Sample business plan

Restaurant business plan

A complete sample plan for Harvest & Hearth Kitchen, a fictional restaurant in a mid-sized US city. Startup budget: $147,000–$750,000. Use it as a template — adjust the calculator below with your own numbers.

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Executive summary

Harvest & Hearth Kitchen is a 70-seat full-service restaurant serving regional American comfort food built around a wood-fired oven and a rotating seasonal menu. It will open in a second-generation restaurant space in a mid-sized US city’s growing dining district, serving dinner six nights a week, weekend brunch and a bar program that features local beer and cocktails.

The owners are a chef with fifteen years of kitchen leadership and a general manager with a decade of front-of-house experience. By month twelve, we project 1,900 checks a month at an average of $46, or about $87,000 in monthly revenue, with prime cost under 62 percent.

The total project cost is $410,000. Owners are investing $140,000, an SBA 7(a) loan will fund $230,000 and the landlord will provide a $40,000 tenant allowance.

Company description

Harvest & Hearth Kitchen LLC will lease a 3,200 square foot former restaurant with an existing hood, grease trap and walk-in cooler, which reduces buildout cost. We hold, or will secure before opening, a certificate of occupancy, food service permit, liquor license and sales tax registration.

The menu centers on smoked and oven-roasted dishes made from produce, meat and dairy from regional farms where possible. Appetizers range from $9 to $16, entrees from $19 to $38, and desserts from $8 to $10. Our identity is warm, casual and consistent, positioned for date nights, family dinners and group gatherings.

Market analysis

Dining out is a discretionary purchase that changes with consumer confidence, but customers still prefer local restaurants for celebrations and regular meals. Food and labor costs have risen, which pushes independents to run lean menus and manage waste carefully. New residential developments near the target district increase the population of potential diners.

Customers choose restaurants based on reviews, menus posted online and word of mouth, and many book through reservation platforms. A restaurant’s success depends on location visibility, consistent execution and managing prime cost, the combination of food and labor expenses.

Target customers

Date-night and celebration diners

Couples and small groups who dine on weekend evenings and spend $60 to $110 per party, valuing atmosphere and a good cocktail.

Neighborhood families and regulars

Residents who visit weekly or biweekly for early dinner or weekend brunch, spending $45 to $85 per party and responding to kids’ menu options and loyalty offers.

Private events and corporate groups

Organizations booking birthday dinners, rehearsal dinners and team events for 15 to 50 guests, with set menus and room minimums.

Products, services & pricing

Offering	Price	What’s included
Dinner service	$19 to $38 entrees, average check $46	Seasonal menu with oven-fired mains, shared appetizers and desserts, six nights a week.
Weekend brunch	$12 to $19 per plate	Saturday and Sunday brunch featuring baked goods, egg dishes and bottomless coffee.
Bar program	$8 to $15 per drink	Local beers, a short wine list and seasonal cocktails, with happy hour on weekdays.
Private dining	$55 to $85 per person with minimum	Set menus for groups in a semi-private room or full restaurant buyout.

Competition

The district has about twenty restaurants, including casual chains, a handful of independent bistros and several bar-and-grill concepts. Chains offer familiarity and promotions; independents offer higher quality but narrow menus. No competitor currently combines a wood-fired concept with a family-friendly price point.

Our advantages are a distinctive cooking method, a focused menu that reduces waste and a hospitality-first service culture. We will track our competitors’ prices monthly and adjust our menu to retain value without discounting heavily.

Marketing plan

Pre-opening, we release a menu preview and run a friends-and-neighbors dinner series to train staff and gather reviews. A website with online reservations, a Google Business Profile and an Instagram account are launched eight weeks before opening. Paid social ads target diners within a five-mile radius for the first three months, with a budget of $2,500 a month.

After opening, a mailing list of guests receives seasonal menu updates and event invitations. We host monthly farmer dinners, trivia on slow weeknights and a weekday happy hour. Local media will be invited to tastings. A loyalty program rewards guests after five visits, and private-event inquiries are tracked in a simple customer relationship tool.

Operations plan

The restaurant opens at 4 p.m. for dinner Tuesday through Sunday, with brunch from 10 a.m. to 2 p.m. on weekends. Staffing includes a chef, two line cooks, a dishwasher, a prep cook, a general manager, four servers, two bartenders and a host on busy nights. Menus are reviewed weekly for cost, and the chef orders from three suppliers and two farms.

A point-of-sale and inventory system tracks sales by item and cost, and the owners review prime cost weekly. Health and safety practices follow local codes, with a certified food manager on every shift. Reservation software controls table turns, and staff meet before each service to review specials and allergens.

Team

Chef-owner — Designs the menu, leads the kitchen, controls food cost and trains the culinary team.
General manager-owner — Runs front-of-house, hiring, scheduling, bar program, finances and guest experience.
Kitchen and floor staff — About 14 employees at opening, mostly part time, including line cooks, servers, bartenders and a host.

Milestones

Month 1Open with a trained team of 14, a stable menu and 900 checks in the first month.
Month 3Four-and-a-half-star rating on major review sites and weekend tables booked a week ahead.
Month 6Prime cost under 65 percent and monthly break-even on operating costs.
Month 9Private events producing 12 percent of revenue and happy hour at 80 percent capacity.
Month 121,900 checks per month, prime cost near 60 percent and reserve at two months of fixed costs.

Risks & mitigations

Slow ramp-up leaving fixed costs uncovered
→ Hold six months of working capital, negotiate rent abatement and cut service days if needed.
Food and labor cost inflation
→ Review menu pricing quarterly, use a focused menu and cross-train staff to flex hours.
Key staff turnover, especially the chef
→ Create a recipe bible, offer bonuses tied to prime cost and cross-train a sous chef.
Buildout overruns
→ Obtain fixed bids, keep a 15 percent contingency and avoid structural changes.

Frequently asked questions

What financial figures matter most in a restaurant plan?

Lenders look at prime cost, break-even checks per month, rent as a share of sales and the working capital reserve. Showing weekly tracking of these figures is persuasive.

How do I justify the average check?

Build it from the menu: expected appetizer, entree, drink and dessert mix at your prices. Compare it against nearby restaurants you have actually visited.

Should I include a liquor license in startup costs?

Yes. Licenses vary widely in cost and timing by state, so cite your jurisdiction’s fee schedule and include a contingency for delays.

Is buying a closed restaurant’s equipment smart?

Often, because used kitchen equipment and a hood can save tens of thousands. Have it inspected and include repair allowances.