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How to Open a Restaurant in Toronto Canada

how to open a restaurant in toronto canada

Opening a restaurant in Toronto , Canada, a diverse city of almost 3 million people, is an exciting yet challenging endeavor. Toronto’s diverse culinary scene and vibrant cultural mix offer a promising market, but the process requires careful planning, understanding of regulations, and strategic execution. Below is a comprehensive guide to help you navigate the process of opening a restaurant in Toronto.

1. Market Research and Concept Development

Before diving into the legal and financial aspects, it’s crucial to have a clear concept and understanding of the market.

  • Research the Market: Toronto is known for its diverse food culture, with neighborhoods like Little Italy, Chinatown, and Greektown, each offering unique dining experiences. Researching your target market will help you identify gaps in the market and determine what type of restaurant might succeed.
  • Define Your Concept: Will you offer casual dining, fine dining , fast-casual, or a food truck? Your concept should align with the preferences of your target demographic. Consider what makes your restaurant unique and how it fits into Toronto’s culinary landscape.
  • Competitor Analysis: Analyze your competitors in the area. Understanding their strengths and weaknesses can help you position your restaurant effectively.

2. Creating a Business Plan

A solid business plan is essential for guiding your business decisions and attracting investors or securing loans.

  • Executive Summary: Outline your restaurant’s concept, mission, and vision.
  • Market Analysis: Include details about your target market, competitors, and market trends.
  • Menu Development: Develop a preliminary menu that reflects your concept. Consider the cost of ingredients and how it will impact your pricing.
  • Marketing Strategy: Plan how you will attract and retain customers. This could include social media marketing, partnerships, promotions, and events.
  • Financial Projections: Estimate your startup costs, operating costs, and projected revenue. This section should include a break-even analysis, profit and loss statement, and cash flow projections.
  • Management Structure: Outline the roles and responsibilities of your team. This includes chefs, managers, servers, and support staff.

3. Securing Financing

Once your business plan is in place, you’ll need to secure financing.

  • Personal Savings and Investments: Consider how much capital you can contribute personally.
  • Bank Loans: Approach banks with your business plan to apply for a loan. Be prepared to present detailed financial projections.
  • Investors: Seek out investors who may be interested in funding your restaurant. This could be individuals or venture capitalists specializing in the food industry.
  • Government Grants and Loans: Look into grants and loans offered by the Canadian government for small businesses. Programs like the Canada Small Business Financing Program can be valuable resources.

4. Finding the Right Location

Location is critical to the success of your restaurant. Toronto has various neighborhoods, each with its own demographic and foot traffic.

  • High-Traffic Areas: Consider areas with high foot traffic, such as downtown Toronto, near tourist attractions, or busy shopping districts.
  • Neighborhood Fit: Choose a location that aligns with your target demographic. For example, a trendy café might do well in Queen Street West, while a family-friendly restaurant could thrive in a suburban area.
  • Lease Agreements: Understand the terms of your lease. Consider the length of the lease, renewal options, and any restrictions on modifications to the space.
  • Zoning Regulations: Ensure the location is zoned for commercial use, specifically for a restaurant. Toronto’s zoning bylaws can be complex, so it may be wise to consult with a real estate lawyer.

5. Legal Requirements and Permits

Toronto has specific regulations and permits that must be obtained before you can open your restaurant.

  • Business License: Apply for a business license from the City of Toronto. This is mandatory for operating any business within the city.
  • Food Handler Certification: At least one person in your restaurant must have a valid Food Handler Certificate. This ensures knowledge of food safety practices.
  • Health Inspection: Toronto Public Health will need to inspect your restaurant to ensure it meets health and safety standards. This includes the cleanliness of your kitchen, proper food storage, and overall hygiene.
  • Liquor License: If you plan to serve alcohol, you’ll need to apply for a liquor license through the Alcohol and Gaming Commission of Ontario (AGCO). This process can take several months, so apply early.
  • Building Permits: If you’re renovating the space, you’ll need to obtain building permits from the City of Toronto. This ensures your renovations comply with local building codes.
  • Signage Permits: If you plan to have outdoor signage, you’ll need a permit from the city. There are specific rules about the size, location, and lighting of signs.
  • Employment Standards: Familiarize yourself with Ontario’s employment standards, including minimum wage, overtime pay, and employee rights.

