The profitability of individual companies can vary: Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. The industry is labor-intensive.
Wages form a significant proportion of operating costs. The existence of a statutory minimum wage in most states increases the need for players to keep other costs as lean as possible, which in turn increases the importance of suppliers. Restaurants compete with companies that serve meals or prepared foods, including grocery stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete with home cooking. Among FSRs, most establishments focus on Italian cuisine, steak, or seafood.
Hamburger joints make up a majority of QSR locations, along with pizza parlors and sub sandwich shops. In FSRs, waiters take orders, serve beverages and meals, present the check, and process payment. FSRs include casual dining full bar ; family dining limited bar ; and fine dining establishments. Because the restaurant industry is highly competitive, site selection is critical: Companies carefully manage inventory of perishable food products, such as fresh seafood and dairy goods, to reduce losses due to spoilage.
Computerized information systems can improve and link food preparation and serving operations. Touch screen ordering programs ensure accurate communication of customer orders. Timing systems monitor meal progress and can alert staff if an order is running behind schedule. Reservations programs maximize traffic flow and seating. Inventory management systems track supply levels and can help reduce waste due to spoilage. Cost accounting programs help companies determine the profitability of individual menu items.
Handheld point-of-sale POS devices allow servers to place orders and print checks tableside, improving accuracy and reducing ordering time. Some handhelds can also print customer checks and process credit card payments. THR will appeal to a broad base of consumers in both the residential and business community.
The location selected for THR was chosen primarily to appeal to the growing number of households in the area. For the past 10 years, Jeff and Betty have been catering part-time. Their home-style menu is very popular with family reunions. More often than not, the couple gets asked to open a restaurant full-time so that patrons can return again and again. Through Constant Contact an online marketing program the couple has stayed in touch with their host and hostesses, and has been asked to return to provide catering services to several repeat events.
Home-Style Catering as also grown by word of mouth. The couple also co-authors a home-style blog - attracting foodies nationwide and globally, swapping recipes, compiling the most sought after home-style comfort recipes, and identifying current trends, for example, providing expanded menus for children and for those with food allergies.
The Wrights already have a customer base through their catering business and local blog visitors. These customers will be the first to be contacted when they announce the grand opening of the brick and mortar restaurant. Jeff and Betty Wright selected the subject area for its restaurant primarily because of its location to the very busy intersection of Cherry Street and Camp Bowie.
This will encourage families tired from a day of work to stop in for a home cooked meal they can enjoy — without the cleanup! The Benbrook area is in great need of a family style restaurant.
US consumer spending on services, an indicator of restaurant sales, rose 1. The average US retail price for diesel and regular gas, which influences discretionary consumer spending on eating out, rose US tourism spending for food services and drinking places, an indicator for restaurant revenues, increased 6. Consumers believe that meals at home are healthier and higher quality than eating at restaurants. At THR, we will position ourselves as the premier home-style restaurant by preparing quality home cooked meals with simple wholesome ingredients.
Jeff and Betty Wright will also provide home cooked fare that appeals to the current trends of healthier food and offer menu selections which will appeal to this group.
THR will be positioned as the premier traditional home-style restaurant. We will do this by providing quality home style meals, prepared with quality ingredients at a reasonable prices. Customers will enjoy the quaint surroundings inside with the wood tables and checkered table cloths. Our restaurant will provide a relaxed atmosphere and when customers walk in they will be greeted by warm smiles and greeted just as they were arriving home.
The chains have tried to create home-style restaurants but where they have failed is in the personal aspect of the business. And in light of this, a handful of chain restaurants are beta testing self-pay tables! Our customers will enjoy our standard menu fare, along with seasonal menus so that we can better take advantage of cost savings and stay current with some of the food industry trends.
At THR we plan to be the premier restaurant to work for as well. In fact, according to the Restaurant Association, nearly half of all adults have worked in the restaurant industry at some point during their lives, and more than one out of four adults got their first job experience in a restaurant. At THR we believe that our restaurant will provide job opportunities both for the entry level applicant was well as for the part-time worker searching for flexibly in job hours.
