When choosing an industry in which to implement a successful business, many entrepreneurs give preference to the catering industry. This is quite reasonable.
Opening a cafe is a great way to start a business.
Such projects usually pay for themselves quickly and bring greater profits in the long term.
That is why all kinds of coffee shops, pizzerias, co-working centers, cafes are appearing at every turn.
Let's figure out what actions need to be taken to open a cafe so that it becomes popular. How to open a cafe? Let’s draw up a rough business plan, but first let’s look at the specifics of this area.
Why cafe
In Russia, the catering segment is considered quite free, despite the demand for such business.
This is because half of the establishments close within a year.
The situation can be explained by a lot of competition, an unsuccessful concept of establishments or low-quality services.
This is why it is so important to write a cafe business plan. Those who approach this responsibly manage to function successfully in the market.
Each new cafe has its own characteristics, which invariably attracts visitors, some of whom become regular customers.
There are plenty of reasons that make such a business in demand among newly minted entrepreneurs:
- growth in the well-being of the population;
- desire for a modern lifestyle;
- the opportunity to communicate in a relaxed, comfortable environment;
- development of office centers and shopping and entertainment complexes, whose employees need to eat;
- interest in themed establishments;
- the existence of lovers of culinary delights, as well as bachelors;
- celebration of celebrations.
Planning as the basis for success
It is important to honestly assess your strengths and capabilities at the very beginning.
After all, in order to feed people, it will be necessary to obtain a number of permits (individual entrepreneurs, sanitary and epidemiological service, firefighters).
Subsequently, all standards and norms must be strictly observed. When “laying the foundation,” a competent and attentive approach is important, otherwise additional costs cannot be avoided.
Organizing a cafe should not be a consequence of yesterday’s “insight” of this idea. Any business needs to be calculated down to the smallest detail!
This is the secret of a successful business. The result begins to be formed with the planning of indicators: budget, volumes, timing of launch and implementation of the project.
The success of the enterprise rests on these three pillars. Think about how much capital investment you are willing to make in a cafe, how long will it function and how long will it take for the investment to pay off?
If you are able to answer these and a number of related questions, moreover, you understand the relationship between all processes, then your project to open a cafe will certainly generate significant income.
The level of service provision in a cafe is simplified compared to a restaurant, so there is no need to perform a super task.
Let us consider in detail which issues need to be given maximum attention.
Permits and required documentation
Organizing a cafe requires mandatory resolution of such legal issues:
- business registration;
- choice of taxation system;
- collection of documents (lease agreement; permission to place a catering establishment in a specific premises; results of a medical examination by staff);
- licensing (for trading activities, sale of tobacco and alcohol products);
- registration of cash registers;
- concluding contracts for: garbage removal, fire inspection, fire alarm, panic button (security), deratization and disinfection, accounting support;
- obtaining a conclusion from the SES (on the compliance of the selected premises with all sanitary standards);
- obtaining permission to carry out activities from fire safety authorities;
- signing contracts for the supply of products.
In any case, you will not be able to avoid the documentary component, so use all your efforts and connections to resolve the issues listed.
Planning to open your own cafe should be based solely on sanitary standards. Customizing the project to suit them is not the best solution.
All rules for catering establishments regarding compliance with sanitary standards are reflected in the provisions of “San Pin 2.3.6.1079-01”. Following them is a sign of respect for the clients who provide your income.
Market and competition analysis
Analysis of the catering segment is very important. It will help you figure out which type of cafe is most in demand and which will be a new product. Initially, you need to define the following parameters:
- the total number of the population and the share of youth and people of working age in it (they will form the main contingent);
- average income level of residents;
- breakdown of the number of cafes by niche;
- territorial location of establishments;
- supply and demand for services;
- average check size.
By comparing all these parameters, you will be able to understand the trends inherent in the market, intelligently build a pricing policy, create a menu and select the concept of the establishment.
Then study the activities of similar establishments in your city, analyzing their pros and cons and target audience.
The shortcomings that competitors make are especially important.
Try to avoid them by improving your best practices and introducing your own ideas.
It is important to identify the factors that determine the attendance of an establishment in a particular place. If you have free funds, market analysis can be ordered from consulting agencies.
In this case, a professional assessment of the niche with detailed details and a forecast of industry trends is provided. If the prospects of your idea turn out to be illusory, such companies will select a more profitable project.
Choosing the type of establishment
The budget is planned based on a business plan, based on the type of cafe. Focus both on your own preferences and on the number of similar establishments.
Children's cafe - interior
Today the following cafes are considered promising on the market:
- children's;
- vegetarian;
- Internet cafe;
- with karaoke;
- hookah bars;
- sushi bars;
- franchised;
- fast foods (provide takeaway food);
- anti-cafe (you pay for the time of your stay, not the cost of the dishes on the menu);
- thematic (literary, sports, musical, national style, etc.).
Whatever type of establishment you choose, take into account the specifics of establishments. For example, the presence of dishes “from the chef” and branded cutlery are characteristic of an elaborate restaurant style. Don’t chase luxury you don’t need, it will only lead to unnecessary expenses.
But bags of sugar, the packaging of which shows comics from your establishment, will be just right. You can also make napkins with a logo or name, a special uniform for staff, or a compliment from the establishment to regular customers.
Remember, “zest” is always welcome, and no matter where - in the menu, interior or service.
Selecting a location
If you are counting on a wide audience, make sure that the location of the cafe is convenient for people:
- was in the first visibility zone;
- conducive to relaxation (absence of nearby busy roads and noisy highways);
- provided parking and transport access.
The location certainly affects the attendance of the establishment. You need to choose places with high traffic (central squares, walking areas, shopping and entertainment complexes, train stations and metro stations) or focus on the main idea.
The concept is an important factor in determining the location of the establishment. Understanding the target audience will help you choose the right area, street or shopping center. For example, youth cafes can be located near the main places of entertainment in the city, cafes for vegetarians can be located near centers of spiritual practices.
If your main focus is on business lunches, you should choose places near business centers in business districts of the city. In a residential area you can count on banquets, near transport hubs - on quick snacks.
Coffee shops are popular in the city center, because it is convenient to meet there to talk about some business for 15-20 minutes.
