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13+ Restaurant Business Plan Examples [ Startup, Fast Food, Opening ]

restaurant business plan examples

Restaurant Business Plan

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  • Concept Overview: For example, a farm-to-table restaurant focusing on organic, locally sourced ingredients.
  • Mission Statement: A clear, compelling statement, e.g., “To provide fresh, healthy, locally sourced meals in a sustainable and community-focused environment.”
  • Key Information: Location, ownership, unique selling propositions, and anticipated opening date.

Company Description

  • Restaurant’s Background: A story about the inspiration behind the restaurant, possibly inspired by local farming traditions.
  • Goals: Clear objectives, like becoming the leading organic eatery in the area within three years.
  • Target Market: A specific demographic, such as health-conscious families and environmentally-aware diners.

Market Analysis

  • Industry Insights: Current trends in the organic dining sector and how they apply to the local area.
  • Demographics: Detailed analysis of the local population, focusing on health trends and income levels.
  • Competitive Analysis: Assessment of local competitors, with strategies to offer something unique, like exclusive organic dishes.

Menu and Services

  • Menu Details: A draft menu showcasing organic, seasonal dishes with innovative recipes.
  • Additional Services: Details on catering, special events, and partnerships with local farms and businesses.

Marketing and Sales Strategy

  • Marketing Tactics: Strategies like community events, partnerships with local businesses, and a strong social media presence.
  • Sales Projections: Realistic goals based on market research, with strategies for both slow and peak periods.

Management and Staffing Plan

  • Management Team: Bios of key team members, highlighting experience in the organic food industry and local community engagement.
  • Staffing Details: Plans for hiring chefs, servers, and support staff, with a focus on experience in organic restaurants.

Operational Plan

  • Daily Operations: Outline of the sourcing, preparation, and service processes, emphasizing efficiency and sustainability.
  • Facility Requirements: Description of the ideal location, kitchen layout, and environmentally-friendly equipment.

Financial Analysis

  • Startup Expenses: Detailed budget for setting up the restaurant, including eco-friendly renovations and organic certification costs.
  • Revenue Forecast: Projected earnings based on market analysis, with various scenarios.
  • Expense Breakdown: Monthly operating costs, including sustainable packaging and fair wages.
  • Profit and Loss Projection: Estimated profitability over the first few years, considering seasonal variations.

Funding Requirements

  • Capital Needs: Total funding required, with a plan for its allocation.
  • Funding Sources: Potential investors, grants for sustainable businesses, and loan options.
  • Supplementary Materials: Market research data, sample menus, and marketing materials.

restaurant business plan

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restaurant business plan outline

10.  Business Plan for Restaurant Example

organic restaurant business plan

Step 1: Executive Summary

  • Concept Description: Clearly define your restaurant’s concept, including the type of cuisine, ambiance, and unique selling propositions.
  • Mission Statement: Craft a mission statement that encapsulates the essence and goals of your restaurant.
  • Key Details: Provide basic information such as the proposed location, ownership details, and the expected date of operation commencement.

Step 2: Company Overview

  • Restaurant’s Background: Share the story or inspiration behind your restaurant.
  • Business Objectives: Outline specific, measurable, achievable, relevant, and time-bound (SMART) goals.
  • Target Market: Identify your primary customers – who they are and why they would choose your restaurant.

Step 3: Market Analysis

  • Industry Overview: Analyze the restaurant industry, particularly in your proposed location, including trends and forecasts.
  • Target Market Demographics: Detail the specific demographics of your target audience, like age, income level, dining preferences.
  • Competition Analysis: Assess direct and indirect competitors, their strengths and weaknesses, and how your restaurant will stand out.

Step 4: Menu Design and Service Offering

  • Draft Menu: Outline a preliminary menu. Include a range of offerings while maintaining focus on your unique concept.
  • Service Style: Describe the type of service (e.g., fast-casual, fine dining) and any additional services like catering or delivery.

Step 5: Marketing and Sales Strategy

  • Marketing Plan: Develop strategies for promoting your restaurant, including branding, advertising channels, and promotional activities.
  • Sales Strategy: Outline how you will generate and grow sales, including pricing strategy and customer loyalty programs.

Step 6: Operational Plan

  • Daily Operations: Describe the operational workflow of the restaurant, from supply chain management to customer service.
  • Facility Needs: Detail the physical requirements of your restaurant, including location, size, kitchen equipment, and dining area layout.

Step 7: Management and Organizational Structure

  • Management Team: Introduce your management team, highlighting relevant experience and skills.
  • Staffing Plan: Outline your staffing requirements, including kitchen staff, servers, and administrative personnel.

Step 8: Financial Projection and Analysis

  • Startup Costs: Provide a detailed breakdown of startup expenses, including kitchen equipment, renovation costs, and initial inventory.
  • Revenue Projections: Estimate your revenue for the first few years. Be realistic in your assumptions.
  • Expense Forecast: Include an itemized list of ongoing operational expenses.
  • Profit and Loss Projection: Showcase a projected profit and loss statement, highlighting when your restaurant is expected to break even.

Step 9: Funding Requirements

  • Capital Needs: Clearly state the total amount of capital required to start and sustain the restaurant until it becomes profitable.
  • Funding Plan: Identify potential sources of funding, such as loans, investors, or personal savings.

Step 10: Appendix

  • Supporting Documents: Attach any additional documents like detailed market research, sample menus, or architectural plans for the restaurant.

1. Present the Executive Summary:

2. propose business opportunity:, 3. layout implementation procedures:, 4. mention stakeholders:, 5. advance financial draft:, more design, 11+ restaurant project plan examples & samples - pdf examples, 9+ restaurant project plan examples - pdf examples, 9+ restaurant swot analysis examples - pdf, 28+ simple business plan examples in pdf word | pages ..., 20+ business plan examples in pdf google docs | word ..., 11+ restaurant action plan examples - pdf examples, 23+ restaurant marketing action plan examples - pdf, word, docs ..., 11+ restaurant operational plan examples - pdf, doc examples, 10+ business plan guidelines examples - pdf examples, 33+ business plan examples & samples in pdf word ..., 10+ food catering business plan examples - pdf, word examples, 12+ non-disclosure agreement examples & templates ....


