How to Write a ‘Business Plan’ for a Franchise Restaurant

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If you’re looking to open your first restaurant, you’ll need to know where to start. In most cases, a business plan is the first step.

An airtight business plan will help you understand the steps to ownership and establish goals for your new business.

In this blog post, we’ll walk you through the key elements of a restaurant business plan, including crucial insights into securing funding, managing operations, and understanding the training process.

Executive Summary

The executive summary is the first thing potential investors or lenders will see, and it sets the tone for the rest of your plan.

The goal of this section is to provide a concise overview of your entire business plan. It should briefly describe the concept of your restaurant, the brand, and your vision for the business.

Be sure to articulate the unique selling points of the brand, such as its distinctive vibes, its focus on cuisine, and its commitment to providing a great guest experience. Additionally, include key details such as:

  • The location of your restaurant
  • Your target market
  • Your competitive advantages
  • Expected timeline for opening and breaking even

Keep it clear, concise, and compelling—this is your chance to spark interest and get potential stakeholders to keep reading.

Market Research & Analysis

Before you open your doors, it’s crucial to understand your market. Market research and analysis give you insights into consumer trends, competition, and market conditions, which can help shape your strategies.

Target Market: Start by defining your ideal customers. You should also consider the demographic breakdown of your location, such as age, income levels, and lifestyle preferences.

Competitive Analysis: Understanding the competitive landscape is vital. Who are your direct competitors? Look at other casual dining establishments or sports bar franchises in your area. Analyze what works well for them and identify potential gaps in the market that the brand can fill.

Trends: Take note of local trends, such as an increasing demand for outdoor dining spaces or higher interest in delivery services. In the wake of the pandemic, many restaurants have adapted to providing more takeout and delivery options, so having a flexible strategy for these services can be a selling point.

Use this research to demonstrate that there is both demand for your franchise and a clear market opportunity.

Operations Plan

The operations plan outlines the day-to-day functioning of your franchise restaurant. For most franchises, much of this will be guided by the parent brand’s operational guidelines, but there are still many details you’ll need to iron out.

Location and Layout: A key part of the operations plan is understanding the logistics of the physical space. How will you design the restaurant to best serve your customers? The brand will have specific design standards to create a unified feel, and adhering to these guardrails is essential to maintaining consistency and to maximize the benefits of established brand affinity.

Suppliers and Inventory Management: Establish relationships with suppliers for food, beverages, and other materials. This is particularly important for franchisees as you’ll need to follow brand standards while keeping costs under control. Having a solid inventory management system in place is essential for minimizing waste and keeping your operations efficient.

Staffing and Scheduling: Outline how many staff members you’ll need at various positions (e.g., kitchen staff, servers, hosts).

As a franchise, Twin Peaks provides staffing guidelines that support franchisees with paths for success, but that benefit from customization based on local conditions.

Sales & Marketing Plan

A strong sales and marketing plan is critical for attracting customers and building brand awareness. If your new franchised restaurant is a well-known brand, your marketing efforts will benefit from the brand’s existing reputation, but you’ll also need to tailor campaigns to your local market.

Branding and Messaging: Stay true to the brand image while considering local tastes and preferences. Craft messaging that highlights what makes your restaurant unique—like its “scenic views” and “scratch-made, craveable food”—while addressing the specific needs of your community.

Digital Marketing: Utilize social media platforms, Google Ads, and local SEO strategies to increase online visibility. Engaging with customers on social media (especially promoting special events or seasonal menus) can help drive foot traffic to your location.

Promotions: Plan for special promotions, like “happy hour” deals, discounts for large parties, or special events tied to sports seasons. Collaborate with local organizations or businesses for joint promotions to increase your reach.

Marketing efforts help ensure consistent brand visibility and recognition, a key benefit of joining a franchise system. Marketing fees often range from 2% to 5% of gross sales.

At Twin Peaks, a 2.5% marketing fee contributes to national and regional advertising and in-store promotional materials for every lodge.

Financial Projections

Your financial projections provide potential investors and lenders with insight into your expected revenue and expenses. These projections should cover at least three years and include:

  • Revenue Projections: Estimate your monthly and annual sales, based on realistic assumptions about foot traffic, average ticket size, and customer retention.
  • Operating Expenses: Include everything from payroll, rent, and utilities to marketing expenses and inventory costs.
  • Break-even Analysis: Determine when you expect your restaurant to break even. This is a critical figure for both you and potential investors.

In addition to these projections, potential franchisees must also account for the initial investment, which can include costs for real estate, equipment, inventory, and other Start-Up Expenses.

The initial cost of building a Twin Peaks restaurant ranges from $1,520,800 to $5,106,500. This includes all start-up expenses as well as the $50K initial franchise fee.

Management Training for New Twin Peaks Franchisees

As a new restaurant franchisee, you’ll be required to undergo management training provided by the Support Center. This training will cover everything from operations and customer service to financial management and marketing strategies.

Proper training is essential for maintaining the quality and consistency of the brand, and it’s a great way to ensure your success as a franchisee.

At Twin Peaks, we take franchise support seriously. We host an initial 9-week training program at the Twin Peaks Training Center located in Dallas, Texas for new franchisees. Then, we provide on-site pre-opening and opening training for a minimum of 14 days. After that, you can expect menu innovations, marketing and operational support, and more from our corporate office.

Conclusion

Writing a business plan for a franchise is not just about outlining your financials or marketing plan, it’s about creating a clear roadmap that will guide your decisions, help you plan for all outcomes, and ensure that your restaurant thrives. By covering each of the key elements outlined above, you’ll have a solid plan in place to launch your franchise with confidence.

With the right planning, support, operations strategies, and training, you can build a successful restaurant that is loved by your community, exceeds financial projections, and delivers a fantastic guest experience.

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