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Do you want to start Mexican restaurant business plan?
Do you want to open a Mexican restaurant? Well, Mexican foods are high in demand as they are loved by people of all ages and life areas. From Enchiladas to Taco, Mexican foods are all about delight.
The business can prove out to be extremely profitable provided that you plan it effectively. There are only a few areas that require extreme care and consideration. The topmost among them is regarding maintaining the food quality and nutritional value.
To apprehend how to open Mexican restaurant you should start exploring and researching. You will be needed to pen down your findings in a business plan for a Mexican restaurant to come up with a structured approach for starting this business. In case, you are unaware of how to make an accurate business plan, you can take help from this sample plan written for ‘Mexican Delicacies’.
Executive Summary
2.1 The Business
Mexican Delicacies will be a registered and licensed food restaurant based in New York. The business will primarily provide Mexican foods and desserts to the citizens of New York. Moreover, a few internationally-acclaimed cuisines will also be offered in the restaurant.
2.2 Management of Mexican Restaurant
Mexican Delicacies will be managed and run by its owner, co-manager, and team. Since the restaurant aims at providing supreme quality service to its customers, strict supervision will be held in place. Moreover, a building that was previously used as a restaurant will be acquired on rent and renovated to create a Mexican culture environment.
In this start up summary for a restaurant we have listed a brief management plan. To have a complete idea of how to set up a Mexican restaurant business plan keep reading this sample executive summary of a Mexican restaurant business plan.
2.3 Customers of Mexican Restaurant
Our major customers will be the local community living near us, Mexican communities, and tourists.
2.4 Business Target
Our major targets are:
- To achieve a repeat purchase rate of 80% by the end of the first year
- To maintain a CSAT score of above 90% throughout our service years
- To earn a net profit margin of $28.6k per month by the end of the third year
- To earn an average rating above 4.75 within two years of our launch
Company Summary
3.1 Company Owner
Mexican Delights will be owned by Matt Downey. Matt had always remained enthusiastic about food. After completing his MBA, he joined Krispy Kreme as a manager. Throughout his academic and service years, he remained an active participant in cooking competitions.
3.2 Why the Mexican restaurant is being started
Matt had to start a business at some point in his life. Due to his interest in the cooking side, he decided to opt for some cooking-related business. After surveying his target marketplace, he discovered that there was a huge demand for Mexican cuisines.
3.3 How the Mexican restaurant will be started
Step1: Plan Everything
For starting a Mexican restaurant business, you have to first create a business plan. In this Mexican restaurant business plan sample we will be providing all the details of Mexcian Delights so that you can learn how to create an accurate business plan. However, if your offerings are different than ours, then it is recommended to also study more Mexican restaurant business plan examples before finalizing your plan.
Step2: Define the Brand
The second step is to get the licenses and required registrations to start establishing yourself. At the time, you should define your business values, targets, and offerings that you can get identified in the market.
Step3: Establish the Restaurant
The next step is to purchase the inventory and furniture to set up your restaurant. The décor and environment of a restaurant matter a lot. Therefore, make sure that you are offering a serene and refreshing environment to your customers.
Step4: Never Ignore the Web Presence
Establishing a website and social media sites is vital to attract more and more people to your site. And to let them know your specialties through their fellow’s comments.
Step5: Promote and Market
Lastly, you should develop advertisement and marketing business strategies to get introduced to your target audience.
To give you an idea of how much does it cost to open a Mexican restaurant we are providing a list of startup costs of Mexican Delights.
| Start-up Expenses | |
| Legal | $251,000 |
| Consultants | $0 |
| Insurance | $31,000 |
| Rent | $34,000 |
| Research and Development | $24,000 |
| Expensed Equipment | $47,000 |
| Signs | $4,000 |
| TOTAL START-UP EXPENSES | $391,000 |
| Start-up Assets | $374,000 |
| Cash Required | $398,000 |
| Start-up Inventory | $52,000 |
| Other Current Assets | $289,000 |
| Long-term Assets | $295,000 |
| TOTAL ASSETS | $1,408,000 |
| Total Requirements | $1,799,000 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $391,000 |
| Start-up Assets to Fund | $1,408,000 |
| TOTAL FUNDING REQUIRED | $1,799,000 |
| Assets | |
| Non-cash Assets from Start-up | $1,834,000 |
| Cash Requirements from Start-up | $398,000 |
| Additional Cash Raised | $51,200 |
| Cash Balance on Starting Date | $32,000 |
| TOTAL ASSETS | $2,315,200 |
| Liabilities and Capital | |
| Liabilities | $30,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $44,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $74,000 |
| Capital | |
| Planned Investment | $1,799,000 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,799,000 |
| Loss at Start-up (Start-up Expenses) | $442,200 |
| TOTAL CAPITAL | $2,241,200 |
| TOTAL CAPITAL AND LIABILITIES | $2,315,200 |
| Total Funding | $1,799,000 |
Services
In your Mexican restaurant business plan template you should define your services so that you can make the relevant arrangements. Stating your services in your business fast food Mexican plan restaurant will also help you in identifying your customers and daily buying trends.