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How to Make a Restaurant Business Plan

Are you passionate about starting a restaurant? Discover the essential steps to write a compelling restaurant business plan and turn your culinary dreams into a thriving reality.

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Starting a restaurant is an exciting venture, but it requires careful planning to ensure its success. A well-crafted restaurant business plan serves as a roadmap, outlining your goals, strategies, and financial projections. In this article, we’ll guide you through the process of writing a restaurant business plan, step-by-step, making the first steps in your journey as a restaurant owner smoother.

What is a restaurant business plan?

A restaurant business plan is a document that outlines your restaurant’s concept, goals, target market, marketing strategies, operations, and financial projections. It serves as a blueprint for your business , helping you make informed decisions and attract potential investors or lenders.

A well-developed restaurant business plan not only helps you clarify your vision but also demonstrates your commitment and preparedness to stakeholders.

How to Write a Restaurant Business Plan

Every business will have a slightly different business plan, especially in the restaurant industry. However, there are a few common elements in most plans. To get started, include these elements to create an excellent business plan for a restaurant. 

Branded cover page

Your restaurant business plan should start with a professional cover page that reflects your brand identity. Include your restaurant’s name , logo , and contact information to make a strong first impression.

Executive summary

The executive summary is a concise overview of your restaurant business plan. It provides a snapshot of your concept, target market, competitive advantage, and financial expectations. Keep it engaging and captivating to grab the reader’s attention.

Company overview

In this section, provide detailed information about your restaurant. Describe your restaurant concept, location, legal structure ( such as an LLC ), and ownership. Explain your unique selling proposition (USP) and highlight what sets your restaurant apart from the competition.

Industry analysis

Conduct a thorough analysis of your target market , location, and competitors. Identify your target audience, their preferences, and demographics. Evaluate your restaurant’s location, considering factors like foot traffic, accessibility, and competition. Analyze your competitors’ strengths and weaknesses to identify opportunities for differentiation.

Sample menu

Present a sample menu that showcases your restaurant’s culinary offerings. Include a variety of dishes that reflect your concept and target audience. Describe the ingredients, cooking techniques, and pricing strategy to give potential investors or lenders an idea of your menu’s profitability.

Marketing plan

Outline your marketing strategies to attract customers and build brand awareness. Identify your target audience and develop a comprehensive marketing mix, including online and offline tactics. Include social media campaigns , your website , email marketing, promotions, partnerships, and community engagement initiatives.

Operations plan

Detail the operational aspects of your restaurant. Describe your staffing plan, including the organizational structure, key roles, and responsibilities. Explain your customer service policies and procedures, emphasizing your commitment to excellent service. Discuss your restaurant point-of-sale (POS) system and other operational systems you plan to implement. Lastly, outline your supplier relationships and inventory management strategies.

Financial analysis

Present a comprehensive financial analysis that demonstrates the viability and profitability of your restaurant. Include an investment plan, detailing the required startup costs and funding sources . Develop a projected profit and loss (P&L) statement, forecasting revenues and expenses over a specific period. Conduct a break-even analysis to determine the point at which your restaurant becomes profitable. Lastly, include an expected cash flow statement to showcase the flow of money in and out of your business.

Don’t panic if your business plan isn’t completely exact about potential prices or profits; these elements are just your best (educated) estimates. Including them, even if they change a bit after you get started, helps prove to your investors that you’ve done your homework and that you know the restaurant can succeed.

If there are other elements you want to include in your restaurant business plan, you can do so. Some businesses have an attorney help them draft this document, but that’s not a legal requirement. In fact, you can use a customizable business plan template to streamline this process. 

We can help!

At ZenBusiness, we understand the challenges of starting and running a restaurant. Our platform provides a range of services to support your journey. From seamless LLC formation to business license reports and registered agent services , we handle the administrative tasks, allowing you to focus on your restaurant’s success. Get started today and let ZenBusiness be your partner in building a thriving restaurant business.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

Restaurant Business Plan FAQs

What needs to be included in a restaurant business plan.

A comprehensive restaurant business plan should include key elements that outline your restaurant’s concept, target market, marketing strategies, operational plans, and financial projections. It should cover details such as your menu, pricing strategy, staffing plan, customer service policies, location analysis, competitive analysis, and investment plan. Additionally, it’s crucial to incorporate a well-researched industry analysis, highlighting market trends, customer preferences, and competitive advantages. Including these elements will provide a clear roadmap for your restaurant’s success.

How do I plan a small restaurant?

Planning a small restaurant involves several crucial steps. First, define your restaurant concept and identify your target audience. Conduct thorough market research to understand the local food industry, potential competitors, and customer preferences. Determine your budget and create a detailed financial plan that includes startup costs, equipment, inventory, and operational expenses. Develop a comprehensive marketing strategy to attract customers and build brand awareness. Lastly, create an operational plan, outlining staffing, customer service protocols, menu offerings, and supplier relationships. By carefully planning each aspect, you can set a solid foundation for your small restaurant’s success.

Is a restaurant a good business to start?

Starting a restaurant can be a rewarding and fulfilling venture for those passionate about the culinary industry. However, it’s essential to recognize the challenges that come with it. The restaurant business is highly competitive, with a significant failure rate. Success depends on various factors, including a well-defined concept, effective marketing strategies, strong financial management, excellent customer service, and a dedicated team. It’s wise to conduct thorough market research, develop a solid business plan, and use professional services like ZenBusiness to increase your chances of success.

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How to Write a Restaurant Business Plan: Complete Guide

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  • January 31, 2023
  • Food & Beverage

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👇 Check all our resources on restaurants 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) to open a restaurant , you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your restaurant. Use this template to create a complete, clear and solid business plan that get you funded. Let’s dive in!

1. Restaurant Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a restaurant?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write your restaurant’s executive summary?

Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

  • Business overview : start by introducing your restaurant and the products and services that you intend offer. Mention the type of restaurant you intend to open (such as fine dining, casual dining, fast casual, ghost restaurant, café, pub, etc.), the menu and prices. Also add here the total number of customers your restaurant can host at once, its location, and some details on the surface and the design layout
  • Market analysis : summarise the market where you will operate and provide a brief about the target audience, market size , competitors, etc. No need to provide granular data here, save it for the Market Overview section later on (or the appendix)
  • People : introduce your restaurant’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak about your hiring plans.
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials statements
  • Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

business plans restaurant

Restaurant Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Restaurant Business Overview

This is the section where you will provide details about your restaurant and the chosen business model. You must address some important questions that lenders and/or investors generally ask .

Here is a quick list of some of those questions you must address:

  • What is the rationale behind you opening this type of restaurant today?
  • What’s the restaurant’s location and why did you select that location?
  • Why did you select the type of restaurant you want to open?
  • What will be the products and services you will offer?
  • What will be your pricing strategy and why?
  • What will be your opening days / hours?
  • How many customers can you serve at once (capacity)?
  • What is the surface of your restaurant? How is the restaurant designed (incl. dining rooms and kitchen area)?
  • What will be the legal structure of your company?

a) History of the Project

Any business must have two components:

  • Passion & experience of the business owner
  • Rationale behind starting this type of business today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have been a restaurant manager in a popular restaurant for 6 years, and now you want to start your own restaurant and use your knowledge to run it more efficiently.

However, if you don’t already have experience, that’s fine. You must demonstrate your passion and some industry knowledge (you may have conducted thorough research).

What is your restaurant’s mission?

For example, there may not be any fine dining restaurant in your area where wealthy residents or tourists can enjoy an upscale meal experience in a sophisticated and elegant environment.

But that’s not all: your market must be suitable for your business to thrive.

For instance, if you are planning to open a fine dining restaurant in a low-income area, it is probably not going to attract many customers. Similarly, if the population of the target market has a high percentage of people preferring takeaway/delivery food options because of their busy lifestyle, a fine dining restaurant may not be a good idea.

business plans restaurant

b) Business Model

This sub-section of the Business Overview will explain your business model. Describe the following points briefly:

  • Will you buy an existing restaurant and do some remodeling, or will you start a new restaurant and design it from scratch?
  • Will you buy a franchise or do you plan to open an independent restaurant instead?
  • The type of restaurant you want to open and why

What are the different types of restaurants?

There are multiple types of restaurants. Some of them that you may consider include, but are not limited to:

  • Fine Dining : They provide upscale meal experience with several courses. The atmosphere is sophisticated and classy. They can be franchises or individually owned. Of course, they are quite expensive.
  • Casual Dining : This type of restaurants serve customers at their tables and the food prices are moderate. The atmosphere is not very sophisticated. Though the décor is often unique, it can be based on the type of food a restaurant serves.
  • Fast Casual : These restaurants will make your food available quickly, but the food is healthier than fast food. Also, food is cheaper than casual dining. They have a counter service (you must collect food from the counter) and the décor is more contemporary.
  • Ghost Kitchens : ghost kitchens (or “dark kitchen”) restaurants do not have a storefront, a dining room, signage, or décor. They operate using food delivery partners and take orders through online ordering or phone ordering.
  • Fast Food : Think of Taco Bell , KFC, Burger King, etc. The food is relatively cheap and is served quickly. Food ingredients are usually preheated or precooked, and food delivery happens over the counter or via a drive-through window.
  • Buffet Style : These restaurants are similar to the Family Style restaurants but with a fundamental difference. People get to select from a selection of food that are made available against a fixed price. However, customers need to serve themselves and they are allowed to return to the buffet for as many times as they want.

business plans restaurant

c) Products & Services

Of course, the products you will offer in your restaurant will depend on the type of restaurant you are opening. A Buffet Style restaurant, for example, usually prefer specialty cuisines like Indian, pizza, home cooking, Chinese, etc. Similarly, if you are opting for a Diner, you will most likely offer fried foods (fish & chicken), breakfast items, burgers, etc. at a low cost.

It is a good idea to give a list of food and drinks that you want to sell. Depending on the scale of your operations, you may have too many menu items. It is not possible to list every item on your menu, but make sure that you are listing the most important ones. If you specialize in one or a few specific dishes, mention that, too.

business plans restaurant

d) Pricing Strategy

In this sub-section, you must explain the pricing strategy of your restaurant. If you have multiple competitors (in the same niche) in the vicinity, you cannot have huge pricing variation, especially for the similar food items. Pricing will, of course, depend on the type of restaurant you are opening, and the food items you are offering.

For example, if you are sourcing the raw materials only from organic farms that do not use fertilizers and pesticides, your menu items will have a higher price tag.

Similarly, you cannot expect to charge expensive Fine Dining-like prices if you are opening a Casual Dining restaurant instead.

Create a pricing table and ensure to provide an average price range for your products. You don’t need to provide exact pricing for each product. Use price ranges instead.

Offering a pricing table is important because your pricing strategy will allow investors to tie your pricing strategy with your financial projections .

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Restaurant Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if your intentions are to open a classy Fine Dining restaurant in a low-income area, you will not attract enough customers. Similarly, if you want to open a fast-food restaurant in a place where family dining is more popular, it will be a disaster.

Therefore, you must cover here 3 important areas:

  • Market size & growth : how big is the restaurant industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
  • Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
  • Customer analysis: who is your target audience? What type of restaurants do they prefer? How regularly do they visit restaurants for dining? What type of food do they prefer? How much do they spend at restaurants on average?

a) Restaurant Industry Status Quo

How big is the restaurant industry in the us.

According to Finance Online , there were over 1 million restaurants (all types combined) in the US in 2021. The industry recovered post a 60% drop in sales in April 2020 due to the pandemic, and recorded an annualised market size of over $1 trillion dollars in July 2022 ($1,033 billion)..!

business plans restaurant

How big is the restaurant industry in your area?

Once you provide the overall picture of the US, divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the market size .

