices will change to accommodate more long-term price fluctuations.
Risk: Low customer base
Company success and revenue are dependent on the number of visitors, and the average visitor spend at the restaurant. To mitigate this risk, if revenue or average customer spend isn’t meeting expectations, the Company can run extra promotions to attract new visitors or refocus energy into providing catering services to make up for any revenue shortfall from the restaurant side of the business.
Risk: Future pandemic or public health closures
This past year has been challenging for restaurants due to Pandemic and public health mandate closures and limits on dine-in customers. Many closed their doors entirely or saw substantial profit losses. Should a similar public health crisis occur in the future, it’s reasonable to expect similar limitations placed on restaurants that will ultimately limit The Caribbean Spot’s profit potential. To mitigate this, the Company will study and learn how current restaurants have survived during lock-downs and restrictions and have these new systems and processes implemented into the business now or activated in the future based on guidance from public health.
Have Questions? Looking To Get Started?
6.0 Sales & Marketing Plan
The target customer for The Caribbean Spot is relatively broad in demographic, but they do share one love: the love of authentic world cuisines. When given the opportunity to choose between a fast-food burger chain and a family-focused, independently owned restaurant, they will support the family-owned business because they are big advocates for their community and supporting local businesses over large chains.
Due to the growing residential community in the area, the restaurant will be particularly attractive to families of all ethnicities and social statuses. Many have families and kids and want to show them the value of food made with love rather than food from a freezer bag that’s dumped into a deep fryer and served in styrofoam.
Some of The Caribbean Spot’s customers may already be fans of Caribbean cuisine but haven’t had it since their last cruise in the region because it just doesn’t exist in the San Jose area.
The Company will also provide catering services for local businesses. These are businesses that want to provide food for their staff and want to support locally owned and operated businesses in the process.
6.1 Key Channels
Website: The Caribbean Spot will have a basic website with information about the restaurant, menus, current promotions, and location information. It may also include links to third-party delivery websites and an online ordering system directly with the restaurant.
Social Media: The Company will maintain active social media accounts on Facebook and Instagram to start. Additional social channels may be added in the future. Ms. Toole will manage each account and post current specials and pictures of meals and the restaurant.
Radio and Billboards: To expand advertising reach, The Caribbean Spot will investigate buying ad space on radio and local billboards. This will help the Company reach surrounding neighbourhoods, those driving home from work, families exploring the city on weekends, and out-of-town visitors.
Restaurant Launch Activities: When the opening date has been confirmed, the Company will hire a business to distribute flyers in the local neighbourhood. The flyer will introduce the restaurant, show pictures of the food, and contain a location map.
6.2 SWOT Analysis
7.0 Financial Plan
7.1 Capital Requirements
7.2 Income Statement – Year 1
Year 2
Year 3
7.3 Cash Flow Statement
7.4 Balance Sheet
