BBQ Business Plan Template
If you want to start a BBQ restaurant or expand your current BBQ business, you need a business plan.
The following business plan template gives you the key elements to include in a winning BBQ business plan. In addition to this template, a well-crafted plan will include market research to help you better understand the bbq industry, market trends, your competitive advantage and your target market. It will also help you set business goals, craft a strategic marketing plan and build a strong financial plan.
Barbecue Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new BBQ restaurant located in downtown [Location]. We serve a large menu full of delicious American style BBQ meals, including ribs, steak, and pulled pork. Many of our entrées will be slathered in our signature BBQ sauce which will give each entrée a unique, sweet and smoky flavor. We take great pride in our signature sauce, and will sell bottles of it for customers to take home.
[Company Name] is founded and run by [Founder’s Name]. [Founder’s Name] has enjoyed BBQ all his life and has spent the past [X] years working at other restaurants and BBQ chains. The combination of [Founder’s Name] passion, expertise, and experience in the restaurant industry will ensure that [Company Name] is a great success.
Products Served
[Company Name] will serve a wide variety of delicious BBQ-style meals. These meals will include:
- Steak (including rib-eye, brisket, sirloin, or strip)
- Ribs
- Pulled Pork
- Chicken Wings
- Chicken Breast
- Burgers
- Sandwiches
Customers will have a choice of the following sides to pair with their meal: fries, side salad, or cole slaw. We will also have appetizers and a kid’s menu. Finally, no BBQ would be complete without a wide variety of high-quality drinks, including sodas and local beers.
What makes our cuisine distinct is our signature BBQ sauce that was made by [Founder’s Name] and his father. This sauce provides a unique sweet and smoky flavor that will make our entrées stand out from the competition. In addition to selling entrées from our menu, we will also sell bottles of our signature sauce for customers to take home for their own recipes.
Customer Focus
[Company Name] will serve residents living in the [Location] area. The people of [Location] love good old-fashioned American cuisine. They are hardworking middle class people who deserve to have high quality BBQ cuisine for an affordable price. The demographics of the area are as follows:
- 87,921 residents
- Average income of $54,000
- 58.9% married
- 32.6% in Management/Professional occupations
- Median age: 38 years
Management Team
[Company Name] is founded and run by [Founder’s Name]. He has eaten and cooked BBQ all his life, and has developed a passion for perfecting this cuisine. His father helped him create the perfect BBQ sauce when [Founder’s Name] was just a child. Since then, he has used it in all of his BBQ dishes and will use it for all of [Company Name]’s entrées.
In addition to having a passion for BBQ, [Founder’s Name] also has spent the past [X] years working at other restaurants and BBQ chains. The combination of [Founder’s Name] passion, expertise, and experience in the restaurant industry will ensure our success.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are currently very few BBQ restaurants in the market we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passersby each day.
- The management team has a track record of success in the restaurant business and in making BBQ dishes.
- The BBQ restaurant business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $500,000 to launch. The capital will be used for funding capital expenditures, labor expenses, marketing expenses and working capital. Specifically, these funds will be used as follows:
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] offers an extensive menu of delicious BBQ cuisine. We offer all the meals that a BBQ fan could want, including brisket, ribs, pulled pork, and chicken.
However, what truly distinguishes our restaurant from others is our unique sweet and smoky BBQ sauce. It will be served on nearly all of our dishes, bringing a unique flavor to all of our BBQ creations. Customers who love our sauce can buy bottles of it to take home.
[Company Name] is founded and run by [Founder’s Name] who has been eating and cooking BBQ all his life. He created the recipe for our signature BBQ sauce with his father when he was very young. He also has considerable experience in the restaurant industry, which will help lead our restaurant to success.
[Company Name]’s History
[Founder’s Name] conducted a market analysis along with a local survey to see how well a new BBQ restaurant would fare in the area. Luckily, many residents responded that they would be interested in frequenting our restaurant. Soon after surveying the local customer base, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has found a potential location for the BBQ restaurant and is currently doing due diligence on the property. Once the lease is finalized, all operations will move there.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website located [website]
- Created the menu
- Developed [Company Name]’s signature BBQ sauce
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the restaurant industry
[Company Name]’s Products/Services
[Company Name] will serve a wide variety of delicious BBQ-style meals. These meals will include:
- Steak (including rib-eye, brisket, sirloin, or strip)
- Ribs
- Pulled Pork
- Chicken Wings
- Chicken Breast
- Burgers
- Sandwiches
In addition to these entrées, we will also sell appetizers, sides, drinks, and kids meals. Customers who love our signature BBQ sauce can purchase bottles of it to take home.
III. Industry Analysis
BBQ cuisine is a staple for many Americans. According to QSR magazine, about 95% of Americans enjoy BBQ, with about one third of them eating BBQ on a weekly basis. This gives the BBQ industry a lot of stability. Since it is a significant part of American culture, it is less likely than less popular cuisines to have volatile ups and downs in the market. Furthermore, according to Smallbzgenuis.net, 60% of BBQ restaurants have a track record of five years or more. This means that when a new BBQ restaurant starts, the locals make sure it stays. Very few other businesses have this track record, which shows just how popular and sustainable BBQ restaurants are.