For example, if there are 1,000,000 restaurants in the country with total annual revenue of $1 trillion, the average annual revenue for each establishment is around $1 million.

Therefore, if the area where you want to open your restaurant has 30 restaurants, you can safely assume that the restaurant industry in your area is worth approximately $30 million.

How fast is the restaurant industry growing in the area?

You must show the expected growth rate of the restaurant industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult as you can use metrics such as the number of competitors in your area.

For instance, if there were 25 restaurants in 2018 and 30 restaurants in 2022, the average annual growth rate would be 5%.

business plans restaurant

What are the current restaurant market trends in your area?

It is vital to understand the trends of the restaurant industry in your area. Understanding trends will allow you to devise marketing strategies.

Understanding trends won’t be easy. You must conduct research and talk with your target audience. Additionally, you must also study your competitors to understand their target audience, the products they sell, etc.

Some common questions you may ask the target audience include:

  • What type of restaurants do they prefer?
  • At what time of the day do they prefer to visit a restaurant (breakfast, lunch, dinner)?
  • How frequently do they visit restaurants?
  • What type of foods do they usually order?

You can ask as many questions as you need to understand the evolving trends.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their food offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

Restaurant SWOT Analysis

Try to provide a SWOT analysis. It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

  • Strength: 8 years of senior manager experience in a reputed Michelin Star Fine Dining restaurant operated & owned by a renowned chef and a master’s degree in Hospitality management, experienced senior chef with 22 years of experience
  • Weakness: Startup cost, zero reputation
  • Opportunities: An affluent neighborhood with a rising demand for fine dining establishments, only one fine dining restaurant in the 3-mile radius
  • Threats: Increasing cost of raw materials because of geo-political turmoil restricting international trade routes

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

business plans restaurant

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience.

Some important points that you must include in your customer analysis include:

  • Age and gender distribution (you can get local demographic data from census.gov )
  • Per capita expenditure on dining
  • Frequency of restaurant visits
  • Average monthly income and disposable income
  • Average bill size per visit
  • Average yearly or monthly spending on food at restaurants
  • Type of restaurants preferred
  • The expected price range for food
  • Inclination towards loyalty programs & free perks
  • Things they dislike about existing restaurants and what they expect to be improved

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers and increase sales .

business plans restaurant

4. Sales & Marketing Strategy

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

  • What is your USP?
  • What are the different marketing strategies you will use?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost ?
  • What is your marketing budget?
  • What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do restaurants use?

A few marketing channels that restaurants typically use are:

  • Word-of-mouth, recommendations,
  • Local listing & reviews (e.g. Google reviews)
  • Online booking platforms (e.g. TheFork , Opentable , etc.)
  • Influencer marketing
  • Print media, etc.

It is not necessary to use all channels. You can start by focusing on a few of them and include other marketing strategies later instead.

business plans restaurant

What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs can be:

  • Organic raw materials : we source organic farm fresh raw materials from local farmers
  • Authentic Indian food : prepared by a Michelin Star chef from India
  • Family run restaurant : run by a family, helping families connect over delicious food
  • Price : affordable food & menu for the quality vs. competitors
  • Location : the restaurant is located in a busy street, thereby attracting many customers who can easily glance over the menu
  • Uniqueness : you may be the only tapas-style restaurant around, in an area where people are fond of this type of restaurant

business plans restaurant

5. Management & People

You must address 2 things here:

  • The management team and their experience / track record
  • The organizational structure : different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your restaurant business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the restaurant you are proposing. If they have specialized training, achievement, and experience (such as a degree in hospitality management, 3 Michelin stars, experience in developing menus for 5-star hotels, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired a restaurant manager, server, chef, head cook, busser, cashier, bartenders, and other relevant staff members, you must provide here a chart of the organizational structure defining the hierarchy of reporting.

business plans restaurant

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a restaurant.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your restaurant is an attractive investment.

There should be 2 sections to your financial plan section:

  • The startup costs of your project (if you plan to start a new restaurant, renovate your restaurant, etc.)
  • The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your restaurant . For a restaurant, startup costs are all the expenses you incur before you open your restaurant and start making sales . These expenses typically are:

  • The leasing deposit for the space (if you rent) or to buy the real estate (if you buy)
  • Renovations and improvements
  • Equipment & appliances
  • Furniture & tableware

Of course, the startup costs depend on a number of factors, like the size of your restaurant, its location, the facilities, the menu, etc.

On average, it costs $484,000 to $685,000 to open a casual restaurant with 150 seats (2,500 sq. ft.) in the US.

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a restaurant, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your restaurant.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your restaurant.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even ?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 15%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of covers (customers or orders) over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, cost of raw materials (food supplies) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

business plans restaurant

7. Use of Funds

This is the last section of the business plan of your restaurant. Now that we have explained what your restaurant’s business model and concept are, what is your menu, your marketing strategy, etc., this section must now answer the following questions:

  • How much funding do you need ?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any restaurant business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our restaurant financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Sample Restaurant Business Plans For a New Business Owner

examples of a restaurant business plan

Writing a business plan is an essential part of starting a restaurant. Not only does it provide a roadmap for the future but it also helps to create funding opportunities and attract potential investors. For new business owners, having access to sample restaurant business plans can be especially helpful in providing direction and insights into how to write a restaurant business plan on their own.

Download our Ultimate Restaurant Business Plan Template

Having a comprehensive business plan in place is vital for any successful restaurant venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can also give you clarity on realistic financial projections and help you secure financing from lenders or investors. Examples of restaurant business plans are great resources to draw upon when creating your own plan to ensure that all the key elements are included in your document.

Below is an example restaurant business plan to help you see what one should look like. It is not however nearly as comprehensive and successful in raising capital for your restaurant as Growthink’s Ultimate Restaurant Business Plan Template , but it can help you write a business plan for your restaurant.

Restaurant Business Plan Example #1 – Black Pearl Seafood Restaurant

Table of contents.

