QuickPlan® Industry Specific Business Plan Software 800-417-7017
(Includes Hard Copy, CD-ROM and Immediate Download)
Based upon a Fine Casual Dining Facility of 90 seats will edit to cover any Thai Restaurant menu offering.
While the operating environment will remain challenging, America’s 980,000 restaurants are expected to post record sales in 2013. According to the National Restaurant Association, Restaurant Industry sales are expected to reach a record $660.5 billion in 2013 a 3.8 percent increase over 2012 and marking the third consecutive year that industry sales will have topped $600 billion.
While the restaurant industry is expected to grow in 2013, operators will continue to face a range of challenges. The top challenges cited by restaurateurs vary by industry segment, and include food costs, the economy and health care reform. There is currently substantial pent-up demand for restaurant services, with 2 out of 5 consumers saying they are not using restaurant as often as they would like; with improving economic conditions that demand is likely to turn into sales in 2013. The Industry is tied directly to the health of the U.S. Economy and consumer disposable income. The CBO anticipates that the current recession, which started in December 2007, ended in the second quarter of 2009, making it the longest recession since World War II. Such growth compares to a 2.6% real rate of decline during 2009, the depths of the recession. The swing in performance from 2009 to 2010 was the widest since 1983, a period of 27 years. The increase in real GDP in 2010 primarily reflected positive contributions from private inventory investment, exports, personal consumption expenditures (PCE), nonresidential fixed investment, and federal government spending. Severe economic downturns often sow the seeds of robust recoveries. During a slump in economic activity, consumers defer purchases, especially for housing and durable goods, and businesses postpone capital spending and try to cut inventories. Once demand in the economy picks up, the disparity between the desired and actual stocks of capital assets and consumer durable goods widens quickly, and spending by consumers and businesses can accelerate rapidly. Although the CBO expects that the current recovery will be spurred by that dynamic, in all likelihood, the recovery will also be dampened by a number of factors. Those factors include slow wage and employment growth, high unemployment as well as a continued sluggish housing market. Current expectations by the CBO are for real GDP growth of 1.7% to as much as 2.25% in 2012 and as much as 4.1% in 2014.
ource: Congressional Budget Office Economic Projections and Revisions, Note 2014 is a conference board projection see, http://www.conference-board.org/data/usforecast.cfm
Congressional Budget Office Economic Projections and
The continued rebound in GDP will also affect real disposable
income growth. Real DPI increased 1.8 percent in 2010, compared with
an increase of 0.6 percent in 2009.
for inflation, per-capita disposable incomes have been struggling
for the past two years and are currently at about the level first
achieved in November of 2007. Most of 2011 saw a slow decline in
incomes, a trend that began reversing in November of last year. Real
GDP growth was approximately 2.0 percent in 2012 and current
expectations by the CBOE are 1.7 percent in 2013 with the economy
gaining momentum in the second half of 2013. It then assumes an
average growth rate of 4.1 percent for the years of 2014 to 2017.
While food-price inflation was a typical 2.2 percent during
2012, it’s expected to be nearly 4 percent, maybe more, during
2013, as the impacts of last year’s drought finally come into
play, according to a recent report from the U.S. Department of
Agriculture. The unemployment
rate is assumed to be mostly unchanged from current levels. We do
not reach “full employment” for several years, with the
forecasted unemployment rate being 5.6 percent by 2017. With less
uncertainty by businesses and investors as to tax policy this year
and next and with rising expectations that split government in
Washington will slow the explosion in government spending the
economy looks poised for sustained growth as businesses and
investors get back to the business of growing and expanding the
bottom line. While the industry is expected to grow in 2013, the top
challenges cited by restaurateurs are food costs, building and
maintaining sales volume, and the economy. Giving consumers what
they want will be crucial for restaurant operators in 2013. As the
recession has caused 8 out of 10 consumers to cut back on spending
to some degree, it is more important than ever for operators to
nudge those guests into patronizing their restaurants. For operators
just getting started this may be the best time within the business
cycle to plan and open your new facility understanding that with
interest rates still at all time low levels and marginal operators
going out of business you will have accounted for the marginal
efficiencies necessary to not only survive against the competition
but to thrive as we cycle once again into economic expansion.
Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years. Whether you are starting a new restaurant are looking to raise additional capital to expand your currently profitable Restaurant, or looking to evaluate and value your Restaurant to sell, current statistics prove that you will do much better with a business plan than without. According to Dunn and Bradstreet the primary reasons for failure vary, but all of the reasons come under the category of poor planning. You are a part of the second largest Industry in the United States representing 4% of the U.S. Gross National Product in the most competitive Industry in the world. Your management decisions will decide whether your Restaurant survives or thrives in the face of increased competition. The most important benefit of a business plan is that it sets the stage for the future of your Restaurant as you want it to be positioned in the marketplace. A business plan will make it easy for your banker to take action as he/she gains insight into the details of your restaurant and the goals that you have outlined. Potential investors can review your plan and decide whether or not to make an investment based upon the risk. You will benefit most as you study and gain detailed insight into your own operations. Updating and constantly reviewing your plan will give you more insight as both a manager and decision maker.
have estimated that it takes an average of 100 hours to research,
and write a comprehensive business plan within any Industry.
Creating and compiling the five year financial plan and forecasts
including 5 years of budgets, income statements, balance sheets,
cash flow analysis, and key financial ratio analysis can take more
than 20 hours of work by you or your accountant. Now consider
sitting down in front of your computer to edit and fill in the
details of an already written and organized sample restaurant
business plan and outline. Whether you are starting a fine dining,
full service or fast food restaurant, are looking for expansion
capital to open your second restaurant, or want to sell your multi
restaurant chain, you will be able to edit this plan into your own.
Five Year "Big Picture" Forecast Matrix (Spreadsheet File); type in your assumptions and all of the following statements are immediately calculated....42 pages;
Years 1-5 Operating Budgets
Years 1-5 Income Statements
Years 1-5 Balance Sheets
Years 1-5 Cash Flow Analysis
Financial Ratio Analysis
Years 1-5 Break Even Analysis
Years 1-5 Summary Statements
Average Operating Percentages Comparison/ Your Numbers vs the current Industry figures.
Auto Generated Use of Proceeds Statement
The assumption section asks for over 615 lines of assumptions, (easy to use, assumptions that don't apply to your operation just plug in a 0), including operating expense line items, balance sheet, working capital, and financing assumptions, the matrix even includes two financial calculators built in to give you copies of the amortization schedules for your financing assumptions:
Hospitality Resources on the Internet over 350 html links.. (html file) to all of the following categories on the Internet, (already in html, just point and click)...Associations, Beverage Resources, Culinary, Free Newsletters, Government, Management resources, POS Vendors, Publications, Recipes, Recruiters, Restaurants and Chains, Restaurant Directories, Schools and Universities, Suppliers, and Technology. Created by Chuck Gohen of Restaurant Associates Northwest of Portland Oregon.
Starting with the, "before you sit down checklist , you will gather your information together to edit on your word processor, (Macintosh, Windows, DOS, etc...) that information which does or does not apply to your restaurant or organization....from your average ticket and menu, to inventory, taxes, and staffing. Fill in the details to make this your own comprehensive business plan. Pull up the Five Year Financial Forecaster Spreadsheet and insert your average ticket price, number of seats, seat turnover, cost of goods sold, and operating expenses, and now study your first year cash flow analysis to answer the question of how much money you are going to need. All five years of financial statements are calculated and ready for printing and insertion into your plan. Once finished , print up your plan and simply place it into the three ring binder indexing it according to the pre-labeled index, included.
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