Restaurant Business

and Marketing Plans

Blenda Manoy
Joan Menorca
Bob Flores
Azineth D’dawn Fajutag
Gemalyn Prado
Mario Jose Bigcas
Salvie Anar
- A restaurant plan is an opportunity to
bring your concept to life on a concept
paper. It provides an outlet to express your
passion for your idea and sell others on it,
too. A business plan has two primary
purposes; to attract potential investors and
to provide a guideline for opening and
operating your restaurant.
 Business Plan
- A business plan is your roadmap for the
future of the business. Not only does it
provide direction, but it also requires you to
consider all the pitfalls and opportunity of
your prospective enterprise, well before you
open its doors. It is your script of how the
business ought to be.
A business plan is essential for the newest business
seeking any kind of financing. It is imperative for a
prospective restaurateur. By creating a restaurant
business plan, you do things:

1. You show the bank you have a clear and concise

plan for getting you restaurant up and running.
2. You will learn about all the different parts of
restaurant, as well as your local market.
Here are some tips for writing an executive summary gears
toward a restaurant business plan.
• You want to give the reader (a potential investor ) the basic of your business idea.
• Explain why you are well suited for this restaurant venture.
• Company Description- this part of business plan is sometimes referred to as a business
analysis.
• Market Analysis- this part of restaurant business plan is sometimes referred to a marketing
strategy.
• Industry- who are you going to be serving? Is your restaurant going to cater to the older folks
at lunch time?
• Competition- who is your competition? Many people are opening a new restaurant assume
everyone will prefer their new establishment to the existing competition.
• Marketing- what methods do you plan to use to promote your restaurant?
 How to write a business plan for a restaurant or food
business:
Step 1. Develop a business description for your restaurant. Begin the description with the
name of your food establishment, its address and contact information. Include the name
and contact information for each of the restaurants owner, along with a brief description
of their experience. Provide your restaurants legal business description, such as sole
proprietor or partnership. Outline your restaurants short and long term goals, and briefly
address the trends and growth patterns within your areas food industry.
Step 2. Describe the managers and employees of your restaurant. Categorize the
employees in department such as kitchen staff, human resources. Provide clear details
about the functions of each departmental manager. Include the cost of salaries, benefits
and training costs within this description. Create an organizational chart to show the flow
of responsibility.
Step 3. Create a section that describes the operations of your restaurant. Describe the location
of your restaurant, along with the furniture and equipment that the restaurant will need to run
smoothly.
Step 4. Finish your operations section by listing the suppliers and vendors your restaurant will
use. Identify the products or service that you will purchase from these suppliers, along with the
costs of each product, the suppliers contact information and details on any established contracts
that you have formed. Explain the methods that your restaurant will use to control inventory.
Step 5. Research the food industry within your area and identify your food business target
market. Explain how your business will generate these customers and the cost for each, such as
advertisement, commercials and radio ads. Identify the licensing and permit requirements for
your restaurant, along within the steps that your business will take to obtain and maintain those
requirements.
Step 6. Create your restaurant menu and include the prices for each item. Include prices for any
additional items that might not appear on the menu, such as special sauces or branded T-shirts.
Step 7. Complete your restaurant’s marketing section by identifying your restaurants
competition. Consider food establishment with similar foods to your restaurant, as well as all
other food establishment in the area. Define your restaurant’s specialties and explain how your
restaurant will stand apart from the competition.
Step 8. Create the financial statements for your restaurant. Include a personal financial
statement for each of the restaurant's owners, along with a balance sheet, income
statement and cash flow statement for the restaurant. Be realistic with your projections
and provide accurate information.
Step 9. Create an executive summary for your restaurant business plan. Briefly introduce
the restaurant, its target customers and its competition, and provide a brief explanation
as to how your restaurant will attract its customers and counteract its competition.
Step 10. Place the summary at the beginning of the business plan. Follow the business
plan with documents that support the information within the plan, such as your staffing
organizational chart, tax returns and bank statements.
 Marketing Planning And Strategy
In the business world, we often do not make a clear distinction between strategy and
planning. They are not the same thing and confusing the two creates barriers to
success. Often, this is because while we know what plan is, we cannot articulate a
strategy.
A strategy can be broken down into two parts. First, a strategy is where-you-play, which
often means a combination of the industry, the targeted customer and the product or
service. It is any distinguishable marketplace. The second component is how-you-win.
A strategy has to have real advantage, not be your own personal preference for the
restaurant. The advantage must not be temporary, but a permanent edge over the
competition.
Also note that the marketing strategy is without plans on how to communicate the
quickest service in town to customers. That is the next target:
 First Strategy then Planning
- Figuring out your strategy does not involve
planning. Planning all comes out after you
determine your strategy. It is about exploiting your
individual advantage in whatever market you are
targeting. While strategy is conceptual, planning
involves particular steps and the usage of resources.
 Finding A Marketing Strategy
- Strategy can be extended into different marketing
channels. Social media might be a way of reinforcing the
brand and facilitating word-of-mouth among friends. Going
one step deeper, we might use Facebook for staying in
contact with regular customers in a particular demographic
(where-you-play). An advantage could be a tapping the
potential of customer-produced content because it is more
plentiful and a restaurant uses it to better effect than the
nearest competitors.
 Developing Marketing Plans
- After you establish an overacting marketing strategy
or strategies (do not try to balance too many
strategies), you will flesh them out with more limited
strategies and specific plans. As mentioned above,
plan success is determined by customer behavior
and response and is partially beyond a restaurant’s
control. It involves resources and specific steps. It
always should be done with a strange in mind.
 Marketing Plan for a Bar and Restaurant

