opening a bar restaurant business plan

How to Write a Winning Restaurant and Bar Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be beneficial for restaurants and bar s that want to improve their strategy or raise funding.

A well-crafted business plan outlines your company’s vision and documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every restaurant and bar owner should include in their business plan.

Download the Ultimate Bar Business Plan Template

What is a restaurant and bar business plan.

A restaurant and bar business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Restaurant and Bar Business Plan?

A restaurant and bar business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Restaurant and Bar Business Plan

The following are the critical components of a successful restaurant and bar business plan:

Executive Summary

The executive summary of a restaurant and bar business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your restaurant and bar  
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your restaurant and bar. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your restaurant and bar company, mention this.

You will also include information about your chosen restaurant and bar business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a restaurant and bar business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the restaurant and bar industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a restaurant and bar business’ customers may include office workers who are looking for a place to have after-work drinks or families who are looking for a kid-friendly restaurant for dinner. 

You can include information about how your customers decide to buy from you and what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or restaurant and bar services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your restaurant and bar business via word-of-mouth or by partnering with another business.

Operations Plan

This part of your restaurant and bar business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. 

Examples of milestones for a restaurant and bar include reaching $X in sales. Other examples include expanding to a second location or launching a new menu.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your establishment. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs and the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Restaurant and Bar

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Restaurant and Bar

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup restaurant and bar .

Sample Cash Flow Statement for a Startup Restaurant and Bar

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your restaurant and bar . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written restaurant and bar business plan is a must for any business owner. It’s a great tool for attracting investors and keeping the company focused.  

Finish Your Bar and Restaurant Business Plan in 1 Day!

Opening a Bar & Restaurant?

How to write a bar & restaurant business plan (fast), step by step (actionable) case study.

Opening a bar and restaurant is an amazing adventure for any up-and-coming entrepreneur – and writing a business plan is one of the very first (and most important!) steps.

Wondering how to go about it? No need to look any further.

Our Bar & Restaurant business plan sample will help you map out your journey, as well as identifying and addressing any potential pitfalls that could cause problems for your business.

So whether you need funding or would simply like a track to run on…

Be sure to check out this example to improve your chances of Business Success!

Ready? Let’s go.

#1 Executive Summary for a Restaurant Business Plan

Are you looking to write a restaurant business plan? If so, let’s firstly look at The Executive Summary section.

The Executive Summary of your business plan outlines what your business does. It’s an overview of your business and summarizes all its key points, as well as being an introduction for the rest of your plan.

The example in this section can be suitable for the following:

• Small Restaurant business plan
• Bar business plan
• Cocktail Bar business plan
• Fast Food Restaurant business plan

Please check it out and feel free to lift any content.

Executive Summary

The #Executive #Summary outlines what your business does, summarizes your key points, and prepares investors for the rest of your #businessplan. It’s vital you provide a solid case for your business idea, which is why your #executive #summary is so important! Tweet

We are John and Mary Smith, a father and daughter team, offering years of experience in both business ownership and management, and the hospitality trade.

John Smith is currently a Director of an electrical contractors in Washington, and has been in the industry for 30 years. Currently working in the aerospace sector, John delivers the highest standard of workmanship for his clients, and offers a wide range of transferable skills including staff management, decision making, building strong business partnerships, and negotiation skills.

John will be supported by his eldest daughter Mary, a confident and outgoing people-persons with years of experience in the bar and restaurant industry. She offers a wealth of knowledge in hospitality and bar management, and would be very much at home running her own bar and restaurant.

What We Sell

We will be selling a wide range of soft drinks and alcoholic beverages in partnership with ABC PLC. The wet list will be based on the current ABC listings, and we would also like to expand the wine list in accordance with ABC Code of Practice.

The dry menu, which is currently of a very high standard, will be based on local and seasonal produce and created in direct association with the Head Chef.

We will also run a number of promotions to push more from our wet and dry menus, and these promotions will also run in accordance with ABC Code of Practice.

Who We Sell To

We will sell to local residents and also people visiting the area. We want to create a warm and friendly atmosphere, and to leave our customers feeling totally satisfied with our service whether they pop in for a pint or a coffee, or stay with us all evening for a meal and drinks. We can only achieve this by employing and developing the right team, and we will focus our efforts on hiring experienced, friendly, professional and enthusiastic staff. From our Head Chef down to our team of waiting staff and bar staff, we will ensure we only hire the best the local area has to offer.

In addition to retaining existing regular customers, we recognize the importance of attracting new customers, and we will look into what is currently working for the business, and what isn’t working so well. With this knowledge and information, we can look into promotions and improvements that will encourage more visitors, whether they are locals or passing trade.

Financial Summary

Please see financial plan for further information.

#2 Restaurant Business Plan Company Profile Section

The Company Profile in this restaurant business plan sample is also known as the Company Description. If written well, your potential investors will find it easy to understand your business model, your mission and goals and how it’s going to meet the needs of your target market.

For the purpose of this bar business plan, we’ve included the following in the Company Profile Section:

• Company Overview & Management Team

Mission Statement

• Location and Facilities

Company History

Company overview.

The Hugo’s Bar and Restaurant has been in business for years, and is an established bar and restaurant offering a wide range of beverages and a fine selection of hot and cold meals.

The main company address is Main Road, Washington USA

This is not a new business, but we would be taking over as new managers of the establishment. The bar and restaurant is owned by ABC PLC and would be offered to us under a five year tenancy, with the opportunity to renew this lease after expiry.

Under such an agreement we – the tenants – will pay the rent and be responsible for the day-to-day management of the bar and restaurant. This will include such things as:

• Bookkeeping and accounting
• Managing stock
• Taking responsibility for minor repairs
• Maintaining fixtures and fittings

Management Team

The management team consists of John Smith and Mary Smith, a father and daughter team. John Smith has years of experience as a Director for an electrical contractor, and is very experienced in staff management, business management, key decision making, negotiations with suppliers and partners and achieving results.

Mary Smith brings a wealth of bar and restaurant and bar management experience, and is keen to continue with the success the bar and restaurant has experienced already, whilst also making significant improvements where necessary.

We will look to recruit where required. It is essential that we have a first class Head Chef employed at all times to oversee our menu, and ensure that meals are produced to the very highest standard and that all ingredients are sourced locally where possible. We will employ a mixture of full-time and part-time staff.

Locations and Facilities

The Hugo’s Bar and Restaurant is situated at Main Road Washington USA

Our mission is to sell delicious and remarkable food and drinks to our customers. We will ensure that the food and drink we sell meets the highest possible standards of quality, freshness and seasonality and that it is sourced from local producers where possible. We want our customers to experience impeccable service at all times, and we will ensure that our staff demonstrate warmth, efficiency, integrity and knowledge at all times, and that every customer leaves happy.

A #mission #statement is a short statement of an organization's purpose and shows the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. Tweet

The bar and restaurant has been trading in the same location for a number of years, and offers a wide range of beverages and hot and cold foods to its clientele. Now run by ABC PLC, the establishment has been leased by a number of landlords, and now commands good reviews and a good following in the local region.

#3 Restaurant Business Plan Products & Services Section

The Products and Services section in this restaurant business plan example is showcasing the value and quality of their products and services.

For any start up bar business plan, it’s important to write down what it is that sets you apart from your competitors and the benefits of your business.

Ask yourself:

• What sets you apart from your competitors?
• How does your pricing compare?
• Why would people buy from you as opposed to your competitors?

Here’s the example.

Products and Services

The Hugo’s Bar and Restaurant is a family bar and restaurant offering a warm welcome, a wide selection of beverages, and an excellent menu. It is very popular with locals and has received very good reviews on TripAdvisor. The wet list features ABC fine cask beers, wines, spirits, cocktails, soft drinks and a coffee menu. We would also be interested in adding more wines to the menu, perhaps featuring a wine of the month, or wines from a particular region each month to keep the menu interesting.

In addition to the usual bar and restaurant fayre, we would also look to introduce the following services and events:

• A lunch club once a week for elderly people within the region.
• A dedicated kids menu. We could offer discounted kids meals one afternoon a week to encourage parents to visit us with their children after school.
• A dedicated gluten-free menu. There were a few comments on TripAdvisor about there not being a good gluten free selection. This is becoming more important to clientele.
• More theme nights such as steak & wine nights. We would also look into doing beer & cheese nights. This is something that has just started to take off, and would be a great way to introduce people to the cask beers on offer alongside local cheeses.
• Events such as coffee mornings welcoming people from the community, especially new people looking for a place to meet with locals, or get to know us better.

We would also look into adding or updating fruit machines and a jukebox, as well as increasing food service hours, and perhaps looking into serving a small breakfast menu.

Competitors

There are a number of bar and restaurants in the region we would be competing directly with. Some of the most popular bar and restaurants in the area include:

• Happy Restaurant
• Washington Arms

These bar and restaurants have good reviews. Happy Restaurant is famed for its real ales and homemade pork pies. The Arms is popular with sports crowds and offers good beer and a welcoming, busy atmosphere. Washington Arms offers a good selection of beers, and cheap homestyle food.

We want to be able to cater to more families looking for excellent food in a warm and welcoming atmosphere. We want to offer a busy and lively atmosphere in the evenings and to attract locals and passing trade. We also feel our dry menu offers so much more than other offerings in the local area, and we really want to focus on increasing profits in this area, and to look into ways to attract our customers to have a meal with us.

Product & Service Development

We would love to develop the products, services and events on offer, and to do this in line with the ABC Code of Practice. As the saying goes ‘if it ain’t broke don’t fix it’ and so we would look at the aspects of the business that are working well, and only make improvements where necessary. We also want to stay away from adding too many gimmicks as this can be a bar and restaurant’s downfall. We believe clientele like regular events so they know what is happening and when, and this works very well with the XYZ brand which offers Curry Clubs, Lunch Clubs and other options on set days of the week.

We also want to appeal more to families during the day. One idea we have is to add a marquee outside, and to build a pizza oven so that we can hold kids’ pizza parties and other events outside. Parents are always looking for something different for their kids to do, and this could be a very lucrative revenue stream for the bar and restaurant. Parents may also stay to have a meal or drinks while the little ones enjoy the party.

We may also look into offer a set kids menu as seen in other establishments. Children could choose a main meal, dessert and a drink for around $4.95, and also be given coloring pencils and a picture to color in. This not only keeps the kids entertained, but also encourages adults to stay longer and purchase more items from wet and dry menus. We would also promote our birthday parties on the back of the coloring in page.

Sourcing and Fulfillment

All wet products will be sourced and supplied by ABC PLC as per our agreement with the brewery. Equipment such as cellar cooling and drinks dispensers are maintained by ABC. We would look to secure good deals for local produce for our dry menu, and will leave this responsibility to our Head Chef.

Pathway and Lease Agreements are fully tied for all beers, ciders, stout, wines, spirits, soft drinks, packaged alcoholic drinks and gaming machines, including Amusement with Prize Machines (AWP), Skill with Prize Machines (SWP), pool tables and video/LCD based non-payout leisure machines.

Not applicable to this business.

Intellectual Property

Not applicable to this business. The products we sell will already have the relevant trademarks and licenses in place.

#4 Opening a Restaurant Business Plan Situation & Market Analysis Section

This section of a business plan is very often glossed over because more often than not, the business owner is so involved within their business, that it doesn’t occur to them that they can learn something by writing this down!

This section is one of the most important aspects of your Bar & Restaurant marketing plan.

In fact, it defines where you are currently in terms of your market, product, customer, and competition. It also allows you to look at both internal and external factors and to review and document the strengths and weaknesses of your business, as well as identifying any opportunities and threats within your marketplace.

For example:

• Market Analysis & Trends

Market Growth

Industry analysis, key customers, target market, market overview.

Our target market will consist of local customers already regulars at the establishment, new local customers, people visiting the area, and passing trade. The Hugo’s Bar and Restaurant already has a good reputation in the area for a good atmosphere and great food, and we certainly would not want to change that!

However, we do believe there is room for improvement and that these improvements would attract new customer streams to the bar and restaurant. If we could extend the restaurant opening hours for example, we could improve profits across the wet and dry menus, and also upsell items such as good wines. We would also want to welcome more children and parents to the bar and restaurant, and will look into ways we can do this.

Market Needs

The Hugo’s Bar and Restaurant offers some amazing attributes to the area. Its warm and welcoming atmosphere and good food are very well documented on TripAdvisor.

We will offer a wide range of products under one roof including alcohol, soft drinks, coffee and good food. People can come to us in the afternoon for drinks and stay with us through dinner and up until closing time if they wish. We want to encourage this kind of home from home experience and encourage people to enjoy as many of our products and services as possible.

The Hugo’s Bar and Restaurant always serves good food and drink and is our favorite place to eat in the local area. If you haven’t tried the Hugo’s Bar and Restaurant, it’s a must for 2016. – Vivien S (TripAdvisor)

For most of the evening, we had the dining room to ourselves which was lovely. The staff were friendly and left us alone unless we needed them. I really liked the fact that there was a limited menu. This way I know all the food prepared is fresh. – Emily C (TripAdvisor)

However, there is room for improvement. There are a number of negative comments on TripAdvisor regarding the limited range of food on offer for children, and there have also been misunderstandings in the past about gluten-free options. We would do more to ensure our customers are catered to and made to feel totally comfortable in our surroundings and with our menu.

We would also look at adding services that cannot be found elsewhere. For example, our plan is to offer kids’ parties outside in a marquee. By adding a pizza oven outdoors, we can capture a section of the market that is growing with a relatively cost-effective idea. This will also attract more wet menu sales from parents and carers who want to stay with us while the party is going on.

Market Trends

The great American night out has always featured the bar and restaurant. Whether it is at the start of the night for a few drinks before dinner or going on to a nightclub, or patrons spend their entire night in the same establishment, this timeless trend shows no sign in stopping or even slowing down. However, with more bar and restaurants springing up, and more bar and restaurants using innovative ways to attract patrons, we would need to stay on our toes. By offering a mix of traditional bar and restaurant fayre and services, and also looking at new ways of attracting customers, we will remain competitive and maintain the already good reputation.

Craft beers and cask ales are becoming more and more popular. People are open to trying new experiences, and would look at ways we can promote beer sales with special events. Beer and cheese evenings are starting to gain popularity with patrons being offered a cheeseboard and smaller taster glasses of beer. This is just one idea, but an example of how important it is to keep up to date with market needs and trends.

We may also look into ways in which we could encourage people to have their “big night in” at the bar and restaurant instead of at home. People settle down at home for shows such as X-Factor, Americas Got Talent, and other big TV events. We could possibly create a living room atmosphere and encourage people to come to us instead. This sort of event could get people talking to each other, enjoying themselves in our establishment, and ultimately ordering more drinks.

During the past decade, a series of legislative, social and economic trends have conspired to squeeze industry revenue and profit margins, forcing many bar and restaurants out of business. Already reeling from the ban on smoking in bar and restaurant places, patronage and industry revenue have been battered by rising beer duty, declining alcohol consumption, competition from low supermarket alcohol prices and the prolonged economic downturn.

Whilst it can be difficult for new bar and restaurants to enter the market, established bar and restaurants with regular visitors, a good reputation and willing to keep up with the latest trends and customer demands, can continue to thrive. This is why it is so important for us to review where the Hugo’s Bar and Restaurant is doing well, and to focus our efforts on areas that need improving or to introduce new events or services that would bring in new sustainable revenue streams.

We will be working in the hospitality industry, offering good food and drinks to our customers in a warm, friendly and welcoming atmosphere. Our services and products will be sold directly to customers within our establishment, and promoted across a number of different channels.

Customers often make their buying decisions based on price and personal preference. In addition to drinks purchased direct from the bar, we will also offer drinks within our restaurant, and this is where we may have the best opportunity to push some of our higher priced items such as wines and also pre-dinner cocktails. Reputation is also important, and the ABC name is well known amongst cask ale lovers.

Our key customers will consist of people of all age groups, from 0-100 years old. We want to promote a real family-friendly atmosphere, and to encourage people of all ages, all walks of life, and all areas to come to our bar and restaurant. We want to promote a real community spirit that unites people, starts conversations, offers customers a great day out or a memorable night out, and which also encourages customers to share their experience with others.

#5 Small Restaurant Business Plan Marketing Strategy Section

The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.

If your potential customers are not made aware of your business, you are not going to stay in business for very long!

Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.

• How are you planning to advertise to your market?
• What is your competitive edge?
• What is your sales strategy?
• SWOT analysis.

Let’s look at this example for a restaurant business plan.

Define a marketing strategy within your business plan to highlight your expertise and emphasize what makes your business concept compelling. Tweet

Strategy and Implementation

There is a need for a good local bar and restaurant in every town, somewhere people can come together to share good times, celebrate, relax at the end of a long day and generally socialize with friends, family and other locals. The Hugo’s Bar and Restaurant is a small bar and restaurant, but is very big on character and reputation, and we would want to keep it that way.

We believe there is room in the market for many different establishments, but we do need to ensure that we stand out. Through good advertising locally and nationally, we can ensure our name stays on the map, and that we maintain the reputation the bar and restaurant has achieved already.

Good quality cask beers, a wide range of beverages, excellent food, a welcoming atmosphere, exciting promotions, regular events and a family feel are all qualities we feel are important to the bar and restaurant and its customers.

Our marketing plan would include improving the website, using social media channels more effectively, using print advertising for our promotions and events and also encouraging word of mouth recommendations and online reviews. We feel there is a lot of room for improvement where marketing is concerned. For example, the Twitter feed has not been updated since February 2nd.

Please see the latest ABC wet list pricing. The bar and restaurant currently offers a set menu for its guests at lunchtime, and an à la carte menu during the evening. These are all priced at very competitive rates.

We would like to offer our customers discounts, especially regular customers. We will offer these discounts through a discount card, and also through fun promotions on our social media channels.

We intend to use digital marketing and print marketing to its full potential. Through regular updates to Twitter, Facebook and our website, we can start to attract more attention, and ultimately attract more people through the door.

There is currently a website, but we feel it is very lacking in terms of up to date information. For example, there is a sample food menu listed, but we feel there could be more details here and some good quality photos to show potential customers how good our food is. There are also no event listings or any information about promotions or other messages that could attract customers. We would also like to attract more customers celebrating a special event. For example, we could give the birthday boy or girl a free pint or glass of prosecco, or a free dessert. We want the Hugo’s Bar and Restaurant to be their first choice whenever they have something special to celebrate.

We would like to use social media to advertise promotions. There will be regular quiet times during the week, and we would like to encourage more footfall by offering discounts through Twitter and Facebook. For example, we can give a 10-15% discount to any customer that quotes a phrase we have posted on our social media channels.

We also want to promote the Hugo’s Bar and Restaurant as a true community bar and restaurant, and we will look into charity promotions and other events where we can put something good back into the community. Whether it is giving a local charity somewhere to hold an event, or holding a special lunch club for elderly local residents, we want to portray a caring and welcoming image.

Distribution

We will sell directly through the bar and restaurant. We will also offer birthday party packages.

We would be taking over an already established business. Before taking over, we would want to have a set plan of action in place for any improvements we would like to make. For example, we would like to have seasonal lunch and dinner menus devised in advance so that we can publish these on our website and through our social media channels. We would also like to have set out our regular events and promotions and to have advertising arranged for each of these events so that we can get the word out in advance of each event taking place.

It is also important that we are accepted as the new management team, and therefore any changes we make will need to be handled carefully and in a sympathetic way. We want to listen to our customers, and through face to face conversation and activity on our social media accounts, we can obtain feedback on what our customers would like to see. This feedback will also have an impact on our milestones.

Training of key members of staff is also essential and we would work closely with ABC to establish a training schedule in accordance with their Code of Practice. Both John and Mary already have a Personal License in place.

In summary, we would look at employng good quality staff including a Head Chef, increasing food availability times, improving sales and profits and establishing ourselves as one of the leading bar and restaurants in the community.

