Restaurant Business plan in Nigeria – One of the most essential commodity in a home around the world today is food, starting from the raw food, meat food, can food, vegetable food and every other kind of food you can possibly think of.
This is because; we are sustained by our daily intake of food (meals) of all kinds. Food is relative to different kind of people, there are those who prefer meat meals to vegetable meals, others would prefer the one they drink, in all they are after their satisfaction as a result of the food intake.
In Nigeria today, food has gone beyond the daily meals people eat at home and set off to work. In fact most people consider venturing into food vending as one of the most lucrative business today, considering the number of people who patronize food hawkers also known as mobile food sellers. There is this adage in Nigeria that says “In Nigeria everybody is in a hurry, both traders and customers”, for this reason most Nigerians today tend to leave their home without having to eat anything, and that is where the business opportunity for selling comes in.
As a student in Ebonyi state University, Abakaliki, there was this woman we often buy rice and beans from every morning, it was actually a routine for us, I never really thought of the business side of what this woman was doing, all we needed was to feed and go to school, because we were always in hurry, the day she told us how much she earns on a daily from her food hawking, we were all in shock. And this was a woman who didn’t even know the fundamentals of running a successful restaurant using a business plan.
Imagine if you decide to start up your own food joint, using one of our restaurant business plan, the success reports you will be recording. You may be discouraged by others that fast food business crumbles easily due to the fact that most people eat at home before coming out, and as a result you may have low sales which will eventually crumble your business. I believe you must have observed that most restaurants that are strategically located in your town attracts the most customers, despite the insinuation that most people eat at home before coming out, customers still troop to these restaurants just to feed.
The restaurant business plan will help you in outlining how you can set up your own fast food restaurant. The question is having the interest in starting your own restaurant business, or having the habit of always cooking, not just for your consumption but for the people around, it even gets better if you enjoy every bit of your cooking activity. Some actually go for training to become qualified chefs, this tells of how huge restaurant business can be if properly managed.
What You Can Use Your Restaurant Business Plan For;
With the restaurant business plan which can also serve as a fast food feasibility studies, as an entrepreneur, you can use this document for various purpose, especially, the purpose of sourcing fund to start up your fast food business using the fast food restaurant business plan sample.
BANK LOANS – You stand a chance of getting a bank loan using this well written business plan, banks want to be convinced that they are giving their money to a customer who has potential of repaying, hence with a well written fast food restaurants business plan, you may be considered as a reliable loan applicant.
GRANTS – Applying for grants from government has been made easier and accessible, especially if done with a doc that will convince those issuing the grants, of cause you must be qualified before you are issued with the grant.
PROPOSAL – You can use the restaurant feasibility study sample to apply for a proposal, especially in situations where you can obtain fund for your restaurant business, this is because the information contained in this restaurant business plan document are well articulated, you stand a better chance going with this feasibility study.
Seminar presentation – You can use information from this business plan to form the basis of your seminar research, since the information contained in it came from a rigorous research work.
COMPETITIONS – You can go for competition where you win a prize or scholarship, especially one for entrepreneurs to commence their journey in business. You stand a chance of winning given the information at your disposal.
Nigeria today has a whole lots of opportunities, especially for the business minded ones, and for those who decides to venture in to the fast food industry also known as restaurant business are guaranteed with diligence and discipline, the stand a chance of earning what they have invested.
Generally, the fast food industry is growing, owing to the high demand in already made food by those from all categories of people in the society. You will agree with me that fast food accommodate both the old and the young, the rich and the poor, as long as you are able to foot your bills, you are welcome to buy.
As stated earlier, a great amount of care and caution has to be applied in the running of the restaurant business, you surely do not want to waste your investment, it is better you strategies with a business plan that best explains to you what you need to be doing at every time.
Importance Of A Plan For Your Restaurant Business
In all fairness, you need a well detailed business plan to run restaurant successfully today, irrespective of the type of restaurant you have in mind, as long as money will be invested into the venture, it will be advisable you professionally plan how to go about the business using a laid out business plan with detailed information on the business. Here are the reason you need a business plan for your fast food venture;
- It helps you to plan for the things you need before kick starting your business
- Your plan tells of what services you have to offer
- It should also contain the number of staff to hire
- A business plan should also have detailed description of staff uniforms and dress code
This is what our restaurant business plan looks like;
Table of content
- Executive Summary
- Business Description
- Products and services
- Market Analysis
- Competitor Analysis
- Sales and Marketing Plan
- Operational Plan
- Management plan
- Financial Plan and Projections
Executive Summary
This is an overview of the proposed standardized fast-food restaurant which will be named after whatsoever you wish, also outline the categories of people, residents as well as customers that your local delicacies or other delicacies may serve, they have meet the requirement as well as be in a classy environment. Get a catchy name for your Kitchens, distribute fliers with your address boldly written on it.
The Business
The business should be established as a limited liability company owned by you as well as other investors who may have contributed to the capital. Outline the persons who are to manage as well as oversee the business, it is important a first class chef with wealth of experience and expertise is allowed to manage the restaurant, except you fit into the description of a first class chef. This gives you an edge to be able to compete with the like of other top hotels as well as restaurant.
Products and Services
Great restaurants are known for their irresistible menu, especially when it has long list of mouth-watering selection of local as well as other delicacies, such as
- Egusi Soup,
- Pepper-soup,
- Ewedu,
- Vegetable soup,
- Okro,
- Pounded yam,
- Beans,
- fried rice, etc.
The aforementioned will be served with a variety of meat offerings ranging from roundabout to pomoto raw beef. Tasty fried chicken, turkey, assorted fish types and recipes will not be left out.
