How to Write a Restaurant Business Plan

A restaurant business plan sets out what your restaurant will be, who it serves, and how it will make money. Many owners can produce an initial draft within a couple of weeks, although this depends on the complexity of the business and how detailed the financial projections are. This article is an overview of the main things to think about, from your concept and market research to the financial projections that banks and lenders typically ask to see. It points you to official sources for the detail. It is written for first-time owners in the UK who plan to open in the next 12 months.

This article gives general information, not advice. You should always consult a professional adviser for advice tailored to your business's specific needs and circumstances.

Key takeaways

• If you run a limited company, you will need a separate business bank account. Sole traders are not legally required to have one, although many choose to for bookkeeping and tax purposes.
• There is no set length, but many plans run to around 10 to 20 pages and cover a similar set of sections.
• Lenders often pay closest attention to the financial section, so it is worth taking time over.
• You will usually need a separate business bank account before you trade. Zempler Bank offers a UK business account that you can apply for online in minutes.
• Check current figures, such as the VAT threshold, on GOV.UK before you publish your numbers.

What is a restaurant business plan?

A restaurant business plan is a written document that sets out your idea and shows how you will turn it into a working business. It covers your concept, your target customers, how the kitchen and front of house will run, and your expected costs and income.

You write it for two reasons. First, it forces you to test your idea on paper before you spend money. Second, banks, landlords, and investors often ask for one when you apply for funding or a lease. A clear plan makes those conversations shorter.

Why you need a plan before you open

Opening a restaurant ties up money fast. A plan helps you spot problems while they are still cheap to fix. It does these things:

• Tests whether the numbers work before you sign a lease or order equipment.
• Gives lenders and landlords the detail they tend to look for.
• Sets targets you can measure against once you open.
• Helps you decide on your legal structure and how you will fund the launch.

If you are still deciding whether to trade as a sole trader or a limited company, the GOV.UK guide to setting up a business explains the options. The right structure depends on your circumstances, so speak to an accountant before you commit. If you decide to set up a limited company, you can register it and apply for a business account together through Zempler Bank's company formation service. This is the general position. Your own circumstances may change it, so check the relevant rules on GOV.UK or speak to a qualified professional.

The sections of a restaurant business plan

Most plans cover a similar set of sections. You do not have to use every heading, but the seven below cover what a reader usually expects to find.

1. Executive summary

A one-page overview of the whole plan. It states what the restaurant is, where it will be, who it serves, and how much money you need. Write it last, after the rest of the plan is finished, but put it at the front of the document so a reader sees it first.

2. Business concept

Describe the restaurant in plain terms. Cover the type of food, roughly what a meal will cost, the style of the space, and what makes it stand out on its street. Name the location and say why it suits your customers.

3. Market research

Show that you understand your market. Cover your target customers, the local competition, and the demand in the area. Use real observations, such as footfall on the street or the gaps in nearby menus. Avoid guesses you cannot back up.

4. Menu and operations

Explain how the restaurant will run day to day. Outline the menu, your suppliers, opening hours, kitchen setup, and how many people you can seat. Keep it practical. A reader wants to see that you have thought through service, not just the food.

5. Marketing plan

Set out how people will find you. Cover your launch, your social media, local listings, and any partnerships. You do not need a large budget, but you need a clear way to bring customers through the door in the first months.

6. Management and staffing

List the key people and what each does. Include the owner, head chef, and front of house lead. Note how many staff you plan to hire and roughly what they will cost. Lenders typically assess whether the management team has the experience and capacity to operate the business effectively on a day-to-day basis.

7. Financial plan

This is the section readers study hardest. It brings together your startup costs, your forecast income, and your cashflow. The next section covers it in more detail.

Writing your financial projections

Your financial projections turn your idea into numbers. Three parts matter most: startup costs, a sales forecast, and a cashflow forecast.

Startup costs

List the main costs you will face before you open. The table below shows the kind of items to include. The figures are an illustration only, not a quote, and your costs will depend on your site and fit-out.

Add a buffer for the first few months. Many new restaurants take time to fill tables, so plan for income to build slowly.

Most food businesses also need to register with their local council, and some need premises or alcohol licences. Requirements vary by area and by what you serve, so this is the general position only. Check the rules on GOV.UK and with your local authority before you budget for this.

Sales forecast

Estimate your monthly income. A cover is one meal served to one guest. A simple method is to multiply the covers you expect each day by your average spend per guest, then by the number of days you open each month. Be cautious in the early months and show how sales grow as word spreads.

Cashflow forecast

A cashflow forecast shows money in and money out, month by month. It is the part that warns you when funds might run low. Lenders often look at it to check you can cover rent, wages, and suppliers while you build trade.

Tax affects your cashflow too. As a general guide, businesses usually need to register for VAT if their taxable turnover exceeds £90,000 over a rolling 12-month period, or if they expect it to exceed that threshold in the next 30 days. How that turnover is measured, and when you need to register, can depend on your circumstances. This is the general position, so check the current rules and thresholds on GOV.UK or speak to a qualified accountant about your situation.

👉  Want to know more about the £90,000 threshold?

What banks and lenders look for

If you plan to borrow, your business plan is often one of the first things a lender reads. Most want to see the same things

• A clear concept and a realistic view of the local market.
• Financial projections that add up, with sensible assumptions.
• A cashflow forecast that shows you can repay what you borrow.
• Evidence that the team can run the business.

Lenders set their own criteria, so a strong plan improves your case but does not guarantee an outcome. Having your business banking in place early also shows you are ready to trade.

Opening a business account for your restaurant

If you set up a limited company, its money is legally separate from your own, so in practice you will use a business account. Sole traders are not required to have one, though many find it makes bookkeeping and tax simpler. It also keeps your business and personal money apart, and lenders often want to see business banking in place when you apply for finance. Check what applies to your situation.

Zempler Bank offers a UK business current account built for hospitality businesses such as restaurants, cafes and pubs. You can apply online in minutes and, once approved, manage your account in the app or online. It is open to a range of business types, from sole traders to limited companies, with UK telephone support from real people if you need a hand.

Two features suit restaurant businesses in particular. You can pay in cash at Post Office branches across the UK (subject to limits, availability, and any applicable fees), and the account includes cashflow tracking and pots, so you can set money aside for tax or quieter months. There is also a free Making Tax Digital tool to help with VAT. Eligible deposits are protected by the Financial Services Compensation Scheme up to £120,000 per person. You can compare the account options and see current fees on the Zempler Bank hospitality account page.

A simple restaurant business plan template

Use the outline below as a starting structure. Copy each heading into a document and fill in your own detail.

1. Executive summary: a one-page overview of the whole plan.
2. Business concept: what the restaurant is and why it fits its location.
3. Market research: your customers, competitors, and local demand.
4. Menu and operations: how the restaurant runs day to day.
5. Marketing plan: how people will find and choose you.
6. Management and staffing: the team and what each role costs.
7. Financial plan: startup costs, sales forecast, and cashflow.
8. Appendix: supplier quotes, menus, and any supporting figures.

Next steps

Start with the template above, gather your local market notes and supplier quotes, then build your numbers from there. If you are also setting up your banking, you can compare the Zempler Bank business account against your needs.