SWOT Analysis

The Hugo’s Bar and Restaurant is in a very strong position as a popular bar and restaurant in the heart of the community, and is well established. It is especially well known for its excellent food and drink menus, and for its large garden during the summer months. The exterior of the bar and restaurant is attractive and welcoming, and offers a clean and modern look and good kerb appeal. There are also good parking facilities.

The bar and restaurant is also known for its excellent staff and service, and this is apparent on TripAdvisor and other review sites. We would work hard to maintain this level of service, and to make improvements where possible.

As with any business, there is always room for improvement. We feel there are a number of areas that we could work on immediately, and which would take minimal focused effort to achieve and improve.

We would first turn our attention to the food menus, offering a good set price kids menu, and also gluten-free options on a separate menu. We would also review gluten-free food prep in the kitchen, ensuring we have a separate fryer for chips and other foods that need to be cooked separately.

Food service times are currently too short, and we feel the bar and restaurant is missing out on profits during these times.

The bar and restaurant is currently closed on Monday, and this is an entire day where the bar and restaurant is missing out on local trade and trade from people visiting the area.

The patio area is not currently used to its full potential, and we would like to improve this area to make it more appealing and more suitable for a range of uses.

Social media channels are not being updated. The last Twitter update was almost six months ago, and this is a big area we would like to address. The website also needs attention.

Opportunities

There are many opportunities for improvement. In addition to the improvements we have already listed, we would like to focus on seasonal opportunities such as Christmas, New Year and Mother’s Day and advertise these events and promotions well so that we achieve maximum covers in the restaurant and excellent profits from our wet menu.

There is a real opportunity for us to appeal to more groups of customers, and to open up new revenue streams. For example, our aim is to have at least one kid’s birthday party booked every weekend, and to have more parents popping with their kids after school. There are also opportunities for us to improve our food menu, to make it more available during the week, and to publicise our menu and any special offers across our website and social media.

We also want to welcome our more elderly residents, and give them somewhere to visit on a weekly or monthly basis for a warm meal and a friendly atmosphere.

It is essential that we maintain the Hugo’s Bar and Restaurant’s already excellent reputation, and that we make improvements carefully and in the right way. One bad TripAdvisor review could be very damaging, so we will do everything in our power to attract the best reviews and word of mouth recommendations. Any failures in service will be dealt with immediately, and any poor reviews replied to and addressed in the best way possible, offering compensation where necessary.

We also need to ensure we keep an eye on our competition and what they are doing. Our tie-in with ABC is also critical to our operations, and so we would ensure that we work in accordance with the Code of Practice at all times.

Staff retention is extremely important to the establishment, especially in terms of more skilled staff such as the Head Chef. We would ensure we offer an attractive remuneration package, and that we keep our team motivated to the point where they wouldn’t want to work anywhere else.

Competitive Edge

We are competing against a number of similar establishments in the local area. The most popular bar and restaurants in the region offer excellent services, but we are in a very strong position to compete. For example, some are more well known for a lively sports crowd, and well-placed near to public transport links where there is good footfall from visitors.

We want to be the warm, friendly and inviting bar and restaurant where everybody is welcome. We offer a range of good quality beverages backed by the outstanding ABC brand, and we offer a fresh, seasonal and local menu cooked and presented to perfection. Customer service will also be extremely high, and customers will want to come back to us time and time again.

We believe we can stand out with our reputation, our promotional activities and also our innovative options such as kids’ pizza parties, beer and cheese nights and other events that are not available elsewhere.

Promotional Activity

In addition to our website and social media channels, we will also advertise in local newspapers, outside the bar and restaurant, at point of sale and on our restaurant and bar tables. We will track the success of our promotional activity through social media promotions, and also through print promotions. For example, some promotions may require a special code to be announced at the time of ordering, or for a leaflet to be presented to gain a discount.

Sales Administration

Our restaurant bookings will be taken in person, over the phone and through our website. All other products and services will be sold directly.

Whilst all sales will be largely led by what the customer wants to order at the time, we will encourage more sales through our promotions and also through clever upselling by our staff. For example, asking customers if they would like to see the wine list over lunch, or asking them if they would like any bar snacks with their order are all ways we can gently make suggestions. We may look into financial rewards for our staff depending on which products we can upsell and how.

Strategic Alliances

Our greatest strategic alliance will be with ABC PLC, and we would ensure we work closely with the company at all times to ensure we are complying with their Code of Practice, and to raise any concerns we may have early on.

Exit Strategy

Not applicable.

#6 Restaurant Business Plan Financials Section

Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.

A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.

We’ve listed here the key elements you need to have in a successful financial section:

• Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
• Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
• Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
• Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
• Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
• Loan Repayment – This shows the lender or potential investor the act of paying back any monies.

So… Are you ready to look at some figures?

Profit & Loss

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Additional Resources:

• 40 Common Business Plan Mistakes to Avoid when Writing your Plan
• What is a Business plan and why do you need one?
• How to Write a Business Proposal in 5 Easy Steps
• 10 FREE Business Name Generator Tools to find your perfect business name

Now, over to you...

Now I’d love to hear from you:

Are you going to start up your own bar & restaurant or have you recently written a business plan?

We’d love to know what you thought about our bar & restaurant business plan example.

Feel free to leave any comments below and I will be sure to answer them as soon as they come in.

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Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create a successful restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

What is a Restaurant Business Plan?

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.  

What are the Main Types of Restaurants?

There are many types of restaurant businesses which vary based on their service style. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types.

Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.  

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks or independent restaurant investors. Typically you will find a local bank and present your restaurant business plan to them. Most independent restaurant investors are in the restaurant business already and can be a valuable resource for advice and help with your business plan.

Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.  

Sample Business Plan for a Restaurant Owner

Below is a business plan example to help you create each section of a comprehensive restaurant business plan.

Executive Summary

Business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new business for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.  

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

A sample menu can be found in the Appendix of this business plan.

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.  

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.  

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and restaurant design, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.  

Customer Analysis

Demographic profile of target market.

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Customer Segmentation

The target audience for Bluehorn Restaurant & Steakhouse will primarily include the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each of our direct competitors is below.

Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose.  

Oak & Ore

Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired restaurant experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC

The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.  

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows:

Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media

Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options.  

SEO Website Marketing

Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks.  

Third Party Delivery Sites

Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.  

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire the entire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.  

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

  You can download our free restaurant business plan template PDF . This restaurant business plan template can be used to create a finalized business plan for your restaurant concept.

How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

10 minute read

helped business professionals at:

Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology, such as restaurant POS systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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How to Write a Bar Business Plan

Start building towards your bar ownership dreams with this guide to writing a bar business plan, plus a template that's ready to customize.

Tyler Martinez Author

Tyler Martinez

Bar Business Plan Template

Use this free bar business plan template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your bar.

Many people dream of owning a bar: having their friends come by every week (or more), and getting to know their regulars. 

Bars, pubs, taverns, tap houses, clubs – no matter what type of drinking establishment you're dreaming of, the defining feature is the sale of wine, beer, and spirits for consumption on the restaurant’s premises, which comes with a set of responsibilities for the business owner and employees.

But before you can dive into the fun (and often hectic) day-to-day of being a bar operator, you’ve got a few steps to consider first. One of the best ways to keep track of the never-ending list of tasks involved with opening a new bar is to write a detailed bar business plan.

A bar business plan does more than help you to transform your bar from a concept into your city’s hottest venue, or your neighborhood’s most beloved dive. Outlining your concept and name, your target market and how you’ll reach them, doing the research about permits and licenses in your city and state, planning a menu, preparing a budget, securing funding, and most of the other legwork required are all organized through the process of writing a business plan.

How to Write a Bar Business Plan (Description, Examples, Proposals)

Even for the most creative bar owners, business plans tend to be pretty formulaic, so this bar business plan template is a helpful tool for imagining and planning your bar, pub, tavern, or club. Download a customizable version of this business plan template and read on to learn more about how to make it work for your bar.

Why You Need a Business Plan for your Bar

To a layperson, starting or owning a bar might seem like a job for sitcom characters, but bars, pubs, taverns, and clubs are the heart of nightlife and are an important part of the culture and society of any city or town. Bars, pubs, and taverns have a traditional place in societies as a meeting ground and place of rest.

Like it or not, when you open a bar, you enter that centuries-old tradition of bar culture which comes with plenty of responsibilities and expectations. A business plan lets you define the kind of space that your bar will provide, the ambiance, and what patrons you target — and it will help keep you on track while you tackle one section at a time.

Elements of a Bar Business Plan

• Bar Business Plan Executive Summary
• Bar Financial Plan
• Bar Operations Plan
• Bar Industry Market Analysis
• Bar Management Team

Executive Summary

Business plans start with a concise summary of the concept for your bar and an introduction to the key elements of your business plan . This includes an overview of the budget, your business’s goals and core values, and a clear, actionable vision for the products and services that define your brand. 

Consider the audience you are writing for, including potential investors, management staff, and other owners, and imagine how you can grab their attention and pique their interest in your plan. From this introduction, your audience should have a good idea of your concept for a bar and what market space you’re entering. 

Company Overview

The company overview is a companion to the executive summary that is more practical than conceptual and attention-grabbing – it works as a glossary for the rest of your business plan, defining your bar’s products, information about ownership, company structure, and your vision for the customer experience.

You might want to include information about labor and hiring practices, the location of your bar, and the bar’s capacity for service – how many people can your venue hold if it is primarily a social hub, a music venue, or a sports bar, or something in between.

This is also your opportunity to communicate the aesthetic aspects of your plan to stakeholders. The bar’s name, logo, color scheme, vibe, and the general type of ambiance and venue you want to create can all be included in a company overview.

Team and Management

Bartenders occupy a unique space in the foodservice industry and the bartending position is often considered a prestigious role among service professionals. Bartenders have specialized knowledge about wine, beer, liquor, and spirits and use their creative abilities to suggest pairings and craft cocktails.

Bartenders are the primary labor force of a bar, but table servers, barbacks, kitchen staff, management, and even technical producers for lighting and audio all play a part in creating the ambiance of bar and club spaces.

Provide investors with information about how you plan to structure your bar’s business. What will the management staff be responsible for and what is their position in the chain of command? Do you want to offer patrons table service?  What about a regular DJ or lighting tech? 

Don’t forget to include information about who will be creating marketing and publicity for the bar or events – will you market your business, hire a marketing professional or firm, or hire a manager that can market your business in addition to their other duties?

Also consider including information about what kind of jobs you plan to create, whether they are full-time or part-time, how you will hire or train workers with the right skill set, and if you plan to provide them with any benefits or incentives. 

Sample Menu

A sample menu for a bar might seem idiosyncratic – wine, beer, and cocktails are on the menu – but a sample can be useful for defining your brand and giving interested stakeholders a concrete vision of the products and services your bar will offer.

For instance, if you build a food menu of any sort, that gives investors information about the quality of the products you plan to offer and the types of clients you will attract with what you plan to sell. A sample cocktail menu that features top-shelf liquor or a list of local beer and wine offerings will communicate what markets supply chains you plan to enter and rely on.

A sample menu forces you to start thinking about how you will produce and deliver those items to customers – consider where you will store valuable bottles of wine and spirits, the logistics of serving draft beer, the focus on drinks or food, down to the small details like glassware and stemware.

Market Analysis

Market for a bar is unique – bars can be in competition with the local restaurant industry or in competition on the local bar scene, or they can occupy some space between the two. A good example of this phenomenon is the sports bar.

The sports bar is a restaurant in its own right but attracts clients seeking a specific experience and products – beer, cheap spirits, and a TV in line of sight at all times sound like an ideal sports bar experience. That business model puts that space in competition with other local bars and restaurants that have TVs, even if they don’t prioritize the sports bar culture.

However, a sports bar and a craft cocktail bar could be successful as neighbors because they attract clients seeking a different type of experience. It’s important to consider what openings there are in your local market for bars and what share of the clients seeking the experience you provide you could realistically attract. 

These routes to success, the opening in the market, and your plans to attract the customers that occupy that opening are considerations that can help your business plan to impress potential investors and make them feel secure investing in your concept.

Marketing and Publicity

Marketing tactics for bars, pubs, taverns, and clubs are as unique as configuring a market analysis – how your market will be unique to the kind of space you’re creating for customers. 

Word-of-mouth marketing is invaluable for bars. If you provide a customer with the experience they’re seeking, they’re likely to bring customers along with them to your business. Additionally, the opportunities you have to market your bar will coincide with the venue you create.

If your bar is primarily a social venue, you might market a happy hour, whereas a music-focused bar has opportunities to market upcoming shows, relying on the popularity of the performers you book.

Creating a plan for your marketing strategy and listing potential avenues of marketing and publicity for your bar will let potential investors see that you are already thinking about the share of customers your business will attract and serve and elucidate your plan to succeed in the market you enter.

Restaurant Marketing Plan

Create a marketing plan that'll drive repeat business with this customizable marketing playbook template and interactive calendar.

Branded Graphics

One of the most exciting aspects of building a cohesive brand across your business plan is creating branded graphics that convey your brand’s concept to both potential investors and customers. Think about how you might represent the ethos of your bar and the experiences that you plan to offer your customers through graphics and the design of your business plan’s documents.

Business Operations

Business plans include information about customer service, the point of sale , sales and inventory tracking, accounting, and the supply chain of the products on your menu. Consider the role you plan to play in the business – do you plan to be an owner/operator and manage the place yourself or hire bar managers to craft drink recipes and delegate staff?

Bars can offer a range of products and services and it’s crucial to work out the details of management, entertainment, and production as you complete your business plan. You might also include expectations for how you plan your bartenders, servers, and managers to factor into your customers’ experience. 

How bars treat customers is an important consideration unique to selling liquor because who you can serve is regulated at the state and federal levels. Your plan for business operations should acquire include the licenses and permits required to serve alcohol in your state and how you will ensure that your staff follows guidelines for serving alcohol.

Small bar business models might see a staff of two bartenders standing in for every role from cash management to line-cook while larger spaces might have staff dedicated service and support staff. Balancing expectations for employees, management, customers, and planning to deliver consistent products and services is complex and doing that work in a business plan communicates that you’re poised to launch a successful bar.

Bar and Lounge POS Comparison Tool

A free, customizable Bar and Lounge POS Comparison Tool to research and compare point of sale systems in one Excel spreadsheet or editable PDF.

Financing and Loans

If you are seeking to secure funding, have already secured partial funding, or have a plan to fund your bar, pub, tavern, or club, it is crucial to include that information in your business plan.

Whether you're going the route of an SBA loan, a microloan, a line of credit, or any of the other many financing options available to those looking to fund a hospitality business, this is the section where you'll share with your audience how you'll be footing the bill of your bar dreams. 

And if you're still figuring that out — and using this business plan as part of your investor pitch — outline how you'll be using the funding, and provide detailed financial plans about the projections of profit and expenses of your business.  

Sales Forecasts and Operating Expenses

The operating expenses for a bar include the costs of labor, insurance, inventory, equipment, rent, utilities — the list goes on. But there are also expenses for permits and licenses that are unique to businesses that plan to serve alcohol , so be sure to budget for state licensing and bartending permits so that you can serve alcohol while adhering to the proper protocols.

One common analysis to include in a business plan is a “ break-even analysis ” which compares how much sales are required to break even with the cost of expenses each month. Investors will be interested in the potential for profit and loss before they contribute to your business, but producing a P&L statement for a bar that isn’t open yet will require some educated projections.

Finally, a cash flow analysis details how you will spend money on labor, supplies, and operations which will show investors that the bar, pub, tavern, or club can support itself without additional investment. Consider how the cost of wine, beer, and liquor, local taxes, employees’ salaries, and the costs of maintaining the bar’s furniture, equipment, and tools balance at the end of each fiscal quarter. 

How to Present Your Bar’s Business Plan

There are a few ways to prepare to communicate with investors about your business plan and get them interested. As you write and edit your plan, you’ll have become the world’s only expert on your bar. Remember that the way you talk about your business should be tailored to the situation you find yourself in. 

First, send your business plan to investors and banks far and wide – put your concept and plan in the hands and minds of as many people as possible. You can’t hear no (or yes!) unless you ask.

Perhaps you’re at a networking event for local small restaurant owners and financiers. You might want to have a 30-second elevator pitch prepared so that you can communicate everything you need to about your plan quickly. Be sure to include something exciting or make an opportunity for questions to keep people talking.

Once you secure a meeting with a potential investor or partner, you’ll want a more detailed presentation that presents all the key elements of your business plan – for a bar, that will likely include the market niche, customer experience, type of venue, and financial concerns.

It’s good to anticipate potential questions and prepare answers for questions you encounter for the first time. When networking, be honest and genuine, even if you don’t have a ready answer for each question that comes your way – investors will be interested in your charisma and savvy just as much as your ability to build a detailed plan.

Related Bar Business Resources

• How to Open a Bar
• Bar POS System
• Bar POS Comparison Tool
• Best Bar Websites
• Cost to Open a Bar
• Bar Marketing Ideas
• Bar Design Ideas
• Bar Branding
• Bar Ideas and Concepts
• Bar Equipment List
• Bar Licenses and Permits
• Bar Floor Plans
• Best Bar POS Systems
• Bar Supplies

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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How To Open A Bar

1. Decide what type of bar you want to open

Create your concept

2. Identify your business structure

3. Create a business plan

Identify your customers

Analyze your competition

Choose your strategy for overcoming competition, 4. find the ultimate location.

Decide on the size of your establishment

5. Sort out the paperwork

Secure permission from the local government agencies.

Visit the building and safety department., brainstorm and register your bar’s name..

Obtain an Employer Identification Number (EIN)

Can be done online via IRS (Internal Revenue Service) website. You’ll need this number for most of your licenses and permits, and all tax documents.

Visit your local Alcoholic Beverage Control

Obtain food-service license

Complete a Special Occupational Tax with TTB

You will have to register with TTB at the federal level before you begin selling any alcohol. You can get all the information you need on their website.

Start your record book

Settle things with the fire department.

5. Design your bar

Plan your menu

Get a POS system

Choose the right equipment.

6. Stock up your bar

Build up the relationships with suppliers

7. Draft your team

Set up salaries

Find and hire the right candidates

8. Open your bar

9. Promote your bar

You know your place is awesome. Your mom thinks it’s awesome. Now let’s make the whole neighborhood think so as well!

Spread the news via social media

If your bar does not have a Facebook page these days, it is basically non-existent. Make sure you have created a custom page header that fits in the style of your bar; have some cool, high-resolution pictures of the menu and interiors in the albums; opening hours and location on the map stated.

To grow your social media following, offer some small perk for customers who will like your page on FB or follow you on Instagram e.g. free snack.

Invite online influencers to your opening

While attracting journalists and media might be a little tough for a small bar, inviting a few popular online personas (bloggers, vloggers, instagrammers etc) to live cover your big night may bring you the same buzz levels. And attract journalists afterwards.

Offer a complimentary appetizer to first 25 people to share your post

Offer a secret deal to social media followers

Enlist a special drink/food on the menu that any of your followers can order in case they do some social media action e.g. post a photo and tag you; write a special status etc.

Gauge the anticipation in advance

Reach out to your local media, covering lifestyle and restaurant business, in advance offering an exclusive sneak-peek inside your venue.

Start a happy hour

Offer special deals through group buying platforms

Post a discounted deal at sites like Groupon and LivingSocial for a limited amount of time to attract new visitors. If they like your service, they will spread the word for you!

Collaborate with other businesses nearby

Ask a bookstore to nail your posters in exchange for placing their leaflets on your tables. Offer a pizza delivery to give away your cards in exchange for doing same. It’s a win-win option for both parties.

Hold a “beat the clock” contest

Next Friday announce that you’ll start selling beer at half price from 8 pm and will increase the price by 50 cent each hour till midnight.

The next day you’ll be positively surprised by the amount of folks who did try to beat the clock.

Held thematic promotion days

Mondays can be a Champaign days with 10% discount on all bubbly drinks; Tuesdays are all for tequila; Wednesday is a snack day and so on. Your visitors should know that no matter which day of the week they come, they’d always get a special deal. You can also pair drink discounts with food discounts.

