Sample Business Plan on The Monique Home style restaurant

Executive summary

The Monique Home style restaurant will be a forty-eight seat restaurant offering lunch service with fresh sandwiches and salads to clients and delivery services to office workers. The restaurant menu includes roasted chicken, pot roast, classic hamburgers, steaks and pork chops along with sandwiches, wraps and generous salads. The restaurant will be owned and operated by Monica and myself. Both of us have been in the industry of catering and restaurant for 10 years. The restaurant will be located in a 2800 square foot location situated at Business center West Roads. This area is a location where retail business is on the rise which makes it quite ideal for our business as well specifically Benbrook, Texas. The place was formerly used as a café, however the former occupant removed the furniture and fixtures and equipments which we will have be replaced. Also, the location will need additional renovation to upgrade the lavatories and the dining area (Mason, & Stark, 2004). Besides, it will need acquisition of a new motorbike or a van to perform office deliveries.

The interior decoration will characterize wood decorated chairs with black and brown checked counter cloths. The banquet tables will be surrounded by wooden chairs which have contented seating cushions. The projections on the sales assume the hotel will serve 1400 consumers weekly thereby creating weekly revenue of $24,200 or $824, 980 annually. This revenue is equivalent to approximately $268 per square foot in sales per year which positions Monique Home Style Restaurant a highly desirable concept for ownership in a service marketplace in which $220 to $375 for every square foot is deemed commercial advantageous and therefore a good investment. The initial cost will be $450,000, in which $ 160,000 will be sourced by the promoters and what’s left will be funded by the projected loan facility.

Business strategy


General restaurant description

The Monique Home style café will be situated 782 Camp West, Texas. The restaurant will be owned by Monica and I in whole capacity. The restaurant will serve a variety of home style favorites to their customers. The restaurant will be offering services to its customers six days per week as follows; Monday to Friday; from 7.00Am to 8Pm and on Saturday from 7.30Am to 3.00Pm

Restaurant’s mission statement

Our mission is to offer our clients a distinct homely experience. By: Timely delivery of clients’ orders, Incorporating affordability and quality in our menu items and Focusing on corporate social responsibility and social welfare of both clients and staff


Restaurant’s goals and objectives

The primary goals and objective of the Monique restaurant would be as follows:


·         To be the one leading home styled bistro within Texas and beyond

·         To provide quality services and meals at affordable prices

·         To provide timely deliveries in different offices as requested by the customers

·         Achieve cover ratios of 1.00X at each lunch serving

·         To attain a prime cost ratio below 65%

Guiding principles

  1. Being mindful of how we treat our customers and staff. Based on our family values, we will treat both our customers and staff in a manner in which we ourselves would want to be treated, coinciding with our family values (Mason, & Stark, 2004).
  1. We will always show gratitude to our customers, employees, vendors because they are the key pillars that can the restaurant operate. The restaurant success relies on the input, service, labor and times hence the need for attitude of gratefulness to the providers of these services.
  2. Our restaurant will provide the welcoming and gracious service anticipated from a social style café to the customers creating an relaxed comfortable setting which makes the customers contented and therefore want to continually get served by our restaurant (Karlsson, & Honig, 2009)

Keys to success

The success of the business would be as a result of a powerful word of mouth that will enable us to win many offices to be supplied with the restaurant services and even attract more customers to come in the restaurant

To hire highly qualified chefs and offer training to ensure the chefs are always on top and offer fair wages to ensure they stay

We need to be located near our market so that those who are not in offices can as well reach us without having to travel far distances.

Avail a variety of menu offerings which are reasonably priced to establish credibility and which are affordable and would not limit the customers.


Current position

The Monique restaurant is currently under development stage. It is the stage where the spirit of creativity and innovation is applied in the development of the generated ideas (Mason, & Stark, 2004). As the starters, we have successfully secured $ 160,000 from our personal savings and other sources. We are looking forward to getting the balance from the bank in form of a bank loan.

Legal form

The Monique home style restaurant will be controlled as a sole proprietorship entirely owned and managed by me. The restaurant is incorporated as community property state in Texas.

