Are you about starting an african restaurant? If YES, here is a detailed sample african restaurant business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting an african restaurant business. We also took it further by analyzing and drafting a sample african restaurant marketing plan template backed up by actionable guerrilla marketing ideas for african restaurants.
The united states of America is one of the few countries of the world that can boast of being home to people of different nationalities and Africans are some of the immigrants that consider the United States as their home.
So, if you are an African living in the United States and you want to leverage the vast population of African migrants in the US to generate revenue, then one of your best options is to start an African restaurant.
If you can successfully start an African restaurant in the United States, your customers will not only be Africans but every other person within your location who loves exploring delicacies from different parts of the world.
A Sample African Restaurant Business Plan Template
1. Industry Overview
African restaurants are grouped under the restaurants industry, howbeit specialty restaurants. African restaurants are restaurants that mainly prepare and sell African-style food to their customers.
The African restaurant industry accommodates single-location, chain and franchised enterprises, as well as full-service and fast-food operators whose major delicacies are African inspired.
Players in this industry also sell alcoholic and other beverages as a means of generating more revenue. A close watch of the African Restaurants industry shows that the industry has benefited greatly from an increased acceptance of African cuisine in the mainstream American food industry.
In addition, an increasing immigrant population from Africa coupled with domestic adaptations of African food, such as African peppered Jollof Rice, Pounded Yam, Fufu (Foofoo), Banku, Kenkey and Garii (gari) which are served alongside soups and stews eaten by hand, has also aided the rise of the African Restaurants industry over the last five years.
As a result of these major trends, industry revenue is expected to continue growing going forward. The Restaurants industry that African restaurant is a part of is a thriving sector of the economy of the United States.
Statistics has it that in the United States of America, the Restaurants industry generates over $38 billion annually from more than 34,061 registered and licensed Restaurant franchises, and the industry is responsible for the employment of over 877,619 people.
Experts project the Restaurants industry to grow at a 2.9 percent annual rate within the next five years. The Restaurants Industry is a profitable industry in the United States and it is open for any aspiring entrepreneur to come in and establish his or her business.
You can choose to start on a small scale in a street corner like the average mom and pop business or you can choose to start on a large scale with several outlets in key cities. Plus, you don’t need to be an African to successfully run this business.
2. Executive Summary
Edo Kitchen® African Restaurant, LLC is an American incorporated business that will be located in one of the cities with a huge African population – Dallas Fort Worth Metropolitan Area, which happens to be the largest in Texas, but hopes to spread out to key cities in the United States with the first 5 years of operation.
We are at the final stage of leasing a facility along a major road that is big enough to fit into the kind of African restaurant that we intend launching. The facility is located in a corner piece property directly opposite the largest residential estate in Dallas Fort Worth – Texas.
Edo Kitchen® African Restaurant, LLC will be involved in the sale of a wide variety of African inspired delicacies and drinks. We will be involved in operating quick-service restaurants, fast food services, drive-thru and take-out facilities in our chains of African restaurant outlets that will be scattered all across major cities in the United States.
We are aware that there are several African restaurants and other standard restaurants that serve African delicacies scattered all around Dallas Fort Worth – Texas, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.
We have delivery service options for our customers, and our outlet offers various payment options. Much more than retailing and serving African delicacies and drinks, our customer care will be second to none in the whole of Dallas Fort Worth – Texas.
We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our African restaurants. Edo Kitchen® African Restaurant, LLC will ensure that all our customers are given first class treatment whenever they visit our outlets.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly affect them.
We are aware of the trend in the restaurant industry especially in the United States and we are not only going to operate a brick and mortar location, but we will also operate online services where our customers can order our meals and get it delivered to their location within Dallas Fort Worth – Texas.
Edo Kitchen® African Restaurant, LLC is a family business that is owned by Mrs. Janet Efosa and her immediate family members. Mrs. Janet Efosa is an African celebrity chef and she has a B.Sc. in Food and Nutrition Science with over 15 years’ experience in the restaurant and fast food industry.
Although the business is launching out with just one outlet in Dallas Fort Worth – Texas, but there is a plan to open other outlets all around Texas and in other key cities in the United States of America.
3. Our Products and Services
Edo Kitchen® African Restaurant, LLC looks forward to deliver excellent services and of course top – notch African delicacies.
Our intention of starting our African restaurant is to favorable compete in the industry and to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our business goal. Our product and service offerings are listed below;
- Sale of African delicacies such as; African peppered Jollof Rice, Waakye, Pounded Yam, Fufu and goat meat soup, Banku and tilapia, Kenkey and fried fish, Tuo Zaafi, Kelewele, Yam and Garri which are served alongside soups and stews eaten by hand.
