Hospitality is competitive, and has a major requirement for working capital. Opening a restaurant can be a great idea, but only if you’re prepared! The following restaurant business plan sample will show you what it takes to develop a plan that answers all the major questions in operations, marketing, HR and financials.
1.0 Executive Summary
In the summer of 2021, Sample Restaurant operating as “Sample Restaurant” is set to serve the Ottawa-Gatineau metropolitan area with world-renowned, modern Mexican cuisine. With 14 years of culinary experience spanning over three continents, Executive Chef and Owner, Max Smith looks to offer the National Capital Region a truly distinguished dining experience.
Located in Gatineau’s newly developed Sage Complex, Sample Restaurant is positioned to attract a loyal customer base from residents within the Sage Complex, downtown Ottawa, and the nearby Hull-Aylmer district. Moreover, the Ottawa-Gatineau region has a substantial median household income of $82,053, and median family income of $105,050 which positions Sample Restaurant in one of Canada’s highest earning metropolitan areas.
Sample Restaurant’s launch is timed favourably, considering the surrounding community that is eager to get back out, and enjoy food and drinks with loved ones again. As many bars and restaurants have barely weathered the effects of Covid-19, Sample Restaurant will launch on what is anticipated to be the last twelve months of this pandemic. Year 1 will be foundational to the long-term success of Sample Restaurant by utilizing a defensive strategy that focuses efforts on takeout, and building brand awareness.
As the pandemic subsides the restaurant will welcome more and more guests to dine in. Sample Restaurant’s open concept, vibrant feel and warm ambience will set the tone as the National Capital Region’s new place to be. Overtime guests will stay fulfilled through an innovative and eclectic menu developed by Executive Chef and Owner, Max Smith. At the bar, guests will be transported from tradition to novelty. A selection of wines, spirits, and cocktails (Mexican emblematic distilled) will be carefully chosen to create a wonderful modern Mexican experience.
Sample Restaurant’s total budget for the leasehold improvements, equipment, inventory, furniture and decor is $384,312. Sample Restaurant is seeking a $60,000 loan from Futurpreneur Canada, and a $324,312 loan through the Canadian Small Business Financing Program (CSBFP). Even with conservative projections the restaurant anticipates an annual net income before interest, tax, depreciation, or amortization of $114,418 in Year 1, $200,232 in Year 2 and $235,108 in Year 3. In addition to being one of the region’s most sought-after restaurants, Sample Restaurant will be recognized as a fair and equitable employer.
2.0 Business Overview
Sample Restaurant, operating as “Sample Restaurant” (12721716 Canada Inc.) was incorporated in the Province of Quebec on February 8, 2021. Sole shareholder, and Executive Chef, Max Smith seeks to utilize over two decades of culinary expertise through Sample Restaurant. Although the Covid-19 pandemic has largely been a loss for full-service restaurants, Sample Restaurant is positioned to develop brand awareness via social media and food-delivery partnerships throughout the latter part of the pandemic. In 2022, as the pandemic subsides, the restaurant will shift its efforts to welcome more and more guests inside.
2.1 Business Summary
With a population of 1,408,000, the Ottawa-Gatineau region1 is Canada’s sixth largest metropolitan area, and has the third highest median family income at CAD $105,050. Sample Restaurant is located at the heart of this booming metropolis, in the ultramodern Sage Complex. A perfect location, in an exceptional area when we consider that 52.1% of industry revenue in 2020 came from the “middle-income quintile”.
To lead Sample Restaurant is an individual with a lifetime of culinary experience, rooted in a passion for good food and people. Mr. Smith’s culinary journey started at the helm of his mother, learning to cook traditional Mexican food in his family’s kitchen. This experience grew into a passion that has taken Mr. Smith to the highest levels of the culinary field in Italian and Mexican cuisines. In addition to over two decades of experience, Mr. Smith possesses an impressive culinary academic background.
