Restaurant Business Plan Example for Restaurants in Nigeria
The names and business details used in this post are fictitious, and do not represent real people or businesses.
If you're looking to open a restaurant business in Nigeria, you can use this example as a guide to create your own business plan.
Let's get right into it.
Executive Summary
Morning Star restaurant is a restaurant located at Wuse, Abuja, Nigeria. Our restaurant caters for business and corporate people looking for delicious and healthy breakfast meals.
Our menu includes pap and akara, coffee milk and bread, yam and egg sauce, moimoi and custard, Ewa Agoyin and freshly baked bread.
Our doors are open from 6am to 1pm Nigerian time, Mondays to Saturdays.
Business Description
We are focused on serving early bird customers looking for delicious and healthy local breakfast meals.
We source our foodstuffs from the local market and have a meticulous storage method that ensures that all our supplies stay fresh.
Our location is right off the busy Wuse market road, and is a 20-table restaurant, with affordable delivery options.
Business Model
Our business model focuses on serving business and corporate users who are looking for healthy delicious breakfast meals before heading to work or starting their business day.
We believe that this niche is underserved, especially around the Wuse market zone which houses a huge population of business and corporate customers.
Our plan is to serve the freshest breakfast meals at the most affordable prices and to offer convenient delivery options.
We also try to cover other users who like to eat their breakfast later either for business or religious reasons. That is why our doors stay open up till 1pm on our business days.
Product Pricing
Our meals are served at affordable prices between 1,500 Naira to 3,500 Naira. Extra servings cost a little.
Industry Background
The fast food restaurant industry in Nigeria is a very big one, with several restaurants scattered across street corners and major roads.
According to statistics, the Nigerian fast food industry is estimated to be worth over $600 million, and continues to grow.
Majority of fast food restaurants in Nigeria serve every type of customer with varieties of Nigerian dishes, and usually run from morning till night.
There's a new wave of niches in this industry, with new businesses serving only one aspect of the market, such as in-demand deliveries, sealed foods, meats only, breakfast only, sea foods, etc.
Competitive Analysis
There's heavy competition in the fast food market around Wuse market, with several high-end restaurants littered around that corridor.
Fast food chains such as McDonald's and Chicken Republic are the most prominent.
There are also mom and pop restaurants around the streets in that area.
However, the competition centers around price points, with most customers becoming more price aware due to the biting inflation.
We are competing with these mom and pop restaurants due to their proximity to market and affordable pricing.
However, we have niched down to serve customers who are mainly looking for affordable breakfast.
We are not able to mention the names of our major competitors because many of them do not have a brand name.
Competitor SWOT
Strengths
The competition are more established in the area and have longer opening times. The bigger brands also open on Sundays to accommodate weekend leisure outings for business and corporate people on their off day.
Weaknesses
They do not have a strong variety of local dishes.
The top brands offer mainly rice menus, while the popular mom and pop fastfoods offer mainly rice, beans, and soups.
Opportunities
The competition could expand their offerings and even have a breakfast opening where they offer competing menus.
Nowadays, top restaurants like Chicken Republic are now offering moimoi and egg menu, which could serve as breakfast for customers.
Mom and pop shops could consider expanding their menu offerings to capture more customers.
Threat
Customers are starting to become more price aware, and sales are dropping for pricey menu.
The top fast food chains are now seeing customers move to mom and pop shops, while some customers of mom and pop shops are now considering eating at home.
Market Analysis
Target Market
Our target market is business and corporate customers around Wuse market in Abuja, Nigeria who are looking for a variety of healthy local breakfast meals.
Expected Annual Customers
We expect to have about 20 customers per day, 120 customers per week, about 500 customers per month, and 6,000 customers per year.
Marketing Plan
Our marketing plan includes distribution of flyers to shops and offices around the Wuse market.
We also use our packaging materials as a marketing medium by printing our phone numbers and addresses on the packaging.
SWOT Analysis
Strengths
We are focused on serving a specific target customer with exactly the kind of menu they want.
Most of the menu we offer are not obtainable in other fast food restaurants, which makes our offering unique.
Weaknesses
We are relatively new in the area, with other fast food restaurants being more established.
We also have a limited opening time, which means that the number of customers coming through our doors are limited.
Our niche also means that we do not serve a few other menus that customers may want.
Opportunities
We see opportunities in acquiring early bird customers that are in the business or corporate world.
We could acquire even more customers by offering monthly subscriptions for daily food delivery or delivery for corporate events.
Threat
The top brands are a major threat due to their huge spending power.
There is a chance for them to branch into other niches in this market, and follow up with strong marketing and branding, which we are not capable of at the moment.
Since they are more established and have considerable food traffic, they could offer existing customers breakfast menus and have more sales.
The Team
The team comprises Magdalene, who is the head of operations, Kunle, the head of marketing and acquisition, and Solomon, who leads the quality assurance and customer feedback.
Magdalene holds a food science degree and was a manager in Foodstar, a defunct fast food chain in Southern Nigeria.
Kunle has worked as a sales executive in Access bank in Nigeria and has led a business development team at Iroko tv, a pay-on-demand subscription TV headquartered in San Francisco, United States.
Solomon has been a marketer for several food startups, and has run his own business in the past.
Financial Plan & Forecasts
Expected Annual Revenue
If the business has 6,000 customers per year spending an average of 2,000 Naira, the expected annual revenue will be 12,000,000 Naira.
Production & Distribution Cost
The monthly cost of production included:
- Foodstuff supplies - 600,000
- Gas - 50,000
- Electricity - 20,000
- Packaging - 25,000
- Transportation - 10,000
Total Monthly Costs - 705,000
Total Annual Costs - 8,460,000
Profit Margin
The expected profit margin is 12,000,000 - 8,460,000 / 12,000,000 X 100 = 29.5%
The 29.5% profit margin is normal, as food businesses expectedly have lower margins than other types of businesses.
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