10. Run your bar

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How to Write a Restaurant Business Plan

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When starting a business—no matter what type of business that may be—a business plan is essential to map out your intentions and direction. That’s the same for a restaurant business plan, which will help you figure out where you fit in the landscape, how you’re going to differ from other establishments around you, how you’ll market your business, and even what you’re going to serve. A business plan for your restaurant can also help you later if you choose to apply for a business loan .

While opening a restaurant isn’t as risky as you’ve likely heard, you still want to ensure that you’re putting thought and research into your business venture to set it up for success. And that’s where a restaurant business plan comes in.

We’ll go through how to create a business plan for a restaurant and a few reasons why it’s so important. After you review the categories and the restaurant business plan examples, you can use the categories to make a restaurant business plan template and start your journey.

Why you shouldn’t skip a restaurant business plan

First-time restaurateurs and industry veterans alike all need to create a business plan when opening a new restaurant . That’s because, even if you deeply understand your business and its nuances (say, seasonal menu planning or how to order correct quantities), a restaurant is more than its operations. There’s marketing, financing, the competitive landscape, and more—and each of these things is unique to each door you open.

That’s why it’s so crucial to understand how to create a business plan for a restaurant. All of these things and more will be addressed in the document—which should run about 20 or 30 pages—so you’ll not only have a go-to-market strategy, but you’ll also likely figure out some things about your business that you haven’t even thought of yet.

Additionally, if you’re planning to apply for business funding down the line, some loans—including the highly desirable SBA loan —actually require you to submit your business plan to gain approval. In other words: Don’t skip this step!

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to write a restaurant business plan: Step by step

There’s no absolute format for a restaurant business plan that you can’t stray from—some of these sections might be more important than others, for example, or you might find that there’s a logical order that makes more sense than the one in the restaurant business plan example below. However, this business plan outline will serve as a good foundation, and you can use it as a restaurant business plan template for when you write your own.

Executive summary

Your executive summary is one to two pages that kick off your business plan and explain your vision. Even though this might seem like an introduction that no one will read, that isn’t the case. In fact, some investors only ask for the executive summary. So, you’ll want to spend a lot of time perfecting it.

Your restaurant business plan executive summary should include information on:

Mission statement: Your goals and objectives

General company information: Include your founding date, team roles (i.e. executive chef, sous chefs, sommeliers), and locations

Category and offerings: What category your restaurant fits into, what you’re planning to serve (i.e. farm-to-table or Korean), and why

Context for success: Any past success you’ve had, or any current financial data that’ll support that you are on the path to success

Financial requests: If you’re searching for investment or financing, include your plans and goals here and any financing you’ve raised or borrowed thus far

Future plans: Your vision for where you’re going in the next year, three years, and five years

When you’re done with your executive summary, you should feel like you’ve provided a bird’s eye view of your entire business plan. In fact, even though this section is first, you will likely write it last so you can take the highlights from each of the subsequent sections.

And once you’re done, read it on its own: Does it give a comprehensive, high-level overview of your restaurant, its current state, and your vision for the future? Remember, this may be the only part of your business plan potential investors or partners will read, so it should be able to stand on its own and be interesting enough to make them want to read the rest of your plan.

Company overview

This is where you’ll dive into the specifics of your company, detailing the kind of restaurant you’re looking to create, who’s helping you do it, and how you’re prepared to accomplish it.

Your restaurant business plan company overview should include:

Purpose: The type of restaurant you’re opening (fine dining, fast-casual, pop-up, etc.), type of food you’re serving, goals you have, and the niche you hope to fill in the market

Area: Information on the area in which you’re opening

Customers: Whom you’re hoping to target, their demographic information

Legal structure: Your business entity (i.e. LLC, LLP, etc.) and how many owners you have

Similar to your executive summary, you won’t be going into major detail here as the sections below will get into the nitty-gritty. You’ll want to look at this as an extended tear sheet that gives someone a good grip on your restaurant or concept, where it fits into the market, and why you’re starting it.

Team and management

Barely anything is as important for a restaurant as the team that runs it. You’ll want to create a section dedicated to the members of your staff—even the ones that aren’t yet hired. This will provide a sense of who is taking care of what, and how you need to structure and build out the team to get your restaurant operating at full steam.

Your restaurant business plan team and management section should have:

Management overview: Who is running the restaurant, what their experience and qualifications are, and what duties they’ll be responsible for

Staff: Other employees you’ve brought on and their bios, as well as other spots you anticipate needing to hire for

Ownership percentage: Which individuals own what percentage of the restaurant, or if you are an employee-owned establishment

Be sure to update this section with more information as your business changes and you continue to share this business plan—especially because who is on your team will change both your business and the way people look at it.

Sample menu

You’ll also want to include a sample menu in your restaurant business plan so readers have a sense of what they can expect from your operations, as well as what your diners can expect from you when they sit down. This will also force you to consider exactly what you want to serve your diners and how your menu will stand out from similar restaurants in the area. Although a sample menu is in some ways self-explanatory, consider the following:

Service : If your brunch is as important as your dinner, provide both menus; you also might want to consider including both a-la-carte and prix fixe menus if you plan to offer them.

Beverage/wine service: If you’ll have an emphasis on specialty beverages or wine, a separate drinks list could be important.

Seasonality: If you’re a highly seasonal restaurant, you might want to consider providing menus for multiple seasons to demonstrate how your dishes (and subsequent purchasing) will change.

Market analysis

This is where you’ll begin to dive deeper. Although you’ve likely mentioned your market and the whitespace you hope to address, the market analysis section will enable you to prove your hypotheses.

Your restaurant business plan market analysis should include:

Industry information: Include a description of the restaurant industry, its size, growth trends, and other trends regarding things such as tastes, trends, demographics, structures, etc.

Target market: Zoom in on the area and neighborhood in which you’re opening your restaurant as well as the type of cuisine you’re serving.

Target market characteristics: Describe your customers and their needs, how/if their needs are currently being served, other important pieces about your specific location and customers.

Target market size and growth: Include a data-driven section on the size of your market, trends in its growth, how your target market fits into the industry as a whole, projected growth of your market, etc.

Market share potential: Share how much potential there is in the market, how much your presence will change the market, and how much your specific restaurant or restaurant locations can own of the open market; also touch on any barriers to growth or entry you might see.

Market pricing: Explain how you’ll be pricing your menu and where you’ll fall relative to your competitors or other restaurants in the market.

Competitive research: Include research on your closest competitors, how they are both succeeding and failing, how customers view them, etc.

If this section seems like it might be long, it should—it’s going to outline one of the most important parts of your strategy, and should feel comprehensive. Lack of demand is the number one reason why new businesses fail, so the goal of this section should be to prove that there is demand for your restaurant and show how you’ll capitalize on it.

Additionally, if market research isn’t your forte, don’t be shy to reach out to market research experts to help you compile the data, or at least read deeply on how to conduct effective research.

Marketing and sales

Your marketing and sales section should feel like a logical extension of your market analysis section, since all of the decisions you’ll make in this section should follow the data of the prior section.

The marketing and sales sections of your restaurant business plan should include:

Positioning: How you’ll describe your restaurant to potential customers, the brand identity and visuals you’ll use to do it, and how you’ll stand out in the market based on the brand you’re building

Promotion: The tools, tactics, and platforms you’ll use to market your business

Sales: How you’ll convert on certain items, and who/how you will facilitate any additional revenue streams (i.e. catering)

It’s likely that you’ll only have concepts for some of these elements, especially if you’re not yet open. Still, get to paper all of the ideas you have, and you can (and should) always update them later as your restaurant business becomes more fully formed.

Business operations

The business operations section should get to the heart of how you plan to run your business. It will highlight both internal factors as well as external forces that will dictate how you run the ship.

The business operations section should include:

Management team: Your management structure and hierarchy, and who is responsible for what

Hours: Your hours and days of operation

Location: What’s special about your location that will get people through the door

Relationships: Any advantageous relationships you have with fellow restaurateurs, places for sourcing and buying, business organizations, or consultants on your team

Add here anything you think could be helpful for illustrating how you’re going to do business and what will affect it.

Here, you’ll detail the current state of your business finances and project where you hope to be in a year, three years, and five years. You’ll want to detail what you’ve spent, what you will spend, where you’ll get the money, costs you might incur, and returns you’ll hope to see—including when you can expect to break even and turn a profit.

Financial statements: If you’ve been in business for any amount of time, include existing financial statements (i.e. profit and loss, balance sheet, cash flow, etc.)

Budget: Your current budget or a general startup budget

Projections: Include revenue, cash flow, projected profit and loss, and other costs

Debt: Include liabilities if the business has any outstanding debt or loans

Funding request: If you’re requesting a loan or an investment, lay out how much capital you’re looking for, your company’s valuation (if applicable), and the purpose of the funding

Above all, as you’re putting your financials together, be realistic—even conservative. You want to give any potential investors a realistic picture of your business.

Feel like there are other important components but they don't quite fit in any of the other categories (or make them run too long)? That’s what the restaurant business plan appendix section is for. And although in, say, a book, an appendix can feel like an afterthought, don’t ignore it—this is another opportunity for you to include crucial information that can give anyone reading your plan some context. You may include additional data, graphs, marketing collateral (like logo mockups), and more.

LLC Formation

The bottom line

Whether you’re writing a restaurant business plan for investors, lenders, or simply for yourself and your team, the most important thing to do is make sure your document is comprehensive. A good business plan for a restaurant will take time—and maybe a little sweat—to complete fully and correctly.

One other crucial thing to remember: a business plan is not a document set in stone. You should often look to it to make sure you’re keeping your vision and mission on track, but you should also feel prepared to update its components as you learn more about your business and individual restaurant.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How it works

How To Open A Bar: A Complete Step-By-Step Guide

Transforming your dream bar into reality takes a lot of planning.

First, come up with the concept for your bar:  who are you serving, what's your vibe, and what sets you apart? Create a business plan detailing finances, marketing, and competitor analysis.

Comment by from discussion in startups

Next, secure funding and tackle legalities like licenses and permits. Find a location buzzing with potential customers and matching your vision.

Design a space that reflects your brand and invest in essential equipment and supplies. Recruit and train a skilled team to bring your vision to life.

Stock up on beverages, food (if applicable), and garnishes. Generate excitement through social media , partnerships, and events.

Finally, host a soft opening to iron out kinks before the grand unveiling. 

Remember, this is just the roadmap – each step requires research, approvals, and resources. For more on this topic, continue to read our complete guide below

Here's the complete checklist on how to open a bar in 2024:

1. Create a business plan

2. consider the structure of your business.

3. Get your funding in order

4. Understand DBA, EIN, and taxes

5. Get the required bar licenses and liquor licenses

6. Put together a bar menu

7. Organize your marketing, promotion, advertising, and branding

8. Remember to trademark your name and logo

9. Create your bar and begin remodeling

10. Select the ideal spot

11. Hire the right people

12. Select distributors and suppliers, then buy your supply

13. Create sales forecasts, and pay attention to your bottom line

14. invest in a table management system, 15. purchase bar supplies, the complete checklist to opening a bar.

Poor initial planning can make fixing a small business like a pub or nightclub expensive, if not impossible. For this reason, before launching a bar or nightclub , bar owners should have a full bar business plan and strategy in place.

You can lower your chance of failure by finding weaknesses in your bar concept and business model that can be addressed before launching by creating a business plan for your bar.

It can also assist you in putting your major objectives—such as your company's competitive advantage and mission statement —into writing.

Plus, it will also help you in estimating the startup expenses you'll incur and in preparing to approach potential investors and investors for funding.

Keep in mind you won't be able to forecast the exact month you finally reach your break-even point, for example. And the exact specifics of your new bar business are likely to vary over time.

What you can do, though, is list the elements and KPIs that will affect the bottom line of your company.

Further reading

• How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

When opening a bar, one of the most important choices you'll have to make is how to set up your company.

Which business structure do you intend to use: corporation, LLC, partnership, or sole proprietorship?

A sole proprietorship or partnership may be simpler to establish, but there is a drawback to this type of organization: you bear personal liability for any debt and/or lawsuits your company incurs.

Stated differently, in the event of a dispute, your liability is unrestricted, which implies that you might have to give up personal belongings to pay for damages.

The most common way to protect yourself from personal responsibility is to incorporate or form an LLC for your restaurant or bar.

These business arrangements restrict your liability by acting as an independent entity and taking on the other business owner's debts.

For example, if someone trips and falls in your bar and wishes to sue, they do so against the business rather than against you.

Make sure you understand what you're committing to before you finalize the complete structure of your business. For more assistance on this topic, we suggest you speak to a bar owner, who can give you some guidance. 

3. Get your funding in order

The benefit of bars and nightclubs is that they can more easily make money than restaurants, especially compared to the latter.

Bars can turn a profit faster since alcoholic beverages have high markups and cheap ingredient costs.

They also demand fewer employees, which reduces labor expenses; all of these factors will increase the appeal of your company to possible investors.

• What is a Restaurant Profit Margin? Your Complete Guide

4. Understand DBA, EIN, and taxes

Taxes are a necessary expense for any organization, and managing this process from the start to the end will save you hassles. The first step is to apply for an Employer Identification Number (EIN), which is the tax ID number for your company, from the IRS.

You must file for a DBA (Doing Business As) if your company will be taxed under a name other than yours or the company's.

A competent accountant is essential to the successful operation of a restaurant business, so it's a good idea to enlist their assistance early on.

Wish I understood DBA and EIN before opening my bar. Tax mess was a nightmare. Hire an accountant—trust me!

5. Get the required bar licenses and liquor licenses

Before you open for business, your bar must have the appropriate liquor license to avoid legal issues and to guarantee the smooth opening and continuing operations of your establishment.

You need a license to sell food and drink in your bar, as well as to play music. While some of these are simple to attain, others need more work.

Starting early is essential because obtaining a bar business license can be expensive and take several days, weeks, or months.

You will likely require legal assistance at some point during the life of your company, so working with a reputable lawyer from the beginning of the opening process will help you steer clear of costly and time-consuming errors.

6. Put together a bar menu

Take inspiration from bar menu design templates, explore local bars, and browse internet menus of bars that share a similar theme. Next, organize and create your own bar menu based on the kind of establishment you're operating.

• Top Free Restaurant Menu Makers

A wine bar should feature a variety of wines, sometimes in a specialty area (like natural wine), while a craft beer bar should have dozens of distinctive, locally brewed beers.

• How to Manage a Winery: Tips for a Wine Manager

A general bar should serve a variety of drinks, including wine, beer, and non-alcoholic options, in addition to classic cocktails and inventive concoctions.

• The Most Overlooked Profitable Menu Items for Restaurants

7. Organize your marketing, promotion, & branding

Many bars attract guests by word of mouth, foot traffic, and proximity; this is especially true for establishments hoping to establish themselves as beloved local hangouts.

But, it's important to highlight your products with an internet presence and an effective marketing plan to expand your bar business.

This is how you draw in clients from surrounding neighborhoods. Once they enter, your excellent atmosphere and beverage menu will entice them to return, even if it means having to go across town.

• The Best Digital Marketing Strategies For Restaurants

8. Remember to trademark your name and logo

Register your name and logo with your trademarks with the USPTO , the United States Patent and Trademark Office.

Adhere to the instructions provided on the USPTO website. Keep in mind that in certain situations, you could need legal representation.

Additionally, if you collaborated with a designer to develop your logo, you'll need to work with them to make sure you have the legal authority to use their creations as copyright.

• How to Name a Restaurant (Expert Tips, Ideas & Examples)

9. Create your bar and begin remodeling

Unlike restaurants, where guests can occasionally be content with takeaway or delivery , people go to bars for the ambiance and to mingle.

Likely, people are there for the atmosphere rather than the drink if they are at the bar. That is why it's important to choose the appropriate furniture, décor, and music.

Make sure everything in your bar design complements one another. In one example, everything should be in harmony; don't create a sports bar and play techno music.

Create a board on Pinterest to collect unique ideas for bar decor. Engage the services of an interior designer if you can.

Whatever you choose, be sure to get this right so you can provide your clients with an unforgettable experience and encourage repeat business.

 10. Select the ideal spot

The greatest method for locating your bar in the ideal area is to conduct a location study. These are a few of the most important aspects to take into account, while there are many more:

• Target demographics:  Either start by focusing on a place whose population characteristics align with your idea or build your whole plan around the characteristics of a chosen site.
• Zoning laws and health regulations:  Zoning laws can differ significantly between counties and cities. To ensure you know what to anticipate, make sure you familiarize yourself with the zoning laws in your area.
• Access and visibility:  Choosing a spot that is visible to onlookers and drivers alike is crucial. Parking that is accessible is always ideal.
• Take a look at the competition nearby:  If there are a lot of bars in the area, you might want to consider choosing an alternative site or making sure your bar has a distinctive concept that makes it stand out.

11. Hire the right people

The staffing requirements of various bar types can differ.

A huge nightclub , for example, will need additional staff, such as a house DJ or bottle service personnel, that a small neighborhood pub won't require.

You might want a sommelier on staff if you manage a wine bar . To start most bars, you'll need to fill the following important positions:

• A hostess/ host
• Barbacks and servers

Starting a new business and getting in on the ground floor of a new bar excites a lot of potential employees.

• How To Get More Tips For Your Servers with Pay-at-Table

Creating a clear workplace culture from the start is the greatest approach to retaining your excellent bartending staff given the high turnover rate.

A well-thought-out training program with precise expectations should be developed in addition to conducting interviews and employing new staff.

Ensuring that your staff is properly trained to recognize indicators of obvious intoxication is an essential aspect of owning a bar.

These indicators should be highlighted in your training program, along with advice on how to handle inebriated customers. Ensuring your guests' safety is your duty both during their stay and after they depart from your establishment.

Get started with Eat App's free trial to get your staff up and running in no time!

12. Select distributors and suppliers

A method for bar inventory management or appropriate usage of a bar point-of-sale system should be established before opening.

This is because bar inventory plays a significant role in monitoring your cost of sales (including liquor, food, and other critical metrics).

You can determine which drinks are the most profitable in your bar and establish prices with the use of effective bar inventory tracking.

This information can be used to price your bar menu profitably, improve your bar's profit margin, and assist bartenders in making more sensible drink recommendations.

Make sure you have an effective bar accounting system in place in addition to keeping accurate inventory records.

Whether you use Quickbooks or employ a bookkeeper, it's important to monitor your company's performance and identify areas for improvement.

Although it can be difficult to project exactly how much money your bar business will make in the first few months, you can start monitoring key performance indicators as soon as you open by utilizing a top-notch bar point-of-sale and reservation system.

Maintain a record of your fixed and variable operational expenses and calculate the daily, weekly, and monthly revenue requirements to meet your expenses, break even, and ultimately turn a successful bar into a profit.

The bar scene is competitive, and maximizing efficiency while providing an outstanding guest experience is key to standing out.

A table and reservation system isn't just for fancy restaurants anymore – it's a powerful tool for modern bars to boost revenue, streamline operations, and delight guests.

Here's why:

Enhanced customer experience:

• No more waiting frustration:  Offer online reservations to eliminate walk-in wait times and guarantee customers a spot, especially during peak hours. This builds trust and reduces the chance of losing them to competitors.
• Personalized touch:  Capture reservation details to offer table preferences, birthday greetings, or special promotions, creating a sense of recognition and appreciation.
• Increased convenience:  Integrate with social media platforms or your website for seamless online booking, catering to tech-savvy clientele.
• Reduced queues:  Manage bar flow and optimize seating arrangements based on reservations, ensuring smooth service and avoiding overcrowding.

Operational efficiency:

• Maximize table turnover:  Allocate tables effectively based on reservation size and duration, leading to more customers served and increased revenue.
• Improved staff communication:  Eliminate confusion with a centralized reservation system that staff can access and update in real-time.
• Reduced errors:  Minimize double-booking and seating mishaps, leading to better service and happier customers.
• Data-driven decisions:  Gain insights into reservation trends and customer preferences to optimize staffing, inventory, and promotions.

