Why write a restaurant business plan?
The direction of your restaurant business plan is the key to its future success. Studies show and experts agree that businesses with formal plans in place have more successful businesses, irrespective of size or type.
Basically, a business plan does two things. It outlines the opportunity the owner believes there is and it then explains how the opportunity will be seized to generate business and profit.
For example, a person may decide that there is a need for a pizza takeaway store in a new suburb because the nearest takeaway is over 10 kilometers away. The business plan will look at whether there are enough people in the suburb to support the business; the tastes of the people who live in the area and the best way of selling pizza to them. It will set goals, such as how much the business needs to make in sales and profits and what proportion of the market it wants to serve.
A plan is very useful in determining which strategies a small business owner should adopt in running the business. The pizza shop owner, for example, may want to decide whether it is better to price the pizzas below that of the nearest competition or charging more and producing a better quality product.
In writing the business plan, the business operator decides that the quality of the pizza is going to be much higher than any of the nearby pizza shops. As well, the operator learns through market research, that the people who live in the surrounding suburb are the type who will be very discerning pizza eaters. This process of thinking about the product and the customers has led the proprietor to decide that it is best to charge 15 percent more than the nearby competition.
Difficult decisions can be made easier by the planning process.
Restaurant Business Plan for Beginners
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