Also make provision for point and kill services to customers who may prefer to just come in, relax, watch television and eat our greatly-demanded super-tasty smoked fish offerings.
The Market
Nigeria, no doubt, is both Africa’s most populated country and its largest economy but also its most important consumer of food products. The size of the food and beverage industry in Nigeria according to IMF is valued at 800 billion Naira with an estimated 40% growth expected in 2016 alone.
Being the business capital of Nigeria and its second most populous state, Lagos state boasts of over 30 million residents and a food and beverage industry valued at 100 billion. Experts also believe that this market will witness a 45% growth in 2016 alone.
The Ogudu area of Lagos has in recent times begun to capture the interest of greater Lagos residents. This is because this once sleepy and relatively quiet business and residential community has attracted in recent times the interest and investments (in real estate) of Lagos’ many high and mighty. With its over 100,000 population made up of residents, workers and visitors, Ogudu area provides any good classy restaurant worth its onions the right kind of demography on which successful businesses thrive. It is therefore no surprise that Big Bite, Mr Bigg’s, Tantalizers, Margretos and a host of others found a conducive business nest in which to lay their proverbial eggs.
Financial Considerations
Go for a long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business will be provided primarily by equity from the partners and investors.
Our market survey and research shows that restaurant business holds the promise of reaching positive cash flow in its 7th month of operation. The advantage of this, is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.
Revenue is expected to amount to N12,984,326 and profit N3,592,736 in our first year of operation.
Factors To Consider Before Setting Up Your Restaurant
Here are some of the factors most food entrepreneurs over look that makes them fail in the business venturing, carefully go through them and ensure you cross all your T’s and dots all your I’s; see below
Write A Business Plan – We’ve discussed why you need a food business plan on this post, some of the things we said you needed to start up your restaurant business should be embedded in the business plan. A business plan helps the entrepreneur to prepare for every eventuality including logistics, things that are required for the business to start, on the business plan your master plan on the services to be offered will as well be contained in it, It should as well have information on the number of works you should have and also have detailed description of staff uniforms and dress code, things menu, time of opening and closing business will as well be included etc.
Source For Fund – This relates to those who have built an idea on how they want to start up their own business but have little or no fund, with the business plan you can source for fund to start up your own restaurant business. You can apply for bank loan, especially those soft loan that are issued to start up business, apply for government grants, or you can source your fund from friends and family members.
Register Your Business Name – You must register your business name to be legally recognized, in fact when you register your business name, it becomes an infringement into your right if some other business uses the same name, in essence business registration protects your business from duplicates. In a city like Enugu where they have a whole lot of fast food joints and restaurant, I’ve never seen two fast food joint or two restaurant with the same name, for example you have the following just to mention a few (i) Open Sheraton (ii) Nta’Chi Osa (iii) Odi Oku… etc, all these fast food joints/ restaurant have their unique customers although they relatively have almost the same menu.
Competition – Restaurant business is one of the most competitive business you can ever find today, in order to survive, you need to know who you are competing with. By knowing your competition, it entails you know things like;
- Their menu
- Services offered
- Number of staff
- Dress code
- Administrative/ management sector
- Their method of operation… etc
In fact, you are required to know every possible information about your competition in order to compete favorably. You can actually scout these restaurants yourself; this will enable you to have first hand information about them.
Location – Location in business can never be over emphasized, it is important that you carefully select the best spot for your business. Locating your business in the city center can be very strategic, people will get to know you restaurant easily, could be used in description. Other places where you can site your restaurant is at the Mall, serving continental as well as local dishes will make people consider your restaurant a top notch, setting up at the market place or around the market will definitely fetch you a large number of customers. You can take advantage of proper research before setting up.
Staff Employment – The implementation of your business plan is dependent on the capacity of staff you have employed, these days food venture has become a serious venture and some organisation tends to send their staff members to training, while other employ only those certified by an institution, there are institution where individuals are trained for hospitality business. Employing and subsequently training those individuals will greatly benefit your restaurant. In essence, you need qualified hands to handle the following;
- Management/ administrative
- Cooking
- Serving
- Accounting
- Cleaning etc.
Buy Equipment – There are items you need to successfully run a restaurant business, these items includes the following,
- Cooking equipment (firewood or gas cooker)
- Oven and grill equipment
- Deep fryer
- Walk in cooler, freezer or any other cooling equipment
- Frying pans, pots, spoons, plates
- Take a way plates
- Salad and dessert plate (optional)
- Chef knifes
- Cleaning equipment (buckets, cleaning rags etc)
- Hand soap and sanitizer dispenser
- Fire extinguishers (for emergency)
- Tray pan (for serving)
Note – you can scout for other items not mentioned in the list above, in all you need these items to successfully run a restaurant business.
Other Additional Factors To Consider
- Draft Your restaurant menu
- Have a reliable list of those that supply items to your Restaurant
- Have a financial estimates as well as projections for your business
- Invest in good press publicity
- Go further by either develop a website or setting up a page on social media that will help in promoting your restaurant
- Constantly Re – design your restaurant menu to keep your customers interested
- Never relent in the implement of frequent and strategic marketing
- From time to time host events
- Invent new service and market to your customers
- Tell them of your take-out as well as your new service delivery
- Engage other restaurant owners in a networking scheme and as well engage your customers.
- Involve in customers related competition.
To get the full Restaurant Business Plan, pay N10,000 to
GTBank (Guaranty Trust Bank)
Account Name – Okite Joseph ikenna
Account No – 0044083736
Once payment is made, send the following (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.
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