Additional benefits:

• Marketing opportunities:  Collect customer data for targeted promotions and loyalty programs, fostering repeat business.
• Event management:  Facilitate group bookings and special events with dedicated reservation features.
• Reduced no-shows:  Implement confirmation systems and require deposits to minimize empty tables and lost revenue.

Get started with Eat App's free trial to get your Reserve with Google button activated now!

Choosing the right system:

Consider bar size, budget, and desired features when selecting a system.

Opt for cloud-based options for flexibility and scalability. Invest in a system that integrates with your existing bar POS system for streamlined operations.

The comparatively lower equipment costs at bars compared to restaurants contribute to their greater profitability.

You won't need an industrial mixer, deep fryer, burner, oven, or walk-in freezer if your bar doesn't serve food, which can reduce your startup expenses. It is still possible to work with a more manageable list of essentials if you only serve appetizers or snacks. If you're creating a sports bar, you will still need to spend money on excellent blenders, lots of refrigerators of all capacities, perhaps a wine cellar, a top-notch dishwasher, a keg and tap system, and lots of TVs.

Find out more about the supplies required to operate a bar, then make a list of what you should acquire first.

For your bar, you'll also need to purchase a tonne of small wares, such as straws, glassware, napkins, and cleaning supplies.

Here are some tips from bar owners on Reddit: 

Comment by u/SirSmilezzz from discussion in BarOwners

Opening a bar can be an exciting and rewarding journey, but it requires careful planning, dedication, and a touch of passion.

This guide has equipped you with the essential steps to navigate the bar opening process, from crafting your unique concept to securing funding and pouring your first drink.

Remember, the bar industry thrives on innovation and personalized experiences. Don't be afraid to experiment with your menu, create a welcoming atmosphere, and prioritize exceptional customer service.

By staying true to your vision and adapting to market trends, you'll be well on your way to building a thriving bar that becomes a beloved community hub.

How profitable is a pub?

What is the typical profit margin at a pub?  Around 80% is the profit margin that most bars strive for.

Bars have an average gross profit margin of almost 75% overall. Being able to measure and regulate your pour expenses is essential to hitting that target. Pour cost is an important metric to measure the profitability of your bar.

What is the startup cost of a local pub?

A pub must spend between $110,000 and $850,000 to be fully operational when it is first opened, for an average of $480,000.

Taking over an established pub business is typically less expensive because you'll save money on renovations and can include furnishings and equipment in the deal.

Are bars considered a good investment?

Purchasing a pub places owners in a sector of the economy that has the potential to grow for many years, but the companies with the most innovative approaches to customer service will probably have the advantage in this regard.

Customers of today anticipate quick service and prompt fulfillment of their wants when they visit bars because they are accustomed to it.

Senior Content Manager at Eat App

Elana Kroon used to work in restaurants before becoming a journalist and expert restaurant industry content creator at Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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Step By Step Guide To Write A Bar Business Plan

Opening a new bar requires grit and determination - as well as a fantastic bar business plan to act as your roadmap. This document can determine the future success of your new venture, so it’s essential to make it as comprehensive as possible.

But for first-time bar owners, figuring out where to start can be challenging. Our step-by-step guide to writing a business plan will help you pinpoint the finer details to consider when building a thriving bar business.

How to Write a Bar Business Plan in 9 Steps

1. bar overview.

The first step in writing a bar business plan is to establish an overview of the type of bar you want to open. You need a concept and location to shape your business model and create an executive summary for your new venture:

One of the defining aspects of your establishment is its concept and theme, which you’ll need to describe clearly in your business plan. Whether it’s a simple sports bar, speakeasy, or high-end nightclub, have a fully developed idea of what your venue will be and what purpose it will serve.

You also need to consider how to meet market needs. If you’re following trending concepts, you’ll know that roof-top bars and lounges are popular now. Or, perhaps you want your venue to be an activity-based bar that offers an art gallery, board games, or mini-golf?  

Part of your business plan also includes setting your mission statement and goals. These should outline your vision and will influence who invests in your bar. Your mission statement should be a comprehensive statement that details what sets you apart from other bars and should include your company’s values.

It’s important to link your statement to your business concept. You should consider how your values and goals are influenced by what makes your bar unique - including your overall purpose.

Next, you need to propose a location for your bar. Venues close to stores, shopping, centers, and tourist attractions, typically get good visibility and attract a lot of foot traffic. Because of the number of people moving through these areas daily, they also usually offer a decent level of security for your customers.

Another consideration for location is to avoid suburban areas where neighbors might lodge noise complaints. Should this happen, it can mean regulations stipulate earlier closing times for your venue so as not to disturb the peace.  

Finally, look for a space where there’s low competition, and your business can shine. There are plenty of strips crowded with bars and nightclubs. While these might attract a decent amount of foot traffic, you’ll need to work much harder to draw people into your place if one establishment has already made a name for itself.

For this reason, aim to secure a spot with little competition. It could mean having a unique concept bar that overshadows the competition. Or it could mean selecting a space where your type of bar doesn’t yet exist.

Ease of Accessibility

Potential customers need to be able to access your bar easily, or they will go elsewhere. They might drive, take public transport, or use a ridesharing company to travel to your venue. It’s up to you to ensure there are ways and means to get them conveniently to the front door.

Here, you should be looking for a venue where you can offer parking to your patrons. It should also be accessible to ride-hailing services and close to public transport.

2. Customer Overview

No bar establishment would be successful without its customers. As part of your bar business plan, include a profile of the type of customer you hope to attract. Consider who your target market is and how it aligns with your bar concept.

You should also outline your demographic's age, income, and interests. You’ll need this information later when developing marketing strategies for your business.  

3. Management Overview

The next step in your bar business plan is building a team structure. Your crafty bar concept requires talented people to execute it properly.

Your bartenders are the face of your establishment. Essentially, they can make or break your customer’s impression of your venue. When going through the hiring process, you’ll need to consider each individual’s personality, qualifications, experience, and skills.

Ideally, you want at least one experienced bartender who knows the ropes and can help set up operations, deal with bar management, and train the team. They will also be able to help streamline any teething issues that come up as a result of starting a new business.

From the get-go, outline your bartending teams’ possible responsibilities and the duties they’ll need to undertake. This can help set expectations ahead of advertising jobs and interviewing potential candidates.

Bar-backs don’t need as much experience as bartenders or servers as they aren’t in the customer eye as much. But they must be willing and eager to learn. They are essential to keeping everything running smoothly and work closely with the bartender as an assistant.

For this reason, they need a solid foundational knowledge of the industry, ingredients, and barware in general.

Depending on your business concept and operational model, you may or may not need to employ servers. Some high-end venues have servers to reduce the crowd around the bar and deliver drinks to the table. Additionally, you’ll need to hire servers if you offer any food.

When building out your staffing plan, you’ll need to determine where your establishment lands with that requirement. Make a note here to look for bar industry candidates with alcohol training who know how to serve alcohol safely and legally.

4. Drinks Menu Plan

Your drinks menu is your bar’s product. To be successful, it’s essential to get this offering right.

While your beverage list will undoubtedly change over time, don’t neglect to include a sample menu in your business plan. This will give potential investors an idea of what’s in store and possibly help you secure funding.

Descriptions

Your drinks menu is the selling point of your bar business and the star of the show. If you can excite and entice patrons with promises of wonderful flavors, you’ll be onto a gold mine.

So, it’s important to include product descriptions in your menu, particularly for signature drinks. Each listing should detail the ingredients of individual drinks, any garnishes they may come with, and add-ons your customers can choose from.

Beverage Names

A successful bar is only as strong as its product. So, aligning your drinks with your bar’s brand and concept is important. Get together with a mixologist to create one or several signature drinks that will be uniquely your own. Give these drinks names that play to the overall theme of your business.

Product Sourcing

Many establishments lean on particular products as their claim to fame. For example, you might want to be known as a French wine bistro, local brewery, or craft cocktail spot. Decide what you wish your unique story to be and reflect this in your plan for product sourcing.

Of course, sourcing locally is the most sustainable way to go. You can also build relationships with vendors in your community, which can help bring people into your venue.  

Industry Trends

It’s essential to do your research and stay abreast of industry trends. Note what these are in your business plan, as this will help keep customers walking through your doors.

For example, one of the most popular cocktail trends in the bar scene is smoke-infused or smoked cocktails. Some mixologists may also use smoke bubbles to infuse the cocktail with a smoky aroma. This trend has gained fame in the last few years and adds a new twist to the cocktail-drinking experience.

Small Food Menu (Small Bites)

Food and beverages go hand in hand. If you plan a small menu with, say, tapas or easy eats, you can increase your revenue. It will prevent your guests from leaving to find something to eat.

Suppose you don’t want the hassle of food storage and preparation. In that case, consider formulating a partnership with a local eatery or small food business that can deliver a menu of select freshly-made items to your establishment.

5. Licenses

It’s key to plan out your business licenses carefully. If you don’t have the right ones in place, you won’t be able to operate.

Tavern License

When putting together your bar business plan, it’s important to research whether you need a tavern license. It’s a government-issued license for restaurants, bars, or businesses with more than 50% liquor sales.  

Beer and Wine License

If you’re planning on starting a beerhouse or wine lounge, you may only need to apply for a beer and wine license. This will restrict your sales to wine and malt beverages, as you won’t be able to sell hard liquors like spirits. Whether you need to apply for this license depends on your bar's concept.

Health/Food Service License

With a small food menu, you’ll likely need to note on your restaurant and bar business plan to apply for a food service license. It’s a requirement to serve any type of food within your establishment. To obtain a food service license, you’ll need to ensure that your bar follows strict rules and regulations laid out by the U.S. Food and Drug Administration .

Music License

Music is one of the key elements of creating ambiance in a venue. But did you know that streaming music from your digital subscription with Spotify or Deezer is not actually operating within the law? This is true even if you’re playing music through a TV or radio.

The right way to go about this is to pay a Performance Rights Organization (PRO) or music service that will send royalties to the relevant artists. For the most part, this doesn’t apply to bands or performers who play live at your venue.

6. Market Research

Performing market research as part of your bar business plan is key to understanding your opportunities and how to capitalize on them.  

Industry Research

Part of your research should be to determine the market size you can potentially snag. Look at other bars already operating in the area, consider the industry as a whole, and determine what trends are driving it forward.  

Target Market

What needs will your bar solve for your target market? You can find out who they are and what they want by considering the local neighborhood and bar type.

It’s also an idea to look at census data to see how many potential customers within a certain demographic live within a reachable radius of your proposed location.

Market Share and Price Point

When doing your market analysis, consider similar bar businesses that have come before you. What do their successes and failures look like? Why did they crash and burn, or soar to new heights? Take these lessons and figure out how to apply them so your business can succeed.

Furthermore, what will your entry into the market mean for the local community? Are you creating new job opportunities? Or are you going to bring in an unruly crowd of patrons they hope to avoid? Knowing this information will help you be accepted and create connections rather than catastrophes.

Lastly, consider what your ‘competitors’ or other similar industry businesses are charging for their drinks and services. Run a competitive analysis in the area to determine your potential price point and how you can stand out.

7. Bar Marketing

Utilizing a marketing plan in the right way helps you take measured steps to get your establishment in front of potential customers. Here are the strategies to get started:

Create a Brand

The key to starting a successful business - and keeping it open - is to create a memorable brand identity. Your toolbox for promoting your brand should include your logo, colors, and ‘personality.’ Use these in a way that becomes synonymous with your bar, no matter where people interact with it.

Marketing Tools

Besides developing your brand identity, consider the channels you can market on to attract customers. At the very least, it should include your social channels, website, and media influencers.

8. Other Avenues to Increase Revenue

Besides being a bar and welcoming guests who come in with reservations or foot traffic, there are other avenues to increase your revenue.

Hosting events such as karaoke nights, wine tastings, or live music is an excellent way to attract larger crowds to your bar. You are guaranteed certain sales, can charge a cover fee, and get new people walking through the door.

If you go this route, we recommend using event management software to keep everything on track and work effortlessly with your team.

It’s no surprise that all businesses go through an ebb and flow of customer traffic. A great way to increase cash flow during slower periods is to introduce ideas like drink specials and happy hour discounts.

When you’re writing up a business plan, don’t forget to brainstorm ideas for a pre-opening promotion as a way to test the market. This can be as simple as a soft launch or as elaborate as a grand-opening celebration.

9. Financials

An important aspect of your business plan is to outline your potential start-up costs. These, along with the costs of day-to-day business operations, and financial projections, will attract or deter potential investors.

Your business plan should also highlight possible funding options like loans and investment opportunities you have available. Additionally, you’ll need to draw up a break-even analysis to determine how much revenue it will take to turn profits.  

Realizing your dream of owning the hottest bar in town starts with a great business plan. It will need to cover everything from your mission statement to your concept and drinks menu. This will help you build a sturdy management team, hire great employees, and attract people to your venue.

Want to know more about Perfect Venue for event management? Try it free to find out how it can be a fit for your new business.

Have thoughts on the article? Feel free to email us at [email protected] - we'd love to hear it!

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Restaurant Business Plan: What To Include, Plus 8 Examples

• Business Growth & Management , Templates & Guides

Do you want to ensure the success of your new foodservice endeavor? Write a restaurant business plan.

In this article, the experts at Sling tell you why a business plan is vital for both new and existing businesses and give you tips on what to include.

Table Of Contents

What Is A Restaurant Business Plan?

Why is a restaurant business plan important, questions to ask first, what to include in an effective restaurant business plan, how to format a restaurant business plan, efficient workforce management is essential for success.

At its most basic, a restaurant business plan is a written document that describes your restaurant’s goals and the steps you will take to make those goals a reality.

This business plan also describes the nature of the business itself, financial projections, background information, and organizational strategies  that govern the day-to-day activity of your restaurant.

A restaurant business plan is vital for the success of your endeavor because, without one, it is very difficult — sometimes even impossible — to obtain funding from an investor or a bank.

Without that all-important starting or operational capital, you may not be able to keep your doors open for long, if at all.

Even if funding isn’t a primary concern, a business plan provides you — the business owner or manager — with clear direction on how to translate general strategies into actionable plans  for reaching your goals.

The plan can help solidify everything from the boots-on-the-ground functional strategy  to the mid-level business strategy  all the way up to the driving-force corporate strategy .

Think of this plan as a roadmap that guides your way when things are going smoothly and, more importantly, when they aren’t.

If you want to give your restaurant the best chance for success, start by writing a business plan.

Sitting down to write a restaurant business plan can be a daunting task.

As you’ll see in the What To Include In An Effective Restaurant Business Plan section below, you’ll need a lot of information and detail to ensure that the final document is both complete and effective.

Instead of starting with word one, it is hugely beneficial to answer a number of general questions first.

These questions will help you narrow down the information to include in your plan so the composition process feels less difficult.

The questions are:

• What problem does the business’s product or service solve?
• What niche will the business fill?
• What is the business’s solution to the problem?
• Who are the business’s customers?
• How will the business market and sell its products to them?
• What is the size of the market for this solution?
• What is the business model for the business?
• How will the business make money?
• Who are the competitors?
• How will the business maintain a competitive advantage?
• How does the business plan to manage growth?
• Who will run the business?
• What makes those individuals qualified to do so?
• What are the risks and threats confronting the business?
• What can you do to mitigate those risks and threats?
• What are the business’s capital and resource requirements?
• What are the business’s historical and projected financial statements?

Depending on your business, some of these questions may not apply or you may not have applicable answers.

Nevertheless, it helps to think about, and try to provide details for, the whole list so your finished restaurant business plan is as complete as possible.

Once you’ve answered the questions for your business, you can transfer a large portion of that information to the business plan itself.

We’ll discuss exactly what to include in the next section.

In this section, we’ll show you what to include in an effective restaurant business plan and provide a brief example of each component.

1) Executive Summary

You should always start any business plan with an executive summary. This gives the reader a brief introduction into common elements, such as:

• Mission statement
• Overhead costs
• Labor costs
• Return on investment (ROI)

This portion of your plan should pique the reader’s interest and make them want to read more.

Fanty & Mingo’s is a 50-seat fine-dining restaurant that will focus on Sweruvian (Swedish/Peruvian) fusion fare.

We will keep overhead and labor costs low thanks to simple but elegant decor , highly skilled food-prep staff, and well-trained servers.

Because of the location and surrounding booming economy, we estimate ROI at 20 percent per annum.

2) Mission Statement

A mission statement is a short description of what your business does for its customers, employees, and owners.

This is in contrast to your business’s vision statement which is a declaration of objectives that guide internal decision-making.

While the two are closely related and can be hard to distinguish, it often helps to think in terms of who, what, why, and where.

The vision statement is the where of your business — where you want your business to be and where you want your customers and community to be as a result.

The mission statement is the who , what , and why of your business — it’s an action plan that makes the vision statement a reality

Here’s an example of a mission statement for our fictional company:

Fanty and Mingo’s takes pride in making the best Sweruvian food, providing fast, friendly, and accurate service. It is our goal to be the employer of choice and offer team members opportunities for growth, advancement, and a rewarding career in a fun and safe working environment.

3) Company Description

In this section of your restaurant business plan, you fully introduce your company to the reader. Every business’s company description will be different and include its own pertinent information.

Useful details to include are:

• Owner’s details
• Brief description of their experience
• Legal standing
• Short-term goals
• Long-term goals
• Brief market study
• An understanding of the trends in your niche
• Why your business will succeed in these market conditions

Again, you don’t have to include all of this information in your company description. Choose the ones that are most relevant to your business and make the most sense to communicate to your readers.

Fanty & Mingo’s will start out as an LLC, owned and operated by founders Malcolm Reynolds and Zoe Washburne. Mr. Reynolds will serve as managing partner and Ms. Washburne as general manager.

We will combine atmosphere, friendly and knowledgeable staff, and menu variety to create a unique experience for our diners and to reach our goal of high value in the fusion food niche.

Our gross margin is higher than industry average, but we plan to spend more on payroll to attract the best team.

We estimate moderate growth for the first two years while word-of-mouth about our restaurant spreads through the area.

4) Market Analysis

A market analysis is a combination of three different views of the niche you want to enter:

• The industry  as a whole
• The competition your restaurant will face
• The marketing  you’ll execute to bring in customers

This section should be a brief introduction to these concepts. You can expand on them in other sections of your restaurant business plan.

The restaurant industry in our chosen location is wide open thanks in large part to the revitalization of the city’s center.

A few restaurants have already staked their claim there, but most are bars and non-family-friendly offerings.

Fanty & Mingo’s will focus on both tourist and local restaurant clientele. We want to bring in people that have a desire for delicious food and an exotic atmosphere.

We break down our market into five distinct categories:

• High-end singles
• Businessmen and businesswomen

We will target those markets to grow our restaurant  by up to 17 percent per year.

Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you’ll serve in as much detail as possible.

You may not have your menu design complete, but you’ll likely have at least a handful of dishes that serve as the foundation of your offerings.

It’s also essential to discuss pricing and how it reflects your overall goals and operating model. This will give potential investors and partners a better understanding of your business’s target price point and profit strategy.

We don’t have room to describe a sample menu in this article, but for more information on menu engineering, menu pricing, and even a menu template, check out these helpful articles from the Sling blog:

• Menu Engineering: What It Is And How It Can Increase Profits
• Restaurant Menu Pricing: 7 Tips To Maximize Profitability
• How To Design Your Menu | Free Restaurant Menu Template

6) Location

In this section, describe your potential location (or locations) so that you and your investors have a clear image of what the restaurant will look like.

Include plenty of information about the location — square footage, floor plan , design , demographics of the area, parking, etc. — to make it feel as real as possible.

We will locate Fanty & Mingo’s in the booming and rapidly expanding downtown sector of Fort Wayne, Indiana.

Ideally, we will secure at least 2,000 square feet of space with a large, open-plan dining room and rich color scheme near the newly built baseball stadium to capitalize on the pre- and post-game traffic and to appeal to the young urban professionals that live in the area.

Parking will be available along side streets and in the 1,000-vehicle parking garage two blocks away.