6. Designing the Restaurant

The design and layout of your restaurant will significantly impact the customer experience.

  • Interior Design: Work with an interior designer who specializes in restaurants. The design should reflect your concept and create an inviting atmosphere. Consider elements like lighting, furniture, and décor.
  • Kitchen Layout: The kitchen should be designed for efficiency and safety. Work with a professional to ensure the layout meets health and safety standards.
  • Capacity and Layout: Determine the seating capacity based on the space and fire safety regulations. The layout should allow for smooth movement of staff and customers.
  • Accessibility: Ensure your restaurant is accessible to all customers, including those with disabilities. This includes having ramps, accessible washrooms, and appropriate seating.

7. Hiring Staff

Your team will be the backbone of your restaurant, so hiring the right people is crucial.

  • Chefs and Cooks: Hire experienced chefs and cooks who can execute your menu to the highest standard. Consider their experience in similar restaurants.
  • Front-of-House Staff: Your servers, hosts, and bartenders should be friendly, professional, and knowledgeable about the menu.
  • Management: A strong management team is essential for day-to-day operations. This includes a general manager, kitchen manager, and front-of-house manager.
  • Training: Provide comprehensive training to ensure your staff understands your restaurant’s policies, customer service standards, and health and safety practices.
  • Employee Contracts: Ensure all employees have contracts outlining their roles, responsibilities, and compensation.

8. Developing the Menu

Your menu is central to your restaurant’s identity and profitability.

  • Menu Design: The design of your menu should be aesthetically pleasing and easy to read. It should reflect your restaurant’s concept and branding.
  • Costing: Carefully cost each menu item to ensure profitability. Consider ingredient costs, preparation time, and portion sizes.
  • Seasonal and Local Ingredients: Incorporating seasonal and locally sourced ingredients can enhance the freshness of your dishes and appeal to customers.
  • Dietary Restrictions: Consider offering options for customers with dietary restrictions, such as gluten-free, vegan , or vegetarian options.
  • Menu Testing: Before launching, test your menu with friends, family, or focus groups to gather feedback and make adjustments.

9. Marketing and Promotion

Effective marketing is essential to attract customers and build your brand.

  • Branding: Develop a strong brand identity, including a logo, color scheme, and brand voice. This should be consistent across all marketing materials.
  • Website and Social Media: Create a professional website with an online reservation system. Maintain active social media profiles on platforms like Instagram, Facebook, and Twitter to engage with your audience.
  • Public Relations: Consider hiring a PR agency to generate buzz before your opening. This could include media coverage, influencer partnerships, and press releases.
  • Opening Event: Host a soft opening or launch event to introduce your restaurant to the community. Invite local influencers, food bloggers, and media to create buzz.
  • Loyalty Programs: Implement a loyalty program to encourage repeat customers. This could include discounts, free items, or exclusive events.

10. Technology and POS Systems

Modern restaurants rely heavily on technology for efficiency and customer satisfaction.

  • Point of Sale (POS) System: Invest in a reliable POS system that can handle transactions, track inventory, and generate sales reports. Consider systems like Slant Square, Lightspeed, Slant POS or TouchBistro, which are popular in Canada.
  • Online Ordering and Delivery: With the rise of online food ordering , ensure your restaurant can handle takeout and delivery orders efficiently. Partner with platforms like Uber Eats, DoorDash, or SkipTheDishes.
  • Reservation System: Implement an online reservation system like OpenTable or Resy to manage bookings and reduce wait times.
  • Customer Relationship Management (CRM): Use a CRM system to track customer preferences, reservations, and feedback. This can help personalize the dining experience and build customer loyalty.

11. Health and Safety Compliance

Maintaining high standards of health and safety is essential for your restaurant’s reputation and compliance with the law.

  • Sanitation Procedures: Establish strict sanitation procedures for your kitchen and dining area. This includes regular cleaning, proper food storage, and pest control.
  • Health and Safety Training: Ensure all staff are trained in health and safety practices, including food handling, fire safety, and first aid.
  • Regular Inspections: Schedule regular health and safety inspections to identify and address any potential issues before they become problems.

