Seafood Restaurant Business

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Seafood business plan for starting your

own restaurant
Do you want to set up restaurant and earn profit by exhibiting your culinary skills? Well,
you must opt for it if you have some good cooking or management skills. Starting a
seafood business can prove out to be extremely profitable provided that you select the
location wisely.

What you’ll have to do is just hiring the right employees and establishing contacts with
seafood vendors and suppliers.

To help you in getting started we’re providing a sample business plan for seafood
restaurant written for startup ‘Sea Sprite’. This sample plan can help you in planning
your startup and devising a policy for your business.

Executive Summary
2.1 The Business
Sea Sprite will be a registered and licensed seafood dining business based in Chicago,
Illinois. The restaurant will be owned by Marlon Hacks. The business will be aimed at
providing freshest and healthiest seafood to its customers in a beautiful and peaceful
environment.

2.2 Management of Seafood Restaurant

Before starting a seafood restaurant, it is essential to formulate a comprehensive and
precise seafood restaurant business plan that covers all details about the startup.

In this sample business plan, we are giving details of the management plan and
strategies of Sea Sprite to achieve its goals. Anyone looking for how to open a seafood
restaurant can benefit from here.

Marlon will hire skillful cooks and chefs, a manager, general assistants, accountants
and waiters to run his restaurant.

2.3 Customers of Seafood Restaurant

Due to the nutritional content and delicious taste, seafood is liked and consumed all
over the world by people of all age groups. That’s why we expect the nearby residential
community, tourists and persons who arrange a menu for ceremonies and events to be
our target customers.

2.4 Business Target

We aim to provide our customers with nutritious, delicious and fresh seafood. We aim at
maintaining a repeat customer rate of 61% by the end of the first year and to increase
customer footfall in our restaurant from 5 to 10% every month.

Immigration Business Plan

Document for passing government compliance requirements for immigration to the US, Canada, or
the UK.

Company Summary
3.1 Company Owner
Sea Sprite will be owned by Marlon Hacks. Marlon is an MBA from the University of
Chicago. Marlon has been fond of cooking since his teenage. Alongside his studies, he
used to cook and bake things side by side. Due to his skills in management and
cooking, Marlon believes that he can successfully run a restaurant.
3.2 Why the Seafood Restaurant is being
started
Marlon has always wanted to start some food-related business. After analyzing the
market and his surroundings, he realized that there are very few restaurants in his
hometown that provide all sorts of fresh seafood. Thus, to serve his customers with
dishes that aren’t too common, Marlon opted for opening a seafood restaurant.

3.3 How the Seafood Restaurant will be

started
The first step Marlon took to start his restaurant was making a business plan for his
business. in his business plan, Marlon has defined all the startup strategies and has
estimated how much does it cost to open a seafood restaurant.

According to the plan, Marlin will first rent an old restaurant building in the city. The
space will be updated with new tiles, new furniture, and new décor after renovation.
Alongside the renewal of the place, Marlon will organize tests and interviews for hiring
the right employees.

Marlon has decided to hire the personnel for executing the sales strategy plan a month
before the launch so that more and more people can get knowledge about the new
startup before the actual commence.

Moreover, a strong web presence will be ensured before the day of the launch of the
restaurant so that people can explore the restaurant and its competitive aspects by
even sitting at their homes.
Start-up Expenses  

Legal $220,900

Consultants $0

Insurance $48,000

Rent $43,500

Research and Development $37,000

Expensed Equipment $66,700

Signs $3,300

TOTAL START-UP EXPENSES $419,400

Start-up Assets $362,000

Cash Required $449,000

Start-up Inventory $71,000

Other Current Assets $275,000

Long-term Assets $300,000

TOTAL ASSETS $1,457,000

Total Requirements $1,876,400

START-UP FUNDING

Start-up Expenses to Fund $640,400

Start-up Assets to Fund $2,209,000

TOTAL FUNDING REQUIRED $2,849,400

Assets

Non-cash Assets from Start-up $2,642,000

Cash Requirements from Start-up $202,200

Additional Cash Raised $48,200

Cash Balance on Starting Date $38,000

TOTAL ASSETS $2,930,400

Liabilities and Capital

Liabilities $35,000

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable (Outstanding

$46,000
Bills)
Other Current Liabilities (interest-
$0
free)