Mexican Delights will offer the following delicious servings to its customers.
- Traditional Mexican Cuisines: We will offer all of the Mexican cuisines that are famous among our target customers. Our major offerings will include:
- Taco
- Guacamole
- Enchiladas
- Chilaquiles
- Tamales
- Pozole
- Bistec
- Huevos rancheros and more.
- Mexican Drinks: Our drink offerings will include the following items:
- Tequila
- Mezcal
- Kahlúa
- Mexican Coke
- Horchata
- Hot Chocolate
- Mexican Desserts: We will be offering several Mexican desserts and sweet dishes such as:
- Chiles en nogada
- Mexican Cinnamon Cookies
- Churros
- Tres Leches Cake
- Creamy Caramel Flan
- Mexican Brownies
- Dulce de Leche Cheesecake and more.
- International Foods: We will also offer foods that are liked by people of all regions. They will range from local American dishes to Italian and Spanish delicacies. Moreover, seafood dishes and some fast food items will also be offered in this category.
Marketing Analysis of Mexican Restaurant
Note
Marketing analysis is also an important component of your business. It studies the respective market and search for previous trends, analytics, and ups and down to predict the future value of services. Through marketing analysis, you can learn when It would be most profitable to launch your business or introduce a new service/ product. Moreover, having knowledge of your market and customers helps you understand the ways that can attract them to your restaurant.
Here we are providing all details of Mexican Delights to assist you in case you are looking for how to write a business plan for a Mexican restaurant or how to carry out an accurate marketing analysis.
Business plan for investors
5.1 Market Trends
Due to the increased popularity and demand for Mexican foods, Mexican food restaurants have seen a growth rate of 4% during the past five years i.e. from 2016 to 2021. This stat is recorded by IBISWorld for the United States. The source also states that the Mexican restaurant industry is expected to grow by another 22.5% in 2021 alone. And the market size for this business is reported to reach $66.9 billion in 2021.
This Mexican restaurant industry analysis suggest that it is the right time to open Mexican restaurant. As stats are really good, it is highly recommended to enter this venture without any unnecessary delay.
5.2 Marketing Segmentation
Before exploring how to set up a Mexican restaurant business plan you should identify who your customers are. Because the groups of your target customer will be affecting your long-time decisions.
In this business plan, we’re providing the market segmentation done for Mexican Delights.
5.2.1 Local Communities
Our primary customers will be the local Anglo-Americans living near us. They are expected to devour our Mexican dishes as these dishes are different than local foods due to their distinct tastes and nutritional value. Since this community will also include cross-cultural minorities, thus, we expect them to enjoy our internationally acclaimed foods too.
5.2.2 Mexican Communities
The second group of our target customers will comprise the Mexican minorities living near us. They are expected to visit us frequently. Firstly, because of our large menu and wide range of offerings. And secondly, because of the immersive Mexican cultural environment, we’ll be demonstrating through our décor. Another thing that will help us draw more Mexicans is that we do not have abundant Mexican food restaurants servicing near us within 20 to 25-minute driving distance.
5.2.3 Tourists
Our third category of target customers will be tourists. This category will comprise the explorers who also want to explore traditional foods of different countries.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Local Communities | 49% | 51,000 | 52,000 | 53,000 | 54,000 | 55,000 | 10.00% |
| Mexican Communities | 41% | 43,000 | 44,000 | 45,000 | 46,000 | 47,000 | 10.00% |
| Tourists | 10% | 9,000 | 10,000 | 11,000 | 12,000 | 13,000 | 11.00% |
| Total | 100% | 103,000 | 106,000 | 109,000 | 112,000 | 115,000 | 10% |
5.3 Business Target
Our business targets relevant to market customers are to achieve a repeat purchase rate of 80% by the end of the first year. Moreover, we aim to maintain a CSAT score of above 90% and an average rating above 4.75 in a specified time.
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Marketing Strategy
Many restaurants are operating in the whole of the United States. In case you want to outperform others, you’ll need to come up with competitive benefits and an influencing advertisement plan.
In your Mexican restaurant business plan template you should include a detailed marketing plan. To help you in devising this part, we’re providing a marketing plan for a restaurant pdf of Mexican Delights.
6.1 Competitive Analysis
Our biggest competitive advantages are listed here:
- We are offering a wide variety of foods to attract customers from different walks of life.