12. Financial Management and Accounting

Effective financial management is crucial for the long-term success of your restaurant.

  • Bookkeeping: Hire a professional bookkeeper or accountant to manage your finances. This includes tracking income, expenses, and payroll.
  • Budgeting: Create a detailed budget to monitor your cash flow and ensure you’re meeting financial goals.
  • Tax Compliance: Understand the tax obligations for your restaurant, including HST (Harmonized Sales Tax), payroll taxes, and income taxes. Ensure you’re filing returns on time to avoid penalties.
  • Insurance: Obtain the necessary insurance for your restaurant,

including general liability, property insurance, and workers’ compensation.

13. Opening and Running the Restaurant

Once everything is in place, it’s time to open your doors.

  • Soft Opening: Consider having a soft opening to work out any operational issues before the official launch. This can be an invitation-only event with friends, family, and local influencers.
  • Official Launch: Plan a grand opening event to attract customers and create buzz. Offer special promotions or discounts to encourage visits.
  • Ongoing Management: Continuously monitor your restaurant’s performance, including customer feedback, sales data, and employee performance. Be prepared to make adjustments as needed.
  • Customer Service: Focus on delivering excellent customer service to build a loyal customer base. Address any issues or complaints promptly and professionally.
  • Community Involvement: Engage with the local community through events, sponsorships, or partnerships. Building strong community

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restaurant business plan toronto

From Culinary Dream to Reality: How to Start a Restaurant in Ontario

restaurant business plan toronto

Welcome to our comprehensive guide on how to start a restaurant in Ontario ! If you’ve ever dreamt of turning your culinary passion into a thriving business, you’ve come to the right place. Whether you’re an aspiring chef or simply someone with a love for food and hospitality, this article is packed with valuable insights and practical advice to set you on the path to culinary success in the vibrant province of Ontario.

Fasten your apron, sharpen your knives, and get ready to embark on an exciting culinary adventure as we unlock the secrets of starting a restaurant in Ontario. Let’s dive in and discover the recipe for your restaurant’s success!

Key Takeaways

  • Research the restaurant industry in Ontario and identify your target audience before starting your restaurant.
  • Create a comprehensive business plan that includes a detailed description of your concept, target market, menu, pricing, marketing strategy, financial projections, and legal requirements.
  • Consult with a lawyer and an accountant to ensure that you comply with all the legal and financial requirements of starting a restaurant in Ontario.

1. Understand the Restaurant Industry in Ontario

If you’re considering starting a restaurant in Ontario, it’s important to understand the industry and market that you’ll be operating in. Here are some key points to keep in mind:

Types of Restaurants and Catering Services

Ontario has a diverse range of restaurants and catering services, including cafes, bars, family-style restaurants, event catering businesses, and more. Popular types of restaurants and catering businesses include:

  • Gourmet and casual dining
  • Fast-food and food trucks

Market Research

Before starting your restaurant, it’s important to conduct market research to help you understand the industry and market that you’ll be operating in. This includes researching your target audience, competitors, and the latest trends in the industry . By conducting thorough market research, you’ll be able to make informed decisions about your business and develop a solid business plan.

Regulations and Requirements

Each municipality in Ontario has specific requirements for opening a food business, and these requirements may change over time. It’s important to confirm the most up-to-date requirements in your area by contacting your local municipality. For example, all businesses serving food are required to comply with the  Ontario Food Premises Regulation as well as  Toronto’s Licensing By-Law No. 545  . Premises must receive a “PASS” status by Toronto Public Health ( DineSafe ) in order to operate.  Food Handlers Certification  is required through  Toronto Public Health  for anyone who serves and handles food.

Costs and Financing

Starting a restaurant in Ontario can be costly, with expenses such as rent, equipment, supplies, staffing, and marketing. It’s important to develop a detailed budget and secure financing before opening your restaurant. You may consider applying for government grants or loans , seeking investors, or obtaining a small business loan.

2. Create a Business Plan

Starting a restaurant in Ontario requires careful planning and preparation. One of the most important steps in this process is creating a comprehensive business plan. A business plan will help you to define your restaurant concept, identify your target market, and outline your financial projections.

