A restaurant business plan turns “I want to open a restaurant” into numbers a lender, landlord or investor can check: what you will sell, to whom, where, what it costs to open, how many guests you need to break even, and how the money gets paid back. It is also the cheapest place to discover the idea does not work, before you sign a lease.
The whole template is on this page, with no download and no email gate. Each section lists what to write and the questions it must answer, then shows a short filled-in version for one invented restaurant: a 60-seat neighborhood bistro open six days a week. Every number in that example is made up to show the method. Your figures come from your own quotes, your own lease and your own local data.
Money is in US dollars and the lending rules are US (SBA) rules as of September 2026. This is general information, not legal, tax or financial advice.
Why a restaurant needs a business plan
Four readers, four questions:
- Lenders want to know whether the loan gets repaid. Expect them to turn straight to startup costs, the sales forecast and cash flow.
- Landlords want to know whether you will still be paying rent in year three, especially if this is your first restaurant.
- Investors want to know what they get back, and when.
- You want to know how many covers a day you actually need. The plan answers that before you have spent the deposit.
Leave out “90% of restaurants fail in the first year.” It does not trace to data (see the FAQ). Of accommodation and food services establishments (a category that includes hotels) that opened in March 2019, 82.6% were still operating a year later and 57.4% after five years (BLS Business Employment Dynamics). The risk is real; a lender who knows the numbers will notice if you inflate it or wave it away.
What lenders look for: SBA 7(a) basics
With an SBA 7(a) loan, a bank lends and the Small Business Administration guarantees part of it. The basics as of September 2026 (7(a) loans, terms and eligibility):
| Rule | 7(a) figure |
|---|---|
| Maximum loan | $5 million |
| SBA guarantee to the lender | Up to 85% on loans of $150,000 or less; up to 75% above |
| Maximum term | 10 years for working capital and equipment; 25 years for real estate |
| Collateral | Not required by SBA on loans of $50,000 or less |
| Interest | Variable-rate caps by loan size, e.g. base rate + 3.0% above $350,000 |
| Credit elsewhere | You must be unable to get the credit on reasonable terms from non-government sources |
SBA’s lender rulebook, SOP 50 10, adds three rules to build your plan around:
- At least 10% equity for a start-up. A business counts as a start-up if it has generated revenue for a year or less. SBA requires an owner contribution of at least 10% of total project costs, meaning “all costs required to become operational.”
- Projections with their assumptions. For start-ups, the lender needs “detailed projections, including the supporting assumptions,” showing debt service coverage of at least 1.15 within two years of funding. In plain words: cash from operations must cover loan payments with 15% to spare.
- Personal guarantees. Anyone owning 20% or more of the business must personally guarantee the loan.
SBA’s general guide suggests five years of projections for a new business, monthly or quarterly for year one (SBA). The template below covers all of this, in the order a restaurant reader expects.
The restaurant business plan template, section by section
Copy the numbered headings into a document and fill them in. Write the executive summary last.
1. Executive summary
Write: one page covering the concept, location, team, money needed and how it gets repaid. Answer: What is it and who is it for? Why this site? Why can this team pull it off? How much are you asking for, and where is break-even?
Example (invented): Oakline is a 60-seat neighborhood bistro serving seasonal American plates with beer and wine: dinner Tuesday to Sunday, plus weekend brunch. The chef-owner has run kitchens for 12 years. Total project cost is $576,000, funded by a $400,000 SBA 7(a) loan and $176,000 of owner and investor equity. Break-even is about 83 covers a day; the year-one forecast is 95.
2. Concept and company description
Write: the dining experience in plain words, the service style, the legal structure and who owns what. Answer: Full service, fast casual or counter? How long does a guest stay? Who owns what percentage?
Example: Full service, walk-in friendly, 60-to-75-minute dinners. An LLC owned 80% by the chef-owner and 10% each by two investors.
3. Menu
Write: a sample menu with prices, the target average check, and how the menu supports your food cost. Answer: How many items? Which dishes carry the margin? What does a guest spend on food and drink, before tax and tip?
Example: 8 starters ($11–16), 8 mains ($24–34), 4 desserts, wine by the glass from $12. Target average check $38. Target food and beverage cost 30% of sales.
4. Market analysis
Write: who your guests are, where they come from and what they already spend eating out. Answer: How big is the trade area? How many households, at what income? How many daytime workers?
The local data is free. Census Business Builder combines demographic, business and consumer-spending data for an area you choose, as maps and downloadable reports. County Business Patterns counts establishments by county and ZIP code for industries such as full-service restaurants (NAICS 722511). BLS puts average household spending on food away from home at $3,945 in 2024 (BLS Consumer Expenditures). That is a national average, so check local spending before you lean on it.
Example: About 14,000 households within a ten-minute drive. At $3,945 each, that is roughly $55 million a year on food away from home. Oakline’s year-one forecast needs 2% of it.
5. Competitive analysis
SBA says a competitive analysis should cover competitors’ strengths and weaknesses, your window of opportunity, barriers to entry and indirect competitors (SBA).