7) Marketing

The marketing section of your restaurant business plan is where you should elaborate on the information you introduced in the Market Analysis section.

Go into detail about the plans you have to introduce your restaurant to the public and keep it at the top of their mind.

Fanty & Mingo’s will employ three distinct marketing tactics to increase and maintain customer awareness:

• Word-of-mouth/in-restaurant marketing
• Partnering with other local businesses
• Media exposure

We will direct each tactic at a different segment of our potential clientele in order to maximize coverage.

In the process of marketing to our target audience, we will endeavor to harness the reach of direct mail and broadcast media, the exclusivity of the VIP party, and the elegance of a highly trained sommelier and wait staff.

8) Financials

Even though the Financials section is further down in your restaurant business plan, it is one of the most important components for securing investors and bank funding.

We recommend hiring a trained accountant  to help you prepare this section so that it will be as accurate and informative as possible.

Fanty & Mingo’s needs $250,000 of capital investment over the next year and a half for the following:

• Renovations to leased space
• Dining room furniture
• Kitchen and food-prep equipment
• Liquor license

Projected profit and loss won’t jump drastically in the first year, but, over time, Fanty & Mingo’s will develop its reputation and client base. This will lead to more rapid growth toward the third and fourth years of business.

Most entrepreneurs starting a new business find it valuable to have multiple formats of their business plan.

The information, data, and details remain the same, but the length and how you present them will change to fit a specific set of circumstances.

Below we discuss the four most common business plan formats to cover a multitude of potential situations.

Elevator Pitch

An elevator pitch is a short summary of your restaurant business plan’s executive summary.

Rather than being packed full of details, the elevator pitch is a quick teaser of sorts that you use on a short elevator ride (hence the name) to stimulate interest in potential customers, partners, and investors

As such, an effective elevator pitch is between 30 and 60 seconds and hits the high points of your restaurant business plan.

A pitch deck is a slide show and oral presentation that is designed to stimulate discussion and motivate interested parties to investigate deeper into your stakeholder plan (more on that below).

Most pitch decks are designed to cover the executive summary and include key graphs that illustrate market trends and benchmarks you used (and will use) to make decisions about your business.

Some entrepreneurs even include time and space in their pitch deck to demonstrate new products coming down the pipeline.

This won’t necessarily apply to a restaurant business plan, but, if logistics permit, you could distribute small samples of your current fare or tasting portions of new dishes you’re developing.

Stakeholder Plan (External)

A stakeholder plan is the standard written presentation that business owners use to describe the details of their business model to customers, partners, and potential investors.

The stakeholder plan can be as long as is necessary to communicate the current and future state of your business, but it must be well-written, well-formatted, and targeted at those looking at your business from the outside in.

Think of your stakeholder plan as a tool to convince others that they should get involved in making your business a reality. Write it in such a way that readers will want to partner with you to help your business grow.

Management Plan (Internal)

A management plan is a form of your restaurant business plan that describes the details that the owners and managers need to make the business run smoothly.

While the stakeholder plan is an external document, the management plan is an internal document.

Most of the details in the management plan will be of little or no interest to external stakeholders so you can write it with a higher degree of candor and informality.

After you’ve created your restaurant business plan, it’s time to take steps to make it a reality.

One of the biggest challenges in ensuring that your business runs smoothly and successfully is managing  and optimizing  your team. The Sling  app can help.

Sling not only includes powerful and intuitive artificial-intelligence-based scheduling tools but also many other features to help make your workforce management more efficient, including:

• Time and attendance tracking
• Built-in time clock
• Labor cost  optimization
• Data analysis and reporting
• Messaging and communication
• And much more…

With Sling, you can schedule faster, communicate better, and organize and manage your work from a single, integrated platform. And when you use Sling for all of your scheduling  needs, you’ll have more time to focus on bringing your restaurant business plan to life.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com  today.

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How to Write a Bar Business Plan + Free Template

Bar businesses are growing. Especially due to the increase in alcohol consumption and nightlife culture amongst the younger population.

But all of us know that a bar business is much more than just alcohol. It is also a good profession for people who like to socialize, talk to new people, and are lively and cheerful more often than not.

And the best part is no industry giant holds a huge chunk of the market in this business.

Sounds good, right? But before you go ahead and fulfill your long-standing dream of having a bar, you’ll need a bar business plan and we are here to help you with that, Here’s a quick overview of the industry.

Industry Overview

The bar industry stood at a massive market value of 25.09 billion dollars in the US in 2021. And is going through a phase of rapid recovery after being hit by the coronavirus pandemic.

The bar industry covers the broad spectrum of nightclubs, bars, and other such establishments that serve alcohol and snacks. The revenue for nightclubs also comes mainly from the sales of alcohol.

Increased acceptance of alcohol and an increase in disposable income of the younger population, mainly the millennials has led to the growth of the bar business.

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Things to Consider Before Writing a bar business plan

Get all the necessary licenses.

As a bar business staying on the right side of the law is more important than anything. Having all the necessary licenses and permits lets you run your business smoothly and without any chaos.

Here’s a list of licenses that you’ll need:

• Liquor License
• Food Safety Permit
• Fire Safety Certificate
• Music license

You might need more depending on the laws of your state and locality. Get all the necessary permits to avoid hassles as well as to ensure your customers and your own safety.

The location matters ( A lot )

In the case of a bar business, the location is usually the whole and soul of your business. The right location would be a preferred hangout spot for your target audience, easy to access, and not overly crowded.

The factor that the locality has your target audience or not would be a major deciding factor in your bar business’s success.

Know your target audience and their preferences

Knowing about your target audience gives your business the head start it deserves. Study everything from what your target audience prefers when it comes to food and beverages, what additional services they expect, What kind of vibe they prefer, and obviously, what is the right location to cater to them.

Have a unique theme

A major aspect of the bar industry is that it doesn’t really have any big players but several small businesses that compete with each other. And if you want to stand out amongst all the hustle and bustle it is important to have a unique theme that appeals to your target audience.

How Can a Bar Business Plan Help You?

A business plan helps you develop the right perspective toward the industry you plan on entering.

It not only helps you with market analysis and management but also acts as a guide in your business journey.

If you plan your business well, you get an edge over poorly managed entities and unaware owners who did not conduct market research before starting the business.

Specifically, when starting a bar business, a business plan helps you in making cost-effective decisions when you begin, so you don’t have to worry about haphazard finances later.

And as you know the benefits of having a business plan now, let’s discuss how to write an effective plan .

How to write an effective bar business plan?

Although you can write a business plan on your own from scratch, it is always good to get a little guidance when writing one.

Thanks to technology, there are several options available, and you can choose the one that fits the best for you.

You can either go to a business consultant, design your plan based on a predesigned template, or get a customized plan for your business through an online business plan software without going anywhere.

Chalking Out Your Business Plan

All businesses like bars, pubs, lounges, and nightclubs come under the aegis of the bar business. All of these are drinking places that primarily serve and prepare alcoholic beverages.

Moreover, it is an industry where there are no market leaders who hold a big share in the industry’s value, but small fragmented units amongst whom the industry’s value is distributed.

Now it might look like a lucrative business to enter, but a lot of bar businesses fail due to bad financial and employee management. They end up overspending and working their employees to the point of exhaustion.

You don’t have to worry about it though, the above problem has a quick and easy solution: A business plan.

Yes, you heard it right, a bar business plan can help you solve all the management and planning-related problems.

If you are planning to start a new bar business , the first thing you will need is a business plan. Use our sample Bar business plan created using upmetrics business plan software to start writing your business plan in no time.

Bar Business Plan Outline

This is the standard bar business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Mission Statement
• Guiding Principles
• Keys to Success
• Start-Up Summary
• Location and Facilities
• Products/Services Description
• Competitive Comparison
• Product/Service Sourcing
• Inventory Management
• Future Products/Services
• Market Size
• Industry Participants
• Market Share
• Applebee’s Pinto’s Bar and Grill 6706
• Cococabana Bar & Grill
• Flanigan’s Seafood Bar & Grill
• Market Segments
• Market Tests
• Market Needs
• Market Trends
• Market Growth
• Positioning
• SWOT Analysis
• Strategy Pyramid
• Unique Selling Proposition (USP)
• Competitive Edge
• Positioning Statement
• Pricing Strategy
• Promotion and Advertising Strategy
• Marketing Programs
• Sales Forecast
• Sales Programs
• Exit Strategy
• Organizational Structure
• Management Team Gaps
• Personnel Plan
• Important Assumptions
• Startup Expenses
• Startup Assets
• Source And Use Of Funds
• Profit & Loss Statement
• Balance Sheet
• Cash Flow Statement

Before you get started with writing your business plan, let’s understand each section in detail:

1. Executive Summary

An executive summary is the most important document of your business plan. It is crucial to get you funded as a business as it sums up everything your business stands for.

Chances are that the investors might not even read beyond this section.

Therefore, when you write it make sure you sum up your business idea and its functions properly.

2. Business Overview

In this section, you will include an overview of all the chief needs of your business.

In a bar business plan, the chief aspects would include the location and its accessibility, the legal rules regarding alcohol followed by the area as well as the primary legal formalities involved in running a bar.

3. Products and services

This section includes all the products and services you’ll offer.

Resources for getting the products, especially in the case of a bar business the formal procedures involved in acquiring alcohol should be included.

It is also good to note down the differentiating factor between your and your competitor’s product.

4. Market analysis

Market analysis is another crucial aspect of a business plan. It comes in handy while assessing strategies and techniques that work and do not work by analyzing your competitors.

It also helps you get information about the size of the market and its growth potential.

It helps you to know your target audience and segment of the market that forms the majority of your client base.

5. Marketing strategy and implementation

Based on market analysis, next up you’ll formulate your marketing strategy.

While formulating your marketing strategy you should always keep your unique selling point and target market in mind.

Apart from that your positioning in the industry is also a critical aspect of your strategy implementation.

In addition to all of the above, advertising strategy is an aspect a bar business has to pay special attention to, as a direct advertisement of alcohol isn’t allowed on various media platforms.

6. Organizational Management

This step is also especially important in a bar business plan to avoid overworking employees, create good and respectful relations amongst the team, and have strong teamwork.

You should also include various roles and responsibilities of different people in your organization as well as ways of tracking their performance in this section.

7. Financial Plan

A financial plan is important because it prevents you from overspending and optimally distributes your cash flow amongst various segments of your business.

Apart from that in a financial plan, you can also carry out an analysis of your financial history as well as  funding options for your business.

The above-mentioned order can help you write a well-rounded plan. But most importantly, while starting a bar business it is important to keep the legalities involved in mind.

You should always watch out for the current and potential alcohol laws that would have an impact on your business and frame your business strategy accordingly.

Hence, you should frame a business plan that is flexible and dynamic and thus, can help you succeed in the bar and pub industry.

Download a sample bar business plan

Need help writing your business plan from scratch? Here you go;  download our free bar business plan pdf  to start.

It’s a modern business plan template specifically designed for your bar business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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Bar Business Plan Summary

A bar business can be extremely successful and smooth if you go about it with a business plan.

A business plan helps you keep all the facets from legal to financial ones in mind while running a bar business, thus making the process easier and quicker.

After getting started with Upmetrics , you can copy this sample bar business plan template into your business plan, modify the required information, and download your bar business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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More From Forbes

Writing a restaurant business plan.

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Introduction

If you're considering opening a restaurant, your first step should be writing a business plan. A well-written business plan can help you raise money, manage your restaurant and succeed. Here's what you need to know about writing one:

Executive Summary

An executive summary is a short but powerful document that can help you to get your point across quickly and effectively. Although it is usually the first section of a business plan, it should be the last piece written. It should be one page at maximum and clearly describe your business plan's critical points in a way that makes sense to anyone who reads it. The purpose of an executive summary is to convince potential investors or lenders that they will profit from investing in your restaurant idea, so avoid unimportant details or lengthy descriptions of how great your food tastes.

An excellent way to write an executive summary is by starting with an introduction paragraph that summarizes what the rest of your plan contains—this helps readers understand why they should continue reading further into the document. Then go into discussing why this particular project is worthwhile; why people need it. How will it benefit them? Next comes some background information about yourself: include any relevant experience or education related to running this business. Finally, end with future goals: where do you see yourself after opening the shop?

Here are some items to include in your restaurant business plan:

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Before you launch your business, it's important to validate your concept and test the viability of your business model. You can do this by conducting market research, talking with potential customers, and interviewing industry experts with similar business experiences. You can also test the viability of your plan by completing an "experience economy" analysis. That is, looking at ways people enjoy spending money on experiences rather than goods (such as dining out). For example, if people value experiences over material goods, opening a restaurant may be a good idea!

Labor Costs and Staffing Plan

Labor costs, including direct and indirect labor, are essential to your labor budget. Direct costs refer to wages paid directly to employees, while indirect expenses include benefits like healthcare coverage and payroll taxes. To calculate these figures, you'll need to estimate the number of full-time equivalents (FTE) positions you'll need and their average salaries. This calculation can be tricky because each restaurant has its unique staffing plan based on its size, location, cuisine type, and reputation among customers, not to mention any other factors that might affect staffing decisions (e.g., whether it's open 24/7).

The first step is deciding whether or not you want full-time staff or part-time workers who work only during peak times such as lunchtime rush hour or Friday night dinners out with friends at restaurants nearby yours. As tempting as it may seem, wait to write anything down until after reading through the following sections because several factors are explicitly related to determining how many people we'll need overall.

You want your menu to be focused and simple. Try to add only a few items, as too many menu items may confuse customers, making it difficult for them to choose what they want.

If there are any "signature" items on your menu, include them first when listing off your offerings so that people know what kind of food you serve before even stepping inside the restaurant. Also, incorporating local ingredients into these specialties will help build community spirit around supporting local businesses.

Site selection is a critical factor in your success. After conducting a comprehensive market study, the site selection is based on the data you discover to determine if your customers are in and frequent that area. David Simmonds, Founder and CEO of ResolutRE , a Commercial Real Estate firm in Austin, Texas, states: "More than ever, entrepreneurs opening a restaurant need to analyze what their own customers look like on paper (demographics, psychographics, etc.), so then when they are examining a market, they can find the highest concentration of their customers within that market. From that data, they are able to determine the number of restaurants that the market could support, and from there, create the blueprint for their expansion."

Your plan should describe your ideal location . Your chosen location must be close to your target market and similar businesses, such as restaurants or cafes. The site should also have high foot traffic and be accessible by car, bike, and public transportation. Simmonds goes on to say: "Analytics reinforces or disputes instincts. It is a necessary part of the expansion process, whether the restauranteur has 1 unit or 37.

Marketing Strategy

When developing your business plan, think about the marketing strategy you will use. Your plan should consider and explain the following marketing tactics:

• Advertising: You can use print or online ads on social media sites like Facebook and Instagram. Also, consider running commercials on local television stations.
• Public relations: This can include writing articles about your restaurant in local newspapers or magazines, hosting events at your restaurant (such as wine tastings), speaking at community events like Chamber of Commerce meetings with other business owners in the area, participating in charity events related to foodservice industries like Feeding America—the possibilities are endless! The idea is to get people talking about what makes YOU unique so they think of YOU first when ready for their next dine-out experience!
• Social media: Let's face it—most millennials don't even pick up the phone anymore; they prefer texting over talking face-to-face because it feels intimate somehow, and guess what? By interacting directly with customers through social media platforms like Facebook Messenger or WhatsApp (which allows users from all over the world access 24 hours per day, seven days per week), we can offer immediate customer service support during high-demand times such as weekend brunch hours without having employees sitting idle during slow periods throughout weekdays when traffic drops off significantly due the lack of demand generated elsewhere.

Profit and Return on Investment Analysis

• Profit is the difference between your sales revenue and your costs. To calculate it, you need to know the following:
• Sales revenue (how much money you expect to make from selling food)
• Cost of goods sold (the cost of ingredients and supplies)
• Other operating expenses (including labor, rent, and utilities)

The reader of your business plan should be able to find these numbers in your budgeting worksheet and financial projections spreadsheet.

Financial Plan

The financial plan is the most critical part of your business plan. It should clearly show how much money you need to start, run and grow your restaurant.

You will need to show a projected profit and loss statement. The projected profit and loss statement (P&L) shows how much revenue comes in, what expenses are incurred, and what profits are made over time. In addition, the P&L shows all revenue sources, including but not limited to sales of food/alcoholic beverages and income from private parties. It must also project all costs associated with operating the restaurant, such as Cost of Goods (raw materials) and salaries for employees - these include both front-of-house roles such as waiters or bartenders, as well as back-of-house roles like chefs who prepare food during off hours so it can be served fresh upon opening each day - cleaning supplies needed throughout each week, etc., depreciation costs associated with long term assets such as ovens that wear down over time and waste of unused food product.

Multi-Year Projections of Revenue and Costs

Accurate projections are the key to a successful business plan. They help you to understand how much money you will make and how much you will need to make it happen. Projections also help with understanding what your costs will be.

For example, if I were starting a restaurant today and wanted my business plan projections for opening day and going out one, three, and five years.

Then I would look at similar restaurants that serve similar foods, noting their prices, portion sizes, and any specialties they offer, such as breakfast all day or lunch specials every Friday during football season. This research of other restaurants will give you a basis for your projections. Include the documentation of this research in the narrative of the plan.

A Business Plan Is Your Road Map To Success.

A business plan can help you raise money by demonstrating that you have a viable idea for a restaurant. In addition, investors want to see that others are interested in investing in your vision, so they'll be more likely to give you money if they see other investors involved with it as well. An excellent example is when an investor wants to invest but only if another investor does first; this way, both parties feel comfortable investing because they know someone else believes in the project enough to put their own money into it too!

A well-written business plan helps manage restaurants by giving owners information about how much money will be coming in over time, so there aren't any surprises when bills come due every month - which could lead businesses into trouble if left unchecked."

This article has given some insights into how to write a business plan for opening a restaurant. Do your research and learn other aspects of good business plan writing. I know that it can be a lot of work, but I also know that the payoff is worth it. Not only will you have a better understanding of what it takes to open up shop and run it successfully but also potential investors will be more likely to fund your project if they see that you've done your research. And remember: don't be afraid to ask other restaurant owners for help or advice; many of them have been where you are now.

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Bar owners' guide to creating a business plan

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Behind every great bar is a great bartender. Behind them, is a bar business plan that sets your establishment up for a successful launch and long-term success. Whether you’re setting out to open your own spot or expanding into a new neighborhood with another location, your first step is laying out your plan. An effective bar restaurant business plan covers everything from financial goals to local business marketing strategies , all detailed in this 6-step guide.

1. Executive summary

A well-constructed bar business plan can be your roadmap, helping guide and establish your business’s operations and reputation. Not only is it an essential document if you’re raising funds, but it’s also a helpful way to organize thoughts and plans for yourself and to share them with employees.

Start every business plan with a summary to hook the reader to learn more about your company and your proposal. Think of it a little like a sales pitch for your bar, and a preview of everything you lay out inside your business plan. Be sure to include:

• Mission statement – Be both ambitious and realistic with how you position yourself and your bar with a mission that answers the question, “who are you and what do you do?” This should touch on why you’re opening this business and what you hope to accomplish in doing so. 
• Concept – Whether you picture your bar as a high-end cocktail lounge or a family-friendly brewery, share what will make your place unique. Get specific on how it will compete in the neighborhood you’re opening in, touching on the local demographic and other establishments.
• Operations – Briefly summarize how your business will function, whether you’ll be open late, serving food, or offering a retail selection. Detail the general structure of owners, managers, and employees.
• Value propositions - Highlight the value of your bar and what sets it apart from others in the area. Turning her food truck Yolos into a brick-and-mortar location, in Amarillo, TX, restaurant owner Yolanda Grazier offers an escape for the local lunch crowd: “​​We're really hoping to bring a good place where people are comfortable to come and sit down, enjoy a meal with their coworkers, [and] get a little rest and relaxation before they go back to work.”

You can also include your experience, industry trends, and more about the local market to show how your neighborhood bar will meet your goals. 