- Launching a bar and restaurant can be a successful

venture, but it relies on some initial legwork to
succeed. In addition to finding funding and hiring
employees, bar and restaurant management also
must develop a marketing plan. Your plan should
identify how business will build a customer base and
succeed in a competitive climate. Several elements
go into an effective marketing strategy.
 Marketing Analysis
The marketing plan for your bar and restaurant should
include a thorough analysis of your local market. This
analysis should review the current bars and restaurants in
your area and their success or failures. It should weigh the
demographic in your area as well; for example, if the zip
code where your restaurant will locate primarily inhabited
by families, a kid-friendly menu is a must. The market
analysis, ultimately, should identify the need for your
restaurant in the area.
 Market Trends
The trends of the restaurant market in your area are
essential to include in your bar and restaurant’s
marketing plan. For example, the recent success of
new restaurants in the region can be a double-edge
sword while it bodes well for new businesses, you
must determine if there is a glut of restaurants in the
region. Consider the types if restaurant than they do
when the economy is blooming. Place how your
restaurant will fit into this current trend.
 Restaurant Goals
As you set your marketing plan for your bar and restaurant,
you must have achievable, identifiable goals to guide your
marketing efforts. Often, these goals are stated in terms of
dollar signs. If you have a daily a daily, weekly, monthly or
quarterly sales goal, states it clearly in this section. Perhaps
you want to see a certain number of customer walk through
your doors everyday. If your long-term goals include
opening up a second restaurant, state this here as well.
 Goal-Oriented Marketing Tasks
Your marketing plan should also include specific
tasks that you will complete to achieve your
overall restaurant goals. Define these tasks
clearly so that all members of your
organizations, from management down to the
wait staff, understand what they must
accomplish.
 Develop an Effective Marketing Plan

Developing a business plan for your restaurant

is extremely important- it helps your plan for
your future instead of reacting to changes in
your business. Additionally, it gives you
credibility and lenders will always ask for one if
they consider lending you money.
 Determine Your Market

Determine where your business comes

from. This could be a four-block area for
a small deli or a 40-mile area for an
upscale destination restaurant.
 Check Out the Competition