Market Analysis

Before you open your restaurant, you need to conduct market research to understand the industry and market that you will be operating in. This will help you to identify your target market and determine the demand for your restaurant concept. You can use a variety of sources to conduct your market research, including online databases, industry publications, and trade associations.

Financial Projections

Creating accurate financial projections is essential to the success of your restaurant. Your financial projections should include a detailed breakdown of your startup costs, as well as your projected revenue and expenses for the first few years of operation. You should also consider factors such as staffing, inventory, and marketing expenses when creating your financial projections.

Marketing Strategy

Developing a marketing strategy is essential to attracting and retaining customers. Your marketing strategy should include a detailed plan for promoting your restaurant, including social media marketing, email marketing, and advertising. You should also consider offering promotions and discounts to attract new customers and encourage repeat business.

3. Legal Requirements

Starting a restaurant in Ontario involves several legal requirements to ensure that your business operates within the law. In this section, we will cover the main legal requirements you need to know before starting your restaurant.

Business Registration

Before opening a restaurant, you need to register your business with the government. The registration process will vary depending on the type of business structure you choose, such as a sole proprietorship , partnership, or corporation. You can register your business online through the Ontario Business Registry or ServiceOntario.

Health and Safety Regulations

As a restaurant owner, you must adhere to strict health and safety regulations to ensure the safety of your customers and employees. All food premises are subject to the requirements of the  Health Protection and Promotion Act and Ontario Food Premises Regulation including allowing entry to Public Health Inspectors to conduct inspections. You must also obtain a food handler’s certificate and have your restaurant inspected by a public health inspector before opening.

Liquor Licensing

If you plan to serve alcohol in your restaurant, you must obtain a liquor license from the Alcohol and Gaming Commission of Ontario (AGCO). The AGCO regulates the sale, service, and consumption of alcoholic beverages in Ontario, and you must comply with their regulations to obtain a liquor license.

4. Choosing a Location

When starting a restaurant in Ontario, choosing the right location is crucial to the success of your business. Here are some factors to consider when selecting a location for your restaurant.

Demographic Analysis

It is important to analyze the demographics of the area where you plan to open your restaurant. Consider factors such as age, income, and ethnicity of the population. This information will help you determine the type of cuisine and atmosphere that will be most appealing to your potential customers.

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Accessibility

Your restaurant should be easily accessible to your target audience. Consider factors such as foot traffic, public transportation, and parking availability. A location with high foot traffic and easy access to public transportation will be beneficial for attracting customers.

Competition

It is important to research the competition in the area where you plan to open your restaurant. Consider the number of restaurants in the area, the type of cuisine they offer, and their pricing. This information will help you determine if there is a demand for your type of cuisine and how you can differentiate your restaurant from the competition.

5. Designing Your Restaurant

When designing your restaurant , you want to create a space that is both visually appealing and functional for your staff and customers. There are two main areas to focus on interior design and kitchen layout.

Interior Design

The interior design of your restaurant sets the tone for your customers’ dining experience. You want to create a space that is welcoming and comfortable, while also reflecting your restaurant’s concept and brand. Here are some tips for designing your restaurant’s interior:

  • Choose a color scheme that complements your restaurant’s concept and brand.
  • Use lighting to create ambiance and highlight key features of your restaurant.
  • Select furniture that is both comfortable and durable.
  • Consider adding artwork or other decorative elements that add to the overall aesthetic of your restaurant.

Kitchen Layout

The layout of your restaurant’s kitchen is crucial to the efficiency of your staff and the quality of your food. When designing your kitchen layout, consider the following:

  • Create a flow that allows for easy movement and communication between staff members.
  • Choose equipment that is appropriate for the size and type of your restaurant.
  • Ensure that there is enough space for prep areas, cooking stations, and storage.
  • Consider the placement of sinks and other sanitation stations for easy access and cleaning.

6. Hiring Staff

When starting a restaurant in Ontario, it’s important to hire the right staff to ensure the success of your business. Here are some tips on how to recruit and train your staff.