2. Location and design

Your bar’s physical location, inside and out, is important for business and your business plan. Use this section to connect your location to how it will influence your bar’s success. It should be clear to potential investors that you’ve done your research and see what will make it special based on the neighborhood it’s in. Share details on:

• Access to public transit – An accessible location near a bus or metro stop will make it easier for customers to come and go from your bar safely. 
• Neighborhood – Location may influence the type of bar you open, and vice versa. Share more about the area you’re located in and how you’re filling a need there. You can include what kind of foot traffic your location gets and demographic information of clientele, like age, income, lifestyle details, and employment information. 
• Interior design – From the back bar to your floor plan, establish plans for what your bar will look like inside. Include diagrams and renderings that will illustrate your vision. List amenities, like kitchen appliances and bathroom, plus any plans for remodeling.

3. Inventory and menu planning

Whether you’re serving local craft beer or a selection of wine from around the world, this is your opportunity to get specific about what neighbors at your bar will be saying “cheers!” with. 

Include inventory needs and menu planning details, like:

• Menu options – The more details you can provide about your upcoming specialties, the better. Share your menu, with price points and seasonal variations, as well as plating and glassware.  
• Ingredient lists – Provide the ingredients you plan to use and where you’ll source them. Share distributors for liquor, beer, and wine, and don’t forget mixers and garnishes.
• Miscellaneous items – Bar napkins, glassware, straws, cleaning supplies, and towels are necessary for most bars. Estimate weekly ordering needs and identify suppliers to ensure everything is accounted for.

Since the investors, lenders, or partners reviewing your bar business plan may not have the opportunity to test everything on your future menu, get detailed on flavor profiles, tasting notes, and descriptions to help them preview the experience of ordering at your bar. 

4. Research and marketing strategy

To build buzz for your local bar or restaurant, try a mix of traditional print advertising and online marketing. Get to know your local and target demographics to decide where and how to reach them. 

In the marketing section of your bar business plan, provide details on:

• Demographics -  Are you near a university, a hospital, or a hotel? Include neighborhood demographics and how you plan to serve locals what they’re thirsty for. With 22.9% of bar revenue coming from customers between the ages of 21 and 34 , age and income level can be factors worth highlighting. 
• Neighborhood specifics -  Tap into the interests and needs of the community you’re opening your doors in Speak directly with your bar’s new neighbors and connect with fellow businesses with a free Nextdoor business page that gives you instant access to everyone within two miles. 
• Traditional and digital marketing – Share your marketing plans, which should consider industry trends, print, and local advertising, partnering with other local businesses, and building a digital presence. Your bar should have a website, Nextdoor business page, and other social media so your information is readily available, easily searchable, and stands out as neighbors scroll for where to go this weekend.

Make marketing more effective by keeping both larger industry trends and your local demographic in mind as you plan to drive and build awareness for your bar.

5. Financial plan

The financial section of your bar business plan covers your financial history with potential for profit and your plan for obstacles that may come up. This is important for your business strategy, as well as for potential lenders, investors, or partners to see. 

Develop your bar’s financial plan with information on the following:

• Overhead costs – Price out liquor licenses, business licenses, and any associated fees with starting your bar restaurant. Note any equipment or training required to open. 
• Financial projections – Estimate your cash flow and the revenue for the first few years of your business, sharing when you expect your bar to break even.  
• Capital investment – Note your inventory, staff, and real estate costs, plus taxes and insurance costs. Assess what type of funding you need, if any, and what you’ll do with — and how you’ll pay back — any investment. Note any money that is set aside to cover unexpected fees and incidentals.

If you have unique plans to drive additional revenue, include them here in the financial section. Pa-Nash Restaurant, Bar & Lounge in Queens, NY, found new opportunities in catering and deliveries. Event buyouts or private dining options could be a secondary way for your bar to make money. 

Consider hiring experts, like an accountant, to help you with this stage of the process, especially if they have advised other local bars or restaurants in your area.

6. Daily operations

Any potential investors or partners will need to get a sense of your day-to-day operations. Even if you change specific details once your bar is open, going in with an idea can make your first weeks easier for you and your team.

Daily operations for a bar owner can include:

• Service style – Whether you’re opening a smaller bar with a single rail or a massive bar restaurant with tables and servers, explain how service will run. Detail and define POS systems, tickets, and customer comps.
• Chain of command – Delineate staff responsibilities, as well as the general chain of command for managers and operators. Everyone should know their exact role and responsibilities when they walk into work each day. 
• Company policies – Sick leave, paid time off, and general company policies can be established in this section. Consider creating a separate employee handbook for easy reference as you onboard team members. 

Even a busy bar can feel like a well-oiled machine if its daily operations are established on day one. Prepare for success and help eliminate unnecessary stress when your bar finally opens its doors. 

Open shop on Nextdoor 

An effective bar business plan will help guide you on the path toward success. As a local establishment, another key element to a bright future for your bar is in making it a neighborhood favorite. With one in three households on Nextdoor, there are potential customers right around the corner who can help. Invite neighbors in when you claim your free Nextdoor Business Page . Build buzz for your opening, share local deals, and give your neighborhood something to cheers to. 

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How to write a comprehensive restaurant business plan

fanWhen opening a new restaurant, having a solid restaurant business plan is key for the success of a a business. The best ones identify, describe and analyse business opportunities while setting a blueprint. Here, we’ve put together a guide for how to write a restaurant business plan so life at your spot starts off on the right foot.  

What your restaurant business plan should cover

The strongest restaurant business plans always include all or most of the components described below. Charles Bililies , founder and CEO of Souvla , advises that first-time restaurateurs read plenty of different business plans for other restaurants, technology and retail companies to get a better sense of layout options, writing styles and clarity of concept. Put the sections that you feel would be most compelling to someone who’s never met you first: the “Management Team” section if you’re coming from high-profile establishments, for example. The goal is for the reader to keep turning the page.

Quick links Branded cover Concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials

1. Branded cover

Include your logo (even if it’s not finalised), the date, and your name.

Describe your restaurant concept and get the reader excited about your idea. Go into detail about the food you’ll be serving, inspiration behind your concept and an overview of service style. Define clearly what will be unique about your restaurant.

3. Sample menu

The menu is the most important touchpoint of any restaurant’s brand, so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices based on a detailed cost analysis. This will give investors a clear understanding of your targeted price point, provide the first building block to figuring out average bill estimations needed to create financial projections and show investors that you’ve done the homework needed to be confident that you’ll be able to sell these items at these prices and operate within your budget.

This section is most relevant for fine-dining concepts, concepts that have a unique service style or if you have particularly strong feelings about what role service will play in your restaurant. It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service designed to get guests on their way as quickly as possible, or will it look more like theatre, with captains putting plates in front of guests simultaneously? If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

5. Management team

Write a brief overview of yourself and the team you have established so far. You want to demonstrate that the work experience you’ve acquired over the course of your career has provided you with the necessary skills to run a successful restaurant. Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

6. Menu Design

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant. Planning on cooking in a wood-burning oven? Include that. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

7. Restaurant target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Once you’ve described them in detail, reiterate why your specific concept will be appealing to them.

8. Location

There should be a natural and very clear connection between the information you present in the ‘Target Market’ section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighbourhoods. Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there — make the connections clear. You want readers to be confident that your restaurant’s ‘ideal’ diner intersects with the neighbourhood(s) you’re proposing as often as possible.

If you don’t have a site, this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, road accessibility and other important details.

9. Market overview

Address the micro and macro market conditions in your area. At a macro level, what are the local and regional economic conditions? If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss your direct competitors. Talk about what restaurants share your target market and how you’ll differentiate yourself.

10. Marketing and publicity

The restaurant landscape is only getting more competitive. Talk about your pre- and post-opening marketing plan to show investors how you will gain traction leading up to opening day, as well as how you’ll keep the momentum going. If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media , your website , and media connections. To help you get started be sure to check out our zero budget marketing checklist .

11. Specialists and consultants

List any outside contractors you plan to retain, such as:

• Main Contractor
• PR & Marketing

Briefly explain the services they’ll be providing for you and why you chose them, along with any notable accomplishments.

12. Business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with a lawyer to help you determine what business structure is best for you.

“ Step one : write a restaurant business plan. Step two : hire a good lawyer. In addition to helping me build a smart, sustainable business structure, my lawyer was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters”, Charles Bililies explains.

13. Restaurant financials and funding

Let your accountant guide you through this portion of your business plan. It is crucial that whoever you retain to help you with your finances has a wealth of restaurant experience (not just one or two places), as they should be familiar with the specifics of restaurant finances and know what questions to ask you.

Before creating realistic financial projections, your accountant will want to know approximately how many seats you’re planning on having, what your average bill will be, and how many covers you expect per day. Being conservative in these estimations is key as these three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasises that, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors. The key projections you can expect to work on are:

• Pro forma profit and loss statement for the first three to five years of operation
• Break even analysis
• Capital requirements budget

Free tools to build a restaurant business plan in Australia:

If design is not your forte, consider using a free online template. There are plenty of templates available on the web that can aid in this process. Whether you’re a seasoned pro or need help getting started, there are some great options

• Canva : Bring your descriptions and its templates will help you do the rest. Canva hosts a library of thousands of free menu templates to choose from.
• Australian Government:   a collection of free tools and templates to help you build your first business plan
• VistaCreate:  The plug-and-play menu templates are easy to use, and the platform has the option for print and delivery.

Get the tools, resources and fresh ideas for running a successful restaurant

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Restaurant Startup Costs: The Real Cost of Opening and Operating a Restaurant

• by Lightspeed

minute read

With a lot of careful planning. 

Thanks to razor-thin profit margins, high operational expenses and fierce competition, one of the best things you can do to assure that your restaurant will eventually turn a profit is to anticipate your startup costs and projected ongoing expenses before applying for loans and financial assistance.  

In this post, you’ll learn how to project the following costs for your restaurant-to-be: 

• Startup costs
• Fixed expenses
• Variable expenses
• Mixed expenses
• How to raise funds for restaurant startup costs

Once you project each of these expenses, you’ll have a good idea of how much it will cost you to open and operate a restaurant. Let’s dive in! 

Build your restaurant menu in minutes

You don’t need to be a designer (or hire one) to create a beautiful menu. Download our free menu templates to get started.

Restaurant expenses vs. restaurant costs

Before we jump into restaurant startup costs and expenses, it’s important to clarify the difference between the two. 

A restaurant expense is a recurring payment like rent, food costs, payroll, marketing and utilities. A restaurant cost is any one-time expense for things like kitchen equipment, dishes or furniture. 

Restaurant startup costs

While the cost to open a restaurant will fluctuate depending on whether you decide to rent or own your space, renovation costs, which equipment you need and more, the things each restaurant needs to buy before opening their doors largely falls into these categories: 

• Commercial space
• Renovations and decor
• Kitchen supplies and equipment
• Restaurant technology
• Licenses and permits
• Marketing costs prior to opening
• Miscellaneous and unexpected costs

1. Commercial space

There are two ways to secure commercial space for a restaurant: leasing and buying.

When you sign a commercial lease, you’ll need to commit to several years of occupancy at once and pay a refundable deposit—usually three to six months’ worth—to secure your spot. 

So how much should you save for a deposit? Well, that depends on where you set up shop. 

The average rent for a restaurant space in downtown Los Angeles , for example, is $2.95 per square foot. For a 2,000-square-foot space, this rate translates to $5,900 each month. In this scenario, you’d need to have between $17,700 and $35,400 for a deposit. 

If you’re buying a commercial space you should expect to pay a downpayment of between 15% and 35%. A space valued at $1 million, for example, would require a $150,000 to $350,000 down payment.

2. Renovations and decor 

Once you secure a space, it will likely need to undergo some renovations before it’s ready for the public. 

Renovation and decor costs vary greatly depending on your restaurant’s concept, your target market and the condition of the commercial space you inherit. Few spaces are turn-key upon purchase. Even a property that used to house a restaurant and is already set up for kitchen equipment, refrigeration, and running water may require extensive renovations to create an appropriate appearance. Renovations can cost anywhere from $5,000 in paint, window treatments and flooring to $50,000 or more.

Our suggestion? Invest only in the essentials from the get-go: The seating, lighting, bar, kitchen service area first. 

While you may want an espresso machine imported from Italy, is the cost justified? Unless the answer is a resounding yes, consider pushing back non-essential expenses until you’re sure you can take them on without sacrificing liquidity. 

When shopping for property, attempt to find an option that is already built out for food service use. A customized kitchen build-out can cost as much as $250,000 —a significant expense many new restaurant owners aren’t prepared to accommodate.

Set a budget of what you’re comfortable spending on renovations and stick to it. If you’re feeling thrifty, there are plenty of DIY restaurant decor ideas that can help you add personality and charm to your space without breaking the bank. 

3. Kitchen appliances and equipment

Opening a restaurant also requires investing in all of the appliances and equipment you need. In your restaurant, you’ll likely need: 

• Kitchen equipment: Ovens, stoves, fridges and freezers, dishwashers, etc. 
• Cooking equipment: Pots, pans, cutting boards, pasta cookers, strainers, ladles, etc. 
• Workspaces: Counters, prep tables, steam tables, cold food tables, etc.
• Bar equipment: Mixers, cocktail shakers, ice cube machines, etc.
• Service equipment: Serving trays, plates, tablecloths, utensils, glassware, etc.

It’s important to make the distinction between essential and non-essential kitchen appliances and equipment. Which ones do your servers, hosts, bartenders, barbacks, dishwashers, line cooks and chefs need to do their job effectively? 

Invest in the essentials from the get-go, otherwise, your staff will run into challenges during service that may detract from your guest’s dining experience . In general, expect to spend an average of $115,655 for kitchen and bar equipment . 

Furniture and tables can cost $40,000 alone, so be sure to plan accordingly.

4. Restaurant technology

Modern restaurants need technology to operate efficiently. Tech helps restaurants run more efficiently by automating processes and collecting data that can help optimize both front of house and back of house operations.

 You’ll need both software and hardware to run a successful, modern restaurant. We recommend starting with this software:

• Point of sale (POS) system – starting at $89/month
• Kitchen display system (KDS) – starting at $12/month
• Employee scheduling software – starting at $29.99/month
• Reservation tool – prices vary greatly
• Loyalty program software – starting at $39/month

Technically, a point of sale (POS) system is non-negotiable. You need a POS to record your sales and take payments, among other things. 

A POS system can be either integrated or non-integrated. An integrated POS system seamlessly connects all of the tools and systems you use to run your restaurant and the whole system works as one. In this system, your employee scheduling software and your POS talk to each other and your data and reports are aggregated and then generated from a single source of truth. 

In a non-integrated POS system, your third-party apps stack on top of your POS and work independently of it. With this type of system, you’re going to spend a lot of time checking and calculating the numbers between different systems. 

“With Lightspeed, it’s one software doing everything for me. Before, I was using four softwares just to complete one task. Here I can do so many tasks with just one software. It’s amazing.” — Rohit Sharma, General Manager, Bar 404

This is the hardware you need to open a restaurant:

• iPads or tablets for your POS and kitchen display systems – prices vary greatly depending on brand, model and whether it’s new or refurbished
• Payment terminals – prices vary greatly
• Receipt printer – $100+
• Cash drawer – $20+

Many restaurants are also investing in handheld point of sale devices that can streamline orders and payments in the front of house , helping waitstaff serve faster and spend more time on the guest experience. 

Expect to spend at least $1,000 on restaurant hardware and set aside about $400 each month for software licenses.

5. Licenses and permits

In order to legally operate a restaurant, you’ll need to obtain certain licenses and permits. Since licensing requirements can vary from state to state and even city by city, check your local regulations to make sure that you’re covered.

Most municipalities require restaurants to have a food service license. This license is governed by the local health department, which will stop by your restaurant from time to time to ensure that your kitchen is up to code. Food service licenses cost between $100 and $1,000.

If you plan to serve alcoholic beverages at your restaurant, you’ll need a liquor license. These licenses can take up to six months to be approved, so don’t wait until the last minute to apply for one. A liquor license can cost between $12,000 and $400,000 with a beer and wine license costing as little as $3,000.

Any employee who works with food in your restaurant will need a food handler’s permit, which ensures that they know how to safely handle and store food. In the United States, a food handler’s permit costs between $100 and $500 and can be obtained online in most municipalities. In Canada, the cost and process vary by province.

Other permits and licenses that you might need to open your restaurant include a business license, certificate of occupancy, sign permit, building health permit, live entertainment license, music license, resale permit, dumpster placement permit, seller’s permit and valet parking permit.

Administrative charges

To begin commercial operations, you will need to form a business entity, submit fees to your state of residence, pay franchise taxes, and work with an attorney to ensure all legal needs are met.

Most companies choose to incorporate or become a corporation, a legal structure that offers significant protection. This process can cost $100 to $250 in filing fees , depending on the state. Franchise tax fees can cost an additional $800 to $1,000, with government filing fees adding an extra $50 to $100 to your expenses.

For businesses that choose to work with an attorney to make sure all requirements are met, you will also have to pay legal fees. Depending on the work necessary, legal bills can range from $1,000 to $5,000 or more. If any other fees or filing requirements apply, your attorney can help you navigate these as well.

6. Marketing costs prior to opening

Build it and they will come, right? Sadly, it’s not that simple. Your brand new restaurant will need marketing help to draw customers on opening day and beyond. 

Not setting a budget for marketing and PR is an oversight that many new restaurateurs make. You’ll need someone who can create your restaurant’s website, design your logo, manage its social media presence, respond to customer reviews and work with influencers.

Marketing on a budget 

For small businesses without thousands to spend on marketing, social media and digital strategies can be very valuable. They offer a good balance between affordability and reach of potential customers—promoted ads costing no more than a few hundred dollars.

Social media goes hand in hand with a robust digital presence. Make sure your restaurant has a website utilizing a responsive design for mobile compatibility, and ensure all content is high quality and adheres to current SEO practices. If you have experience with writing, you may be able to do this independently, but if you’re not sure you’re up to the task, outsourcing to a freelancer can be very cost-effective, often $500 or less. Target local directories and review sites as well as free advertising avenues to build your reputation as a destination worth visiting.

If you’d like to utilize more traditional options, like radio and TV, your marketing budget will need to be more substantial. The average regional radio campaign costs $20 to $80 per ad spot on the airwaves, while a costly TV ad can require a total of $200 to $1,500 per 30-second spot on a local station.

7. Miscellaneous and unexpected costs

Besides what we’ve already discussed, there are also overlooked or unexpected restaurant startup costs that can carry a significant price tag. While it helps to be aware of what they are so you can plan better, don’t let them discourage you from your goal of becoming a restaurant owner.

Unexpected restaurant startup costs can include things like construction mishaps. Having to move unforeseen electrical or plumbing equipment can both delay your restaurant opening and hurt your wallet. Work in some buffer funds into your budget to make sure these unexpected restaurant costs won’t tank your plans. 

Restaurant fixed expenses

Your restaurant’s fixed costs are easier to work into your budget since they rarely change. 

Here are the fixed costs to budget for:

• Rent and building fees
• License fees
• Insurance coverage
• Ongoing marketing

1. Rent and building fees

While how much you pay per month for your commercial space varies greatly depending on where you’re located and how much square footage you have, the monthly rent and building fees you agree to pay when you sign your commercial lease are unlikely to change (until it comes time to renew). 

Leasing a restaurant is a big commitment and a big chunk of your restaurant startup costs. It’s a good idea to enlist the help of an experienced commercial real estate agent to help you avoid common pitfalls that could sink your business. Make sure they know the neighborhood or neighborhoods you’re considering and can advise you on things like competition, business turnover and foot traffic.

Don’t assume tenant-favorable clauses will be volunteered by the landlord. For example, a right to renewal, which is often agreed to by a landlord, but usually only if the tenant asks for it. 