Write: a table of the five to eight closest competitors, with concept, price point, seats, hours, what they do well and where they leave a gap. Answer: Why would a guest pick you on a Tuesday? What else competes for the same dinner budget, including takeout?
Example: Three full-service restaurants within a mile. None serves weekend brunch, and none offers table service under $40 a head.
6. Location and lease
Write: the site, visibility, parking, zoning and the key lease terms. Answer: What are rent and common-area charges per month? Term and renewal options? Who pays for build-out? Is there already a hood, grease trap and enough power? Does the rent-free period cover construction?
Example: A 2,400 sq ft former restaurant at $8,000 a month including common-area charges. Ten-year term, two five-year options, three months rent-free during build-out.
7. Design and layout
Write: the floor plan, seat count, kitchen and bar layout, and accessibility. Answer: Do the seats you drew actually fit with clear aisles and a working service path? Start with how to plan a restaurant floor plan.
Example: 44 dining seats, 10 bar seats and 6 patio seats in season. Open kitchen with the pass facing the room.
8. Marketing plan
Write: pre-opening and first-year marketing, with a budget. Answer: How will your first 1,000 guests hear about you? What brings a first-time guest back within a month?
Example: A soft opening for neighbors, local press outreach, a maintained Google Business Profile and an email list started at the soft opening. $10,000 before opening, $1,500 a month after.
9. Operations
Write: hours, service flow, suppliers, food safety and the technology you will use, with its cost. Answer: Who are your main suppliers, and what are their delivery days and payment terms? How does an order travel from table to kitchen to bill? What does the technology cost up front and monthly?
Example: Open 306 days a year. One broadline distributor, two local produce suppliers. Technology: POS software on tablets, a kitchen printer, a card terminal from the payment processor and business internet. POS software is budgeted at $0 (see where Platevio fits, below); card processing fees sit in variable costs.
10. Management and staffing
Write: the owners’ and managers’ experience, an org chart, a staffing plan by shift and pay. Answer: Who runs the kitchen on the chef’s night off? Is the owner’s salary in the numbers? Where is the experience gap, and who covers it?
Example: Chef-owner and general manager on salary, $13,000 a month together including payroll taxes. An hourly team of 14 budgeted at 20% of sales. The owner has never run a dining room; the GM has eight years of front-of-house experience.
The financial plan, worked through
Lenders read this section first. SCORE’s free financial projections template covers startup costs, a sales forecast, break-even and three years of statements; use it or your own spreadsheet for the full statements. Here is the logic, end to end.
Startup costs
| Item (invented example) | Cost |
|---|---|
| Security deposit (three months’ rent) | $24,000 |
| Build-out and renovation | $180,000 |
| Kitchen equipment (part used) | $95,000 |
| Furniture, fixtures, smallwares | $45,000 |
| Design, permits and licenses | $30,000 |
| Legal and accounting | $8,000 |
| Insurance and utility deposits | $7,000 |
| Opening food and beverage inventory | $15,000 |
| Pre-opening payroll and training | $28,000 |
| Pre-opening marketing | $10,000 |
| Tablets, kitchen printer, network | $4,000 |
| POS software | $0 |
| Contingency | $30,000 |
| Working capital reserve (about three months of fixed costs) | $100,000 |
| Total project cost | $576,000 |
A liquor license can cost very little or a great deal depending on the state and city. Get the local price, never a national average.
Sales forecast: covers × average check × days
Build sales from the bottom up. “We’ll capture 2% of the market” is a sanity check, not a forecast.
Annual sales = average covers per day × average check × operating days
- Year 1: 95 covers × $38.00 × 306 days = $1,104,660
- Year 2: 110 covers × $39.50 × 306 days = $1,329,570
- Year 3: 115 covers × $40.70 × 306 days = $1,432,233
In the appendix, break the covers down by day and daypart: 95 a day might be 70 on a Tuesday and 150 on a Saturday. Always add a downside case. At 76 covers a day (20% fewer), year-one sales are $883,728.
Prime cost and food cost targets
Prime cost is food and beverage cost plus all labor, as a share of sales. Restaurant accountants set targets in the 55% to 65% range. The Fork CPAs puts full-service restaurants at 60–65%, with the best near 55%, and quick service at 55–60% (The Fork CPAs). Gurian CPA advises aiming for 55–60% (Gurian CPA). Set a food cost target per dish before you set prices; how to calculate food cost percentage walks through the math.
Example: Food and beverage 30%, hourly labor 20%, salaried labor $156,000 a year. Prime cost is 64.1% in year one and falls to 62.1% in year two, because sales grow faster than salaries.
Break-even
SBA’s formula: break-even sales = fixed costs ÷ contribution margin, where contribution margin is the share of each sales dollar left after variable costs (SBA).
- Variable costs, which move with sales: food and beverage 30% + hourly labor 20% + other variable costs such as card processing fees and supplies 6% = 56%.
- Contribution margin: 100% − 56% = 44%.
- Fixed costs per month: rent $8,000 + salaried managers $13,000 + loan payment $5,300 + utilities $2,800 + marketing $1,500 + repairs $1,200 + insurance $1,000 + accounting $700 + software and subscriptions $400 + other $1,300 = $35,200.