Recruitment

When recruiting staff, it’s important to consider their experience, skills, and personality. You want to hire people who are passionate about the food industry and who will provide excellent customer service. Here are some ways to find potential candidates:

  • Post job listings on online job boards such as Indeed or Monster
  • Attend job fairs and networking events
  • Ask for referrals from your current employees or industry contacts
  • Use social media to advertise job openings and reach a wider audience

Once you receive applications, be sure to review them thoroughly and conduct interviews to get to know the candidates better. During the interview process, ask questions about their experience, availability, and why they want to work for your restaurant.

Once you have hired your staff, it’s important to follow the employment rules and regulations as well as provide them with proper training. Here are some tips for training your staff:

  • Develop a comprehensive training program that covers all aspects of the job, including customer service, food preparation, and safety protocols
  • Provide hands-on training and allow your staff to practice their skills in a real-world setting
  • Offer ongoing training to ensure your staff stays up-to-date with industry trends and best practices

7. Menu Creation

Creating a menu is an exciting part of starting a restaurant in Ontario. Your menu is the first thing your customers will see when they sit down, and it can make or break their dining experience. Here are some tips to help you create a menu that will impress your customers:

Know Your Target Audience

Before you start creating your menu, you need to know your target audience. Are you targeting families with young children, or are you catering to a more upscale crowd? Knowing your target audience will help you create a menu that appeals to their tastes and preferences.

Keep It Simple

When it comes to creating a menu, less is often more. A simple menu with a few well-executed dishes is better than a long menu with mediocre food. Keep your menu simple and focus on quality over quantity.

Offer Variety

While keeping your menu simple is important, you also want to offer enough variety to appeal to different tastes. Include vegetarian, vegan, and gluten-free options to cater to customers with dietary restrictions.

Highlight Your Specialties

Your menu should highlight your restaurant’s specialties. If you’re known for your burgers, make sure they’re front and center on your menu. If you have a signature dish, make sure it stands out.

Include Descriptions

Including descriptions of your dishes can help entice customers to order them. Use descriptive language to highlight the flavors and ingredients in each dish.

8. Marketing Your Restaurant

Once you’ve established your restaurant, it’s time to start marketing it to attract customers. There are many ways to promote your restaurant, but in this section, we’ll focus on two: online marketing and community engagement.

Online Marketing

In today’s digital age, having a strong online presence is crucial for any business, including restaurants. Here are some online marketing strategies to consider:

  • Website: Create a website for your restaurant that includes your menu, location, hours, and contact information. Make sure it’s mobile-friendly and easy to navigate.
  • Social Media: Use social media platforms like Facebook, Instagram, and Twitter to connect with potential customers. Post mouth-watering photos of your dishes, share updates about specials and events, and respond to customer inquiries and reviews.
  • Online Listings: List your restaurant on popular online directories like Yelp, Google My Business, and TripAdvisor. Encourage customers to leave reviews, and respond to both positive and negative feedback.

Community Engagement

Engaging with your local community can help you build a loyal customer base and generate positive word-of-mouth. Here are some community engagement strategies to consider:

  • Partnerships: Partner with other local businesses and organizations to cross-promote each other. For example, you could offer a discount to customers who show their receipts from a nearby store or sponsor a local sports team.
  • Events: Host events at your restaurant, such as live music, trivia nights, or cooking classes. This can help you attract new customers and keep existing ones coming back.
  • Charitable Giving: Consider donating a portion of your profits to a local charity or hosting a fundraiser. This can help you build goodwill in the community and attract socially-conscious customers.

By implementing these marketing strategies, you can increase your restaurant’s visibility and attract more customers. Remember to track your results and adjust your approach as needed to ensure the best possible return on investment.

9. Frequently Asked Questions

To open a restaurant in Ontario, you need to obtain several permits and licenses, including a business license, food handler’s certificate, and building permit. You may also need to obtain a liquor license if you plan to serve alcohol. Each municipality in Ontario may have specific requirements, so it’s important to check with your local government for more information. You can also use the Permits and Licenses Search tool to find out what permits you need for your specific business.

Yes, you need a license to sell food in Ontario. The type of license you need depends on the type of food you’re selling and how it’s prepared. You may need a food handler’s certificate, a food premises license, or a temporary food service permit. You can find more information on the Food Safety for Businesses page on your municipality website.