Some other things to consider:

• How much time and money will you need to spend on renovations or equipment to get the space customer-ready?
• Does the lease include an annual rent increase? Be prepared to negotiate a cap on how much the landlord can increase the rent.
• Who’s responsible for renovations, maintenance, property taxes, insurance and other building costs? Make sure you get this in writing.
• Are you allowed to sublet the lease if you need to get out early?

Be sure to have both an attorney and accountant look over any lease to find any potential red flags and confirm it’s within your budget before you sign on the dotted line.

2. License fees 

While most licenses and permits have an initial cost, you may need to renew some of them annually. When you’re deciding which licenses and permits you need, factor in the initial costs and the fixed renewal fees as well. 

3. Insurance coverage

Insurance is an essential part of a functional business, especially for restaurants that want to be fully protected from liabilities. In an atmosphere that sees so many guests, and puts employees at risk for injuries in a busy kitchen full of dangerous equipment, adequate protection is critical. At the minimum, most restaurants will need:

• General liability insurance, to protect against everyday accidents and incidents.
• Product liability, in case any equipment malfunctions and causes injury.
• Liquor liability, a special policy for restaurants that serve alcohol.
• Workers’ compensation policies, to keep employees protected in case of injury.
• Commercial vehicle insurance for any restaurant that offers delivery.
• Restaurant insurance, a specific form of coverage that takes into account industry-specific risks.
• Loss of income insurance, a specialty policy that can provide a safety net if something like a fire or robbery forces you to close temporarily.

Insurance will vary based on size, function and location, but most restaurant start-ups can expect costs of around $6,000 a year. While low-principal plans with high deductibles may seem appealing, be sure you can afford to pay multiple deductibles simultaneously in case something like a kitchen fire resulting from product malfunction closes your restaurant and injures employees.

4. Ongoing marketing

Along with the marketing costs to get your brand up and running, you may want to put a fixed amount aside each month towards ongoing marketing.

Social media ads, influencer marketing, events, PR outreach, you name it. However you decide to market your business, create a monthly marketing budget and stick to it. 

Also, consider amazing customer service as a part of your marketing. 

Nielson reported that 88% of customers are likely to visit a restaurant that they were recommended by friends and family. If you take care of your customers each and every service, they’re far more likely to keep coming back, write positive reviews online and recommend your restaurant to their entourage.

The best thing you can do to market your restaurant is to focus on customer satisfaction and retention. 

Restaurant variable expenses

Your variable costs are more difficult to project since they fluctuate according to their output. Here are the three main variable restaurant costs to account for: 

• Cost of goods sold
• Utility costs
• Payment processing fees 

1. Cost of goods sold

The cost of goods sold (COGS) refers to the cost of the ingredients and materials used to make a dish. Depending on what kind of food a restaurant serves, COGS can vary greatly. If you’re selling Ahi tuna steak, your COGS will certainly be more expensive than if you’re selling cheeseburgers. 

For a restaurant to be profitable, its gross profits should hover around 70%, meaning that for every $100 a guest spends, $70 is gross profit. 

How much you charge for each restaurant item should take this into account; the higher the COGS, the higher the menu item’s price should be. 

When pricing menu items, also take into account your fixed monthly costs. You need to make enough money each month to cover both variable and fixed costs (like labor and rent) and still have net profit leftover. To do that, you need to have menu pricing and restaurant profit margins down to a science. 

If you need help pricing your menu items to account for your expenses (or figuring out what all your expenses are in the first place), consider hiring a seasoned restaurant consultant with experience in the field. This is one area that directly impacts your bottom line long-term; it’s worthwhile to get it right from the get-go. 

2. Utility costs

Don’t let your utility costs take you by surprise. Before signing your commercial lease, ask if utilities like electricity and water are included in your costs. If not, find out what previous tenants paid and use that as a benchmark. 

As a general rule of thumb, restaurant utilities cost around $3.75 per square foot annually. The bigger your commercial space, the more you will pay on gas and electricity. 

3. Payment processing fees

How much you pay in payment processing fees varies depending on your payment processing provider and their fees. For each transaction, there are typically three processing fees (usually a percentage of the transaction value). Here’s a quick breakdown: 

• Interchange fee: Each credit card brand has a percentage-based interchange fee that’s charged to a merchant every time someone uses their credit card as a payment method.
• Card association fee: Each transaction is subject to a percentage-based fee paid to the card brand network (Visa, Mastercard, American Express, etc.)
• Payment processor fee: There are some payment processors who apply either a flat or percentage-based markup fee for routing money from the cardholder to the card association to the issuing bank and then, finally, to the merchant. 

Some restaurants avoid paying payment processing fees altogether by being cash-only, however, this can drastically reduce how many customers you serve. Roughly 80% of all restaurant transactions in the United States are charged to a card. 

Rather than avoid dealing with payment processing providers altogether, we suggest comparing providers and finding the one with the most favorable rates for your business. 

Do your research. Four out of five restaurant owners report being frustrated with payment processors for unclear pricing structures and hidden fees. It’s important to ask processors what the fees are, and if they can increase over the course of your contract. 

“Before switching to Lightspeed Payments , we were having a really hard time understanding what our monthly fees were with our old [payment processor]. I found Lightspeed Payments very transparent, and they were able to offer us lower rates. I would say it’s been a few hundred dollars in savings each month.” — Molly McCrea, Director of Rooms, Wander the Resort

Restaurant mixed expenses

Mixed expenses have both a fixed and variable component. The biggest mixed cost each restaurant has to deal with is labor.

Labor costs

Depending on whether or not an employee is salaried or working for an hourly wage, the associated labor costs can fluctuate. However, we recommend projecting how many employees you need per service, how much money you need to pay them per week and sticking to that budget. 

What’s important is anticipating how much you spend on labor per month and having several months’ worth of payroll saved up prior to opening. Remember, your restaurant likely won’t be profitable right away, so put money aside beforehand to assure you can pay (and retain) your staff. 

Not sure how much staff to hire from the outset? Your staffing needs will depend on your service style and the size of your dining room. 

A quick-service restaurant (QSR) will need more back of house (BOH) staff than front of house (FOH) staff. At fine dining establishments, where the focus is on attentive, personalized service, you’ll need double the amount of FOH staff as a QSR would.

Defining your salary

While some business owners choose not to draw a salary while getting started, you will eventually have to pay yourself – after all, the goal of opening your own restaurant is to be able to support yourself financially. However, the amount you choose to take can affect the money you’re left with and, subsequently, the amount you have to invest in your business.

Most restaurant owners pay themselves a percent of expected sales, while others just take the bare minimum needed to make ends meet. Few people get rich quick owning restaurants, especially in the early days, but a successful restaurant can provide a stable livelihood. In the first one to four years of operation, owners can expect to make between $36,000 to $72,414 .

How much does it cost to open a bar?

If you’re looking to open a bar or pub, the costs can differ greatly from a typical restaurant.  According to a survey released by Restaurant Owner , the median cost to open a bar or pub is $425,500 with the lowest being $275,500 and the highest being $650,500. 

The survey also found that it takes the average bar six months to become profitable, so if you’re looking to open one, you’ll need roughly six months of runway funding to give yourself a fighting chance. 

Some key takeaways from the survey

• The average cost to open came out to $124 per square foot, or $2,710 per seat.
• Construction costs average $250,000, kitchen and bar equipment average $85,000 and pre-opening and training costs average $20,000.
• The average space for a new bar or tavern was 4,250 square feet with an average of 28 square feet per seat.
• New bars and pubs garnered an average $1,380,000 in annual sales with a net profit of 5.5 percent and a 2.4:1 sales-to-investment ratio.

How to raise funds for restaurant startup costs 

While restaurant startup costs vary from concept to concept and city to city, one thing is clear: it costs a lot of money to open a restaurant. Do you have enough cash to open the restaurant you’ve been dreaming of?

If not, you’re not alone. Most people don’t have several hundred thousand dollars saved to self-fund a new restaurant, so they have to get creative with fundraising, financing and loans . Here are several ways to raise the funds you need to open your restaurant:

Go to friends and family

In any kind of business, most entrepreneurs ask friends and family for funds before seeking formal loans from banks or investors. The upside of approaching friends and family is that you have existing relationships based on trust, so you may not need to pay interest when paying them back. 

The downside is that there’s a reason they say money and family don’t mix. Money matters can cause tension  and conflict when it comes between family and friends. However, there are also a lot of successful entrepreneurs and business owners that have worked with and borrowed money from family and friends without destroying these relationships. 

The key is to set rules and boundaries from the beginning, create a legal agreement and treat them like any other investor. Conflicts arise quickly when you take for granted that your investors owe you special treatment because of your personal relationship. Learn more about the right way to mix family and friends with business . 

Get a small business loan (SBA)

The U.S. Small Business Administration connects aspiring entrepreneurs to lenders who understand the challenges that small business owners face. The SBA “reduces the risk for lenders and makes it easier for them to access capital.”

Bring on a business partner

You may have substantial savings, but they may not be enough to fund a restaurant. Consider teaming up with a business partner who has cash and expertise in an area where you fall short. 

That said, it’s crucial to choose your partner(s) very carefully . The long-term costs of entering into a bad partnership far outweigh the short-term advantages of a quick cash injection. Things to consider when choosing a potential business partner:

• Do you trust them? This is the most important thing. You don’t want to spend the entire relationship looking over your shoulder and second-guessing everything they do and say.
• Do they share your values? This doesn’t mean you both have to agree on everything, but when partners’ values align—eg. family, prosperity, work ethic, etc.—they are more likely to have a successful, harmonious relationship.
• Do they bring different and complementary skills to the table? The most successful partnerships tend to be those where each partner possesses different skills and expertise. For example, if you’re bringing the strength on the creative side, look for someone capable of handling the more administrative side.
• Do they share your vision? As partners, you’ll both be responsible for communicating and selling your vision to others, it’s important to keep your story straight and act in accordance with it.
• Do they compromise? If a potential partner is completely inflexible, always has to be right or generally seems unable to compromise on what they want for the good of the business, it’s probably a sign to walk away from this potential partnership.

As with any business agreement, draw up the terms of your partnership in a contract to protect yourselves legally. 

Seek investors

Investors aren’t just for tech companies. Look for local investment firms that have supported restaurants you admire. Don’t approach investors without a rock-solid business plan and pitch deck. When investors see that you have a strong vision, they’ll know you mean business. 

Open your restaurant up to good-willed members of the public through crowdfunding. Create a page on Kickstarter and offer investors incentives for funding your dream. 

Restaurant crowdfunding can be either reward-based or equity-based.

In reward-based crowdfunding, backers get a reward commensurate with the size of investment. The larger the investment, the better the reward. Common incentives for restaurant crowdfunding  include meals, opening night invitations, cooking classes, wine tastings, etc. This Cat Cafe even offered cat play time sessions as an incentive. 

In equity-based crowdfunding, backers get equity in your restaurant. This type of crowdfunding attracts backers that are interested in your restaurant as a longer term business opportunity. Consider running both reward and equity-based crowdfunding campaigns to get a good mix of startup capital and long term investors. 

Keep in mind that there are literally hundreds of crowdfunding campaigns online at any given time. You’ll need to craft a compelling story to make yours stand out, and work hard to promote it. Clearly communicate your restaurant concept’s unique selling points and how it will add value to your community. What makes your idea different and unique? Why will it be successful? 

Crowdfunding campaigns tend to be all or nothing—most platforms won’t release your funds until you’ve reached your funding goal—so the worst thing you can do is run a lackluster campaign that fades into the background. Take the time to craft a compelling narrative and come up with interesting and original rewards.

Most restaurateurs can’t afford to start a business on their own. Find a fundraising method that works for you.

Restaurant startup costs checklist

Opening a restaurant is an exciting venture, but it’s also an expensive one. Use this restaurant expenses checklist to plan for and create budgets for each of these key investments.

• Commercial space – Budget $________
• Renovations and decor – Budget $________ 
• Kitchen supplies and equipment – Budget $________
• Restaurant technology – Budget $________
• Licenses and permits – Budget $________
• Marketing – Budget $________
• Insurance – Budget $________
• Labor costs – Budget $________
• Rent and building fees – Budget $________
• Food costs – Budget $________
• Utility costs – Budget $________
• Payment processing fees – Budget $________

Need help choosing restaurant technology that’s right for your business? Talk to one of our point of sale experts .

How much does a restaurant startup cost?

The cost to open a restaurant varies widely depending on location, size and concept, but it generally ranges from $175,000 to $750,000. Factors like rent, kitchen equipment, initial inventory and decor significantly impact the total expense. Restaurant startup costs for a food truck or small casual dining spot are usually on the lower end, while fine dining establishments in prime locations will require more investment.

What is the most expensive part of owning a restaurant?

The most expensive part of owning a restaurant is typically the initial setup costs, including leasing or purchasing property, kitchen equipment and renovations. Ongoing labor costs and rent or mortgage payments also represent significant financial commitments.

Are restaurants a good business to start?

Restaurants can be a rewarding business venture, offering opportunities for creativity and community engagement. However, they come with high risks, including tight profit margins and intense competition. Success often depends on location, concept uniqueness and effective management.

Can I open a restaurant with 100k?

Opening a restaurant with $100k is possible, especially if you opt for a small space, limit initial staffing and minimize renovation costs. Creative approaches, like pop-ups or focusing on a niche with lower restaurant startup costs, can also make this budget work.

Is owning a small restaurant profitable?

Owning a small restaurant can be profitable if managed efficiently, with careful control of food costs, labor and overhead and proper pricing. Profitability depends on the restaurant’s concept, location and ability to attract and retain customers.

How profitable are small restaurants?

Profit margins for small restaurants typically range from 3% to 5%, but with effective management and strong customer loyalty, some establishments see margins of 10% or higher. Success requires keen attention to cost control and market demand.

What type of restaurants make the most money?

Fast-casual restaurants that offer quick service and high-quality meals at reasonable prices tend to be among the most profitable. These establishments cater to busy consumers seeking convenience without sacrificing quality.

Who makes the most money in restaurants?

In a restaurant, the highest earnings often go to the owners or investors, particularly if they play active roles in management. Executive chefs and general managers in high-end establishments can also command significant salaries.

What is the average startup cost for a small restaurant?

The average startup cost for a small restaurant ranges from $175,000 to $375,000. This includes expenses for leasing space, renovations, kitchen equipment, initial inventory and marketing for the grand opening.

How much money should a small restaurant make?

A small restaurant’s earnings can vary greatly, but successful establishments might aim for annual revenues of $500,000 to $1 million, with net profits (after expenses) of 5-10%, translating to $25,000 to $100,000. Success hinges on efficient operations, marketing and quality control.

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How Much Does It Cost to Start a Bar

Starting a bar is a thrilling venture, but it comes with hefty financial commitments. The average cost to start a bar ranges from $100,000 to $2 million. This wide range depends on various factors that can significantly affect your initial investment.

Location plays a major role in determining startup costs. Opening a bar in a prime urban area will cost more than setting up in a smaller town. The size of your bar also impacts costs; a larger venue requires more investment in space, furnishings, and staff.

Your bar’s concept influences expenses as well. A high-end cocktail bar will have different requirements compared to a casual sports bar. Equipment is another crucial factor. You’ll need everything from refrigeration units to glassware, and the quality and quantity of these items will affect your budget.

Understanding these factors helps you plan effectively and allocate your resources wisely.

What are the Main Startup Costs for a Bar?

Starting your own bar can feel like staring into a financial abyss. The costs can be daunting, and it’s easy to feel overwhelmed. But knowing what to expect can help you prepare and manage these expenses better.

Location and Building Costs

You need to decide whether to lease or purchase a property. Leasing offers flexibility and lower upfront costs, while purchasing provides long-term investment potential. Both options require a significant financial commitment.

Renovations and build-out expenses can vary widely. You may need to remodel the interior, install a bar counter, and create seating areas. These costs can quickly add up, especially if you need to meet specific design standards or local building codes.

Permits and licenses are non-negotiable. You must obtain a liquor license, health permits, and other necessary approvals. These can be costly and time-consuming, but they are mandatory for legal operation.

For more insights on starting a bar, you might find this restaurant startup guide useful.

Equipment and Inventory Costs

Bar equipment and glassware form a substantial part of your initial investment. You’ll need refrigeration units, ice machines, sinks, and dishwashers. Don’t forget the smaller items like cocktail shakers, blenders, and glassware. Quality equipment ensures smooth operations and a better customer experience.

Initial inventory of alcohol and supplies is another major expense. Stocking a variety of liquors, beers, and wines can be costly. Additionally, you’ll need mixers, garnishes, and other bar supplies. Plan your inventory based on your bar’s concept and anticipated customer preferences.

A Point-of-Sale (POS) system is essential for efficient operations. It helps manage sales, track inventory, and streamline transactions. Investing in a reliable POS system can save you time and reduce errors, making it a worthwhile expense.

Staffing and Operating Costs

Hiring and training staff is crucial for providing excellent service. You’ll need bartenders, servers, and support staff. Training ensures your team knows how to mix drinks, handle customers, and maintain a clean environment. Budget for competitive wages to attract and retain skilled employees.

Insurance and utilities are ongoing expenses you can’t overlook. General liability insurance, property insurance, and workers’ compensation are necessary to protect your business. Utilities like electricity, water, and gas are also significant monthly costs.

Marketing and advertising help attract customers and build your brand. Allocate funds for online marketing, social media campaigns, and local advertising. Effective marketing strategies can drive traffic and increase sales, making this investment worthwhile.

TIP: Implementing employee scheduling tools can help manage labor costs and improve operational efficiency in your bar.

How to Create a Bar Startup Budget

Creating a budget is a mix of excitement and anxiety. You’re planning your dream, but the numbers can be intimidating. Still, a well-thought-out budget is your roadmap to success.

Determine Your Bar Concept

Start by choosing a theme and target audience. Your theme could range from a cozy neighborhood pub to an upscale cocktail lounge. Knowing your audience helps you tailor your offerings and ambiance to meet their preferences.

Develop a business plan. Outline your bar’s mission, vision, and goals. Include a detailed market analysis to understand your competition and potential customer base. A solid business plan serves as a roadmap and can help secure financing. For more comprehensive bar management tips, check out these bar management tips .

Estimate One-Time Costs

Calculate property and build-out expenses. Decide whether to lease or purchase a property and factor in the costs associated with each option. Include expenses for renovations, interior design, and necessary construction work. Ensure your space meets local health and safety regulations.

Factor in equipment and inventory purchases. List all the equipment you’ll need, such as refrigeration units, ice machines, and glassware. Don’t forget smaller items like cocktail shakers and utensils. Estimate the cost of your initial inventory, including a variety of alcohol, mixers, and garnishes.

Project Ongoing Expenses

Estimate monthly staffing and operating costs. Determine how many employees you’ll need and their wages. Include costs for training and any benefits you plan to offer. Consider other operating expenses like utilities, insurance, and regular maintenance.

Plan for unexpected expenses and emergencies. Set aside a contingency fund to cover unforeseen costs, such as equipment repairs or sudden drops in business. This financial cushion can help you navigate challenges without disrupting operations. For more financial planning insights, explore these first-year finance tips .

What are the Most Important Factors in Controlling Bar Startup Costs?

Starting a bar is a dream come true, but the expenses can quickly spiral out of control if you’re not careful. Here’s how to keep your costs in check without compromising your vision.

Choosing an affordable location stands as one of the most significant ways to control startup costs. Urban areas with high foot traffic can be expensive, so consider less central locations that still attract a crowd. Look for areas with lower rent but enough potential customers to sustain your business.

Minimizing build-out and renovation expenses can save you a substantial amount of money. Assess the existing condition of the property before committing. Opt for spaces that require minimal changes to meet your bar’s concept. Simple, cost-effective renovations can still create an inviting atmosphere without breaking the bank.

Purchasing used or refurbished equipment offers another way to cut costs. High-quality, second-hand equipment can perform just as well as new items at a fraction of the price. Look for reputable suppliers who offer warranties or guarantees on their used equipment to ensure reliability.

Negotiating favorable lease terms can provide long-term financial benefits. Discuss terms like rent-free periods, lease length, and renewal options with your landlord. Favorable terms can reduce your initial outlay and provide more financial flexibility as your business grows.