TOTAL LIABILITIES $81,000

Capital

Planned Investment $2,849,400

Investor 1 $0

Investor 2 $0

Other $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $2,849,400

Loss at Start-up (Start-up

$0
Expenses)

TOTAL CAPITAL $2,849,400

 TOTAL CAPITAL AND
$2,930,400
LIABILITIES

Total Funding $2,849,400

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Menu of seafood restaurant

Before you start a seafood restaurant its essential for you to decide your menu.
Because you’ll need to buy the equipment and will need to contact the vendors as
required by your menu. Moreover, if you are about to own a restaurant, deciding your
services before time can also help in sorting out the right employees/chefs with the
relevant experience.

Before formulating a salon business plan outline you must finalize which services you’ll
be providing to your customers because this decision of yours will be affecting the
business in the long run.

Sea Sprite will offer the following foodstuff to its customers:

Seafood dishes: We’ll provide all sorts of dishes made by clams, fish, crabs, lobsters,
oysters, shrimps, squids, octopus and prawns such as curries, Ceviche, salmon rice,
and Lohikeitto.

Soups: We’ll provide seafood soups mixed with seasonal vegetables. Our main
servings in this domain will include chowder, Tekwan, Ukha, Machh bhaja, etc.

Salads & Sandwiches: We will provide fresh fish, shrimps, and grilled octopus
sandwiches as well as mix salads of vegetables and seafood.
Seafood Pizza & Steaks: The major thing in our menu that isn’t offered by any of our
competitors will be seafood pizza with primary ingredients as shellfish, trout, salmon,
and shrimps. We’ll also provide steaks of different sea-animals that are liked and
consumed by the people.

Marketing Analysis of Seafood

Restaurant
Before setting up a restaurant business it’s essential that you properly analyze your
market. Market analysis is the assessment of people who are supposed to be the
customers of your seafood restaurant. Analyzing your market precisely can help you run
the business in the long run because the choice of location, choice of menu and prices
are set after taking this important step.

An accurate marketing plan for restaurant business must evaluate the market potential,
buying patterns of your target customers and economic patterns in the location in which
you are going to start your restaurant.

5.1 Market Trends

Seafood is liked all over the world because it contains high nutrition value, protein,
minerals, and vitamin content. The fact that fresh seafood is difficult to acquire and cook
has generated more and more demand for processed or cooked seafood.

Note
A 3.6% compound annual growth rate of seafood businesses is reported by Allied
Market Research Company. That’s why if you want to open seafood restaurant you
need not worry about the scope of the business. the thing for which you should be
worried is just correct pre-planning of every aspect of your restaurant.

5.2 Marketing Segmentation

To focus on the needs and demands of the target customers, Sea Sprite has divided
them into three groups. Such segmentation must also be done by you if you want to
study and explore each group effectively.
The detailed marketing segmentation of our target audience is as follows:

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5.2.1 Residential Community: Our first target group will be the people living near our
restaurant. Since very few seafood restaurants in the vicinity are providing comfortable
dine-in facilities, thus we expect the residential community near us to come to us
whenever they want to consume good-quality and delicious seafood.

Moreover, almost all the people living near our restaurant have more than average
median incomes. Thus they all can afford our dishes made of seafood.

5.2.2 Event Planners: Since seafood is expensive than other usual items, it is

considered a good and valuable food to serve people in ceremonies and events. As
seafood is a cherished food item in events and seafood pizza is a totally new product for
our customers so we expect event and wedding organizers to be our second target
category.