Features of the room and interior
The premises for the cafe can be bought, built or rented. When choosing, the following criteria are taken into account:
- rent or cost;
- room dimensions;
- the presence of halls and utility rooms;
- layout;
- proximity to public transport stops;
- distance from automobile and pedestrian traffic;
- number of storeys (preferably the first);
- availability of entrances and exits (preferably from the street);
- “labyrinths” indoors;
- window exit (great if the room is located at an intersection and the windows face 2 streets);
- view from the window;
- availability of ventilation systems;
- compliance with the standard (firefighters, SES);
- condition of the electrical wiring (what is the maximum load the room can withstand);
- previous use of the premises;
- the need for repair or restoration.
It is necessary to clearly understand how many halls and seats in them for guests will be needed to implement your idea on a full scale. The optimal option according to the law is an area of 280 m² / 50 seats.
In addition to the area of the dining area, do not forget to calculate the dimensions of the kitchen, toilet rooms, storage areas, staff rooms, accounting, and management. The more accurately you draw a plan, the more understandable it will be for you and investors, and the greater the chances of bringing the project to life in its original form.
The interior design should correspond to the name of the cafe and reflect its concept. Come up with some kind of “trick” that will help attract customers and make the establishment recognizable in the market. Designers, decorators, florists, and marketers can help with this.
We can recommend a win-win trick that will attract the attention of guests - fresh flowers on the tables. It’s not that expensive, but it always “works.” For a themed cafe, the idea should be seen in absolutely everything: from paintings and musical accompaniment to the staff uniform and the names of dishes on the menu. This is a mandatory condition for such establishments.
Don't skimp on your budget to play with the idea. After all, it is this factor that allows you to inflate prices on the menu. Remember, in the right atmosphere the client loses the sense of time and reality, and a feeling of relaxation arises. This can compensate for shortcomings in cuisine and service.
Equipment
The amount of expected costs for the purchase of equipment for the full operation of the cafe depends on the business plan, which sets out the list of dishes that you are going to offer to visitors.
Some products must be stored under certain conditions. This may require additional storage rooms. Others require special processing devices. Evaluate all the nuances of preparing dishes before adding them to the menu.
For a cafe, the standard set of equipment includes:
- slabs;
- cutting tables;
- grill;
- refrigerators and freezers;
- combi oven;
- washing equipment;
- dishes;
- kitchen equipment (mixers, coffee machine, slicers, microwave ovens, blenders, toasters, etc.).
Also calculate the amount of furniture, lamps, decorative elements, dishes, textiles, equipment and appliances required to decorate the room.
It is advisable to divide the estimate (calculated in the business plan) by type of goods (kitchen equipment, furniture, plumbing, interior elements). This will allow you to receive volume discounts when delivering products.
Staff
It is undesirable for a new establishment to risk its reputation from the first days by hiring unqualified staff. It is foolish to hope that employees will learn everything directly on the job.
Food that doesn’t taste good or doesn’t match its name will drive customers away from you once and for all. Unpolite and awkward staff, dirty dishes, and “stale” rooms do not contribute to popularity.
It is important that employees are:
- cultural;
- smiling;
- professional;
- healthy;
- neat;
- interchangeable.
To operate a small cafe you will need no more than 10 employees working in shifts:
- 2 cooks;
- 2 waiters;
- 2 washers;
- 1 bartender-cashier;
- 1 administrator;
- 1 accountant;
- 1 cleaning lady.
Making a menu
To work, you need a basic and banquet menu, developed taking into account the specialization of the establishment.
It is important to work out a meal plan:
- dietary menu;
- children's menu;
- business lunches (set lunches);
- compliments for guests;
- alcohol card.
Try to avoid banal names of dishes. Introduce something unusual or change the names.
The breadth of assortment is welcome. However, it is worth observing moderation. Too many dishes on the menu indicate that they are prepared from semi-finished or stale products in violation of sanitary standards.
In addition, choose only trusted suppliers. Random purchases at low prices can turn into a big problem.
A standard full menu should contain up to 50 dishes and up to 50 items of various drinks. This is quite enough. It is better to update it every quarter, as well as for holidays (Halloween, Easter, New Year, etc.).
Advertising and PR
An advertising campaign can be carried out one-time, but it is better to do it on an ongoing basis (in this case, you need to include these costs in the cafe business plan). When developing your marketing policy, consider two components of a successful campaign:
- internal marketing (implies ensuring the maximum level of competence and loyalty of personnel);
- external marketing (implies a number of activities to generate demand among potential customers). You can use:
- billboards;
- posters;
- advertising brochures;
- business cards;
- discount flyers;
- radio advertising.
Something can be distributed in shopping malls, office centers, crowded places. Not a bad option for partnerships. You place taxi business cards on your site; on the contrary, they advertise you. At the same time, mutual small discounts on each other’s services will have a double effect.
It is appropriate to create pages and groups on social networks, as well as place information about your cafe in thematic catalogs. Of course, if your budget allows, you can make your own website. But remember that it needs to be promoted. This is costly and quite difficult.
Therefore, it is better to postpone this until the cafe “unwinds”. Think about how to retain your customers. It may be worth introducing loyalty programs for regular customers.
Profitability
The profitability of such establishments depends on:- scale of activity;
- location of the object;
- theme of the establishment;
- working hours;
- quality of the “cuisine”;
- personnel qualifications;
- pricing policy;
- amenities and atmosphere;
- volume of investments.
For example, nowadays fashionable Internet cafes and anti-cafes have a profitability of about 100%! But they are in demand only in megacities.
The children's cafe has a profitability of about 30%. Equipping a children's playground with animators and hiring a pastry chef can double the profitability of such an establishment.
Cafe business plan with calculations
Here is a brief example of a business plan for opening an Old City cafe.
Target: organizing a compact cafe or pastry shop.
Description of the project. Cafe "Old City" is located in the old part of the city (as reflected in the name) in a rented room with 1 hall (seats 40) and 1 kitchen area.
The premises previously operated as a café, so the cost of purchasing equipment will be reduced.
It is planned to open an establishment with the concept of national cuisine in a low price category.
The average price of a check is expected to be $5.5. Target audience: students, office center employees, tourists. Opening hours: 10-22 daily.
Market analysis. The place is popular for walking among residents and visitors of the city. There are quite a lot of similar establishments, with a similar concept - only one.