Gather some “competitive intelligence” through

scouting. Develop a competition profile. Things you
should include in a competition profile include Name,
Address, Hours of Operation, Restaurant Theme (e.g.
Continental, Italian, American) and Entrée Prices. Set
it up like a chart and include your restaurant for easy
comparison.
 Identify Your Business

Identifying who dines in with you is the

crux of your marketing plan. Determine
who your customers are (e.g. business
people, social people) and why they
dine at your restaurant.
 Determine If There is Additional Business
Available for your Restaurant

Based on your current customer base,

determine if there are groups of people not
dining at your restaurant for certain meal
periods that could be. For example, maybe you
have a good lunch trade but it consists totally of
socially people and not business people.
 Anticipate the Potential New Business
Segments

Once you determine where you can

generate new business, advertising and
promotion decisions become more focused.
Reach these new market segments with
advertising specifically oriented toward
them.
 Determine Your Competitive Edge

Find out what makes you stand out from your

competition – do you have the best location, do
you have the best quality of food or do you have
the best atmosphere relative your competition.
As soon as you determine your competitive
edge, exploit it.
 Menu Price Points
Determine specific dollar amounts that influence
a consumer to make a purchase and price all
your menu items accordingly. For example, one
price point might be that a bottle of wine priced
jut under P30 might sell more than a bottle
priced just over P30. Of course you must take
into account costing issues as well.
 Develop Strategies to
Enhance Increases in
Average Check

Some restaurant chains do this very effectively.

The wait staff is very proactive in trying to sell
things such as soups, salads, appetizers and
desserts in addition to customers ordering
entrees. Develop written strategies on how you
will “upsell”, include them in the marketing plan
and communicate them to your wait staff.
 Determine Your
Restaurant’s Annual
Revenue
This will serve as the basis for your annual
marketing budget and should be done as
part of the overall budgeting process.
 Evaluate the Need for
Professional Memberships
Since “people do business with people they
know”, it is important for you as a restaurant
owner or manager to participate in professional
organizations. Determine what professional
organizations you are a member of and evaluate
their effectiveness in promoting the restaurant.
 Employ the Good Neighbor
Strategy
Be a good neighbor and take part in community
affairs. Do things such as provide meals to the
underprivileged or offer the services in catering-
related events. Obviously, you need to carefully
choose the beneficiaries of your donations since
nearly everyone will be asking. The recognition and
publicity received from the right contributions is
invaluable.
 Develop the Marketing
Expense Budget
Develop a schedule of expenses which would be a breakdown of your Marketing expense included in your
budget for the year. These line items include such things as:
• Direct mail
• Entertainment costs (including complimentary meals)
• Newspapers
• Magazines
• Civic and community projects
• Donations