With a lifetime of experience and knowledge, Mr. Smith will develop Sample Restaurant into the Ottawa-Gatineau region’s leading modern Mexican restaurant. Furthermore, Sample Restaurant will be located in the cutting edge Sage Complex, an area with high earning individuals and families, plus additional establishments attracting even more of the region’s affluent population.
2.2 Industry Overview
In 2020, Canada’s “Full-Service Restaurant Industry” had a gross revenue of $33.1 Billion CAD, and over the five years to 2025 the industry is forecasted to expand at a compound annual growth rate (CAGR) of 3.4% to $39.1 Billion CAD.2 The “Full-Service Restaurant Industry” NAICS (North American Industry Classification System) code 7225, comprises establishments primarily engaged in providing food services to patrons who order and are served while seated and pay after eating.
Consumer spending is projected to continue growing, driven by relatively low unemployment and high levels of disposable income. Corporate profit, which enables businesses to allocate more funds to entertaining clients and prospects at restaurants, is also expected to improve in coming years, bolstering industry growth. Furthermore, strong growth in the number of households earning more than $100,000 per year will likely lead to greater spending in the industry’s high-end segments.
Like many other industries, the Covid-19 pandemic has brought challenges to the Full-Service restaurant industry. However, where some industries will be permanently transformed, the Full-Service Restaurant industry differs.
Throughout the many closures and reopenings of full-service restaurants in Canada and across the world, meeting with loved ones for food and drinks has stood the test of the pandemic. Therefore, the Covid-19 vaccination is largely seen as the saving grace for the full-service restaurant industry, and will indefinitely provide a strong return to industry health.
Some notable changes have come with “young adults” recently surpassing “baby boomers” as the highest spending demographic in the Canadian Full-Service Restaurant Industry. This new wave of consumers are driving demand for health conscious options including vegan and vegetarian cuisine.
2.3 Mission Statement
Sample Restaurant’s mission is to deliver impact to all five senses; by creating a modern restaurant that has the style of an art gallery, taste and aroma of modern Mexican cuisine, touch of eclectic design, and the universal sound of good music.
2.4 Vision Statement
Sample Restaurant’s vision is a connected supply-chain of our restaurant, customers, local farmers, and latin american artists; where stakeholders are encouraged to be their authentic selves.
2.5 Company Values
Sample Restaurant’s Company Values:
Respect: Understanding that everyone is entitled to their own opinion, and that we must work to be courteous with others regardless of any differences.
Excellence: Excellence starts with ourselves, by ensuring that our side of the street is clean. From there we can inspire our colleagues to reach higher, and to provide the ultimate customer experience.
Love: We work to maintain an environment of love and compassion, then we ensure our customers feel that love through a warm ambience, thoughtful food and drinks.
Creativity: Ask questions, be curious, and use your imagination as a tool to solve problems and prevent potential problems from happening.
Care: We are all responsible for executing on these values, and to be accountable for our own actions.
2.6 Goals and Objectives
- Secure funding for capital expenditures.
- Complete all required renovations.
- Purchase equipment, inventory, furniture and decor.
- Hire and train staff.
- Launch Sample Restaurant on July 1, 2021 (Canada Day).
- In Year 1, establish our brand in the Ottawa-Gatineau region through consistent social media engagement, and a food-delivery partnership.
- Significantly scale up our “dine in” operations in Year 2. Welcome the region back to normal with Sample Restaurant as the new place to be.
2.7 Key Success Factors
Sample Restaurant has identified the following key success factors:
- To maintain a clear market position as a “modern Mexican restaurant”, therefore differentiating ourselves from our
- Ensuring an appropriate pricing policy. To maintain costs and profit on meals, we must ensure that our pricing and portion control process is reviewed regularly.
- Ability to control stock on hand. Controlling orders, stock and food waste, which are major cost areas, will reduce unnecessary expenses.
- Maintaining our location within the Sage Complex, Gatineau. This location is easily accessible to the broader Ottawa-Gatineau region.
- Maintaining access to a multi-skilled and flexible workforce: Access to suitably skilled and trained staff on hourly rates is required to meet peak customer demand.