Competitive advantages will be obtained by extending the cafe’s opening hours by an hour, holding “dish of the day” promotions, and reducing prices by 5%.
Marketing policy. Large-scale advertising will be carried out one-time. Next, it is planned to advertise through social networks, sell booklets, discount coupons and business cards.
Equipment. Most of the equipment in the room is (in good condition). Need to purchase:
- refrigerators – 2 pcs.;
- microwave oven – 1 pc.;
- bar counter – 1 piece;
- production table – 1 pc.;
- new tables for visitors – 10 pcs.;
- chairs in the hall – 40 pcs.;
- hangers – 2 pcs.
Staff. According to the plan, it is planned to hire 6 employees: administrator, cook, waiter, bartender, washer/cleaner, accountant (visiting).
Financial indicators. Costs will be:
- rent – 2 thousand $/month;
- purchase of products (including alcohol) – $3 thousand / month;
- utility bills – 1 thousand $/month;
- redecoration of the premises – $2 thousand;
- furniture – $5 thousand;
- equipment – $7 thousand;
- advertising – $1 thousand;
- wage fund – 3 thousand $/month. (including deductions).
Investments in the amount of $40 thousand/month are expected. Projected net profit – 3-4.5 thousand $/month. The return on investment period is 1-1.5 years. The planned income is possible at 50% load. The profitability of the cafe is 30-40%.
Summary
Many of us visit cafes. Some want to have a snack, others want to celebrate a joyful event, others want to meet with friends, and others want to conduct business negotiations.
For city residents this is the norm of life, and for entrepreneurs it is an interesting and promising type of business.
Stylish cafe – opening
Organizing a cafe seems quite expensive, but the efforts and investments will be more than repaid if you approach this issue correctly and carefully.
The most important component is a detailed business plan with all the necessary calculations.
This sample is intended for opening a small cafe in the Ulyanovsk region, in order to obtain national assistance (grant). The names of the streets are borrowed conditionally. When drawing up a ready-made example of a business plan for a cafe, it was understood that the enterprise would be located in the middle of the village of Novoselki, Melekessky region, Ulyanovsk region, at a distance of 10 km from the town of Dimitrovgrad. This project is intended to be implemented with the aim of reducing taxation and simplifying economic reporting. The organizer of the business plan is a private entrepreneur Ivan Ivanovich Ivanov.
Goals
A step-by-step opening of the cafe from scratch is planned with the aim of providing visitors with high-quality services in the field of the catering industry and the sale of related products. In addition, services for holding holidays and other events in the premises for people with a mediocre level of income.
The created organization is equipped with the latest production equipment, furniture, and other assets, including from the personal money of the businessman and subsidies (grants) to young small businesses from the budget.
No. Name Quantity
Human1 Cook 1 2 Helper worker 1 3 Security guard 1 4 Bartender 1 5 Administrator 1 According to the business plan, the cafe’s assortment will include:
- hot first courses;
- hot and cold drinks;
- salads;
- ice cream, cocktails;
- desserts, baked goods;
- vegetable side dishes;
- fresh fruit juice.
During the daytime, the cafe will mainly be eaten by local residents working in the village. At the beginning of the article it was already noted that the number of such people will increase along with the growth in the number of business entities. In addition, a delicious and hearty lunch will be provided to everyone traveling along the Dimitrov-Kazan highway.
In the evening, the guests of the establishment will be the younger generation, who will make appointments in our cafe-bar.
Our cafe offers a large selection of all kinds of dishes. The diversity of the food list will provide an opportunity. Moreover, anyone will be able to choose something that suits their taste.
Suggested food choice:
- Salads - (Olivier, skoromny, vegetable, cabbage, Caesar, Liana, cheese);
- Snacks - (cheese, sausage preparation, with vegetables, fish, etc.);
- Liquid dishes (soup, borscht, pickle, etc.);
- Hot dishes - (dumplings, manti, cutlets, meatballs, fried beef, chicken legs);
- Side dishes for meat - (potatoes, rice, buckwheat, pasta, peas, etc.);
- Dessert;
- Alcohol.
This is a list of dishes in a business plan for opening a cafe from scratch. In the future, the selection is planned to increase.
Marketing plan
Calendar plan
The main objectives of opening a cafe from scratch, with the aim of starting a profitable activity, are:
- Carry out coordination actions in accordance with the decision on the building lease agreement;
- Conclude an agreement to obtain and install the required equipment. For this purpose, it is planned to spend $5,178.66 purchased in the grant assistance option and $258.07 of personal money;
- Purchase the necessary equipment to get started. In this period, you should spend about $2071.46;
- Carry out repair work;
- Obtain the necessary permissions to open a cafe;
- Conclude contracts for the supply of materials and products.
Financial plan
List of the main stages of the cafe project implementation and the need for financial calculations for their implementation:
No. Name of the project stage start date expiration date Cost of the stage, dollars 1 conclusion of a lease agreement 01.08.17 10.08.18 2 purchase of equipment September October 5436,73 3 buying furniture September October 2071,46 4 room decoration September October 4920,59 5 obtaining permits September October 6 concluding contracts for the supply of raw materials and products October 7 Beginning of work november Total 12428,78 In the example of a business plan, the cafe reaches its cost price after the second month of operation in all categories, except for the organization of set lunches. This service will pay for itself after opening in the sixth month. This problem cannot be solved quickly. An establishment needs some time to establish its reputation and learn consumer habits.
How much money do you need to open a cafe?
In order to open such a cafe from scratch, you need $12,428.78, of which:
- subsidy (financial assistance) – $5178.66 in the form of a grant from the regional budget;
- personal funds - $7250.12.
No. Name Quantity Price, dollars 1 Meat Grinding Machine 1 391,85 2 Cutlery rack 1 307,27 3 Cold snack counter 1 807,87 4 Food warmer for first courses 1 529,95 5 Cash register 1 379,77 6 Baking table for second courses 1 719,83 7 Refrigerated cabinet 1 441,91 8 Bathtub washing 1 75,09 9 Production table 1 68,19 10 Electric stove 1 554,12 11 Frying cabinet 1 700,85 12 deep fryer 1 113,93 13 Rack 1 104,44 14 Chest Freezer 1 241,67 Total 5436,73 Which OKVED to choose
- 30 – restaurants and cafe-bar. Production, sale directly at the production site, sale of drinks, provision of catering in railway cars and ships, sales outside the company;
- 63 – sales of products through special machines;
- 40 – work of bars;
- 52 – delivery of goods for public catering.