Executive Summary

Company Overview

Industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

The Black Pearl Seafood Restaurant is a high-end seafood restaurant located in the heart of the historic district in New Orleans, LA. The restaurant will serve fresh seafood dishes with a modern twist and provide an unforgettable culinary experience for its guests.

The Black Pearl Seafood Restaurant is seeking to raise $200,000 in startup capital from a group of private investors. The funds will be used to cover the costs of building out the restaurant’s specific location, purchasing equipment and supplies, and hiring staff.

The Black Pearl Seafood Restaurant has a projected annual revenue of $1,200,000 and is expected to be profitable within its first year of operation. The restaurant’s target market is affluent diners who are looking for an exquisite seafood dining experience.

The Black Pearl Seafood Restaurant offers a unique and innovative menu that features fresh seafood dishes with a modern twist. The restaurant’s menu includes items such as:

  • Blackened salmon with shrimp and grits
  • Fried catfish po’ boy with remoulade sauce
  • Grilled Louisiana shrimp skewers
  • Crawfish etouffee
  • Shrimp gumbo

The Black Pearl Seafood Restaurant also offers a wide selection of wine and beer to complement its menu.

Company Description

The Black Pearl Seafood Restaurant is owned and operated by John Doe. Mr. Doe has over 10 years of experience in the food and beverage industry. He has worked as a chef at several renowned restaurants in New Orleans and has also owned and operated his own catering business.

The Black Pearl Seafood Restaurant will be located at 123 Main Street in New Orleans, LA. The restaurant will occupy a 3,000-square-foot space that was formerly occupied by a pizzeria. The location is in close proximity to several hotels and tourist attractions, which will generate significant foot traffic for the business. It is also located within walking distance of the Central Business District attracting local office workers and residents.

The Black Pearl Seafood Restaurant will have a seating capacity of 60 guests. The restaurant will also have a full-service bar that will serve beer, wine, and cocktails.

The seafood restaurant industry is one of the fastest-growing segments of the food service industry. Over the past five years, the industry has experienced strong growth due to an increase in the popularity of seafood as a healthy dietary choice.

The seafood restaurant industry is expected to continue to grow over the next five years as consumers’ preference for healthy and delicious food continues to rise. In addition, the industry will benefit from an increase in per capita disposable income, which will allow consumers to spend more on dining out.

Other Industry Analysis Points

  • The seafood restaurant industry is regulated by the FDA
  • Changes in government policies could impact the industry
  • The seafood restaurant industry is sensitive to changes in the economy
  • An economic downturn could lead to a decline in revenue and profit margins
  • The seafood restaurant industry is influenced by consumer trends and preferences
  • Health-conscious consumers are increasingly seeking out seafood as a healthy dietary choice


  • The seafood restaurant industry is impacted by advances in food technology
  • New cooking techniques and equipment can help to improve the quality of dishes served
  • The seafood restaurant industry is subject to food safety and sanitation regulations
  • Changes in the law could impact the way that restaurants operate


  • The seafood restaurant industry is impacted by changes in the environment
  • The quality of seafood dishes can be impacted by pollution and other environmental factors

The Black Pearl Seafood Restaurant will target two primary customer market segments: tourists and local residents.

The tourist market segment consists of individuals who are visiting New Orleans for leisure or business purposes. This market segment is significant for the business as it represents a large portion of the city’s population. New Orleans is a major tourist destination, with over 16 million visitors per year.

The local resident market segment consists of individuals who live and work in New Orleans. This market segment is significant for the business as it represents a stable source of income. Local residents are more likely to visit the restaurant on a regular basis and recommend it to friends and family.

Competitor Analysis

The Black Pearl Seafood Restaurant will compete in the seafood restaurant industry. Through our competitive research, the restaurant’s closest direct competitors will be Red Fish Grill, Bourbon House, and GW Fins.

The Black Pearl Seafood Restaurant will compete in the seafood restaurant industry. The restaurant’s closest competitors will be Red Fish Grill, Bourbon House, and GW Fins.

Red Fish Grill is a seafood restaurant located in the French Quarter of New Orleans. The restaurant offers a casual dining experience with a menu that features fresh seafood dishes.

Bourbon House is a seafood restaurant located in the French Quarter of New Orleans. The restaurant offers a more upscale dining experience with a menu that features fresh seafood and steak dishes.

GW Fins is a seafood restaurant located in the Warehouse District of New Orleans. The restaurant offers an upscale dining experience with a menu that features fresh seafood dishes.

The Black Pearl Seafood Restaurant will differentiate itself from its competitors by offering a more innovative and modern menu with fresh seafood dishes that are prepared using unique cooking techniques. In addition, the restaurant will provide a superior level of customer service and create an unforgettable dining experience for its guests.

Our competitive advantages include:

  • Unique menu with fresh seafood dishes that are prepared using unique cooking techniques
  • Superior level of customer service

Products : The Black Pearl Seafood Restaurant will serve a variety of fresh seafood dishes that are prepared using unique cooking techniques.

Price : The price of menu items will be competitive with other seafood restaurants in the area.

Promotion : The Black Pearl Seafood Restaurant will use a combination of marketing strategies to promote the business and attract customers.

  • Develop a website and create social media accounts to reach a wider audience
  • Develop a promotional video to generate interest in the restaurant
  • Participate in local food festivals and events to generate awareness
  • Launch a targeted advertising campaign in local publications and on radio and television
  • Develop relationships with local tour operators to promote the restaurant to visitors
  • Offer discounts and special promotions to generate repeat business

Place : The Black Pearl Seafood Restaurant will be located in the French Quarter of New Orleans.

The Black Pearl Seafood Restaurant will be open for lunch and dinner seven days a week. The restaurant will be closed on Thanksgiving and Christmas Day.

The Black Pearl Seafood Restaurant will source seafood from local suppliers and growers to ensure the freshest ingredients are used in dishes.

The restaurant will use a point-of-sale system to manage inventory and track sales.

The restaurant will seat up to 100 guests at a time. Reservations will be accepted for parties of eight or more. Walk-in guests will be accommodated on a first-come, first-served basis.