Start up summary

The initial cost to start up the business is $450,000. Amount totaling to $50,000 will be used to acquire a delivery van. The location will consume $40,000 to renovate and the majority of expenses will be on the furniture and fixtures. We will sub-contract the work ourselves. The sum of $ 160,000 will be funded by us; this will be a combination of liquid asset and marketable securities that we had been using in the previous catering business.

Location and facilities

The restaurant which is 2800 square feet will be situated in shopping center of West Roads in the Benbrook suburb, Texas. It is located in a business center where there are approximately 13600 offices and a population of about 46000 according to the census report of the U.S in the year 2010. The major employers include the Bank of America and the Union Pacific. The immediate population comprise of single families and college students with household income of $ 42,000.

The products and services offered

The Monique home style restaurant will offer the following services to its customers:

  • Chopped potatoes
  • Hamburgers and plenty of salad
  • Roasted chicken, sandwiches and wraps
  • Evening tea delivery to offices
  • Lunch time office delivery services

Daily operation and production

The business will be open six days a week for lunch and evening tea supplied to different offices in the area (Karlsson, & Honig, 2009). Monica will schedule the work such that it will permit for the capability to enhancement or decrease the labor per hour according to the volume of sales to maintain a steady control of the cost of labor. She will also ensure that there is sufficient storage equipment to make sure that the high quality products are prepared in advance and stored to meet demand during peak hours. Besides, Monica will ensure that each staff is assigned a given number of office outlets and that they are timely with the deliveries. I will be in charge of ordering, maintaining and receiving sufficient stock to meet production market demands. In each order placed, it will by design be printed to a demand printer positioned in the grill spot. This will enable the grill cook to keep track of the orders. The kitchen groundwork line has been planned to be managed by at least 1 line cook and not exceeding of four cooks. This plan allows line conscription to be accustomed to the commerce volume reallocation changes for all employees will encompass restocking, cleanup, and preparation. All monies will be settled at the end of each shift (Karlsson, & Honig, 2009). The concluding shift will entail designated finishing duties that entail the cleaning and preparing the restaurant to be used for the next day.


Competitive advantage

There are existing competitors in the area such as:

Applebee’s – is a chain bistro providing its services at a standard tariff. The meal quality is standard and prices range similar to the Monique restaurant (Karlsson, & Honig, 2009)

Chili’s –this is a chain restaurant also offering standard fare Food choices are varied and prices are affordable

Barbeque Ben’s – is a sole proprietorship providing primarily items of barbeque. even though the foodstuff offering does not rival unswervingly with the matter, the eatery targets the same locality families and has been in service at the single position since the year 1981. The prices are very affordable.

The Monique restaurant being strategically located in the city has a competitive advantage over the other restaurants which are not easily accessible. Additionally, the restaurant has a unique idea of offering office deliveries which is more preferred by most clients as opposed to other competitors who offer fare to their customers. Our restaurant saves on the clients’ production time.


We are able to create a good relationship with quality suppliers due to our combined experience in our existing catering business. The merchants will provide realistically priced merchandises delivered according to the time schedule.

Controls of the management

The administration will practice sound management procedures to minimize the costs. The following systems will be applied by the management to ensure the business remains a going concern:

  1. There will be a specific order guide in the restaurant to keep the order history on track and to maintain the designated level of product in the inventory
  2. The administration will carry out a weekly stock take to determine valuation to be used in the preparation of a weekly statement of financial position
  3. There would be daily inventory tracking and the progression to be measured to the sales statistics to ensure proper accounting

Market analysis

The business of restaurant is large and diverse business and contributes to 4% of the U.S domestic growth product. The market analysis is based on the demand mode. The demand is influenced by the number of competitors in the targeted market area. The major competitors are the McDonald and Darden restaurants.

Industry analysis

Market size

It is important to understand the market size of the U.S which includes about 480,000 restaurants with combined revenue of $400 billion and the large restaurants only constitute to 20% of the total number of restaurants.

Participants of the industry

The main participants consist of major firms such as McDonald’s; Brands of YUM!