5.2.3 Tourists & Passers-By: Our third target group is expected to be the people who
pass by our restaurant. Our beautiful display, alluring signboards and appetizing odors
of dishes will surely compel them to come inside. Moreover, tourists are also expected
to come and consume our products.
 Market
Analysi              
s

Potentia
l Grow Year Year Year Year Year CAG
Custom th 1 2 3 4 5 R
ers

Residen
tial 26,0 31,0 37,0 46,00 59,00 11.00
43%
Commu 00 00 00 0 0 %
nity

Event
20,0 23,0 27,0 35,00 44,00 11.00
Planner 31%
00 00 00 0 0 %
s

Tourists
& 14,0 16,0 24,0 33,00 39,00 10.00
26%
Passers 00 00 00 0 0 %
-by

100 60,0 70,0 88,0 114,0 142,0

Total 10%
% 00 00 00 00 00

5.3 Business Target

Marlon defined a set of goals to be achieved over a fixed time. They are:

 To balance startup expenses by the earned profits by the end of the first eight
months
 To increase customer footfall by 8% every month by the end of the first six months
 To maintain customer repeat rate of 61% by the end of the first year
 To maintain an average rating of 4.75 by the end of the first year
 To start delivery services by the end of the first year

5.4 Product Pricing

Our prices will be a little bit higher than our competitors. But looking at the financial
status and income of target customers we expect that they would love to spend to get
quality food in a quality place.

Strategy
After starting a fine dining restaurant, it’s required to carry out a sales strategy plan so
that more and more people can be made aware of the new launch.

6.1 Competitive Analysis

Sea Sprite will be coming up with several competitive aspects the first of which is the
quality of food. All our products will be absolutely fresh and healthy. Secondly, our menu
is much vaster than that of our competitors. We are providing seafood sandwiches and
pizza that aren’t offered by any other restaurant in our vicinity. Lastly, we are providing a
peaceful and natural environment for our customers to dine in so that they would like to
come again and again.

6.2 Sales Strategy

 We’ll ensure a strong web presence
 We’ll start advertising us through Facebook and Instagram one month before the
launch
 We’ll install signboards displaying our delicious meals at various places
 We’ll offer a 50% discount on our sandwiches and pizza for the first two weeks of
our launch
 We’ll offer a 20% discount card to customers who will spend more than $85 on our
food in the first month (non-inclusive of 50% discount defined earlier)

The above-mentioned discounts will be announced a week before Marlon open a

restaurant business.
6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast    

Unit Sales Year 1 Year 2

Seafood Dishes 40,000 42,400

Soups 21,000 22,260

Salads & Sandwiches 23,000 24,380

Seafood Pizza & Steaks 37,000 39,220

TOTAL UNIT SALES 121,000 128,260

Unit Prices Year 1 Year 2

Seafood Dishes $69.00 $80.04

Soups $41.00 $47.56

Salads & Sandwiches $44.00 $51.04

Seafood Pizza & Steaks $56.00 $64.96

Sales

Seafood Dishes $2,760,000.00 $3,393,696.00

Soups $861,000.00 $1,058,685.60

Salads & Sandwiches $1,012,000.00 $1,244,355.20

Seafood Pizza & Steaks $2,072,000.00 $2,547,731.20

TOTAL SALES $6,705,000.00 $8,244,468.00

Direct Unit Costs Year 1 Year 2

Seafood Dishes $46.00 $48.00

Soups $21.00 $27.00

Salads & Sandwiches $24.00 $26.00

Seafood Pizza & Steaks $37.00 $41.00

Direct Cost of Sales

Seafood Dishes $1,840,000.00 $2,035,200.00

Soups $441,000.00 $601,020.00

Salads & Sandwiches $552,000.00 $633,880.00

Seafood Pizza & Steaks $1,369,000.00 $1,608,020.00

 Subtotal Direct Cost of Sales $4,202,000.00 $4,878,120.00

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EMAIL*
PHONE
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Personnel plan
Opening a restaurant isn’t much difficult but running it successfully can surely become
hard if you don’t have good employees. That’s why make sure that you employ the right
workers after conducting proper tests and interviews.

7.1 Company Staff

Marlon will manage the business himself, for other works he’ll hire the following people.