- Bush meat and palm wine
- Sale of Sandwiches
- Sale of Chicken and Chips
- Sale of beverages, such as water, juice and soda
4. Our Mission and Vision Statement
- Our vision is to become the leading African restaurant in Dallas Fort Worth – Texas and to open chains of African restaurants all across major cities in the United States of America.
- Our mission is to establish chains of African restaurants that will make available a wide variety of African inspired delicacies and soft drinks at affordable prices to the residents of Dallas Fort Worth – Texas and other cities in the United States of America where we intend opening our restaurants.
Our Business Structure
Our intention of starting an African restaurant is to build a standard business in Dallas Fort Worth – Texas. Although our African restaurant might not be as big as some of the leading brands in the industry, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Restaurant Manager
- Human Resources and Admin Manager
- Chef/Kitchen Workers
- Sales and Marketing Manager
- Information Technologist
- Van Drivers/Deliverers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Chief Chef):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for managing the daily activities in the restaurant (kitchen inclusive)
- Ensure that the restaurant facility is in tip top shape and conducive enough to welcome customers
- Interfaces with third – party providers (vendors)
- Reports to the Chief Executive Officer
- Attends to Customers complaints and enquiries
- In charge of preparing African inspired delicacies and other delicacies as supervised by the kitchen supervisor
- Responsible for carrying out all casual or unskilled jobs in the restaurant
- Responsible for packaging food meant for delivery
- Handles any other duty as assigned by the restaurant manager or kitchen supervisor
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Manage the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manage the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Promptly attends to customers in a friendly and professional manner
- Ensures that un-occupied tables are always set and ready for customers
- Pulls out chairs for customers as they arrive
- Handle any other duty as assigned by the restaurant manager
Van Drivers/Food Deliverers:
- Delivers customer’s orders promptly
- Deliver correspondence for the restaurant
- Runs errand for the organization
- Responsible for cleaning the restaurant facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the restaurant facility
- Handles any other duty as assigned by the restaurant manager.
6. SWOT Analysis
Our intention of starting just one outlet of our African restaurant in Dallas Fort Worth is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then open other outlets. We are quite aware that there are several African restaurants all over Dallas Fort Worth and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Edo Kitchen® African Restaurant, LLC employed the services of an expert HR and Business Analyst with bias in the fast food line of business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Edo Kitchen® African Restaurant, LLC;
Our location, the business model we will be operating on (physical location with an active online presence), varieties of payment options, wide varieties of African inspired delicacies and soft drinks and our excellent customer service culture will definitely count as a strong strength for Edo Kitchen® African Restaurant, LLC.
A major weakness that may count against us is the fact that we are a new African restaurant and we don’t have the financial capacity to compete with multi – million dollar restaurant chains that also serve African inspired delicacies.
The fact that we are going to be operating our African restaurant in one of the busiest streets in Dallas Fort Worth with a robust African community, provides us with unlimited opportunities to sell our African inspired delicacies to a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our restaurant; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new African restaurant or a conventional restaurant that serves African inspired delicacies in same location as ours.
7. MARKET ANALYSIS
- Market Trends
In this era when the online community is growing rapidly, you would do your business a whole lot of favor if you create your own online presence. One of the easiest ways to get people to see you as an expert in your line of business is to blog constantly about it.
You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter, and others to publicize your African restaurant. You can as well go ahead to open an online portal where people can place orders from your restaurant. You must ensure that your delivery system is efficient if you intend to do well with your online restaurant business.
So also, keeping consumers’ appetites satisfied, players in the restaurant industry (African restaurants inclusive) have created new menu options that capitalize on the increasing awareness of the health risks associated with high – fat diets.
The industry has also thrived by developing products at price points attractive enough to weather the slow recovery, resulting in strong revenue growth. These trends are expected to continue and contribute to revenue growth going forward.
A close watch of the trend in the African restaurants industry shows that the industry has benefited greatly from an increased acceptance of African cuisine in the mainstream American food industry.
In addition, an increasing immigrant population from india coupled with domestic adaptations of African inspired food, such as peppered jollof rice and bush meat, has also aided the rise of the African restaurant industry over the last five years. As a result of these major trends, industry revenue is expected to continue growing going forward.
8. Our Target Market
One thing about African inspired delicacies is that it is not just for Africans and people from African descent; it is for everyone in the United States and tourists as well. As a matter of fact, most African restaurants now have menus designed specifically for vegetarians and others with different food preferences.
In view of that, we have positioned our African restaurant to service residents of Dallas Fort Worth and every other location where our outlets will be located in the United States of America. We have conducted our market research and we have ideas of what our target market will be expecting from us.