The Black Pearl Seafood Restaurant will have a staff of 20 employees, including a head chef, sous chefs, kitchen staff, servers, and hostesses.

The Black Pearl Seafood Restaurant will be owned and operated by John and Jane Doe.

John Doe has over 10 years of experience in the restaurant industry. He has worked as a chef, manager, and consultant for a variety of restaurants.

Jane Doe has over 20 years of experience in the hospitality industry. She has worked as a hotel manager, event planner, and marketing consultant.

The Black Pearl Seafood Restaurant will have start-up costs of $500,000. The majority of the start-up costs will be for leasing and outfitting the restaurant space. Other start-up costs include purchasing kitchen equipment, hiring staff, and marketing the business.

The Black Pearl Seafood Restaurant is projected to generate $1.5 million in sales in the first year of operation. The restaurant is expected to have net profits of $250,000 in the first year.

Sample Menu


  • Jumbo shrimp cocktail
  • Oysters Rockefeller

Soups and salads:

  • Seafood bisque
  • Caesar salad with grilled shrimp
  • House salad with tuna steak
  • Spinach salad with scallops
  • Shrimp scampi
  • Surf and turf (filet mignon and lobster tail)
  • Grilled salmon with roasted vegetables
  • Blackened redfish
  • Bread pudding with rum sauce
  • Bananas Foster
  • Cheesecake with berry sauce
  • Key lime pie
  • Soda, coffee, tea, milk
  • Beer, wine, cocktails

Financial Projections

Balance sheet.

[insert financial statement]

Income Statement

Cash flow statement, restaurant business plan example #2 – la cocina de el paso: home of authentic mexican cuisine.

La Cocina de El Paso is a restaurant that specializes in serving authentic Mexican cuisine. The owners, John and Jane Doe, have over 30 years of combined experience in the hospitality and restaurant industry. This wealth of experience will ensure the success and longevity of the business.

Located in the heart of El Paso, La Cocina de El Paso will offer a relaxed and welcoming atmosphere. Guests can expect to be served freshly made dishes, prepared with only the freshest ingredients. The restaurant will also serve a selection of beer, wine, and cocktails.

La Cocina de El Paso will cater to both locals and tourists alike. To promote the business, the owners plan to launch an aggressive marketing campaign that will include print ads, radio spots, and social media. In addition, the restaurant will partner with local businesses to offer discounts and promotional offers.

The owners have estimated start-up costs of $500,000. The majority of this amount will be used to lease and outfit the restaurant space. Income is projected to reach $1.75 million within the first year of operations, with net profits of $350,000.

La Cocina de El Paso is an upcoming restaurant that will offer authentic Mexican cuisine. The restaurant will be located in downtown El Paso, Texas, and will feature a relaxed atmosphere with seating for up to 150 guests.

The restaurant will utilize only the freshest ingredients in its dishes and offer a selection of beer, wine, and cocktails. The menu will feature appetizers, soups and salads, entrees, desserts, and drinks.

The restaurant industry is highly competitive. In particular, Mexican cuisine has gained popularity in recent years. To succeed, La Cocina de El Paso must differentiate itself from other restaurants in the area.

The restaurant will focus on offering fresh and authentic Mexican cuisine with a welcoming atmosphere. The owners plan to partner with local businesses and offer discounts and promotional offers. In addition, the owners plan to launch an aggressive marketing campaign that will include print ads, radio spots, and social media.

The target market for La Cocina de El Paso will be both locals and tourists. The restaurant is located in a tourist area and is close to several attractions. As such, it will be well-positioned to attract customers from out of town as well as local residents.

The restaurant will serve a variety of customers, including young adults and families. To appeal to this demographic, the restaurant will offer an inviting atmosphere with comfortable seating and a selection of entertainment options. Additionally, the menu will feature authentic Mexican dishes that are sure to please all tastes.

Ideal Customer Demographics:

  • Young adults: ages 18-34
  • Local residents


  • Adventurous eaters
  • Value conscious
  • Seeking authentic experiences

There are several other restaurants in El Paso that specialize in Mexican cuisine. Main competitors include El Paso’s Best, El Taco Loco, and Casa Azul.

El Paso’s Best is the area’s premier Mexican restaurant. The food is of high quality and the atmosphere is casual yet upscale. Prices are slightly higher than La Cocina de El Paso, but the quality of the food makes it worth the price.

El Taco Loco is a fast-food Mexican restaurant. The food is inexpensive, but the quality is not as high as La Cocina de El Paso.

Casa Azul is a family-style Mexican restaurant with more of a casual atmosphere. Prices are slightly lower than La Cocina de El Paso and the menu features traditional Mexican dishes.

To differentiate itself, La Cocina de El Paso will focus on fresh ingredients and authentic Mexican dishes. The restaurant will also offer a selection of beer, wine, and cocktails, as well as discounts and promotional offers. Finally, the owners plan to launch an aggressive marketing campaign that will help spread the word about La Cocina de El Paso.

To attract customers, La Cocina de El Paso will focus on marketing its fresh and authentic Mexican cuisine.

Below is a sample menu for La Cocina de El Paso, featuring traditional Mexican dishes and a selection of beer, wine, and cocktails.

  • Quesadillas
  • Guacamole and Chips
  • Stuffed Jalapenos
  • Queso fundido, taquitos

Soups & Salads:

  • Chicken Tortilla Soup
  • Caldo de Res (Beef Soup)
  • Taco Salad with Ground Beef or Grilled Chicken
  • Ensalada de la Casa (House Salad)
  • Ensalada Fresca (Fresh Salad)
  • Tacos al Carbon (Grilled Steak Tacos)
  • Fajitas (Steak, Chicken, or Vegetarian)
  • Chiles Rellenos (Stuffed Peppers)
  • Carne Asada con Papas
  • Camarones a la Diabla
  • Enchiladas Verdes
  • Churros con Chocolate
  • Tres Leches Cake
  • Flan Napolitano
  • Beer & Wine


The restaurant will offer promotional discounts and specials. For example, customers who purchase two entrees may receive a complimentary appetizer or dessert. The owners plan to partner with local businesses to offer additional discounts and promotional offers.