Managing inventory effectively helps control ongoing costs. Implement an inventory management system to track stock levels and reduce waste. Regularly review sales data to adjust orders based on demand, ensuring you only purchase what you need. This approach prevents overstocking and minimizes losses from expired or unsold items.

How Much Does it Cost to Stock a Bar with Liquor?

Stocking your bar with liquor involves a significant initial investment. The cost can range from $5,000 to $50,000, depending on various factors. Understanding these factors helps you plan your budget effectively.

The size of your bar directly impacts the cost of your initial liquor inventory. A larger bar requires more stock to meet customer demand, while a smaller venue can start with less. Consider the number of patrons you expect to serve and adjust your inventory accordingly.

Your bar’s concept also plays a role in determining liquor costs. A high-end cocktail bar will need premium spirits, which are more expensive. In contrast, a casual sports bar might focus on a broader selection of beers and mid-range liquors. Align your inventory with your bar’s theme to meet customer expectations.

The drink menu you offer influences your liquor costs as well. A diverse menu with specialty cocktails requires a wider variety of ingredients, increasing your initial outlay. Simplifying your menu can help manage costs, but ensure you still provide enough options to attract a broad customer base.

Ongoing liquor costs typically range from 20% to 30% of total sales. Regularly review your sales data to adjust orders based on demand. Efficient inventory management helps reduce waste and ensures you always have popular items in stock. This approach keeps your liquor costs in check while maximizing profits.

What are the Typical Monthly Expenses for a Bar?

Running a bar isn’t just about the initial costs. Monthly expenses can add up and staying on top of them is crucial for your bar’s success. Here’s what you can expect.

Rent or Mortgage Payments

Rent or mortgage payments represent one of the largest monthly expenses. The amount varies based on your bar’s location and size. Urban areas with high foot traffic command higher rents, while suburban or rural locations may offer more affordable options. Ensure your revenue projections can cover these payments comfortably.

Utilities and Insurance

Utilities include electricity, water, gas, and internet services. These costs can add up quickly, especially if your bar operates late into the night. Efficient energy use can help manage these expenses. Insurance is another necessary cost. General liability, property, and workers’ compensation insurance protect your business from potential risks and liabilities.

Payroll and Employee Benefits

Payroll covers wages for bartenders, servers, kitchen staff, and management. Competitive pay helps attract and retain skilled employees. Employee benefits, such as health insurance and paid time off, also contribute to overall payroll costs. Efficient scheduling and time tracking can optimize labor costs and improve staff satisfaction. For accurate payroll management, consider using Homebase’s payroll tools .

Inventory Purchases

Regular inventory purchases are vital to keep your bar stocked with popular items. This includes alcohol, mixers, garnishes, and non-alcoholic beverages. Monitor sales data to adjust orders based on demand, reducing waste and ensuring you always have customer favorites available. Efficient inventory management helps control costs and maintain profitability.

Marketing and Advertising

Marketing and advertising expenses help attract new customers and retain existing ones. Allocate funds for social media campaigns, local advertising, and special promotions. Effective marketing strategies can drive traffic to your bar, increasing sales and brand awareness. Consistent marketing efforts ensure a steady flow of patrons, contributing to your bar’s success.

TIP: Implementing team communication tools can improve efficiency and reduce operational costs in a bar setting.

How Long Does it Take for a Bar to Become Profitable?

The journey to profitability can feel like a marathon, not a sprint. Understanding the timeline helps set realistic expectations and keeps you motivated.

The break-even point, where your revenue covers all expenses, varies widely. High initial investments in prime locations or upscale concepts may extend this period. Conversely, lower startup costs can shorten the time to profitability. Track your expenses and revenue closely to gauge your progress.

Many bars achieve profitability within 1-2 years. This timeframe allows you to build a customer base, refine your operations, and optimize your offerings. Consistent marketing efforts and excellent customer service can accelerate this process. Keep an eye on your financials and adjust strategies as needed to stay on track.

Location significantly impacts profitability. Bars in high-traffic areas with a strong local customer base tend to reach profitability faster. Evaluate your location’s potential for attracting patrons and generating steady revenue. Consider factors like foot traffic, competition, and local demographics.

Your bar’s concept also plays a role. Unique, well-executed concepts can draw attention and create loyal customers. Ensure your theme resonates with your target audience and stands out from competitors. Regularly update your menu and promotions to keep customers engaged and coming back.

Effective management is key to profitability. Skilled managers optimize operations, control costs, and enhance customer experiences. Invest in training and support for your management team to ensure they can handle challenges and drive success. Regularly review performance metrics to identify areas for improvement and implement changes promptly. For more insights, check out these bar management FAQs .

Onboard employees, track their time, and pay them — all in one place.

Is Owning a Bar Worth the Investment in 2024?

Owning a bar in 2024 offers the potential for high profits and growth. The hospitality industry continues to thrive, and a well-managed bar can generate significant revenue. With the right location, concept, and customer service, you can attract a loyal clientele and see substantial returns on your investment.

The opportunity to create a unique concept and experience sets your bar apart from the competition. Whether you envision a cozy neighborhood pub, a trendy cocktail lounge, or a lively sports bar, your creativity can bring your vision to life. A distinctive theme and ambiance can draw in patrons and keep them coming back, fostering a strong community presence.

However, challenges exist, including high startup costs. Initial investments in property, renovations, equipment, and inventory can be substantial. Securing financing and managing these expenses requires careful planning. Additionally, the bar industry is highly competitive. Standing out in a crowded market demands innovative marketing strategies and exceptional customer service.

Economic uncertainty also poses a challenge. Fluctuations in the economy can impact consumer spending and affect your bar’s profitability. Staying adaptable and responsive to market changes helps mitigate these risks. Monitoring economic trends and adjusting your business strategies accordingly ensures long-term stability.

Careful planning and management can increase your chances of success. Developing a comprehensive business plan outlines your goals, target audience, and financial projections. Effective management involves overseeing daily operations, maintaining quality control, and ensuring customer satisfaction. Regularly reviewing your financial performance and making necessary adjustments keeps your business on track.

Investing in staff training enhances service quality and operational efficiency. Skilled, knowledgeable employees contribute to a positive customer experience, encouraging repeat business. Implementing efficient systems for inventory management, scheduling, and payroll streamlines operations and reduces costs.

In summary, owning a bar in 2024 presents both opportunities and challenges. With potential for high profits and growth, the chance to create a unique concept, and the necessity for careful planning and management, the investment can be worthwhile. For inspiration, check out how we are celebrating small businesses that have successfully navigated these challenges.

• What : Starting a bar in 2024 costs $100,000 to $2 million.
• So What : Know the costs to plan effectively.
• Pros & Cons : High profit potential vs. high startup costs and competition.
• Bottom Line : Careful planning makes it worthwhile.

Let’s make work easier for you and your team. Get started today with Homebase’s all-in-one employee scheduling, time clock, and payroll software designed specifically for small businesses. Sign up now and see how we can simplify your workflow.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Concept development

Any establishment must be based on a trending and well-elaborated concept.

The market is constantly developing with preferences and trends incessantly evolving. Five years ago, Moscow catering market was overpopulated with pizzas, sushi bars and hookah bars. The next wave to hit the market was about coffee shops and burger joints. It’s fun to watch the industry evolution and to make forecasts for the further developments.

When launching a bar, one must identify one’s niche primarily depending on one’s financial resources. Everything else is only limited by one’s ideas. It should be remembered though the ideas must be hot here and now and meet the demands of the prospect consumers. Once you’ve done with the concept, follow it. If you know who your guests are, do not spread yourself too thin. That may seem plain and commonly known, yet look around to see there are bars opening up with a la carte cuisines from all over the world and a bar menu made up randomly of every drink a barman could remember.

Premises identification

Another major problem with launching a bar is finding an acceptable accommodation for it. A bad surprise may be encountered at every step, be it improper proprietary documents, lack of public facilities, restrictions on displaying signs, renovating the premises, etc When launching bars, I faced a great deal of most diverse specifics and issues. Premises in Moscow which are leased for catering needs, are usually in really poor conditions. There are lots of subtleties, hence everything is to be checked out up to the max. And there are always some technical details and a human factor. For instance, there is no point to trust your counterpart unless all papers are signed. With some establishment, we believed the owner that a summer terrace may be put in operation. So we started building it and spent a great deal of money. Ultimately, local authorities ordered us to destroy it altogether. With some other site, we inserted a provision in the agreement on it becoming effective only after the Property Inventory and Registration Authority approves all intended rearrangements and registers the agreement. Thanks to that provision we did not have to pay rent until the agreement which turned out to be problematic was registered.

If a bar intends to offer hard liquors, it’s advisable to check it beforehand if a license to sell strong spirits can be obtained in view of the bar’s location, since in case there is a medical, sports, or educational establishment nearby, a license will not be granted.

One more important factor with opening a bar is a team. Any room will only come to life when there are people in it. In the restaurant business, teambuilding is an absolute priority and your bar’s success is fully dependent on your team’s performance.

At the initial stage, it is very important for your team to get some people with practical experience in the industry who know ins and outs of running a bar and can train other employees. In case you have got no such experienced people, do not hesitate to approach professional consulting companies. Attempting to do everything by oneself often results in a backfire, whereas a professional and detached view may help avoiding some risks and mistakes.

When hiring employees for positions of barmen or waiters, make sure they, apart from being professional, are able to communicate with visitors and enjoy that. A barman would always translate his emotions onto a visitor who would immediately notice if a barman does not fancy communicating.

Never attempt to save on staff. Unfortunately, many bar tenders think of increasing their establishment’s profitability in terms of raising prices, cutting feeds and firing personnel. Yet, lowering quality is the first step to losing money and reputation.

Bar investments

A bar is an interesting business, if its operation is arranged properly. At the moment, the bars in greatest demand are about wines, craft beers and unique offers in food and beverages.

When opening a bar, one needs, on the average, RUR 5 mio ($80K). Such an amount would suffice to open an inexpensive beer hall. Launching an inexpensive wine bar will require RUR 7 to 10 mio. Investment in a cocktail bar starts at RUR 10 mio. Generally speaking, inexpensive formats are now most trendy and demanded.

The major costs are rent, personnel and food/drinks. Personnel costs may amount to 1/3 of the overall turnover while rent can be over RUR 1 mio a month depending on the establishment’s size and location. Quite regularly, a total overhaul is also required along with replacing ventilation and utilities which bring about substantial expenses.

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Moscow's culinary opportunities: How to open a restaurant

Having a nice family-style restaurant in the Russian capital with a flavor of your home country is a popular business option for many expats. But it’s not as easy as it might seem. Here are a few things to consider for potential restaurant-owners.

Thinking it through

First and foremost, one should make sure that owning a restaurant, even a small one, is really something you would like to do. As any kind of business, it takes a significant amount of time and money to manage and develop. “Success in public catering requires hard work, without weekends or holidays,” Ilias Iliadis, owner of Pita&Suvlaki Greek restaurant in Moscow, told Russia Beyond. “It is not as hard to open a place as running it.”

One will need to learn everything about every aspect of a business, from legal, fire and sanitary requirements to managing business partner relationships and hiring experienced staff. “There are many difficulties in this sphere, so you need to be totally in love with what you do to be successful,” says Radomir Krajinovic, owner of Serbian restaurant Optimist.

The number of national cuisine restaurants have grown in Moscow over the last few years.

Market trends

As we noted previously, the economic crisis had led to many Russians cutting back and, as a result, there has been a growth in interest in developing fast food outlets.

Yet, the general dynamic for restaurants is toward growth: According to Poster company 2017 review of trends in the restaurant business, healthy eating, vegetarian food, open kitchen format, craft beer, food trucks (mobile cafes), and regional cuisine are becoming more popular in Moscow. The number of restaurants and bars grow and they compete for custom by offering special deals and interesting dining formats.

“Over the last few years the number of national cuisine restaurants have grown,” says Krajinovic. ”Yes, the crisis has led to fewer people visiting us, but we are still doing well - we are opening a new restaurant soon.”

Iliadis’s venture is also experiencing growth: He opened his first café in city center in 2014 – now he has opened a second restaurant and a third one is on the way.

Of course, setting up a firm without back is impossible. “To open a small restaurant or a cafe one would need 5 million rubles ($87,160),” Vladimir Shalaev, a lawyer at BMS Law Firm, told Russia Beyond. Iliadis confirms this figure. “In our case it was a year before it paid off. Our small restaurant became popular quickly so we had to find a bigger place,” he adds.

“The biggest part of what you’ll need to pay is rent. It is very expensive here,” Krajinovic says. “Other things depend on what one wants. A home-style restaurant might require from seven to 10 million rubles of investment which will pay off in two years.”

Russian banks also offer business loans. “You need to have 30 percent of the necessary investment for the new project and the bank will cover the remaining 70 percent,” says Igor Glukhov, deputy director of Credit Department of RosEvroBank.

If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.

Legal aspect

The procedure of setting up a legal entity is no different for a foreigner than for a Russian national. “You need to gather all necessary documents to register a firm: Passport, various papers, a receipt of registration fee payment; foreign citizens need to provide a certified passport translation as well,” Shalaev said.

Of course, just registering a company will not be enough. You need to get a license for selling alcohol, rent a place for your café, add it to the commercial register, then get all necessary permits from sanitary and fire inspections, as well arrange for garbage disposal, Shalaev added.

“The legal framework is very similar to that in Greece,” Iliadis says. “The Russian requirements gradually develop to European standards. Of course, like in Greece, there are still some outdated rules, such as having a separate room for peeling potatoes, but inspectors don't take it seriously. No one terrorizes you every day without reason. If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.”

Krajinovic, who has been running his restaurant since 2012, agrees. “There are no problems. If you follow all the necessary requirements and use fresh products, no one will bother you asking for money,” he says. “A good thing here is that 3-4 months after starting a business you know how much tax you will need to pay, as opposed to Europe, where the percent might change. Here we pay 15-20 percent of our profits.”

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Restaurants

Moscow has developed a reputation as a “foodie” town, thanks to a local community of chefs and restaurateurs who regularly introduce new concepts and creations. From down-home comfort food to continental cuisine, you’ll have a variety of choices for any meal.

A&W | All American Food

1317 S Main St., Moscow, ID 83843

(208) 882-2301

Applebee’s Grill + Bar

105 Warbonnet Dr., Moscow, ID 83843

(208) 883-4821

Arby’s

150 Peterson Dr., Moscow, ID 83843

(208) 882-4223

Bucer’s | Coffehouse & Pub

201 S Main St., Moscow, ID 83843

(208) 596-0887

Buffalo Wild Wings

1710 W Pullman Rd., Moscow, ID 83843

Café Artista

218 S Main St., Moscow, ID 83843

(208) 882-1324

512 S Washington St., Moscow, ID 83843

(208) 882-1154

Corner Club

202 N Main St., Moscow, ID 83843

(208) 882-2915

Dominos Pizza

317 W. 6th St. Suites 105 & 106, Moscow, ID 83843

(208) 883-1555

Forty Two Bar Kitchen

2012 S Main St., Moscow, ID 83843

(208) 882-3344

Gambino’s

308 W 6th St., Moscow, ID 83843

(208) 882-9000

(208) 907-1013

2002 S Main St., Moscow, ID 83843

(208) 310-4427

Humble Burger

102 N Main St., Moscow, ID 83843

(775) 600-2874

Hunga Dunga Brewing Co.

333 N Jackson St., Moscow, ID 83843

(208) 596-4855

2010 S Main St., Moscow, ID 83843

(208) 874-8007

1320 S Mountain View Rd., Moscow, ID 83843

(208) 669-1743

Jimmy John’s

529 S Jackson St., Moscow, ID 83844

(208) 883-3278

Karma Indian Cuisine

Eastside Marketplace

1420 S Blaine St. Suite #19-20, Moscow, ID 83843

(208) 301-5117

1400 S Blaine St., Moscow, ID 83843

(208) 882-8363

La Casa Lopez

415 S Main St., Moscow, ID 83843

(208) 883-0536

LocoGrinz Hawaiian BBQ

113 N Main St., Moscow, ID 83843

(208) 883-4463

106 N Main St., Moscow, ID 83843

(208) 882-2268

212 S Main St., Moscow, ID 83843

(208) 883-8221

Maialina Pizzeria Napoletana

602 S Main St., Moscow, ID 83843

(208) 882-2694

1404 W Pullman Rd., Moscow, ID 83843

(800) 244-6227

862 Troy Rd., Moscow, ID 83843

(208) 882-1953

Mikey’s Greek Gyros

527 S Main St., Moscow, ID 83843

(208) 882-0780

Mingles Bar and Grill

102 S Main St., Moscow, ID 83843

(208) 882-2050

710 W Pullman Rd., Moscow, ID 83843

(208) 504-0280

Moscow Alehouse

226 W 6th St., Moscow, ID 83843

(208) 882-2739

Moscow Bagel & Deli

310 S Main St., Moscow, ID 83843

(208) 882-5242

Moscow Brewing Company

630 N Almon St., Moscow, ID 83843

(208) 596-4058

Moscow Elks #249

3080 ID-8, Moscow, ID 83843

(208) 882-3015

Moscow Food Co-op

121 E 5th St., Moscow, ID 83843

(208) 882-8537

Nectar Restaurant & Wine Bar

105 W 6th St., Moscow, ID 83843

(208) 882-5914

One World Café

533 S Main St., Moscow, ID 83843

(208) 883-3537

Palouse Juice

1420 S Blaine St. #24, Moscow, ID 83843

(208) 310-6692

Panda Express

1932 W Pullman Rd., Moscow, ID 83843

(208) 882-8880

Papa Murphy’s Take’N’Bake Pizza

524 W 3rd St., Moscow, ID 83843

(208) 883-9508

Paradise Grill and Café

1902 W Pullman Rd., Moscow, ID 83843

(208) 882-5660

Patty’s Mexican Kitchen

450 W 6th St., Moscow, ID 83843

(208) 883-3984

1429 S Blaine St., Moscow, ID 83843

(208) 882-0444

Pizza Perfection

428 W 3rd St., Moscow, ID 83843

(208) 882-1111

Qdoba Mexican Grill

1970 W Pullman Rd., Moscow, ID 83843

(208) 892-8569

215 W 3rd St., Moscow, ID 83843

(208) 596-4041

Red Star Coffee

1046 W Pullman Rd., Moscow, ID 83843

(208) 892-8007

Seasons Public House

1516 W Pullman Rd., Moscow, ID 83843

(208) 882-0550 Ext 333

Shari’s Restaurant and Pies

121 Warbonnet Dr., Moscow, ID 83843

(208) 882-1971

Sisters Cookie Company

610 N Almon St. Suite 130, Moscow, ID 83843

(208) 596-9690

Slice Taphouse

125 E 2nd St., Moscow, ID 83843

1930 W Pullman Rd., Moscow, ID 83843

(208) 882-2163

1320 S Blaine St., Moscow, ID 83843

(208) 883-0713

402 W 6th St., Moscow, ID 83843

(208) 892-2080

307 W 3rd St., Moscow, ID 83843

(208) 883-3841

866 Troy Rd., Moscow, ID 83843

(208) 882-3238

401 W 6th St., Moscow, ID 83843

(208) 882-8226

Tapped – Taphouse & Kitchen

210 S Main St., Moscow, ID 83843

(208) 596-4422

The Bean Farm

503 Troy Rd., Moscow, ID 83843

(425) 861-7864

The Breakfast Club

501 S Main St., Moscow, ID 83843

(208) 882-6481

203 W 3rd St., Moscow, ID 83843

(208) 883-8250

Thomas Hammer Coffee Roasters

710 S Deakin St., Moscow, ID 83844

(208) 885-6600

Wendy’s

1030 W Pullman Rd., Moscow, ID 83843

(509) 326-6333

Young’s Alley

304 W 6th St., Moscow, ID 83843

(208) 301-7888

1222 W Pullman Rd., Moscow, ID 83843

(208) 883-0678

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