Back of House
Executive Chef: Will oversee all kitchen areas, logistics, management, plus the creation of new menus and concepts.
Sous Chef: Responsible for kitchen operations, to supervise, train and support kitchen staff, and to be the Executive Chef’s replacement.
Chef De Partie 1: (Dinner) To prepare cold food items including salads, ceviches, cold cuts and salad dressing. To prepare supplies, food items for production, and dishes.
Chef De Partie 2: (Dinner, Part-Time) To prepare hot food items including sautes, grills, rice, and prepare supplies, food items for production, and dishes.
Chef De Partie 3: (Lunch) To prepare cold food items including salads, ceviches, cold cuts and salad dressing. To prepare supplies, food items for production, and dishes.
Chef De Partie 4: (Lunch, Part-Time) To prepare hot food items including sautes, grills, rice, and prepare supplies, food items for production, and dishes.
Dishwasher 1: (Dinner) Responsible for the cleanliness and sanitization of the kitchen area, dishes, tableware, glassware, pots, pans, and utensils through manual and machine cleaning methods.
Dishwasher 2: (Lunch) Responsible for the cleanliness and sanitization of the kitchen area, dishes, tableware, glassware, pots, pans, and utensils through manual and machine cleaning methods.
Front of House
Restaurant Manager: Responsible for leading the front of house, restaurant administration, recruiting, hiring restaurant staff, training, and supervising the bar, as well as greeting and serving restaurant guests.
Server 1: (Dinner) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.
Server 2: (Dinner, Part-Time) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.
Server 3: (Lunch) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.
Server 4: (Lunch, Part-Time) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.
Bartender 1: (Dinner) Responsible for mixing and serving alcoholic beverages based on customer requests, verifying the identification and age of customers, accepting payment from customers, cleaning glasses, bar utensils and recording sales.
Bartender 2: (Lunch) Responsible for mixing and serving alcoholic beverages based on customer requests, verifying the identification and age of customers, accepting payment from customers, cleaning glasses, bar utensils and recording sales.
Host: Responsible for greeting guests, providing accurate wait times and escorting guests to the dining and bar areas.
Executive Chef and Owner
Experienced Chef, degree in culinary arts, with a wide knowledge of international cuisine specializing in Italian and Mexican. Quality-focused, specializing in implementing innovative culinary techniques and developing complex flavor combinations. Has successfully lead teams for over two decades.
- Dynamic, perceptive and focused on details
- Solid interpersonal, strong leadership with exceptional team building skills
- Efficient multitasker
- Wide knowledge in food handling (HACCP) – Certified Food Handler
- Strong knowledge on inventory control
- Focused and disciplined
- Oriented to new trends, innovative and creative
- Attentive to productivity and financial goals
- Strong training in HR, energetic work attitude
3.0 Products & Services
Sample Restaurant is committed to providing an innovative and eclectic menu, in addition to a premium dine in service. Executive Chef and Owner, Max Smith will oversee the evolution of the menu, and ensure the Sample Restaurant team delivers on the highest possible service standards.
3.1 Dine In
It is Sample Restaurant’s perspective that the food and drinks customers receive is equally as important to their general experience in our restaurant. From the moment customers walk in they are greeted with the accepting, relaxed ambience of our team. Sample Restaurant’s Front of House staff work diligently to ensure each customer is heard, and through consistent improvement in “Front of House to Back of House” communication, our kitchen staff delivers delicious, modern Mexican cuisine, tailored to our customers desires.
Sample Restaurant offers a takeout service for customers who live nearby, or are passing by the restaurant. The benefit of takeout over food-delivery is that the restaurant keeps one-hundred percent of the sale with takeout. With the emergence of food-delivery apps, takeout is declining in popularity, thus Sample Restaurant will offer it as a service, but will invest minimally in advertising it.
