Menu Driven Business Planning

So you want to open a restaurant? Many peoplein turn, help define appropriate staffing levels. The
come to me with their plans, and ideas after theybudgeting process can now begin. Analysis of menu
have decided to build or open a restaurant. It is mycontent, image and pricing will tell prospective
responsibility to assist them in their planning processrestaurant operators whether their concept is
and determine how clearly they have thought theirappropriate for a certain market area.
concept through. I ask them to show me a menu,With a preliminary menu in hand, a prospective
and if their initial response is "I haven't gotten thatoperator can target a location that will be convenient
far in my planning process yet," my response is "Youand appropriate for their desired clientele. Once a site
haven't started the planning process yet".or facility is selected, sales volumes can be projected
A menu is the foundation of any restaurant; Guestsbased on number of seats, menu pricing and the
will support or avoid a restaurant for its food.competitive business analysis. With projected sales
Starting with a preliminary menu is a simple and basicvolumes, how much an operator can spend to
approach to restaurant development. Begin with aacquire, remodel or build a facility is determined.
menu, and you are light years ahead in the restaurantLeases and/or purchase agreements can now be
development process. A menu will tell you and yournegotiated.
Guest what you are trying to be as a business, andWith a clear menu, competitive analysis, sales
greatly enhance your chances for success.forecast and development budget, financing can
I view a menu for content, image and pricing.realistically be sought. A business plan can be derived
Content (the actual items on the menu) will dictatewhich, if taken to potential investors will demonstrate
service staffing needs, level of culinary experiencewhat type of return they can anticipate on their
and type of management required. Who will be doinginvestment.
the cooking, do they have experience in this type ofAny restaurant business plan must begin with a menu.
food, and how much are you paying them?A proposed menu provides the basics for many
Image is how the Guest will perceive the menu. Menuquestions that must be answered during the
image helps define the targeted clientele and whichrestaurant development process. It creates an image
other restaurants this operation would be competingof the restaurant, identifies targeted clientele, and
with. Are the content and image of the menudefines the proposed restaurant's competition. A
appealing to your desired clientele? Pricing helpspreliminary menu allows a sound basis for business
determine a potential restaurant's competitivebudgeting, tests potential profitability, and dictates
placement. Is the pricing for the type of foodthe development dollars required for a facility. Most
offered competitive with other's in the market area,importantly, beginning the business planning process
and does it permit the ability to manage a profitablewith a menu maintains the focus of ownership on the
food cost? Pricing sets the Guest's expectations inimportance of food and the impact it has on the
terms of food and service quality. This perception will,success of the restaurant.