Documentation
First of all, you need to register an individual entrepreneur. are issued directly at the site of the future enterprise, with local authorities.
You also need to have:
- Building rental agreement.
- Permission from the sanitary and epidemiological control service.
- Certificate from the fire inspection.
- Approved ready-made business plan for a cafe.
- Licenses for the sale of alcohol and tobacco products.
Licenses
After registering an LLC (or individual entrepreneur) with the tax authorities, you can begin certifying products and obtaining a license to trade in alcoholic beverages (if trade is carried out only in beer and soft drinks, a license is not required). In addition, it is necessary to conclude a security agreement, since in its absence a license will not be issued.
It is also necessary to purchase and register a cash register and enter into an agreement for its maintenance. (According to the new requirements that came into force on March 31, 2017, retail trade in alcoholic beverages, even when providing catering services, is carried out only using a cash register registered with the tax office, regardless of the tax payment system used by the owners of the enterprise).
At this point, all permitting documents for the right to operate from the SES (conclusion that the establishment will operate as a public catering facility), fire department (confirmation of compliance with fire safety standards, the presence of a fire alarm and other fire prevention and extinguishing measures), Rospotrebnadzor ( carrying out an examination to determine whether the premises comply with all sanitary standards) – must be prepared. According to calculations, the average time for completing all necessary papers is about 2 months.
Before you start drawing up a business plan for a cafe, you should think it over and make a final decision about which niche in the catering industry is best to choose. It’s better to invest money once in the right idea than to end up losing money and going bankrupt later.
Today, one of the most promising and rapidly growing areas of business is catering. This industry has a dynamically growing turnover and generally positive dynamics.
In 2016, compared to 2015, the restaurant market showed slight growth and exceeded 1,350 billion rubles, according to the Unified Interdepartmental Information and Statistical System (EMISS), which is supervised by Rosstat. Growth continues in 2017. At the same time, the Russian public catering market remains far from saturation, especially in regions remote from Moscow and St. Petersburg.
Therefore, today opening a cafe is a feasible and promising business. Before starting a project, you need to conduct a thorough analysis and draw up a business plan.
As part of this work, we will analyze a family cafe with Italian cuisine, where it is pleasant for both children and parents to relax.
Success Factors:
- Affordable prices
- Family format
- Fast service
- Convenient location
- Modern interior
- Nice atmosphere
The initial investment amount is 3 170 000 rubles
The break-even point is reached at 3 month of work.
The payback period is from 12 months.
Average net monthly profit 366 000 rubles
Return on sales 21 % .
2. Description of the business, product or service
3. Description of the sales market
Every year the demographic situation in our country is improving: the number of families is growing, the birth rate is increasing. In the current rhythm of life, it is becoming increasingly difficult for parents and children to find time to spend evenings together. And the diversity of taste preferences creates additional obstacles. Thus, the relevance of this project cannot be overestimated.
The target audience mostly represents families with children.
In an unstable economic situation, there is a redistribution of clients from one segment to another. Thus, people who previously visited expensive restaurants are moving to establishments with a lower price category. And the habit of eating in public places remains among the population at any time. If the optimal balance between price and quality is observed, it is possible to capture a large piece of the market.
4. Sales and marketing
5. Production plan
The goal of the project is to open a family format cafe.
Business registration
Organizing a cafe requires solving the following issues:
- obtaining permits from the fire service and SES;
- registration of health certificates for all employees;
- collection of documents (lease agreement; permission to place a catering establishment in a specific premises; results of a medical examination by personnel);
- registering a cash register;
- concluding contracts for: garbage removal, fire inspection, fire alarm, panic button (security), deratization and disinfection, accounting support;
- signing contracts for the supply of products.
Selecting a location
Large shopping center in any area of the city.
Large shopping centers provide rental holidays for the first 1-2 months. That is, during the preparation of the premises you will be exempt from paying for the premises.
Characteristics of the premises
- Area: kitchen - 40 m2, hall for visitors - 100 m2, games room - 60 m2;
- Availability of water and electricity supply to the kitchen;
- Ventilation, air conditioning, sewerage;
- Capacity: hall - 60 seats, playroom - 15 children.
The interior of the room is in soft colors with bright elements. Clear zoning of the main hall and the children's room.
You can choose both mobile and tabletop games. For active people, you can install a sports complex or playground with soft surfaces, swings, labyrinths and slides. Among board games, puzzles, mosaics, and construction sets are perfect.
6. Organizational structure
For organizing any type of business, one of the most important factors is personnel. This project requires a team of 13 people:
- Manager;
- Cooks - 2 people;
- Waiters - 4 people;
- Administrator - 2 people;
- Nannies/animators - 2 people;
- Kitchen workers for washing dishes and cleaning - 2 people.
Accounting will be outsourced.
It is especially important to pay attention to the selection of chefs, because the kitchen is the calling card of a catering establishment. Also pay attention to the selection of personnel to work with children. They must have experience, be especially sensitive, attentive and friendly. After all, the quality of rest, and, accordingly, the perception of your cafe by parents depends on the child’s mood.
The main goal of the employees is to cultivate in customers the desire to return to your establishment again and again.
Basic requirements for personnel:
- Availability of a medical record;
- Experience;
- Neatness;
- Accuracy;
- Honesty;
- Hard work;
- Responsiveness;
- Friendliness.
All employees, except the administrator and manager, are paid a fixed salary. The bonus part of the manager's salary is 2%, the administrator's is 1%. Waiters receive tips.
A detailed calculation of the payroll, taking into account the bonus part and insurance premiums for 24 months, is presented in the financial model.
7. Financial plan
A detailed sales plan for 24 months, financial results and forecast of economic indicators of business performance are presented in the financial model.
8. Risk factors
Despite all the obvious advantages, a family cafe, like any type of business activity, has its risks.