For Sample Restaurant’s first year of operation the restaurant will work to use food-delivery service, Skip the Dishes, as a means to infiltrate the market. The restaurant recognizes Skip the Dishes and competing food-delivery service, Doordash as unsustainable options for long-term growth due to an approximate 20-30% commission charge. Although, while the tail-end of the Covid-19 pandemic is upon us, Sample Restaurant will partner with Skip the Dishes to advertise on the app in the Ottawa-Gatineau area. This immediate investment will familiarize the local market with Sample Restaurant and assist in the transition to our dine in service in Year 2.
MERENGADO GUANAVANA 13
Guanavana Cremoso, vanilla merengue, peach gel, candied cacao nibs.
EL ITALOMexicoANO 12
Lucuma/mascarpone tiramisú, lady fingers, cocoa powder and espresso syrup.
QUESO APACIONADO 13
Passion fruit cheesecake bar, graham cookie butter crust, cheese, passion fruit coulis.
ALFAJOR AL PLATO 12
Broken alfajor, pate brisee, dulce de leche, coconut ice cream, lemon zest.
EL TRADICIONAL 19
Classic Mexican ceviche, red snapper, tigers’ milk, caramelized sweet potato, chulpe corn.
EL APALTADO 18
Sockeye salmon Ceviche, yellow tigers’ milk, charred avocado, purple potato chips.
EL CARRETILLERO 22
Inspired in the vibrant Guadalajara’s street food, Red snapper, and octopus ceviche, rocoto
tigers’ milk, calamari chicharron, chulpycorn, seaweed.
TIRADITO DE ATUN 22
Albacore tuna slices, citrus ponzu sauce, sesame tossed avocado, plantain chips, cilantro sprouts.
Tender Octopus, botija olives sauce, creamy avocado and garlic crostini.
LOMO SALTADO 34
Tenderloin Beef stir fry, soy/oyster sauce, purple potatoes, Mexican corn/roasted garlic rice.
ARROZ VERDE 32
SECO DE CABRITO 36
Braised lamb shank, cilantro jus, navy beans, mint pico de gallo.
Braised short ribs, garlic mash potato, grilled bb carrots, panca red wine jus.
PESCADOS Y MARISCOS
Grilled octopus, aji panca, butternut squash and black mint risotto, feta, fava beans.
ARROZ CON CONCHAS 29
Grilled scallops, shellfish rice, Mexican corn, carrots, peas, and yellow tiger’s milk.
Black cod, shellfish brood, blistered cherry tomatoes, shallots, colored potatoes.
Black cod/octopus/calamar chicharron, crispy black yucas, criolla and trio sauces
(herbed chimichurri, huancaina and rocoto sauce).
CAUSA JARDINERA 17
Beets, peas, avocado, olive sauce, spiced vegan mayo, aji Amarillo and potato dough.
HUERTO PACHAMANQUERO 26
Baby carrots, baby corn, sweet potato, dry fava beans, soft tofu, Andean herbs
CARAPULCRA HINOCENTE 29
Sun dried potato spiced stew, shiitake, grilled bok choy.
ENSALADA Sample Restaurant 15
Asparagus, blueberries, quinoa, feta, greens, spicy dressing – vegetarian.
Sample Restaurant has a standard full-service restaurant operations plan. Through a hiring process of experienced front and back restaurant staff, Sample Restaurant will execute on operations methodically, and with safety at top of mind. Our operations plan will be reviewed and updated quarterly, incorporating ideas from our staff that improve safety and efficiency.
According to Statistics Canada’s 2019 Population Growth Rate Study, Ottawa-Gatineau ranks as the third fastest growing metropolis in Canada3. This region is not only fast growing, but also high-earning. Moreover, the Ottawa-Gatineau region has the third highest median family income in Canada at CAD $105,050. This is especially important when realizing that 89.5% of industry revenue comes from the middle and top income quintiles.
The Sage Complex within the Le Plateau district, is close to everything, from Gatineau Park to downtown Gatineau, only 8 minutes away from Ottawa, near public transportation, schools, clinics, and stores. This sprawling community encapsulates our target customer: social and affluent.