La Cocina de El Paso will offer competitive pricing. Prices will be slightly lower than El Paso’s Best, but higher than El Taco Loco and Casa Azul.

The restaurant will be located in downtown El Paso, close to several attractions and tourist sites. The owners hope that the convenient location will help bring in both tourists and local residents.

Marketing Mix

To reach its target customers, La Cocina de El Paso will use a combination of traditional marketing strategies such as print ads, radio spots, and TV commercials, as well as digital marketing tactics such as content marketing, social media campaigns, email newsletters, and online advertising.

  • Print Advertising : The owners plan to run print ads in local newspapers and magazines that target young adults and families.
  • Radio & TV Spots : The restaurant will also air radio spots and TV commercials that feature its menu items and promotional offers.
  • Content Marketing : La Cocina de El Paso will create content that highlights the freshness of its ingredients and the authenticity of its Mexican dishes. The content will be shared on social media, in email newsletters, and on the restaurant’s website.
  • Social Media Campaigns : The restaurant will run campaigns on Facebook and Instagram that feature customer reviews, contests, and giveaways.
  • Online Advertising : The owners plan to use Google Ads and other online platforms to reach potential customers.

The owners of La Cocina de El Paso are confident that their marketing strategy will help the restaurant stand out from its competitors and attract customers. With its fresh and authentic Mexican cuisine, competitive prices, convenient location, and aggressive marketing campaigns, La Cocina de El Paso is sure to be a success.

Collaborative Promotion: The owners of La Cocina de El Paso plan to partner with local businesses in order to create mutually beneficial promotional offers. For example, the restaurant may offer discounts to customers who use services from one of its partners. The owners believe that this type of collaborative promotion will help draw in more customers and generate additional revenue for the business.

Events: La Cocina de El Paso plans to host events such as cooking classes and live music performances in order to build relationships with customers and increase brand awareness. The restaurant will also use these events to showcase the freshness of its ingredients, its Mexican cuisine, and the quality of its drinks (margaritas, beer & wine, cocktails).

These strategies are designed to help La Cocina de El Paso build a strong customer base and become a popular destination in downtown El Paso. The owners are confident that these tactics will help the restaurant stand out and create a positive impact on the local community.

La Cocina de El Paso will have a skilled team of servers, cooks, and bartenders who are knowledgeable about the restaurant’s Mexican cuisine. The owners plan to focus on delivering high-quality customer service in order to ensure customers have a great experience. The owners also plan to invest in modern kitchen equipment that can help streamline the cooking process.

The restaurant will be open from 11 am to 10 pm on weekdays and from 11 am to 11 pm on weekends. The owners plan to hire additional staff during peak hours in order to handle the influx of customers. The owners also plan to use advanced reservation systems and delivery services to accommodate customers who would prefer not to wait in line.

The owners of La Cocina de El Paso have extensive experience in the restaurant industry. They plan to hire a team of experienced managers who can handle day-to-day operations and ensure that the restaurant runs smoothly. The management team will also be responsible for developing marketing strategies, overseeing staff training programs, and creating promotional offers.

The job description for the management team includes:

  • Overseeing day-to-day operations
  • Developing marketing strategies and managing promotional campaigns
  • Creating training programs for staff members
  • Handling customer inquiries and complaints
  • Ensuring that food safety standards are met
  • Analyzing data to identify areas for improvement.

The total start-up cost of La Cocina de El Paso is estimated at $500,000.

This includes:

  • $100,000 for lease deposits and renovations costs;
  • $200,000 for furniture and fixtures;
  • $50,000 for marketing and advertising;
  • $50,000 for kitchen equipment;
  • $100,000 for the salary of the management team.

The owners plan to finance the start-up costs through a combination of their personal savings and bank loans. They also plan to generate additional revenue by offering catering services and hosting special events at the restaurant.

The financial forecast for La Cocina de El Paso is optimistic. The owners expect to break even in the first year of operations and reach profitability within five years.

Free Restaurant Business Plan Example PDF

Download our restaurant business plan pdf here. This is a free restaurant business plan example to help you get started on your own restaurant plan.

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Small Restaurant Business Plan

Start your own small restaurant business plan

Bistro Locale

Value proposition.

Bistro Locale offers an intimate and authentic dining experience by serving fresh, seasonal dishes inspired by local flavors and ingredients. With its warm, inviting atmosphere and exceptional customer service, it provides a unique destination for food lovers seeking a local, high-quality dining experience.

The Problem

Many restaurants offer generic, mass-market menus, lacking the charm, authenticity, and personal touch that discerning diners seek. There’s a need for a dining destination that offers a menu deeply rooted in the local culinary culture, showcasing the region’s finest ingredients.

The Solution

Bistro Locale fills this gap by offering a rotating menu based on the seasons and local produce availability. With dishes prepared with passion and attention to detail, the restaurant provides a unique dining experience that supports local farmers and celebrates the community’s culinary heritage.

Target Market

The primary target market includes local residents who appreciate high-quality, locally-sourced food, as well as tourists seeking an authentic regional dining experience. The secondary market includes local businesses looking for catering services for corporate events or meetings.

Competitors & Differentiation

Current alternatives.

  • Chain restaurants
  • Other local independent restaurants
  • Fast-food restaurants
  • Food delivery services

Bistro Locale differentiates itself by emphasizing local produce and seasonal menus, offering diners an authentic, high-quality dining experience that truly represents the region’s culinary heritage. The restaurant’s intimate atmosphere and top-notch customer service also contribute to a unique and memorable dining experience.

Funding Needs

The initial investment for property lease, kitchen equipment, renovation, inventory, and working capital is estimated at $200,000.