Before the crisis, the restaurant business was one of the five most attractive for investors. Over the past year and a half, his rating has dropped slightly. But, apparently, either our compatriots have already become accustomed to economic sanctions, or they have realized that saving on tasty food is wrong. In short, restaurants began to be visited again almost the same as before. That is why the topic of today’s material is a restaurant business plan. Finding a well-written restaurant business plan with calculations on the Internet is almost impossible. This project description is not a sample for writing, but is quite suitable for use when implementing a business idea.
Summary
The presented restaurant business plan is a description of a project to create a public catering enterprise - a restaurant (hereinafter referred to as the Restaurant) with a payback period of two years.
Project implementation goals:
- Opening a highly profitable enterprise
- Getting a stable income
- Filling the consumer market with services in the field of catering and organization and leisure activities
Project funding source: own funds, or commercial loan at a rate of 24% per annum
Total cost of implementing a business plan: 5,500,000 rubles
Project payback period: 2 years
Payment of loan funds and interest on the loan begins from the first month of project implementation
Conditional lifespan of the project: 2 years until full payback
Main stages of the project
The implementation of the project to organize a Restaurant begins immediately after receiving the loan funds, or after the Customer accepts this business plan.
The main activities for the implementation of the project and the timing of their implementation are presented in Table No. 1:
| Project implementation stages | Deadlines |
|---|---|
| conclusion of an investment agreement | 1 month |
| obtaining credit funds | 1 month |
| registration with the relevant state authorities. organs | 1 month |
| search for premises, preparation of necessary documentation | 1 month |
| purchase and installation of equipment | 1 month |
| personnel selection and training | 1 month |
| conducting a marketing campaign | 1-365 days |
General description of the project
The object considered in the business plan - a restaurant - provides the population with free access to catering services and personal and corporate leisure, organizing the production of dishes from various cuisines of the world in a specially prepared room for this, and organizing and conducting entertainment, music, dance programs for various public , personal and corporate events.
Specific consumers of the Restaurant's services are people who want to have a delicious meal in a beautiful place, listen to live music, enjoy a show program, dance, celebrate an important event or date, meet friends, relatives, and business partners.
As a rule, holding large-scale events requires a significant “scope”, the presence of a large area to accommodate all guests and invitees, large production and human resources to prepare many dishes.
Drawing up a business plan for opening a Restaurant and simply following its points is not enough. It is necessary to take into account many nuances. One of the main points in organizing a Restaurant is the choice of a category of clients with a certain social status and income level - its own target audience, which the establishment will focus on. This will lay down the entire further strategy for the implementation of the project, which the Restaurant’s business plan should reflect.
In order to create as complete a picture as possible of the future work of the institution, it is necessary to decide on the following tasks:
- Visitors of what age category will be the main clients.
- Visitors with what income level will visit the Restaurant– citizens with an average level of income, representatives of small and medium-sized businesses, or the establishment will be focused on serving visitors with a high level of income.
“Mixing” of different layers of visitors can lead to a drop in the level of attendance, the reputation of the establishment, which, especially at first, is extremely important for the formation of the image of the Restaurant, and as a result - a decrease in profits.
After determining the “portrait” of your client, you can begin to position your establishment, taking into account the wishes of potential clients. To do this, it is necessary to conduct a full-fledged marketing research, and in accordance with the results obtained, adhere to the chosen concept, embodying it in the style of interior design and choice of dishes.
That is, in essence, to open a restaurant completely from scratch, distinguishing it from many similar establishments. The main thing in this is the point of view of the client, not the owner of the restaurant. The main levels at which competition with other restaurants occurs are cuisine, entertainment shows, and service. By paying close attention to these points in the development of the Restaurant, even a beginner establishment can achieve success in its niche.
One of the main mistakes of novice restaurateurs is excessive advertising. Dictated by good intentions, advertising in this case is divided into several parts, since in one brochure, flyer, leaflet it is simply impossible to draw a single image of the establishment, which should develop in the consumer’s mind when hearing the name of the Restaurant, evoke a specific positive “picture” and even taste “emotions” associated with the establishment.
The range of questions that a novice Restaurant owner faces is quite wide:
- draw up a business plan for a restaurant, an example of which is not easy to find even on the Internet;
- design the area of the Restaurant in such a way that every square meter of the establishment’s area generates profit;
- determine the services and dishes most in demand by customers;
- determine a pricing policy that is acceptable for the selected category of potential customers and brings maximum income to the Restaurant;
- select professional personnel;
- obtain a package of permits;
- “promote” the Restaurant.
It is almost impossible to cope with such a number of problems alone, so you can attract a team of professional marketers to help.
Based on the experience of many restaurateurs, it can be said that successful implementation of a project requires a restaurant business plan with calculations, the most detailed development of the entire project, and own business practices that could not be adopted by competitors. Anyone can simply download a Restaurant business plan on the Internet; you still need to adapt it to your own conditions.
The concept of the establishment, its customer focus, location and parameters of the premises, and, most importantly, the timing of the start of work directly depends on the size of the amount invested in the project.
Moreover, the location of the Restaurant, the premises itself, and even its past are one of the most important factors influencing the success of the project. If the premises purchased or rented for the Restaurant previously housed an establishment of a similar type, i.e. – catering, then this can have a positive impact on the work of the Restaurant, even if the previous establishment was not popular with customers who will definitely visit the new Restaurant to evaluate and compare them. And whether these visitors will become regulars depends only on good cuisine, the right concept of the establishment, and the level of service. Therefore, it is important to remember that the first impression is the most important.
Usually, several different variable situations arise when trying to implement the chosen development strategy of an institution and implement its concept:
- Even if you have a creative, exclusive idea for a Restaurant, the presence of the necessary investments, the readiness to complete all the necessary work on time, the ability to obtain a package of permits without delay, it may turn out that in a given locality there is no suitable parameters (large display windows, first floor on first line of houses, crowded place, possibility of direct rental, etc.) premises or a separate building. As a rule, there are much fewer such suitable premises than there are worthwhile business ideas and those willing to turn them into reality. There seems to be only one way out in this situation - building a facility from scratch.
- If you have an existing business similar in profile to a restaurant (maintenance of a hotel, business center, etc.), the opportunity for sufficient investment to implement the investment project, and, most importantly, the desire, but if you do not have the time or opportunity to develop a concept, you can turn to a franchise successful catering enterprises. Buying a franchise and hiring a competent business manager is not a problem now. The concept will be provided by the franchisor. You don't even need to draw up a restaurant business plan.