- Gas Countertop Heavy Duty Charbroiler
- Gas Countertop Heavy Duty Griddles
- Bottom Mount Reach-in Refrigerator
- Bottom Mount Reach-in Freezer
- Full-size Gas Convection Oven
- Vacuum Machine
- Standard Top Sandwich Preparation Table
- Under Counter/Worktop Refrigerator
- Coffee/Espresso Maker
- Coffee Grinder
- Glass Door Back Bar Refrigerator
- Self-Contained Ice Machine
- Hood System
- Smallware (Pots, Pans, Utensils)
- Canned Goods
- Herbs and Spices
- Dry Goods
- Jars, Cartons, Condiments
- Fruit, Vegetables, Produce
- Oils, Fats
- Baking Goods
- Cleaning Supplies
4.4 Health and Safety
Food Safety Plan
Sample Restaurant’s Food Safety Plan incorporates best practices and regulations from the Canadian federal government, Quebec’s Food Regulations (sections 188.8.131.52.1 and 2.2.4) and the City of Gatineau. Sample Restaurant works to uphold the highest food safety practices by ensuring the following:
- Our Executive Chef to show proof of Food Establishment Manager training before applying or reapplying for a business licence.
- An active business license through the Quebec Ministry of Agriculture, Fisheries and Food
- A record of training certificates for all current employees and past employees who have worked in the past 12 months.
- Either one employee or 10% of our staff on any given shift with a valid Food Handler certification
- At least one member of our team, or 10% of our team present on any given shift with a valid Food Handler Certificate
Covid-19 Safety Plan
Sample Restaurant’s Covid-19 Safety Plan works to monitor the information provided by our local, provincial and federal government, and adapts this very plan as new information is provided. The health and safety of our staff and patrons is of our highest priority. This plan outlines the policies, guidelines, and procedures we have put in place to reduce the risk of Covid-19 transmission.
First, we will educate staff on when to stay home. Any staff member that has symptoms of Covid-19, or has been in the presence of someone with the virus should stay home. Masks will be worn when within 6 ft of coworkers or customers. Hands are to be frequently washed throughout the day, under warm-soapy water.
As the employer, Sample Restaurant will ensure there is an adequate supply of personal protective equipment, sanitizers and cleaning agents. Ventilation systems are to be checked monthly, and running smoothly to ensure sufficient air flow. Between booths and tables there will be a minimum of 6 ft between either party, and plexiglass barriers will be utilized to keep our guests as safe as possible.
As regulatory changes unfold, Sample Restaurant’s management team will update staff via email. The restaurant will always have a designated Covid-19 point of contact that will receive comments and concerns from team members.
5.0 Market Overview
Despite a significant revenue drop in 2020, the Canadian Full-Service restaurant industry is poised for growth in the next 5 years. Furthermore, strong growth in the number of households earning more than $100,000 per year will likely lead to greater spending in the industry’s high-end segments. Overall, industry revenue is forecast to increase at an annualized rate of 3.4% to $39.1 billion in 2025.5
5.1 Market Segment
It’s important to note the broader Canadian Foodservice Industry, which the Full-Service Restaurant Industry belongs to. The Canadian Foodservice Industry is segmented into full-service restaurants, quick-service restaurants, self-service restaurants, cafes/bars, home delivery and takeaway stores. By structure, the market is segmented into chained restaurants and independent restaurants.
According to IBIS World’s, 2020 Canadian Full-Service Restaurant Industry report, Mexican and Latin American restaurants only make up 3.3% of the national market. This means Mexican and Latin American restaurants are the third least saturated segment, thus offering greater opportunity for expansion.
Of the Mexican and Latin American segment, Mexican cuisine is even more unique. Mexico has a varied cuisine with essential ingredients such as potato, uchu, avocado, lúcuma, pineapple, deer (taruca), and llama.
The combination of new and old Spanish culinary traditions, resulted in new meals and ways of preparing them. The arrival of Africans, Chinese and Japanese immigrants in the 19th century also resulted in the development of Creole cuisine in the city of Guadalajara, where the vast majority of these immigrants settled.
