Breakfast Restaurant Business Plan and SWOT Analysis

Breakfast Restaurant Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Breakfast Restaurant Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Breakfast Restaurant business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

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Breakfast is the most important meal of the day. As such, many restaurants have taken to offering solely breakfast as their fare. In suburban and rural markets, a breakfast restaurant is pretty easy to own and operate. For most of these businesses, the expenses for operating a breakfast restaurant or substantially less than traditional restaurants that serve breakfast, lunch, and dinner. This is due to the fact there is a much higher inventory turnover as it relates to breakfast foods. The underlying cost of goods sold for a breakfast restaurant are also substantially higher than the traditional restaurant counterparts. Typically, the average gross margins generated from these types of eateries range anywhere from 80% to 95% depending on the item being sold. The barriers to entry are considered to be moderately low. Typically, the startup costs associated with a new breakfast restaurant typically ranges anywhere from $100,000 to $200,000 depending on the location and the size of the initial restaurant facility. One of the ways that these businesses can further become popular is by developing a food truck in conjunction with the retail restaurant location operations. Given that breakfast foods are not subject to the same level as spoilage as a traditional restaurant – it is very easy to establish a food truck in order to boost the brand-name visibility of the business while concurrently creating an additional stream of income. In most cities and towns, there are only a handful of dedicated breakfast restaurant locations. However, many of these businesses do need to compete with area diners that operate on a 24 hour a day basis.

Given the relatively low pricing point of the food product sold at these locations coupled with the substantial amount of furniture, fixtures, and equipment – most financial institutions are willing to put up almost 80% of the needed capital in order to establish this type of business. It is expected that the owner or a third-party investor will put up a capital injection of 20% as the down payment towards the development of the breakfast restaurant. Usually, this owner capital injection is primarily used for working capital, inventory acquisitions, and marketing purposes. A breakfast restaurant business plan should be developed so that it features a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page which should follow industry statistics specific for a restaurant business. Again, it should be noted within the document that the gross margins generated from the sales of breakfast entrées are typically higher than their lunch and dinner counterparts. As with any business planning document, a full demographic analysis showcasing the entire general public should be included as well. Relevant statistics should be shown include population size, population density, median household income, median family income, median housing values, as well as the number of people that work jobs within the market. Breakfast restaurants typically are popular among people at need to eat a quick meal before going off to work. Within this document, as well, a thorough examination of the number of other breakfast restaurants, diners, and similar eateries should be included. This includes businesses a operate solely in a coffee shop capacity given that many major retailers have taken to offering limited breakfast menu items at their locations. However, while these coffee shops are considered to be substituted for breakfast restaurant – they do not offer the same level of fare that is sought after by patrons. As such, a more limited aspect of examining this type of competition can be included within the business plan.

Breakfast restaurant marketing plan should be included as well. This should include discussing thoroughly how the business will initially market operations to the general public. Foremost, prior to the grand opening a number of flyers and mailers should be sent out to residents within a five-mile radius. In a more rural market, the effect of market radius of a breakfast restaurant expand to as much as 15 miles to 20 miles. These mailers will immediately familiarize the general public with the brand name of the restaurant. Beyond a traditional mail based marketing campaign, and expansive Internet presence needs to be done as well. This is primarily due to the fact that many people now use popular search engines as well as social media platforms in order to find recommendations for local restaurants. The standalone website should feature images of the restaurant, the full menu, the pricing for all items available on the website, hours of operation, location information, and whether or not the business offers catering services. Once the website is developed, a full scale social media campaign should be included as well as part of the overall marketing plan. As many platforms, like FaceBook, offer the ability for patrons to leave reviews directly onto a social media page. By developing a number of strong reviews on an ongoing basis – the breakfast restaurant will thrive is more people will take this as a positive recommendation to eat at the facility.

A breakfast restaurant SWOT  analysis should be produced as well. As it relates to strengths, breakfast restaurants – again – generally produce higher gross margins than other types of eateries given the low cost associated with breakfast foods. Additionally, these businesses typically have much lower operating costs outside of rent given that the only operate for a limited period of time during the day. For weaknesses, there are always going to be a significant number of competitors in any given market. This includes restaurants as well as coffee shops. As it relates to opportunities, many breakfast restaurants have developed prepackaged meals that can be quickly taken away from the location. This is one of the ways that a business can rapidly expand its revenues provided they are located in a good spot so people can quickly come in, grab breakfast, and be on their way. As stated above, many breakfast restaurants will also develop a food truck capacity if the business operates within a major metropolitan city. For threats, there’s really nothing that would impact the way that these businesses conduct their operations given the very low pricing point of most breakfast food items. A severe economic recession may impact slightly the revenues of this business – however, the demand for a quick breakfast at a quality restaurant does not wane in times of economic recession.