We are in business to retail our products to the following groups of people;
- African migrants
- Event Planners
- Corporate Executives
- Business People
- Sports Men and Women
Our competitive advantage
A close study of the restaurant industry of which African restaurant is a part of, reveals that the market has become much more intensely competitive over the last decade.
As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete with other African restaurants in Dallas Fort Worth – Texas.
Our restaurant facility is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Dallas Fort Worth Bay Area – Texas with a robust Spanish community. We have enough parking spaces that can accommodate over 20 cars per time.
One thing is certain; we will ensure that we have wide varieties of African inspired delicacies in our menu at all times. It will be difficult for customers to visit our restaurant and not make a purchase. One of our business goals is to make Edo Kitchen® African Restaurant, LLC a one stop African restaurant.
Our excellent customer service culture, online options, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the restaurant industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Edo Kitchen® African Restaurant, LLC is in the restaurant industry to maximize profits and we are going to ensure that we achieve or business goals and objectives. In essence, our source of income will be the retailing of the following products at affordable prices/offering the following services;
- Sale of African delicacies such as; African peppered Jollof Rice, Waakye, Pounded Yam, Fufu and goat light soup, Banku and tilapia, Kenkey and fried fish, Tuo Zaafi, Kelewele, Yam and Garri which are served alongside soups and stews eaten by hand.
- Bush meat and palm wine
- Sale of Sandwiches
- Sale of beverages, such as water, juice and sodas
10. Sales Forecast
One thing is certain when it comes to the restaurant business, if your restaurant is centrally positioned, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Dallas Fort Worth – Texas and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the African restaurant industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Edo Kitchen® African Restaurant, LLC, it is based on the location of our business and other factors as it relates to African restaurant startups in the United States;
- First Fiscal Year: $240,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same delicacies as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Edo Kitchen® African Restaurant, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice in Dallas Fort Worth.
We hired experts who have good understanding of the restaurant industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Dallas Fort Worth – Texas.
In summary, Edo Kitchen® African Restaurant, LLC will adopt the following sales and marketing approach to win customers over;
- Open our African restaurant in a grand style with a party for all
- Introduce our African restaurant by sending introductory letters alongside our brochure to corporate organizations, event planners, households and African communities
- Ensure that we have wide varieties of African inspired delicacies and soft drinks in our restaurant at all times
- Make use of attractive handbills to create awareness and also to give direction to our restaurant
- Position our signage/flexi banners at strategic places around Dallas Fort Worth – Texas
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage in direct marketing via our sales agents
- Engage on roadshows within our neighborhood to create awareness for our restaurant.
11. Publicity and Advertising Strategy
Despite the fact that our African restaurant is well located, we will still go ahead to intensify publicity for the business. Edo Kitchen® African Restaurant, LLC has a long – term plan of opening chains of African restaurant outlets in various locations all around Texas and key cities in the United States, which is why we will deliberately build our brand to be well accepted in Dallas Fort Worth Bay Area before venturing out.
Here are the platforms we intend leveraging on to promote Edo Kitchen® African Restaurant, LLC;
- Place adverts on community – based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our brand.
- Ensure that our we position our banners and billboards in strategic positions all around Dallas Fort Worth – Texas
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing is one of the key factors that gives leverage to restaurants, it is normal for consumers to go to places where they can purchase food at cheaper price which is why big players in the restaurant industry will continue to attract loads of consumers.
We know we don’t have the capacity to compete with bigger African restaurants, but we will ensure that the prices of all the delicacies that are available in our restaurant are competitive with what is obtainable amongst African restaurants within our level.
- Payment Options
At Edo Kitchen® African Restaurant, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that Edo Kitchen® African Restaurant, LLC will make available to her clients;
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for our African inspired delicacies without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Edo Kitchen® African Restaurant, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a fast food restaurant – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (food ingredients, drinks and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $50,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need about two hundred and fifty thousand dollars ($250,000) to successfully set up our African restaurant in Dallas Fort Worth – Texas.
Generating Fund/Startup Capital for Edo Kitchen® African Restaurant, LLC
Edo Kitchen® African Restaurant, LLC is a family business that is solely owned and financed by Mrs. Janet Efosa and her immediate family members. They do not intend to welcome any external business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Edo Kitchen® African Restaurant, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our African inspired delicacies and drinks a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Edo Kitchen® African Restaurant, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if these are put in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the restaurant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of the delicacies that will be available in our menu: Completed
- Establishing business relationship with vendors – suppliers of food ingredients and drinks: In Progress