- Break-even sales: $35,200 ÷ 0.44 = $80,000 a month, or $960,000 a year.
- In covers: $960,000 ÷ 306 days ÷ $38 = about 83 covers a day.
The loan line assumes $400,000 over 10 years at an assumed 10%, a payment of about $5,290 rounded up to $5,300. Your rate depends on the base rate and loan size. Including the loan payment gives a cash break-even, which is the one a lender cares about. The 76-cover downside case sits below it, so the plan must say how long the reserve lasts and what gets cut.
Three-year projection summary
| Invented example, before income tax | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Sales | $1,104,660 | $1,329,570 | $1,432,233 |
| Food and beverage (30%) | $331,398 | $398,871 | $429,670 |
| Labor, hourly and salaried | $376,932 | $426,594 | $451,947 |
| Other variable costs (6%) | $66,280 | $79,774 | $85,934 |
| Rent, utilities and other fixed costs | $202,800 | $208,884 | $215,151 |
| Cash from operations | $127,250 | $215,447 | $249,531 |
| Loan payments | $63,600 | $63,600 | $63,600 |
| Cash after loan payments | $63,650 | $151,847 | $185,931 |
| Debt service coverage | 2.00 | 3.39 | 3.92 |
Salaries and fixed costs rise 3% a year. In the downside case, year-one cash from operations drops to about $30,000, below the $63,600 of loan payments; show a lender you have seen that. A full plan adds a monthly cash flow for year one, an income statement and a balance sheet, and runs to the five years SBA’s guide suggests.
Funding request and use of funds
Write: how much you need, what kind of money, from whom, and exactly what it pays for. It must match the startup cost table to the dollar.
Example: $576,000 in total. An SBA 7(a) loan of $400,000 for build-out, equipment and working capital; $116,000 of owner cash; $30,000 from each of two investors. Equity is $176,000, or 31% of project cost, above SBA’s 10% start-up minimum.
Appendix
Sample menu, floor plan, lease letter of intent, quotes, résumés, covers by day and daypart, year-one monthly cash flow, market data and personal financial statements.
The one-page lean version
Use it to test the idea with a mentor, or as a cover sheet on the full plan. It adapts SBA’s lean startup format (SBA) to ten restaurant lines:
| Line | Your answer |
|---|---|
| Concept in one sentence | |
| Guest and trade area | |
| Site and monthly rent | |
| Menu, average check, food cost target | |
| Forecast: covers × check × days | |
| Total project cost, equity, loan | |
| Break-even covers per day | |
| Team, and the gap | |
| Three biggest risks and the answer to each | |
| Milestones: lease, build-out, opening |
SCORE’s free startup business plan template takes you through 11 worksheets, and SCORE mentors review plans at no cost.
Mistakes that get restaurant plans turned down
- Top-down sales. A market share percentage with no covers, check and days behind it.
- No reserve. Opening costs budgeted to the last dollar, with nothing for slow first months.
- Too little equity. Less than 10% of project cost does not meet SBA’s start-up rule for 7(a) loans.
- Projections that barely cover the loan. SBA lenders need debt service coverage of at least 1.15 within two years. One slow month should not break the model.
- The owner works for free. If your salary is not in the plan, the profit is overstated.
- A generic market section. No local household count, no competitor table, no lease terms.
- Hidden assumptions. Every forecast number should trace to a quote, a lease or a stated assumption.
Adjusting the plan for a café, bar or food truck
Café. Forecast transactions, not covers: transactions per hour × average ticket × hours × days. Morning is the peak, so staffing and equipment follow espresso volume. More in how to open a coffee shop.
Bar. The liquor license is often the longest lead time and the most variable cost, so get the local price and timeline before you commit to a lease. Beverage cost, door staff and liquor liability insurance each get their own line. See how to open a bar.
Food truck. The truck replaces the lease as the big capital line. Add commissary kitchen rent where your city requires one, permits for every city you trade in, and an event calendar. Forecast service days × orders per service × average ticket, and plan for weather. See how to start a food truck.
Where Platevio fits in the plan (and where it does not)
Platevio is restaurant POS software that runs in the browser, on the phones, tablets and laptops you already own. Its price line is short: Free. No card, no plan. There is no hardware to buy from Platevio, no card to enter at signup, no contract and no per-device fee, which is why the example’s POS software line reads $0.
It covers orders at a table or counter, a kitchen display, receipts and kitchen tickets printed over WiFi, Ethernet, USB or Bluetooth to ESC/POS and Star Micronics thermal printers, a floor plan, bills split by item, and staff roles.
What it does not do, and what your plan still has to budget for elsewhere:
- No card processing. Platevio records whether a bill was paid in cash or by card. Your own processor and terminal take the card, and their fees stay in your variable costs.
- No inventory or food costing. It does not count stock or calculate food cost, so tracking a 30% target needs another tool or a spreadsheet.
- No payroll, scheduling or timesheets.
- No offline mode. Orders need an internet connection to reach the kitchen, so budget for reliable business internet.
- No reservations, online ordering or delivery-app integration.
If you are pricing the technology line, see what a restaurant POS system really costs.