(Pizza Hut, KFC, Taco Bell); plus Darden Restaurants (Red Lobster, Olive Garden)

Main competitor

The major competitors we would face is the Hedarys Restaurant. This restaurant is a full service societal restaurant founded in 1977. The restaurant managed as a sole proprietorship, employs 17 staffs and makes $1.7 million in income yearly. Their pricing are higher than the Monique restaurant.

Market segments

The restaurant will appeal to a broad base of consumers in the business community (Chen, Yao, & Kotha, 2009). The location was selected to appeal tom the growing number of offices in the area. The major offices targeted are the Union Pacific railroad and the Bank of America.

Market tests

We have been catering part time for the past 10 years and our home style menu is very common with family reunions. We have also maintained constant online marketing program. We have already developed a good customer base through our catering business.

Target market strategy

We selected a target area for the restaurant so that we can be able to serve a number of offices within the area since they are easily accessible from our location. We can serve many customers who may be too tired or busy to move form office to the restaurant.

Market needs

The Benbrook is in need of a restaurant that can provide lunch services to the many offices that were recently built in the area. This is because the nearest restaurant that provides quality lunch meals is far away from the location.

Market growth

The market is expected to grow fast because many people prefer home style meals for lunch. They have a belief that the home style meals are of better quality than the snacks in most of the restaurants.

Strengths, Weaknesses, Opportunities and Threats Analysis (SWOT analysis)


  1. The business is in a prime location with easy access of the targeted market niche.
  2. The experience and expertise we collectively acquired during the 10-year period in the industry experience
  3. The fact that we had already recognized a customer marketplace and accepted vendors for our business
  4. Owing to our diminutive size, we think we can provide outstanding quality by hand choosing our marketplace specials when measured to our larger commercial competitors. The similar concept is true in our employment requirements, by hand picking our workers we will endeavor to offer unrivaled service when measured to our larger rivals.


  1. Employing and retaining excellent employees
  2. Tight profit margins will permit little wriggle room for mistake


  1. diminutive barriers to entrance allows for instantaneous business opportunities
  2. proffer additional cuisine services


  1. administration policies and guidelines, for example, (food safety, restaurant operation, and worker fortification at the national level and healthiness, sanitation, security, fire at the confined level)
  2. increasing operating costs
  3. Building or sustaining sales quantity

Exit strategy

When exiting the market, the business will dispose off its fixed and current assets through auction. The perishable goods such as food will be written off to the staff.

Human resource plan

Organization structure

The Monique restaurant expects to hire 14 employees. We have adopted an effective interview plan which will ensure that only qualified persons are recruited for the job. Background checks will also be taken into consideration to ensure competency (Chen, Yao, & Kotha, 2009).

Management team

I will own the restaurant because I have worked in a quick service food service operation since I was 14 years and earned my way into the college. After earning my degree, I worked for an independent fine dining as an assistant manager and then general manager

Monica will be employed as a kitchen manager. She was employed in a five-star hotel after her graduation from the Art institute in Dallas.

Management team gaps

Initially Monica and I will fill the management gaps but in future, we will hire a Director of sales, a kitchen manager and a general manager. We will also apply the point of sale system to meet the gaps associated in inventory management and payroll, and cost bookkeeping.

Personnel plan

Annual sales forecast First year ($) Second Year  ($) Third Year ($)
G. manager – Owner 28655 32625 35623
Asst. manager/ cashier 23421 23421 23421
Line cooks 33252 36352 38373
Prep cooks 51423 53413 55413
Office suppliers 42534 44514 48514
Servers and cashiers 20100 26151 21615
Book keepers 6500 6700 7200
Dish washers 21000 21500 22100
Sales agent 14112 18161 21725
Catering employees 16171 19191 22000
Total $223, 898 $265,092 $388,092

Financial plan

The financial plan outline includes the following:

  1. The required cost of capital which is projected to be $350,000 out of which $ 160,000 to be contributed by the owners and the remainder to be raised in form of a bank loan.