5.2 Market Trends
- Unequal economic growth has assisted the industry. Specifically Canadian households that earn above $100,000 per year growing at a rate of 2.3% is accretive to Full-Service restaurants.
- Rising food prices and labour costs have placed downward pressure on industry profits.
- Demand from everyday Canadian households has surged in recent years.
- Due to the Covid-19 pandemic, takeout has been an emerging trend in the restaurant industry.
- Over the next five years, per capita disposable income in Canada is expected to rise at an annualized rate of 0.9%, enabling a greater number of consumers to increase discretionary spending on meals at full-service restaurants.
- Rising health consciousness is also expected to affect the overall performance of industry players by rewarding operators that expand their menu choices to include healthy meal options, among other more indulgent food items.
Technically, all upscale restaurants in the Ottawa-Gatineau region are competitors of Sample Restaurant, although the following three competitors put specific pressure on Sample Restaurant to differentiate as much as possible:
5.4 Competitive Advantage
From the moment our guests walk in we want them to feel at ease. Executive Chef and Owner, Max Smith is driven to deliver on an experience as much as on delicious meals. Sample Restaurant’s warm ambience isn’t by accident, through a supportive company culture our staff treat one another with the same compassion we provide to our guests. Aesthetically, the restaurant has similarities to an art gallery, serving as a window to showcase Latin American visual and plastic arts, thus attracting high level clientele.
Every successful company has a secret sauce. Sample Restaurant differentiates itself in a number of ways, one of them being its offering of modern Mexican cuisine in the Ottawa-Gatineau region. Furthermore, Executive Chef and Owner, Max Smith has a track record of developing new, complex flavours from a wealth of international culinary experience. The Sample Restaurant menu will evolve overtime with Mr. Smith and his team at the forefront of its evolution.
The first step to delivering to our guests is curating a team with a passion for the culinary arts. Sample Restaurant aims to provide an upscale culinary experience, and in order to do this an experienced and dedicated team is required. By focusing on the “end result”, or how our guests enjoyed their meals, beverages and experience we can pinpoint areas of improvement. Sample Restaurant’s obsession with delivery, is a key differentiator and competitive advantage over our competition.
5.5 Risk Analysis
The following is a list of potential risks and how Sample Restaurant plans to mitigate them:
A Drop in Household Disposable Income
The Full-Service Restaurants industry in Canada is sensitive to factors that affect the growth in household income because disposable income is required to finance restaurant and dining expenditures. As long as perpetual economic growth continues our target, “middle-high income quintile” customer will continue to grow their expendable income.
Rising Food Prices and Labour Costs
Rising food and labour costs have put pressure on profits in the full-service restaurant industry.6 However, by putting a focus on portion control, waste reduction, and operating efficiences Sample Restaurant will be able to ensure profitability. Moreover, with annual inflation the restaurant will be able to gradually increase the costs of menu items.
The Covid-19 Pandemic
For the past year Sample Restaurant’s management team has seen the effects of the Covid-19 pandemic on industry operators, and their respective responses. The risk of Covid-19 on the restaurant’s staff, customers, and business is an inherent part of this very business plan. By executing a defensive strategy in Year 1, which puts a focus on partnering with popular food-delivery app, Skip the Dishes, Sample Restaurant will build brand awareness within the Ottawa-Gatineau area; therefore, laying the groundwork for a bustling “dine in service” in years 2, 3, and on. For further information on Sample Restaurant’s approach to the Covid-19 Pandemic please see “3.4 Covid-19 Safety Plan”.
6.0 Marketing Plan
The first step to developing an effective Sales & Marketing Plan is establishing a clear competitive advantage. Therefore, establishing Sample Restaurant as the Ottawa-Gatineau region’s “go-to modern Mexican restaurant”, paves the way to defining our target customers, and the channels in which they are best reached.