One significant challenge to the industry is the growing trend of plant-based diets. More Americans than ever before are ditching meat in order to go vegan or eat solely plant-based foods. BBQ restaurants that add plant-based options to their menu have a much better chance of successfully adapting this challenge.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [Location] and the immediately surrounding areas as well as those who work in [Location].
The area we serve is full of hard-working, middle class people who love to eat moderately priced American cuisine.
Customer Segmentation
We will primarily target the following customer segments:
- Middle class residents: The city is filled with thousands of middle-class residents who will be looking for a place to eat where the staff is friendly, the atmosphere is welcoming, and the meals are top tier American cuisine. We can offer all of these, making us the perfect restaurant for this segment.
- Families: BBQ restaurants are often a site for fun family outings. Therefore, we expect many families to frequent our restaurant and enjoy our welcoming atmosphere.
- Local workers: We provide a warm and welcoming atmosphere for all local workers who just want to relax and have a good meal after work.
V. Competitive Analysis
Direct & Indirect Competitors
The following restaurants are located within ten-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Eastside BBQ
Eastside BBQ is a local BBQ restaurant that has served [Location] for over 30 years. It’s a popular family-owned restaurant that has had raving reviews for years. They serve every BBQ style cuisine you can think of: burgers, sandwiches, steak, you name it. Their variety and high quality meals are what keep customers coming back.
Though Eastside BBQ will remain popular, since they are a small family-owned restaurant, they do not have as many resources as [Company Name] will have. For example, their restaurant is very small and only accommodates a handful of customers at a time, and they are open only a few hours each day. [Company Name] will be open much longer and have a large space and more staff to handle more customers.
BBQ of Korea
BBQ of Korea is a Korean BBQ restaurant located in downtown [Location]. It’s a great place for everyone who is interested in Asian-styled BBQ. BBQ of Korea has been popular with residents for decades by serving dozens of delicious authentic Asian BBQ and grilled meals. Though we expect BBQ of Korea to continue to thrive, anyone who is more interested in American-style BBQ will be more interested in visiting [Company Name].
BBQ To Go
BBQ To Go is a local food truck that specializes in BBQ cuisine. The truck is located downtown where dozens of other food trucks are gathered. The food truck has a decent selection of BBQ meals, including burgers, ribs, and steak. They package everything nicely into to-go containers, so customers can take their meals home or back to the office. Though the cart is small, it still manages to cook hundreds of orders each day.
Though we expect BBQ To Go to continue to thrive, their menu selection is much more limited than ours. We expect customers who want more variety and options will prefer to frequent [Company Name].
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
- Atmosphere: [Company Name] will provide a welcoming and family friendly atmosphere that will attract residents of all walks of life.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build branding and awareness of our restaurant.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offering the best BBQ cuisine in town
- Offering a convenient location that offers both eat-in or take-out options
- Providing a welcoming, family-friendly environment
- Providing excellent customer service
- Adding our signature BBQ sauce to every dish
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a ten-mile radius of the restaurant. The company’s promotions strategy to reach these individuals includes:
Website/SEO
[Company Name] will develop a professional website that showcases pictures of the restaurant and some of our most popular meals. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.
Sampling
[Company Name] employees will initially give free food samples to passersby to enable them to taste the quality of our dishes and learn about us.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Public Relations
We will contact all local and area newspapers and television stations to tell them about the opening and unique value proposition of [Company Name].
Pricing Strategy
[Company Name]’s pricing will be moderate so customers feel they receive great value when frequenting our BBQ restaurant.
VII. Operations Plan
Functional Roles
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Service Functions
- Welcome and seat customers
- Serve customers food and drinks
- Cook customers’ meals
- Clean tables and other janitorial tasks
Administrative Functions
- Marketing functions
- Bookkeeping functions
- Hiring and training staff
- Sourcing and storing supplies
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is founded and run by [Founder’s Name]. [Founder’s Name]’s lifelong love for BBQ was inspired by his father. Since childhood, [Founder’s Name] and his father have cooked numerous BBQ dishes together and even came up with a high-quality secret signature sauce which will be added to nearly every single one of our dishes. It is [Founder’s Name]’s love for BBQ and his childhood memories with his father that fuels his desire to build and run [Company Name].
In addition to having a passion for BBQ, [Founder’s Name] also has spent the past [X] years working at other restaurants and BBQ chains. The combination of [Founder’s Name] passion, expertise, and experience in the restaurant industry will ensure our success.
Hiring Plan
[Founder’s Name] will serve as the restaurant manager. In order to launch the restaurant, we need to hire the following personnel:
- Wait staff (4 full-time equivalents to start)
- Cooks (3 to start)
- Assistant Restaurant Manager (will manage cash register and other administrative functions)
- Administrative Assistant (to help with the administrative, accounting, and marketing functions)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s key revenues will come from the sale of its BBQ entrées and other items on the menu.
The key cost drivers for the company will include marketing expenses, overhead, salaries, and food production costs.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $500,000 to launch. The capital will be used for funding capital expenditures, labor expenses, marketing expenses and working capital. Specifically, these funds will be used as follows:
- Restaurant design/build: $250,000
- Equipment and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Menu Items | % of Sales | Average Price Point |
|---|---|---|
| Food Items | 85% | $17.67 |
| Beer & Other Alcoholic Beverages | 15% | $7.33 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