Start up expenses

Start up expenses Amount
name creation and Graphic logo $1500
lease deposit  and Permits $1500
Emergency costs $9,000
Sign of the Outdoor $2,500
Improvements n buildings $50500
Capital employed $163000
Expenses of pre-opening $15000
Start-up Totals $243000


Start up assets

Art Decoration costs $800
Cooler $7000
dishwasher (commercial) $8000
freezers (2) $5000
cold station $4000
food processor $1000
Van for delivery $49000
hood with exhaust $900
beverage cooler $4000
Six restaurant burners $1500
Chrome shelving systems $600
Reach in coolers $5000
work tables $400
steel table $900
fire protection system $3900
3 bowl sink $1500
10 round tables $9000
48 wood café chairs $19900
track lighting (10) $600
Table cloths $300
Miscellaneous $900
safe $300
POS system and Cash register $1900
Office  Computers $2,200
Total Initial assets $125,000
Total essential start up cost $364,000



  1. The statement of comprehensive financial statement which explains the profit or losses incurred by the restaurant



2016 2017 2018
Sales revenue  $ 1,026,982.00  $ 1,386,425.70  $ 1,871,674.70
cost of goods sold  $    407,262.00  $    610,893.00  $    916,339.50
Gross profit  $    619,720.00  $    775,532.70  $    955,335.20
Salaries  $      42,322.00  $      50,786.40  $      60,943.68
Bad debts  $      12,524.00  $      15,028.80  $      18,034.56
Insurance  $      62,522.00  $      75,026.40  $      90,031.68
Wages  $    165,220.00  $    198,264.00  $    237,916.80
Rent  $      27,363.00  $      32,835.60  $      39,402.72
Shrinkage  $      53,422.00  $      64,106.40  $      76,927.68
Taxes  $      24,521.00  $      29,425.20  $      35,310.24
Credit Card fees  $      26,518.00  $      31,821.60  $      38,185.92
Legal and Accounting Fees  $      37,262.00  $      44,714.40  $      53,657.28
Permits Fees  $      46,543.00  $      55,851.60  $      67,021.92
Total Expenses  $    498,217.00  $    597,860.40  $    717,432.48
Net profit  $    121,503.00  $    177,672.30  $    237,902.72
Net profit margin 11.83% 12.82% 12.71%



  1. The projected cash flow statement which explains the cash movement in the business


2016 2017 2018 2019 2020 2021
Cash inflow
From Operations Cash  $         162,822.00  $    214,925.04  $      283,701.05  $     374,485.39  $       494,320.71  $      652,503.34
sales  $         643,602.00  $    901,042.80  $   1,261,459.92  $  1,766,043.89  $    2,472,461.44  $   3,461,446.02
cash from Debtors  $           14,231.00  $      19,923.40  $        27,892.76  $       39,049.86  $         54,669.81  $        76,537.73
Totals From Operations  $         820,655.00  $ 1,135,891.24  $   1,573,053.73  $  2,179,579.14  $    3,021,451.97  $   4,190,487.10
added cash received  $         182,601.00  $    114,532.00  $        23,180.00  $       32,452.00  $         45,432.80  $        63,605.92
Taxes (sales)  $                       –  $                   –  $                    –  $                    –  $                      –  $                     –
Investment  $           82,872.00  $    107,733.60  $      140,053.68  $     182,069.78  $       236,690.72  $      307,697.93
Total Cash inflow  $      1,086,128.00  $ 1,358,156.84  $   1,736,287.41  $  2,394,100.93  $    3,303,575.49  $   4,561,790.95
To operations  $         673,633.00  $    842,041.25  $   1,052,551.56  $  1,315,689.45  $    1,644,611.82  $   2,055,764.77
spent cash  $         352,470.00  $    440,587.50  $      550,734.38  $     688,417.97  $       860,522.46  $   1,075,653.08
Totals To Operations  $      1,026,103.00  $ 1,282,628.75  $   1,603,285.94  $  2,004,107.42  $    2,505,134.28  $   3,131,417.85
Repayment of Loan  $           35,234.00  $      35,234.00  $        35,234.00  $       35,234.00  $         35,234.00  $        35,234.00
Total Cash Outflow  $      1,061,337.00  $ 1,317,862.75  $   1,638,519.94  $  2,039,341.42  $    2,540,368.28  $   3,166,651.85
Annual Net Cashflow  $           24,791.00  $      40,294.09  $        97,767.48  $     354,759.50  $       763,207.21  $   1,395,139.11





