In our previous blog post, Writing A Business Plan For Your Restaurant, we touched on some of the elements required in a restaurant business plan. But in a competitive industry, how can restaurant owners use their business plan to differentiate themselves from the competition and secure a loan or investment? Let’s take a closer look.
Who Is Your Target Market?
This is one of the first basic questions you’ll be answering when you write your business plan. Your target market may depend on your niche, your location, and your facilities. Is your establishment a family restaurant with a play area, is it near a cinema or retail park, or does it have more of an after-work drinks vibe? Once you know who your target market is, you will be able to market to them, strengthen your brand, and make other strategic decisions to reach, appeal to and sell to those people. How will you make yourself more appealing to them than your competition?
Who is the Competition?
There are countless restaurants in the UK, and consumers who are wandering the streets of their town looking for a suitable eatery usually have plenty to choose from. Part of writing your business plan and deciding where to set up your restaurant will include looking at the competition. Who are they and where are they? If you’re opening a mid-price family restaurant, the takeaway down the road may not pose much competition, while the well-established restaurant with children’s facilities across town could attract a lot of your target market. How will you compete?
Where is Your Restaurant?
Location can make or break a restaurant. Think back to your target market, where they go, and how they will find you. Will they need to drive to you, and will they be able to get parking when they arrive? What about passers-by? Will they be able to see you from the road, or does anyone even walk past at all? Low footfall can really damage a restaurant’s takings. And whether you have a good location or not, you’ll need to think carefully about your marketing strategy. How will you let people know you exist? All of this will need to be addressed in your business plan in order to show potential investors or lenders that you know what you’re doing and that your restaurant will provide a good return.
We’d love to help you write a business plan that secures the loan or investment you need. Contact us online using the form on the right or call 01604 420 420.