You know you want to start a restaurant, and you’re thinking a brunch concept is the right one for you, but how do you get started? It’s important to know what goes into starting a breakfast restaurant – especially your breakfast restaurant business plan.
As reported by Small Business Trends, the average profit margin for a restaurant tends to range between 2% and 6%. The type of restaurant you choose to open can directly impact how much money you make. Fortunately, food costs for breakfast restaurants are on the lower side, allowing for more room in the margins.
DRAFTING YOUR RESTAURANT’S BUSINESS PLAN
So, you’re all in on a breakfast restaurant – let’s get to work on the business plan! There are a few things you absolutely need to include in your vision.
There are two main types of plans: the traditional business plan and the lean start business plan. Either format is fine to use; just know that if you choose to go with the lean-start option, you may have to provide more information to lenders and investors upon request. However, whichever type of plan you choose, the same basic information will need to be provided.
EXPLAIN YOUR BUSINESS
First and foremost, you need to tell people what your business concept is. If you’re selling a product, describe what it is and how you’re pricing it. If you’re offering a service, make it clear why people need it. You should explain who is involved in your company – mainly your leadership team – and why your business concept will be successful.
OUTLINE YOUR AUDIENCE & YOUR INDUSTRY
Who is your customer? Give details of the demographic you’re looking to reach. You should also provide information about the industry – is it growing? Are there are lot of competitors vying for market share? Make it clear that your product or service is suiting the needs of many and that there’s room for your business to grow in the coming years.
PROVIDE A DETAILED MARKETING STRATEGY
Arguably one of the most important sections of your breakfast restaurant business plan will be the marketing approach. How will you reach your target audience? How much money will you be spending on marketing to get their attention? Know that it takes multiple exposures for people to react to your advertising – so your plan should be multi-faceted.
SHOW THEM THE MONEY
Your breakfast restaurant business plan will need to be presented to banks and lenders. Before they hand over the cash, they want to know exactly why you need what you think you need. Make sure your calculations are absolutely correct so you can get the amount of money you need to start your business. It’s a lot more difficult to go back and ask for more when unexpected costs crop up.
You’ll also want to be transparent about where the funds are going. Will you be using the money to purchase and build out your location? Will it go towards buying the equipment needed to run your business? Your plan should anticipate and answer any questions lenders may have. Lastly, you’ll need to have a timeline for when you expect to pay back any debt.
GIVE FINANCIAL FORECASTS
Your investors will very much want to know when you plan to break even. Be sure to map out your business’ growth – spanning over at least the first five years. It would be wise to also have an idea as to where your business will be in 10 or 15 years. This is the section where you should be most thorough, as this could very well make or break an investment deal.
CONSIDER FRANCHISING WITH SCRAMBLERS
If you’re ready to own a breakfast restaurant, franchising could be a great option for you! Equipped with a team of industry professionals, Scramblers has been dominating the brunch industry for 30 years. Our eggs-cellent team can help you draft your business plan, providing you with all of the information you’ll need to provide investors.
It’s common for banks to be more willing to lend to franchisees over independent entrepreneurs. At Scramblers, we have strategic partnerships already lined up for new franchisees to take advantage of.
Keep in mind, too, that marketing a franchise is a slightly easier feat given that you have a brand name above your door. Our marketing team at Scramblers is always working toward increasing our brand awareness because we know it leads to higher foot traffic for our franchisees.
If you’re curious about how to become a restaurateur, Scramblers can help! Simply fill out the form on our website and one of our representatives will be in touch.