  1. The pro forma balance sheet statement to show the financial position of the restaurant


2016 2017 2018
Current Assets
Debtors  $    73,000.00  $  87,600.00  $  105,120.00
Cash at hand and bank  $    35,433.00  $  42,519.60  $    51,023.52
Stock  $    15,627.00  $  18,752.40  $    22,502.88
Other current assets  $    11,029.00  $  13,234.80  $    15,881.76
Total Current Assets  $  135,089.00  $162,106.80  $  194,528.16
Long Term Assets  $  271,620.00  $325,944.00  $  391,132.80
Accumulated depreciation  $    13,581.00  $  27,162.00  $    54,324.00
Total fixed assets  $  258,039.00  $298,782.00  $  336,808.80
Total Assets  $  393,128.00  $460,888.80  $  531,336.96
current liabilities
Creditors  $    22,322.00  $  26,786.40  $    32,143.68
short term loan  $    12,324.00  $  14,788.80  $    17,746.56
other short terms liabilities  $      4,643.00  $    5,571.60  $      6,685.92
Total Current Liabilities  $    39,289.00  $  47,146.80  $    56,576.16
Long Terms Liabilities  $  198,755.00  $238,506.00  $  286,207.20
Total Liabilities  $  238,044.00  $285,652.80  $  342,783.36
Capital contributed  $  155,084.00  $175,236.00  $  188,553.60
Retained earnings  $    60,751.50  $  88,836.15  $  118,951.36
Total Capital  $  215,835.50  $264,072.15  $  307,504.96
Total Liabilities and Capital  $  393,128.00  $460,888.80  $  531,336.96


  1. The financial ratios
  2. The hourly labor costs

Source and use of funds

The total amount of capital required too start the business is estimated at $ 350000. Most of the costs incurred are related to restaurant equipment, inventory and furniture and the delivery van of $50,000. Monica and I agreed to contribute $160,000 and the additional $190,000 to be requested in the form of a bank loan. The loan is expected to be amortized in four years (Chen, Yao, & Kotha, 2009).

Break even analysis


The fixed costs for the entire operations is calculated to be $ 725, 892

The variable cost per unit of each meal in the restaurant is $ 5.63

The average selling price for meals in the restaurant is $12.72

The contribution is per unit is therefore = $ (12.72 – 5.63) = $ 7.09

The contribution margin ratio = 7.09/12.72 = 55.73%


The break even sales         = fixed costs / contribution margin ratio

= $ 725, 892 / 55.73%

= $ 1,302,305.54/=

From the above calculations, the break even sales are below the projected sales hence the company is deemed to make more profits at these prices and costs implied.


List of assets owned by the restaurant

Art Decoration costs $800
Cooler $7000
dishwasher (commercial) $8000
freezers (2) $5000
cold station $4000
food processor $1000
Van for delivery $49000
hood with exhaust $900
beverage cooler $4000
Six restaurant burners $1500
Chrome shelving systems $600
Reach in coolers $5000
work tables $400
steel table $900
fire protection system $3900
3 bowl sink $1500
10 round tables $9000
48 wood café chairs $19900
track lighting (10) $600
Table cloths $300
Miscellaneous $900
safe $300
POS system and Cash register $1900
Office  Computers $2,200
Total Initial assets $125,000
Total essential start up cost $364,000



Mason, C., & Stark, M. (2004). What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels. International Small Business Journal, 22(3), 227-248.

Chen, X. P., Yao, X., & Kotha, S. (2009). Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists’ funding decisions. Academy of Management Journal, 52(1), 199-214.

Karlsson, T., & Honig, B. (2009). Judging a business by its cover: An institutional perspective on new ventures and the business plan. Journal of Business Venturing, 24(1), 27-45.