Sales Channels

  • Bistro Locale physical location
  • Online reservations via the restaurant website
  • Food delivery apps for takeout orders
  • Catering services

Marketing Activities

  • Social Media Campaigns
  • Local SEO and Content Marketing
  • Collaborations with Local Farms and Businesses
  • Email Marketing and Special Promotions
  • Participating in Local Food Festivals and Events

Financial Projections

2023: $250,000

2024: $280,000

2025: $315,000


2023: $180,000

2024: $195,000

2025: $210,000

2023: $70,000

2024: $85,000

2025: $105,000

  • Obtain necessary permits and licenses — June 1, 2023
  • Complete renovations and set up — August 1, 2023
  • Launch website and social media accounts — September 1, 2023
  • Open for business — October 1, 2023
  • Start offering catering services — January 1, 2024
  • Achieve consistent monthly profitability — June 1, 2024
  • Participate in the local food festival — September 1, 2024

Team and Key Roles


Responsible for overseeing the daily operations of Bistro Locale, including menu planning, inventory management, and staff training.

Oversees kitchen operations, ensures food safety practices, manages kitchen staff, and collaborates on menu development.

Front-of-House Manager

Manages the customer service aspect, oversees front-of-house staff, ensures a clean and welcoming environment, and handles customer complaints and feedback.

Partnerships & Resources

The purpose of these partnerships is to build a successful restaurant business that delivers quality and value to its customers while supporting the local economy and community.

Local Farmers and Food Suppliers

Partner with local farms and food suppliers to source fresh, high-quality ingredients and support local economic development.

Food Delivery Apps

Collaborate with popular food delivery apps to offer delivery services, making it easier for customers to enjoy Bistro Locale’s meals from the comfort of their homes or offices.

Community Organizations

Engage with local community organizations to host charity events, fundraisers, and community gatherings, positioning Bistro Locale as a community-conscious business.

Local Businesses

Develop partnerships for catering services, offering special rates and deals to encourage local businesses to use our services for their events and meetings.

Wine and Beverage Suppliers

Collaborate with local wineries and beverage suppliers to offer a diverse selection of regional wines and drinks that pair well with the menu and highlight local products.

Through these partnerships, Bistro Locale can effectively integrate into the local community, promote sustainable and local sourcing, and contribute to the local economy, while providing an authentic and high-quality dining experience to its customers.

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McDonald's aims to open nearly 9,000 restaurants, add 100 million loyalty members by 2027


  • McDonald's expects to hike its capital spending through 2027 as it accelerates its new restaurant openings.The company also wants to add 100 million members to its loyalty program as part of its strategy to grow its global sales.

In this article

McDonald's wants to open more than 8,800 locations and add 100 million members to its loyalty program by 2027.

The targets are part of the fast-food giant's long-term plans to grow sales across its already sprawling restaurant footprint.

McDonald's announced its new goals ahead of its investor day on Wednesday, as it looks to persuade shareholders that diners' appetites for its Big Macs and McNuggets are still growing, even as Wall Street worries about the economy and the threat posed by weight-loss drugs. The burger chain is expected to offer more details about how it plans to keep attracting customers, including by phasing in an improved version of its burger and doubling down on chicken.

For 2024, McDonald's is projecting net new restaurant growth of 4%. Nearly 2% of next year's systemwide sales growth in constant currency will come from adding to its footprint.

After 2024, the company plans to grow its restaurant count by 4% to 5% annually. Those new locations will contribute about 2.5% of systemwide sales growth in constant currency.

McDonald's big development plans will mean higher capital spending. For 2024, the company anticipates $2.5 billion in capital expenditures, up from its expectation of $2.2 billion to $2.4 billion in 2023. And for every year from 2025 through 2027, McDonald's expects to increase its capital expenditures by $300 million to $500 million sequentially.

By 2027, McDonald's wants a global footprint of 50,000 locations. The chain had 41,198 restaurants worldwide as of Sept. 30. For comparison, Starbucks in November said it aims to reach 55,000 cafes worldwide by 2030, up from its current count of more than 38,000.

To reach its development target, McDonald's plans to open 900 U.S. locations, 1,900 restaurants in its international operated markets segment and roughly 7,000 units in its international developmental licensed markets division.

The company's IOM business includes markets like France, Canada and Australia, and accounts for nearly 50% of the company's revenue.

McDonald's IDL segment includes China, which will account for more than half of the division's new locations. In late November, McDonald's announced it had bought back a minority stake in its China business, which currently has a footprint of more than 5,500 restaurants.

"There's no reason why China can't be [20,000] to 25,000 stores or restaurants — it could be the largest market for us around the world," McDonald's CEO Chris Kempczinski said.

Executives have said that its current footprint is outdated and doesn't reflect where consumers currently live, including the shift to the South and Southeast in the U.S.

In January, Kempczinski said in a broader announcement about a corporate restructuring that the company would accelerate new restaurant development. This is the first time the company has disclosed its new development targets.

The company's expansion will go beyond its ambitious plan to open new flagship restaurants. It will also test 10 locations of a spinoff brand , CosMc's, by the end of 2024. The first will open this week in Illinois.

In addition to its ambitious plans to expand its footprint, McDonald's wants to reach a quarter of a billion active members for its loyalty program by 2027. At its last investor day, in 2020, the company was still testing the loyalty program in the U.S. But since then, it has grown to be a juggernaut, boosting mobile sales and encouraging customers to return more frequently.

McDonald's is leaning into its loyalty program as marketers fear a "cookieless future," where third-party data on its customers dries up, according to Morgan Flatley, McDonald's global chief marketing officer and executive vice president of new business ventures. Instead, by adding new ways to earn points like watching sports games on its app, and perks like transferring points to family and friends, McDonald's is preparing to rely only on a trove of data it collects through its own mobile app.

"In the future, data will sit alongside restaurant locations as another significant competitive advantage," McDonald's U.S. President Joe Erlinger told investors on Wednesday.

McDonald's also announced a partnership with Alphabet's Google Cloud, using its artificial intelligence across its restaurants to improve operations.

"We're excited to see how McDonald's will use our generative AI, cloud, and edge computing tools to improve their iconic dining experience for their employees and their customers all over the world," Alphabet CEO Sundar Pichai said in a statement.

Clarification: This story was updated to reflect that McDonald's systemwide sales projections relate to the new restaurant openings.



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