A full breakdown of the type of marketing expenses will be available in the 1997 Pennsylvania Restaurant
Operations Report published by Restaurant Advisory Services later this year. Marketing expense should
average in the range of 2 to 4 percent of your total revenues.
 The Action Calendar
Introduce an action calendar to
organize the myriad of activities and
strategies you select for
implementation. This can take the form
of a calendar where you have specific
dates blocked off for your marketing
endeavors.
 Recap
This plan is for owners and
managers to follow. It is a
blueprint for achieving your
revenue goals.
 Restaurant Marketing
Strategy
Restaurants develop marketing strategies to
learn how to meet the needs of their target
customers in such a way that they return and
spread the word. When finances are right, a
family may choose to reduce or eliminate its
budget for dining out, so restaurants need to be
thorough and deliberate in their marketing
strategy.
 Function
Your restaurant’s marketing strategy’s major
goal is to increase profits, whether that entails
adding more menu options, reducing prices or
increasing customer visits or first-time
customers. Solid customer service needs to
remain near the top of the list of secondary
goals. Your restaurant also needs to develop its
brand and identity in the community.
 Identification
Restaurant marketing strategies begin with a
study of the population that has access to your
restaurant. The type of restaurant and average
meal price determines your target market,
including who likes to eat at a restaurant like
yours, what they need from a restaurant, the
price they willing to pay and which factors lead
to a repeat visit.
 Significance
An element of most marketing strategies is a SWOT analysis. The
analysis lists the restaurant’s strengths, weaknesses, opportunities
and threats. Strengths are areas where your restaurant currently
shines; opportunities arise from the strengths. Weaknesses are areas
where the restaurant is weak or unskilled; threats may arise from its
weaknesses, or they may be caused by factors outside of your
control. This analysis will supply the direction of your marketing plan.
If you have determined that a restaurant in direct competition is
opening very near you—a threat—you will boost your marketing
activities to encourage loyal customers to return to your restaurant.
 Features
Activities that your restaurant will conduct to draw
customers should build upon the strengths of your
company and the needs of your target market, such
as quick lunchtime service or location near the
business district. Include a standard of measurement
that can help you determine the efficacy of a
particular marketing or advertising activity. This
allows you to make changes in the marketing if
necessary and build plans based on the results.
 MARKETING MIX-
THE FOUR P’S
The marketing mix is a set of four decisions which needs to be taken
before launching any new product. These variables are also known as
the 4 P’s of marketing. These four variables help the firm in making
strategic decisions necessary for the smooth running of any product/
organization. These variables are
• Product
• Price
• Place
• Promotions
 MARKETING MIX-
THE FOUR P’S
1. Product in the Marketing mix – The first thing you need, if you want to start a
business, is a product. Therefore Product is the first variable in the marketing
mix. Product decisions are the first decisions you need to take before making
any marketing plan. A product can be divided into three parts. The core product,
the augmented product and the tertiary product. Before deciding on the
product component there are some questions which you need to ask yourself.
What product are you selling?
What would be the quality of your product?
Which features are different from the market?
What is the USP of the product?
 MARKETING MIX-
THE FOUR P’S
2. Pricing in the Marketing mix - Pricing of a product
depends on a lot of different variables and hence it is
constantly updated. Major considerations in pricing is the
costing of the product, the advertising and marketing
expenses, any price fluctuations in the market, distribution
costs etc. Many of these factors can change separately. Thus
the pricing has to be such that it can bear the brunt of
changes for a certain period of time. However, if all these
variables change, then the pricing of a product has to be
increased and decreased accordingly.
 MARKETING MIX-
THE FOUR P’S
3. Place in Marketing mix – Place refers to the distribution channel of a product.
If a product is a consumer product, it needs to be available as far and wide as
possible. On the other hand, if the product is Premium Consumer Product, it will
be available only in select stores. Similarly, if the product is a business product,
you need a tea, which interacts with businesses and makes the product available
to them. Thus the place where the product is distributed, depends on the
product and pricing decisions, as well as any STP decisions taken by a firm.
Distribution has a huge a affect in the probability of a product. Consider a FMCG
company which has national distribution for its product. An increase in petrol
rates will bring drastic changes in the profitability of the company. Thus supply
chain and logistics decisions are considered as very important costing decisions
of the firm. The firm needs to have a full proof logistics and supply chain plan for
its distribution.
 MARKETING MIX-
THE FOUR P’S
4. Promotions in the Marketing mix – Promotions in
the marketing mix includes the complete integrated
marketing communications which in turn includes
ATL and BTL advertising as well as sales promotions.
Promotions are dependent a lot on the product and
pricing decision. What is the budget for marketing
and advertising? What stage is the product in?
 The Role of 4 P’s of
Marketing in Strategy
Marketing mix plays a vital role while deciding the strategy of an
organization. It is the first step even when a marketing plan or a
business plan is being made. This is because, you are marketing mix
decision will also affect segmentation, targeting and positioning
decisions. Based on products, segmentation and targeting will be
done. Based on the price, positioning can be decided. And these
decisions will likely affect the place and promotion decisions. Thus,
the marketing mix strategy goes hand in hand with segmentation
targeting and positioning.