Restaurant Business Plan Lagos Nigeria - Cost Analysis, Marketing Strategy And Profitability
Restaurant Business Plan Lagos Nigeria
Every restaurant owner had a restaurant business plan before they started their business.
Experienced restaurant owners in Lagos Nigeria will tell you that things did not go 100 percent as planned.
For example, many people have heard that food business is one of the best businesses to start because people are always eating.
Unfortunately, many restaurants have closed in recent years despite the fact that food is a basic human need.
You see, the goal of every business owner is to make profit.
No matter how great a chef you are, no matter how much you love cooking for and serving your customers, your restaurant business will eventually shutdown if you're not making reasonable profit from your restaurant business.
Therefore, whether you have an existing restaurant or you are in the process of launching a new restaurant, your restaurant business plan must put in proper perspective the biggest challenge that restaurant businesses face. And you must have a proven plan to overcome that massive challenge and make profit.
Restaurant Business Lagos Nigeria - The Biggest Challenge
The biggest challenge facing restaurant owners is the cost associated with running a restaurant.
Restaurant owners have to deal with . . .
>> Massive overhead cost
>> The costs associated with regulatory compliance and
>> Rising food cost
For your restaurant to survive and grow, you must be able to generate enough sales to cover all the above listed expenses and make profit.
Here's where many restaurant owners get it all wrong.
You see, the cost of doing restaurant business can be so overwhelming that many restaurant owners forget one critical aspect of business essential for generating profit. And that is . . . marketing and advertising.Quick Question:
Why does Coca Cola advertise massively even though they are already a well-known global brand?
Simple answer . . . effective marketing and advertising is the secret ingredient for increasing sales and profit.
If you want your restaurant business to be in a position to cover all its expenses and make good profit, then restaurant advertising and marketing
must be a priority for you.
Restaurant Business Plan - Cost Analysis And Profit-Oriented Business Lesson
As mentioned above, many restaurant owners in Lagos Nigeria have relegated marketing and advertising to the background.
They do not take restaurant marketing seriously.
To help you understand what I mean, take a look at the cost analysis of one restaurant shown below.XYZ RESTAURANT COST ANALYSIS:
Labour cost: 30 percent of revenue
Food Cost: 20 percent of revenue
Operating Expenses: 25 percent of revenue
Marketing: 10 percent of revenue
Taxes: 8 percent of revenue
Profit: 7 percent of revenue
From the restaurant business cost analysis above, you can see that this particular restaurant owner is devoting only 10 percent of his revenue to marketing.Quick question:
What is that singular think that, if done right, can grow the sales and profit of a restaurant business?Answer:
This leads me to ask, "If marketing is so important to business profitability and survival, why are most restaurant business plans (and restaurant owners) not devoting massive resources to sales and marketing?"
Could it be ignorance?
Or is it what many people refer to as "penny wise, pound foolish"?
Restaurant Business Plan That Works - Make Digital Restaurant Marketing A Priority!
Here's the simple truth.
Businesses that succeed in the long term are businesses that make marketing and advertising a priority.
The same is true for restaurants that want to grow.
Yes, to generate profit long-term from your restaurant, you must deploy reasonable funds towards restaurant marketing and advertising.
In fact, your restaurant marketing budget should be at least 20 percent of your business revenue.
However, it is not enough to just devote large sums of money to restaurant advertising and marketing.As a proactive restaurant owner who wants to grow the profitability of your restaurant, you must use digital marketing strategies with trackable results.
Why digital marketing? And why must results be trackable?
Simple answer . . . digital marketing is low cost advertising, which is what restaurant owners need in view of the tight margins in the restaurant industry.
Employing digital marketing strategies with trackable results means your restaurant business plan in Lagos Nigeria must track how much you spend in advertising to attract new clients to your restaurant and how much money that advertising is bringing to your business.
The good news is this . . . we provide a restaurant marketing software that enable restaurant owners to run sales campaigns and track sales generated by those campaigns.Click HERE to learn more about how our restaurant Marketing Automation Software
can help your restaurant generate more sales and grow your restaurant business.Restaurant AdvertisingGiveaway Software