 1 Accountant to maintain financial records

 1 Co-Manager to help in managing the restaurant
 2 Sales Executives to carry out the company’s sales strategy plan
 6 Chefs/Cooks to prepare dishes
 4 General Assistants to do routine tasks
 4 Waiters/ Waitresses to serve the customers
 3 Cleaners to maintain the facility
 1 Driver to transport materials and supplies
 1 Web Developer to manage company’s sites
 1 Customer Representative to provide customer care service
 1 Security Guard/Gatekeeper
7.2 Average Salary of Employees

 Personnel Plan      

  Year 1 Year 2 Year 3

Accountant $22,000 $24,200 $26,620

Co-Manager $24,000 $26,400 $29,040

Sales Executives $39,000 $42,900 $47,190

Chefs/Cooks $135,000 $148,500 $163,350

General Assistants $94,000 $103,400 $113,740

Waiters/Waiteresses $84,000 $92,400 $101,640

Cleaners $66,000 $72,600 $79,860

Driver $21,000 $23,100 $25,410

Web Developer $19,000 $20,900 $22,990

 Customer Representative $20,000 $22,000 $24,200

Security Guard/Gatekeeper $21,000 $23,100 $25,410

Total Salaries $460,000 $599,500 $659,450

Financial Plan
The last step before you open restaurant is to make a financial plan. Your financial plan
must include all the details of your investments, monthly expenses, expected profits,
possible losses and strategies to maximize profit and minimize possible losses.

In this business plan, we’re giving a free sample of the financial plan of Sea Sprite that
Marlon has developed himself. The sample is based on approximated costs for Sea
Sprite and you must contact a financial expert if you want accurate figures according to
your startup.

8.1 Important Assumptions

 General Assumptions      

  Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 8.02% 8.65% 9.40%

Long-term Interest Rate 8.30% 8.70% 9.20%

 Tax Rate 25.30% 26.70% 27.10%

Other 0 0 0

8.2 Brake-even Analysis

 Brake-Even Analysis  

Monthly Units Break-even 5335

Monthly Revenue Break-even $138,200

Assumptions:  

Average Per-Unit Revenue $253.30

 Average Per-Unit Variable Cost $0.72

Estimated Monthly Fixed Cost $171,000

8.3 Projected Profit and Loss

 Pro Forma Profit And

     
Loss

  Year 1 Year 2 Year 3

Sales $6,705,000 $8,244,468 $10,137,398

Direct Cost of Sales $4,202,000 $4,878,120 $5,778,675

Other $0 $0 $0

TOTAL COST OF SALES $4,202,000 $4,878,120 $5,778,675

Gross Margin $2,503,000 $3,366,348 $4,358,723

Gross Margin % 37.33% 40.83% 43.00%

Expenses      

Payroll $460,000 $599,500 $659,450

Sales and Marketing and

$138,000 $145,000 $150,000
Other Expenses

Depreciation $2,600 $2,860 $2,900

Leased Equipment $0 $0 $0

Utilities $3,800 $4,300 $4,700

Insurance $2,100 $2,600 $3,100

Rent $6,300 $6,600 $6,900

Payroll Taxes $44,000 $48,000 $51,200

Other $0 $0 $0

Total Operating Expenses $656,800 $808,860 $878,250

 Profit Before Interest and
$1,846,200 $2,557,488 $3,480,473
Taxes

EBITDA $1,846,200 $2,557,488 $3,480,473

Interest Expense $0 $0 $0

Taxes Incurred $369,240 $511,498 $696,095

Net Profit $1,476,960 $2,045,990 $2,784,378

Net Profit/Sales 22.03% 24.82% 27.47%

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 $54,000 $58,320 $63,400

Cash from Receivables $11,400 $12,312 $13,297

SUBTOTAL CASH FROM

$63,300 $68,997 $74,517
OPERATIONS
Additional Cash Received      

Sales Tax, VAT, HST/GST

$0 $0 $0
Received

New Current Borrowing $0 $0 $0

New Other Liabilities

$0 $0 $0
(interest-free)

New Long-term Liabilities $0 $0 $0

Sales of Other Current

$0 $0 $0
Assets

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

SUBTOTAL CASH
$61,000 $63,200 $65,600
RECEIVED

Expenditures Year 1 Year 2 Year 3

Expenditures from
     
Operations

Cash Spending $36,600 $41,900 $43,500

Bill Payments $19,000 $22,000 $24,000

SUBTOTAL SPENT ON
$51,100 $61,000 $68,900
OPERATIONS

Additional Cash Spent      

Sales Tax, VAT, HST/GST

$0 $0 $0
Paid Out

Principal Repayment of
$0 $0 $0
Current Borrowing

Other Liabilities Principal

$0 $0 $0
Repayment

Long-term Liabilities
$0 $0 $0
Principal Repayment

Purchase Other Current

$0 $0 $0
Assets
 Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $56,400 $60,912 $65,785