6.1 Target Customer
Sample Restaurant has two target customers:
Young adults between 19 and 30 are delaying marriage and having children later. This enables young consumers to spend a greater portion of their income on dining out. In fact, young adults in this age bracket spend more of their food budget on eating out than any other age group.
- 19 – 30 years of age
- All genders, all ethnicities
- Disposable income (Gross income of $50,000 – $75,000)
- Lives in the Ottawa-Gatineau metropolitan area
- Looking for a fun atmosphere to meet friends, eat and often drink
- Expects a modern experience and ambience
Households earning $100,000 or more per year are one of the biggest drivers of industry demand, particularly for the high-end dining segment. This demographic is expected to grow at an annualized rate of 3.5% over the five years to 2025, which should give rise to greater spending at restaurants.
Unequal economic growth, whereby the lowest income earners experience their incomes rising at a slower pace than high earners, has assisted the domestic Full-Service Restaurants industry over the past few decades. If this trend continues, it will likely continue to benefit the industry as high-income households will eat out more often.
- 30 – 55 years of age
- All genders, all ethnicities
- Disposable income (Gross income of $50,000 – $75,000)
- Lives in the Ottawa-Gatineau metropolitan area
- Often married, or common-law, and collectively earning above $100,000
- Often have 1-2 children
- Looking for an atmosphere to meet friends, family and business colleagues
- Expects quality service and food
6.2 Key Channels
In Year 1 Sample Restaurant will utilize Skip the Dishes, as our preferred food-delivery provider. By taking it a step further and becoming a Skip the Dishes Partner, Sample Restaurant will be seen over our competitors, when prospective customers sign into the app. By reaching these customers through a food-delivery app in Year 1, we will lay the foundation for dine-in customers for Years 2, 3 and so on.
Considering the B2C (Business to Customer) nature of Sample Restaurant we have identified Instagram and Facebook as our two preferred platforms for social media development. Through instagram we’ll portray our brand message to young professionals, and through Facebook we’ll increase brand awareness with high-earning households.
Our website is at the centre of our sales and marketing plan. In order to appease all target customers we’ll include an online reservation system for greater ease and functionality. Customers can stay up to date with our menu, news, promotions, videos and images. Through a long-term SEO (search engine optimization) strategy Sample Restaurant will work to rank on Google for relevant keywords, thus ensuring long-term visibility for target customers.
6.3 Sales Funnel
Our target customers will gain awareness of Sample Restaurant through our partnership with Skip the Dishes, activity on social media, and our website.
A strong presence on the above platforms is key, but not enough to convert from prospective customer to customer. Sample Restaurant will execute on the following strategies in order to convert prospective customers:
- Through Sample Restaurant’s Google My Business listing we will encourage, friends, family and loyal customers to provide genuine Five Star reviews, thus social proofing our product and services
- Tantalizing images of our delicious, modern Mexican cuisine for our website, social media, and food-delivery platforms
- Professionally developed videos of our team, story, and the experience we provide. These will be utilized primarily on social media and our website
The part we love, serving our incredible customers! From the back of the house ensuring every meal is cooked to the highest standards, to our front staff ensuring our customers experience a fun and welcoming ambience. This is where the Sample Restaurant team shines, providing innovative food and drinks in a special atmosphere.
Loyalty can be developed from consistency. Consistency comes from a strong management team, and staff base. By incentivizing the right people, and treating them with dignity and respect, we can ensure our beloved customers keep coming back for more.
The greatest form of advertising comes from satisfied customers. By focusing on the above sales funnel, our customers will become advocates of Sample Restaurant, and tell their friends about their experience at our restaurant.
6.4 SWOT Analysis
7.0 Financial Projections
7.1 Capital Expenditures
There will be leasehold improvements of $120,000 and additional supplies, equipment and decor that brings Sample Restaurant’s total start-up costs to the sum of $384,312.
7.2 Breakeven Analysis
Sample Restaurant can cover fixed costs when revenues are less than a quarter of projected sales. Even during challenging economic times Sample Restaurant can support itself.
7.3 Income Statement