- Our restaurant is specifically designed to provide a powerful environment. We hired professional décor services to install cultural items of Mexico and to create 3D posters of Mexican celebrities to provide an immersive experience to our customers.
- Lastly, due to our extraordinary sales strategy, we expect to get more customers as compared to our competitors.
6.2 Sales Strategy
- We’ll advertise our startup through Google Local ads service and social media campaigns.
- We’ll invite a famous and beloved Mexican celebrity to our launching ceremony to mark our exclusive startup.
- We’ll keep track of our repeat customers and will offer them a 25% discount on all of our offerings after their first twenty purchases.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Traditional Mexican Cuisines | 55,000 | 58,300 | 61,798 |
| Mexican Drinks | 12,000 | 12,720 | 13,483 |
| Mexican Desserts | 34,000 | 36,040 | 38,202 |
| International Foods | 49,000 | 51,940 | 55,056 |
| TOTAL UNIT SALES | 150,000 | 159,000 | 168,540 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Traditional Mexican Cuisines | $56.00 | $64.96 | $75.35 |
| Mexican Drinks | $50.00 | $58.00 | $67.28 |
| Mexican Desserts | $46.00 | $53.36 | $61.90 |
| International Foods | $58.00 | $67.28 | $78.04 |
| Sales | |||
| Traditional Mexican Cuisines | $3,080,000.00 | $3,787,168.00 | $4,656,701.77 |
| Mexican Drinks | $600,000.00 | $737,760.00 | $907,149.70 |
| Mexican Desserts | $1,564,000.00 | $1,923,094.40 | $2,364,636.87 |
| International Foods | $2,842,000.00 | $3,494,523.20 | $4,296,865.73 |
| TOTAL SALES | $8,086,000.00 | $9,942,545.60 | $12,225,354.07 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Traditional Mexican Cuisines | $54.00 | $61.00 | $71.00 |
| Mexican Drinks | $47.00 | $55.00 | $63.00 |
| Mexican Desserts | $43.00 | $49.00 | $56.00 |
| International Foods | $55.00 | $64.00 | $73.00 |
| Direct Cost of Sales | |||
| Traditional Mexican Cuisines | $2,970,000.00 | $3,556,300.00 | $4,387,658.00 |
| Mexican Drinks | $564,000.00 | $699,600.00 | $849,441.60 |
| Mexican Desserts | $1,462,000.00 | $1,765,960.00 | $2,139,334.40 |
| International Foods | $2,695,000.00 | $3,324,160.00 | $4,019,117.20 |
| Subtotal Direct Cost of Sales | $7,691,000.00 | $9,346,020.00 | $11,395,551.20 |
Personnel plan
When you write business plan Mexican restaurant you should also create a peroneal and HR management plan. This will eventually help you in retaining a skilled and motivated workforce.
7.1 Company Staff
Matt will be the CEO herself. To run his business, he’ll hire.
- 1 Co-Manager to monitor business operations
- 1 Accountant to maintain financial records
- 8 Cooks to prepare the dishes
- 6 Waiters to serve the food
- 2 General Assistants for routine tasks
- 1 Technician to maintain the machinery
- 1 Web Developer to manage the online presence
- 1 Sales Executive to execute the restaurant’s sales strategy
- 4 Cleaners
- 1 Receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co-Manager | $12,000 | $13,200 | $14,520 |
| Accountant | $9,000 | $9,900 | $10,890 |
| Cooks | $64,000 | $70,400 | $77,440 |
| Waiters | $40,000 | $44,000 | $48,400 |
| Technician | $6,000 | $6,600 | $7,260 |
| General Assistants | $12,000 | $13,200 | $14,520 |
| Web Developer | $6,000 | $6,600 | $7,260 |
| Cleaners | $28,000 | $30,800 | $33,880 |
| Sales Executive | $7,000 | $7,700 | $8,470 |
| Receptionist | $6,000 | $6,600 | $7,260 |
| Total Salaries | $190,000 | $209,000 | $229,900 |
Financial Plan
A financial plan is one of the most important components to include when you write business plan Mexican restaurant. A financial plan analyzes the costs involved in running your business as well as the monthly and yearly sales. By gathering all the business analytics, an accurate financial plan suggests a time at which you will be able to recover your startup costs. Moreover, it also incorporates financial risks to figure out a strategy to minimize or even avoid undesirable losses.