Net Cash Flow $14,000 $16,400 $18,300

Cash Balance $28,900 $33,410 $37,000

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet      

Assets Year 1 Year 2 Year 3

Current Assets      

Cash $260,100 $291,312 $320,443

Accounts Receivable $22,900 $25,648 $28,828

Inventory $4,320 $4,838 $5,100

Other Current Assets $1,000 $1,000 $1,000

TOTAL CURRENT
$310,900 $348,208 $391,386
ASSETS

Long-term Assets      

Long-term Assets $10,000 $10,000 $10,000

Accumulated Depreciation $16,100 $18,032 $20,286

TOTAL LONG-TERM
$20,200 $22,624 $25,452
ASSETS

TOTAL ASSETS $297,000 $332,640 $374,220

Liabilities and Capital Year 4 Year 5 Year 6

Current Liabilities      

Accounts Payable $18,000 $20,160 $22,660

Current Borrowing $0 $0 $0
 Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT
$13,800 $15,456 $17,373
LIABILITIES

Long-term Liabilities $0 $0 $0

TOTAL LIABILITIES $13,800 $15,456 $17,373

Paid-in Capital $29,000 $30,000 $30,000

Retained Earnings $65,000 $70,850 $77,935

Earnings $184,500 $201,105 $221,216

TOTAL CAPITAL $283,200 $308,688 $339,557

TOTAL LIABILITIES AND

$297,000 $332,640 $374,220
CAPITAL

Net Worth $278,500 $303,565 $333,922

8.6 Business Ratios

 Ratio Analysis        
 INDUSTRY
  Year 1 Year 2 Year 3
PROFILE

Sales Growth 7.10% 7.87% 8.72% 3.00%

Percent of Total
       
Assets

Accounts Receivable 9.18% 10.17% 11.27% 9.80%

Inventory 5.60% 6.20% 6.87% 9.90%

Other Current Assets 2.47% 2.74% 3.03% 2.40%

Total Current Assets 150.00% 153.00% 156.00% 158.00%

Long-term Assets 11.10% 12.30% 12.80% 12.00%

TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%

Current Liabilities 4.49% 4.53% 4.57% 4.34%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00%

Total Liabilities 7.06% 7.12% 7.18% 7.38%

NET WORTH 104.10% 104.93% 105.90% 110.00%

Percent of Sales        

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 97.60% 100.24% 103.04% 98.00%

Selling, General &

Administrative 92.60% 95.10% 97.76% 97.30%
Expenses

Advertising Expenses 1.89% 1.94% 2.00% 1.40%

Profit Before Interest

43.90% 45.09% 46.35% 34.10%
and Taxes

Main Ratios        

Current 38 39.6 40.59 32

Quick 34 34.8 35.67 34

Total Debt to Total
0.31% 0.24% 0.01% 0.41%
Assets

Pre-tax Return on Net

76.09% 79.89% 83.89% 75.00%
Worth

Pre-tax Return on
90.05% 94.55% 99.28% 112.00%
Assets

Additional Ratios Year 1 Year 2 Year 3  

Net Profit Margin 34.70% 35.78% 36.88% N.A.

Return on Equity 58.43% 60.24% 62.11% N.A.

Activity Ratios        

Accounts Receivable
7.25 7.54 7.8 N.A.
Turnover

Collection Days 100 100 100 N.A.

Inventory Turnover 34.4 36.12 37.926 N.A.

Accounts Payable
16.08 16.5 16.98 N.A.
Turnover

Payment Days 27 27 27 N.A.

Total Asset Turnover 2.45 2.65 2.72 N.A.

Debt Ratios        

Debt to Net Worth -0.04 -0.05 -0.05 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios        

Net Working Capital $220,450 $232,795 $245,832 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios        

Assets to Sales 0.81 0.88 0.97 N.A.

Current Debt/Total 1% 1% 0% N.A.

 Assets

Acid Test 28.4 27.5 31.1 N.A.

Sales/Net Worth 2.1 2.1 2.3 N.A.

Dividend Payout 0 0 0 N.A.

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