Award Date

Summer 2011

Degree Type

Professional Paper

Degree Name

Master of Hospitality Administration

Department

Hotel Administration

First Committee Member

Carola Raab, Chair

Number of Pages

76

Abstract

Purpose:

The purpose of this paper is to create a business plan for the SunShine Café. While the commonly known statistic of 90% of restaurants fail within the first year is false, approximately 60% of restaurants do fail within their first three years of operation (Parsa, Self, Njite, & King, 2005). The problem for entrepreneurs starting a restaurant is how does one reduce this risk of failure.

One way to minimize this risk is to create a business plan. Thus the main objective of this paper is to create a business plan that will not only help the restaurant develop and plan for the future but will also help the restaurant gain capital, the other common reason restaurant fail. As the two most common reasons restaurants fail are poor planning and under-capitalization (Parsa et al., 2005). A business plan is not a static document, but a document that must be modified as the business develops and grows. A subsequent objective of this business plan is to create the foundations of a business plan that can be modified as the business grows out of its infancy of a single restaurant into a more mature and growing restaurant group.

Keywords

Business failures; Business planning; Restaurant management; Restaurants – Finance

Disciplines

Business Administration, Management, and Operations | Entrepreneurial and Small Business Operations | Food and Beverage Management

Language

English