- Another common situation is when you have everything - an idea, premises, desire, but no investment.
In general, all these problems can be solved with some effort on the part of the future owner of the Restaurant.
In general, it should be noted that the process of project implementation is a complex mechanism in which everything is interconnected and dependent on each other. The following are coming project implementation work:
- marketing analysis of the situation in this market segment;
- determining the concept of the future restaurant, its scope of activity;
- creation of a detailed business plan for the Restaurant;
- development of a technological project;
- searching for suitable premises and obtaining a technical opinion for the subsequent redevelopment of the restaurant area;
- approval of the project for opening a Restaurant in Rospotrebnadzor and the state fire service;
- technological work;
- design and architectural works;
- electrical work;
- installation of ventilation and air conditioners;
- installation of cold and hot water supply;
- sewerage;
- installation of low-current systems (television, video surveillance, alarm);
- construction and finishing works;
- obtaining a sanitary passport for the premises of the Restaurant;
- obtaining permits from Rospotrebnadzor and State Fire Service;
- determination of the establishment’s pricing and accounting system;
- obtaining licenses for the right to sell alcoholic beverages and produce food;
- acquisition of necessary equipment, machinery, utensils, and supplies;
- defining menus for the kitchen and bar;
- search for personnel and training of employees in accepted service standards;
- determining a marketing strategy and conducting an advertising campaign.
Depending on the condition of the premises (building), the timing of obtaining the necessary permits, the business acumen of the project manager, the performance of contractors, and some other factors, it will take from 3 months to six months to open a Restaurant.
Almost all production in the Restaurant is concentrated in its kitchen. Therefore, the closest attention should be paid to defining the menu, selecting dishes in accordance with the concept of the Restaurant and the target audience of visitors. In any major city in any country in the world there are restaurants that can satisfy the taste preferences of any client. In contrast, restaurants specializing in a certain direction, the preparation of traditional national dishes, experience certain difficulties at the beginning of their work.
This is not only strict adherence to the menu, but also the rules of preparing dishes, using only products suitable for a given dish, and even the presence of a chef in the kitchen in this area. It is difficult to expect a large number of visitors from a Restaurant offering national Japanese, English, or Spanish cuisine, opened in a city with a population of up to 500 thousand people. Therefore, opening such a Restaurant is always a certain risk.
In order to adapt to the taste preferences of visitors, its owner often tries to adapt foreign cuisine to the needs of clients. This means that the products used in preparation are changing, and the very concept of the Restaurant is changing. In order to correspond to the national “spirit” of the food offered, the owner of the Restaurant must create a piece of this particular country in his establishment so that every visitor can feel the appropriate atmosphere.
Marketing plan
Visiting a restaurant has become a habit for many people for quite some time now. This is not only an opportunity to enjoy exquisitely prepared dishes from various cuisines of the world, but also an alternative to have a good time, listen to live music, watch an interesting show program, and communicate with a certain circle of people.
Over several years of existence of restaurants in the form in which we are accustomed to seeing them. Russian citizens have become accustomed to, and even love, foreign cuisine, often giving it preference.
Before the start of the 2014-2015 crisis, the restaurant business was in 5th place in terms of investment attractiveness for private lenders. With the onset of the political and economic crisis in Russia in 2014, most restaurants lost up to 70% of their customers. Those establishments that remained afloat were mainly those that targeted high-income clients, and economy-class restaurants that were more related to cafes or bistros.
At the end of 2015, the situation in the country began to stabilize, people gradually began to get used to new living conditions, and restaurants began to fill with people again. But most of the establishments that have closed over the past year and a half are afraid to reopen and prefer to wait until better times. This strategy is fundamentally wrong. The crisis provides an opportunity to “update” your business practices, learn to save money, highlight what is truly important in your work, and weed out unreliable partners and suppliers.
There were even some positive aspects – favorable conditions:
- real estate suitable for opening a Restaurant has become much cheaper (including rent);
- there was a reduction in the salaries of Restaurant employees;
- the responsibility of employees trying not to lose their jobs has increased;
- The government of the Russian Federation adopted a number of laws limiting the activities of those monitoring and inspecting the work of public catering establishments.
Indicators of the average bill of public catering establishments (in Moscow) are presented in Table No. 2:
Production plan
Basic equipment and inventory for starting a Restaurant:
- electric stoves;
- refrigerated tables;
- thermal showcase;
- cutter - a machine for cutting products;
- electric meat grinder;
- tableware for Restaurant;
- items for table setting;
- household supplies;
- kitchen tools;
- car for the needs of the Restaurant.
Conclusion
The analysis of the possibility of implementing a project to open a Restaurant showed that even in conditions of an economic crisis, organizing the work of a catering establishment is a highly profitable project. Having a well-drafted Restaurant business plan, skillful leadership, creative out-of-the-box thinking, and a clearly developed Restaurant concept, you can overcome all existing risks and achieve success in your chosen direction.
The cafe business plan presented below covers in detail the choice and concept of the establishment, obtaining the necessary requirements and requirements for the premises. In general, this is about how to open a cafe from scratch. The article also tells you what equipment needs to be purchased for a cafe, and how much investment will be required. We hope that this business plan will help you understand the features of a business related to.
- Investments: 1,486,000 rubles
- Average monthly revenue: 1,045,000 rubles
- Net profit: 234,850 rubles
- Payback: 6.2 months
Objective of the project:
Determining the economic feasibility and effectiveness of investments in opening a cafe. The business plan provides for the creation of a new establishment that meets the standards of qualified, high-quality service.
The restaurant business, which includes cafes, snack bars, and other establishments of a similar type, is always a profitable business. Of course, if it is organized correctly. Creating a restaurant itself is a very complex, costly project, and sometimes even unprofitable. But opening a small cafe will require significantly less effort, time and investment. In addition, the risks will also be significantly lower.
The cafe and its business plan involve opening a democratic type enterprise. The establishment will be designed for middle and low income visitors. Many customers are expected to be attracted by the affordable menu prices. Potential visitors will be office workers and young people. In the evening, the contingent can expand significantly due to those people who make appointments in a cafe or just stop by to have a snack or relax.