A business can never achieve its goals without a proper financial record and management. Therefore, you must take care of this part cautiously. If you lack the experience of making a financial plan, it is highly recommended to hire a professional financial analyst to do so.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.13% | 8.16% | 8.21% |
| Long-term Interest Rate | 8.27% | 8.35% | 8.40% |
| Tax Rate | 23.60% | 23.90% | 24.40% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5344 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $236.00 |
| Average Per-Unit Variable Cost | $0.67 |
| Estimated Monthly Fixed Cost | $161,200 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $8,086,000 | $9,942,546 | $12,225,354 |
| Direct Cost of Sales | $7,691,000 | $9,346,020 | $11,395,551 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $7,691,000 | $9,346,020 | $11,395,551 |
| Gross Margin | $395,000 | $596,526 | $829,803 |
| Gross Margin % | 4.88% | 6.00% | 6.79% |
| Expenses | |||
| Payroll | $190,000 | $209,000 | $229,900 |
| Sales and Marketing and Other Expenses | $130,000 | $128,000 | $127,000 |
| Depreciation | $2,500 | $2,600 | $2,400 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $3,000 | $3,090 | $3,120 |
| Insurance | $1,900 | $2,090 | $2,160 |
| Rent | $3,400 | $3,500 | $3,600 |
| Payroll Taxes | $30,000 | $31,000 | $32,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $360,800 | $379,280 | $400,180 |
| Profit Before Interest and Taxes | $34,200 | $217,246 | $429,623 |
| EBITDA | $34,200 | $217,246 | $429,623 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $6,840 | $43,449 | $85,925 |
| Net Profit | $27,360 | $173,796 | $343,698 |
| Net Profit/Sales | 0.34% | 1.75% | 2.81% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $56,000 | $60,480 | $65,318 |
| Cash from Receivables | $18,000 | $19,440 | $20,995 |
| SUBTOTAL CASH FROM OPERATIONS | $74,000 | $80,660 | $87,113 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $75,000 | $82,000 | $89,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $37,000 | $40,000 | $43,000 |
| Bill Payments | $28,000 | $30,000 | $32,000 |
| SUBTOTAL SPENT ON OPERATIONS | $65,000 | $70,000 | $75,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $65,000 | $70,200 | $75,816 |
| Net Cash Flow | $15,000 | $16,000 | $17,200 |
| Cash Balance | $26,500 | $28,000 | $30,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $288,000 | $322,560 | $354,816 |
| Accounts Receivable | $25,000 | $28,000 | $31,472 |
| Inventory | $4,000 | $4,480 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $294,000 | $329,280 | $370,111 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $18,200 | $20,384 | $22,932 |
| TOTAL LONG-TERM ASSETS | $24,000 | $26,880 | $30,240 |
| TOTAL ASSETS | $296,000 | $331,520 | $372,960 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $21,100 | $23,632 | $26,562 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $14,000 | $15,680 | $17,624 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,000 | $17,920 | $20,142 |
| Paid-in Capital | $30,000 | $32,000 | $33,000 |
| Retained Earnings | $54,000 | $58,860 | $64,746 |
| Earnings | $198,000 | $215,820 | $237,402 |
| TOTAL CAPITAL | $273,000 | $297,570 | $327,327 |
| TOTAL LIABILITIES AND CAPITAL | $289,000 | $331,520 | $372,960 |
| Net Worth | $297,000 | $323,730 | $356,103 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.07% | 7.83% | 8.68% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.22% | 10.22% | 11.32% | 9.80% |
| Inventory | 5.60% | 6.20% | 6.87% | 9.90% |
| Other Current Assets | 2.13% | 2.36% | 2.61% | 2.40% |
| Total Current Assets | 150.12% | 151.80% | 152.30% | 158.00% |
| Long-term Assets | 11.80% | 11.86% | 11.92% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.65% | 4.69% | 4.73% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.52% | 7.58% | 7.65% | 7.38% |
| NET WORTH | 101.09% | 101.90% | 102.84% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.99% | 97.55% | 100.29% | 99.00% |
| Selling, General & Administrative Expenses | 93.71% | 96.24% | 98.93% | 97.80% |
| Advertising Expenses | 1.69% | 1.74% | 1.78% | 1.40% |
| Profit Before Interest and Taxes | 41.05% | 42.16% | 43.34% | 33.90% |
| Main Ratios | ||||
| Current | 37 | 38 | 39 | 32 |
| Quick | 31 | 32.8 | 33.62 | 33 |
| Total Debt to Total Assets | 0.19% | 0.19% | 0.18% | 0.40% |
| Pre-tax Return on Net Worth | 74.81% | 75.50% | 76.23% | 75.00% |
| Pre-tax Return on Assets | 94.04% | 98.74% | 103.68% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 32.91% | 33.93% | 34.98% | N.A. |
| Return on Equity | 54.98% | 56.68% | 58.44% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.8 | 7.8 | 7.9 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.8 | 34.44 | 35.6 | N.A. |
| Accounts Payable Turnover | 16.1 | 16.3 | 16.59 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.03 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $243,000 | $256,608 | $270,978 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.83 | 0.85 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 27.8 | 28.2 | 28.7 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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