We will pay our employees a competitive salary and believe we can do so by meticulously keeping our records, including daily review of the Prime Cost Report, and utilize Cost Accounting Systems, to prevent inventory shortfalls. We will be proactive with our employees by scheduling regular performance reviews, and provide bonuses and other incentives to motivate our staff.
We will also provide our employees with the most current training programs regarding safe food handling, and worker protection. Additional information regarding our employees is explained in Section 6.
THR will also remain current with current industry marketing tends. In addition to a website with our menu, map and driving directions, we will also have a Facebook page and utilize other social media such as Twitter.
We will team up with Groupon and Yelp. First create awareness-- our signage on the front of restaurant will bring customers to us and once inside, we will immediately acknowledge the customer with the warmest and most sincere greeting and begin the service process anticipating repeat customers. Provide employee training on customer service and retention; offer ongoing training programs for employees keeping them current on industry trends and food safety.
Employ the use of surveys both at the table and online. Because of our current expertise with vendors, and our excellent credit, we can negotiate better credit terms than say someone brand new starting a restaurant. We will also be able to keep our menu reasonably priced by offering menu items that take advantage of seasonal produce further reducing price. Finally we will keep our prices in check by meticulous monitoring of our controllable expenses — keeping close eye on our Prime Cost Report and Inventory.
By initially employing family members who will work for lower and reduced wagers, for example, we can further reduce our controllable expenses. We truly believe that your business is not only as good as your products meals but the quality of your staff as well. Our staff is a reflection of us. Initially, we intend to employ our family members who will work for lower and reduced wages.
Our long term goal is to hire team members that are truly hand selected and have the same honest to goodness family values we do. And unlike our big chain competitors, because of our lean size, we can turn on a dime when economically pushed and make changes quickly allowing us to be proactive. Whereas our corporate competitors have to adhere more closely to their company policies thus impeding their reaction time. We realize the success of THR will have to be achieved by doing more that serving great food, and providing friendly service.
We will utilize a marketing plan to build customer traffic. At THR we will continually strive to win more customers by being proactive rather than reactive in our marketing efforts and stay current with popular industry trends. We will achieve these goals by using the following:. THR will be the premier home-style dining restaurant in western Fort Worth. We will offer reasonably priced meals, in a warm, relaxed and comfortable setting. At THR, cost accounting is important, since the profitability of individual dishes can vary significantly and will initially determine the cost of the menu items.
We will take advantage of our excellent credit terms with our suppliers and will also update our menu to take advantage of seasonality for example in local produce items.
As a new start-up we can currently control employee cost by hiring family members who will work for low and reduced wages.
Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20 customers that have a problem in a restaurant will tell management about it. It will be our goal to provide a wonderful home-style meal combined with superior customer service. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle guest complaints. Jeff and Betty will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management.
All guest complaints will be acknowledged by the staff and referred to management. Programs will be in place for all types of guest complaints. More serious complaints will be documented and kept on file. Customer feedback will be accomplished by customer surveys or the use of mystery shoppers. The growth is adjusted for inflation. With the addition of catering revenues, sales will increase by We will encourage our employees to grow our customer base and provide incentives and regular bonuses to employees for referrals and repeat customers.
These initiatives are still in the planning stages as we gear up to hire and staff. They will play an active role in our employee culture. It is also anticipated that as we grow our catering business, along with our lunch business group, we will hire a sales director to facilitate this portion of the business.
The sales director will be compensated similarly to their national peers national Restaurant Association. Initially we will be formed a sole proprietor: The State of Texas is a community property state.
Over time, the couple plans to form a Limited Liability Company. You must have a compatible program installed on your computer to use them. Login Close Print Preview. Skill Business Culture Systems. Stage Dreaming Opening Operating. View All Financial Resources. View All Growth Resources.
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How to write a restaurant business plan to serve as a roadmap for success, including how to do a market analysis. The Balance Small Business How to Write a Restaurant Business Plan. Menu Search Go. Go. Becoming an Owner. 5 Steps to Help You Get Organized Before Opening Your Own Restaurant.
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