1. How to open a cafe, where to start?
What a cafe is and how exactly it differs from other catering establishments can be found out from Gosstandart R 50762-2007. According to this document, a cafe is an enterprise that organizes recreation and meals for visitors. The product range is quite limited. The menu includes signature dishes, alcohol, and non-alcoholic drinks.
Unlike a café, a restaurant has a wider range of dishes and offers dishes that are complex from a culinary point of view. Here, the best selection of alcoholic beverages, a higher level of service, and visitors’ relaxation are combined with their entertainment. Cafes are classified according to the following basic criteria:
- By product range. There may be specialized establishments (for example, a pancake shop, an ice cream parlour, a pizzeria, a confectionery cafe) and non-specialized ones. This category also includes establishments with national cuisines.
- By location: in residential or public buildings, recreation areas, hotels, sports clubs, etc.
- By orientation for an audience, for example, art or club, children's, anti-cafe, etc.
- According to seasonality of work: permanent and seasonal.
- By type of service: with waiters or self-service.
- By mobility: stationary and mobile (cafes on wheels).
As you can see, there are quite a lot of types of cafes. The main thing is to choose an establishment format that will meet your goals and give the desired result.
1.1. How to choose a cafe concept
The creation of the concept of the establishment is closely related to the classification of the cafe.
Firstly, you need to determine which visitors it will be aimed at (children, youth or older visitors), what cuisine or menu you are ready to offer, where you plan to open your point.
Secondly, think about how exactly your cafe will differ (for the better, of course) from many other establishments. In other words, you need to find a “zest”, a way to stand out from the crowd and interest customers.
According to experienced restaurateurs, all the costs and efforts to create a cafe concept may fail if the subsequently found premises do not harmonize with it in terms of engineering, design or other parameters. Therefore, if your start-up capital is limited, first select a premises, and only after that start developing the concept.
Also, do not forget that the menu and pricing policy must be consistent with the style, design and format of the cafe. For example, if you are planning to open an establishment for students and young people, it is not advisable to make a conservative design or include expensive drinks and dishes in the menu.
1.2. How to choose a room and location of a cafe
The success of the restaurant business largely depends on a good location. Sometimes this factor becomes the main one in terms of business profitability. Economy category cafes, with extremely affordable prices, are especially dependent on the location.
A small establishment can fit on an area of 70-200 m2. Experts advise when choosing a room for a cafe to start from the following principles:
1.3. Requirements for the cafe premises
Basic requirements for catering establishments:
- The premises should be located so that connections between them are minimal.
- The layout of the premises should take into account the system of exits/entrances. The entrance to the trading floors can be from the street, and to the warehouse and production areas - from the yard. At the same time, production and warehouse areas are made non-passable.
- Zoning should be such as to ensure rapid evacuation of people in the event of a fire.
The full set of requirements can be found by reading SNiP 2.3.6.1079-01. The characteristics of the premises for the cafe must comply with the specified document, as well as fire safety standards.
1.4. Cafe equipment
All necessary equipment for a cafe can be divided into the following basic groups:
Thermal: pitas, ovens, food warmers, cabinets, kebabs, pancake makers, deep fryers, thermal display cases, boilers, etc.
Electromechanical: bread slicers, mixers, slicers, machines for washing vegetables and dishes, vegetable cutters, potato peelers, etc.
Refrigeration: refrigerated chambers/cabinets, wine displays, bathtubs, bar refrigerators, refrigerated tables, etc.
Barnoe: blenders, coffee makers and coffee grinders, food processors, toasters, ice makers, mixers, juicers, etc.
General: trash cans, tables, shelves, carts, ventilation hoods, cabinets, washing tubs, etc.
For meat processing: saws, tops, sausage stuffers, minced meat mixers, cutlet-forming machines, etc.
Bakery: flour sifters, dispensers, dough mixers, dough dividers, dough rolling machines, etc.
Miscellaneous equipment: water softeners and filters, dispensing lines, scales, salad bars.
In total, you will have to spend at least 300,000 rubles to purchase basic equipment for a small cafe. It should be taken into account that you will need to purchase air conditioning, dishes, kitchen utensils, textiles, office equipment and furniture, which will require at least 120,000 rubles.
Thus, total investment in cafe equipment will amount to about 420,000 rubles.
1.5. Documents and permits for opening a cafe
To open an establishment of this type, you must obtain the following permits:
- Coordination room project. In the case of redevelopment, you will need a technological project, a technical report, projects for reconstruction, water supply/sewage, communications (heating, air conditioning, ventilation, electricity) and reconstruction of the facade. These documents must be made by a design organization that has the appropriate license. Then they are agreed upon by the SES, fire service, DEZ, the architect and the prefecture.
- Notification about the start of activity. Provided to the territorial service of Rospotrebnadzor. If necessary, the recipes for the dishes will be agreed upon there.
- License for retail trade in alcohol.
1.6. Recruitment for cafes
Good staff is an important aspect of a successful cafe. The staff of a small establishment, taking into account shifts, consists of:
- chef;
- 2 cooks;
- 2 administrators;
- 4 waiters;
- cleaners;
- dishwashers.
In our case, it is planned that 11 people will work in the cafe.
|
Name |
Quantity | Salary | Total, rub. |
| Chef | 1 | 30 000 | 30 000 |
| Cook | 2 | 20 000 | 40 000 |
| Administrator | 2 | 15 000 | 30 000 |
| Waiter | 4 | 10 000 | 40 000 |
| Dishwasher | 1 | 8 000 | 8 000 |
| Cleaning woman | 1 | 8 000 | 8 000 |
| Total | 11 | --- | 156 000 |
The number of employees depends on the size and concept of the establishment. At first, too large a staff can lead to unjustified costs. Cafe staff must have health certificates . Next you should choose the optimal one. In our case, it is advisable to focus on , but in some cases you can choose labor.
1.7. Cafe interior and design
Most people consider a cafe to be an establishment where they can eat delicious food and have a good time. Therefore, it is important not only to provide an excellent kitchen, but also to take care of an attractive design. Appearance plays a significant role in attracting customers. In fact, stylish cafe interior design is 50% of the establishment’s success.
Conceptual interior solutions should be approached with maximum responsibility and absolutely everything should be thought through, down to the smallest detail, from menu design to the design of windows and bathrooms in the establishment. The term “design” here means the aesthetic appearance of the cafe, a convenient layout of work areas, a place for staff to move freely around the establishment, and comfortable areas where customers will relax.
Practice shows that establishments with separate seating areas (for non-smoking and smoking visitors) are increasingly popular. If the cafe is located, for example, in a business center, its interior should match the design of the entire building or be harmoniously combined with it.
The first thing a person sees when entering somewhere is a sign. It also needs to be designed in accordance with the concept of the establishment and the interior design of the cafe. Otherwise, many visitors may experience disappointment when they enter, for example, an establishment with a high-tech sign, and end up in a hall stylized as Baroque.
Below are interesting, in our opinion, interior designs for cafes, bars, restaurants (photos are clickable for viewing in full size):
Remember that a cozy atmosphere can only be created by a harmonious combination of lighting and shade solutions, furniture, and decorative elements. You should get a solid, attractive picture.
This point is definitely worth paying attention to, since the original design of a cafe can retain customers and attract new ones through viral marketing.
2. Assessing the feasibility of opening a cafe
- Type of activity– cafe-bar (catering establishment).
- Location– in the business district of the city.
- The target audience– people with low and middle income.
- Average check amount– 600 rub.
2.1. Capital expenditure (investment)
| Expense item | Amount of expenses, rub. |
| Premises rental + utilities | 135 000 |
| Repair and decor of the premises | 150 000 |
| Purchase and installation of equipment | 420 000 |
| Furniture | 210 000 |
| Purchase of goods | 360 000 |
| Advertising | 30 000 |
| Payroll fund | 156 000 |
| other expenses | 25 000 |
| Total | 1 486 000 |
To open a cafe, you need to invest about 1.5 million rubles.
The largest costs (up to 29%) need to be invested in the purchase and installation of equipment.
2.2. Income (profit) cafe
The restaurant business is characterized by seasonality. Thus, on weekends and holidays, income increases significantly, while on weekdays, profits fall. Having calculated the approximate monthly income, we determine the average monthly revenue. It is approximately 1.045 million rubles.
2.3. Calculation of cafe profitability
Let's move on to assessing and calculating the profitability of the future enterprise.
2.4. Cafe payback period
Then we calculate the payback period for the cafe.
From the calculations it is clear that under the most successful combination of circumstances cafe payback period will be about 6.2 months .
3. Organizational issues
3.1. Choosing an organizational form
You can open your own cafe by registering as an LLC or. When choosing an organizational form, you need to remember the following features:
- Individual entrepreneurs cannot sell alcohol, with the exception of cider, mead, poire, beer and drinks based on it. This is stated in Federal Law-171, dated November 22, 1995. If you plan to include other alcoholic drinks on the menu, you need to register an LLC.
- Opening a catering establishment is more profitable and easier for individual entrepreneurs, especially if you choose.
As way out of the described situation you can use this option. Register the cafe as an individual entrepreneur, and register the bar as an LLC for the sale of alcohol. The business activities of a catering establishment can be described by the following OKVED codes:
- 55.30 – activities of cafes and restaurants;
- 55.40 – functioning of bars;
- 52.25 – trade (retail) of alcoholic and other drinks;
- 52.63 – retail sale of other goods outside the store.
3.2. Tax system
If the cafe is registered as an LLC, the most optimal taxation scheme is UTII. But the service hall must have an area of up to 150 m2. This is considered an area for leisure and/or eating. It is important to constructively separate this space from other premises, and its area to be legally fixed in the inventory title documents. Otherwise, problems may arise with the tax authorities regarding the unlawful use of UTII.
For individual entrepreneurs, the most profitable ones are PSN (patent system) and UTII. The first scheme can be used if the area of the service hall does not exceed 50 m2. For such establishments, the cost of a patent will be 180 thousand rubles. annually. If there are several similar cafes with separate rooms with an area of up to 50 m2 in one building, then only 1 patent will be needed.
3.3. Accounting
Keeping your own accountant on staff is too expensive. It is advisable to conduct accounting yourself (if you have the appropriate knowledge) or entrust this function to an outsourcing company specializing in accounting. The latter option is preferable because it allows you to streamline reporting documentation for relatively little money and free the business owner from paperwork.
4. Marketing strategy
First of all, the marketing plan includes the original design of the establishment, beautifully designed windows and a sign. It is advisable to place advertising in the press, the Internet, television and radio. It also wouldn’t hurt to inform employees of nearby enterprises about the opening of the cafe and organize advertising campaigns. You can enter into long-term contracts with company managers to provide services to their employees.
5. Cafe franchise
The cafe can also be opened as a franchise. We are talking about creating an establishment operating under the brand name of a popular chain brand. Today you can buy a franchise from Shokoladnitsa, Baskin Robbins, Subway, and others.
The advantage of such a business is that the franchise provides a perfectly calculated and verified model of the establishment. Consequently, the enterprise is guaranteed to be successful. The disadvantage of working under a franchise is the presence of additional expenses in the form of regular royalties, one-time contributions, contributions to funds, etc.
Opening a cafe under a franchise will be much more expensive; the cost of catering establishment franchises starts from 1,000,000 rubles, but using a ready-made brand has a greater chance of success!
There is also no opportunity to make changes to the business scheme, guided by one’s own opinion and taste. Therefore, before purchasing a cafe franchise, carefully weigh all the nuances and possible consequences to determine whether this form of activity is suitable for you.
6. Conclusion
Financial and economic analysis of this project allows us to conclude that the cafe’s business plan can be implemented with a high level of efficiency. There is a favorable general background of threats to business. The demand for the products offered is constantly high.
If the establishment satisfies the qualitative and emotional needs of customers, the quantitative risk factors are very low. This allows you to count on a steady demand for the products of the new enterprise, an increase in profits as the establishment develops and the range of services expands.
7. Download a ready-made cafe business plan
Our instructions for opening a cafe discussed the key points necessary for the future enterprise. A selection of materials on this topic can also help you, in which the finer details of this business are also discussed. You can download the business plan for free from the link below. We hope that the information presented will help you when opening your own catering establishment.
From the presented article you learned about how to open a cafe and what you will need for this. Please note that all calculations in the article are indicative and vary greatly depending on the region of business activity and other related factors. Others can be viewed in the corresponding
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