Starting a food business from home in Ontario is possible, but there are strict regulations you need to follow. You need to obtain a home-based business permit, a food handler’s certificate, and a food premises inspection. You also need to ensure that your kitchen meets certain requirements, such as having a separate entrance and sink. The Ontario Ministry of Health’s guide is a great place to find more information.

The cost of opening a restaurant in Canada can vary widely depending on factors such as location, size, and type of restaurant. According to QuickBooks Canada, the average cost to open a restaurant in Canada is around $275,000, but it can range from $100,000 to over $1 million.

Opening a restaurant can be profitable in Canada, but it’s important to do your research and create a solid business plan. According to the Canadian Restaurant and Foodservices Association, the restaurant industry in Canada is a $93 billion industry, with over 98,000 restaurants across the country. However, the success of your restaurant will depend on factors such as location, menu, and competition.

10. Resources for Restaurant Businesses in Ontario

Government resources.

  • Liquor Sales Licences
  • Harmonized Sales Tax for Ontario – Point-of-Sale Rebate on Prepared Food and Beverages
  • Ontario Food Premises Regulation
  • Health Protection and Promotion Act
  • O. Reg. 493/17: FOOD PREMISES
  • Public Health Unit locations
  • Beer and Wine Tax
  • Decide on the ownership structure for your business
  • Check for licences and permits
  • Ontario Agriculture and food statistics

Industry Resources

  • Canadian Restaurant and Foodservices Association
  • Ontario Restaurant Hotel & Motel Association
  • Ontario Hospitality Conference
  • Food & Beverages Ontario
  • Baking Association of Canada
  • Ontario Accommodation Association
  • Restaurants Canada

Other Resources

  • How to create a menu from scratch: 10 key tips for restaurants
  • 10 Best Practices for Picking the Perfect Restaurant Location
  • Food Service and Hospitality
  • Foodism Toronto
  • Food In Canada
  • Eat Magazine
  • Canadian Food Business Magazine
  • Culinaire Magazine

restaurant business plan toronto

About the author

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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Commercial Real Estate Providers

Build a Business: How to Start a Restaurant in Canada

How to open a restaurant or qsr franchise in canada, are you in the market to build your dream quick-service or casual restaurant-based business in canada this year before you do, be sure to read this guide on the exact steps required for a new restaurant launch to get you and your business on the path to success faster..

With over 60% of Canadian adults eating out at least  1-2x per week (Pre-Covid) , the restaurant / food service industry is one of the fastest growing industries in Canada today. While restaurant trends typically come and go, it is doubtful Canadians will stop visiting eating establishments anytime soon. If you are interested in starting your own QSR-franchise, restaurant, commercial kitchen or food service business- you’ve come to the right place. Below we will go over the top things that every restaurant needs before opening their doors to the public or taken the dive into their 1st entrepreneurial food venture.

Check out these Top-Rated Articles

  • Build a Business: How to Start a Restaurant in Canada 12 Jun 2021
  • Build a Business: How to Franchise in Canada 22 Oct 2019
  • The Recipe for Success: 10 Must-Have Restaurant Interior Design Features 20 Apr 2024

What to know before starting a restaurant in Canada

Starting your own restaurant is not for the “faint of heart”, it takes alot of expert planning, dedication, and strong will to open a successful restaurant in Canada.

It requires the ability to juggle many moving parts to streamline operations and can sometimes feel like the most difficult undertaking. With that said, when you work with restaurant professionals the process can be a lot more manageable and under control. Having helped many restaurant owners open their 1st, 2nd, 3rd or 10th location, we have created  The Ultimate Guide to Opening your Own Restaurant in Canada for you to use as your go-to guide to navigating the challenging, yet, rewarding path of the food-serviceindustry.

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Looking for more insights? Our team is here to help!

We’re here to help our people, our clients, and our communities achieve their ambitions. Let us know how we can help, or what you’re looking for, and one of our experts will be contact you promptly

1. Choose your Restaurant Idea, Concept or Brand

Before you start a restaurant in Canada, you should have a clear idea or understanding of your restaurants concept and brand. A restaurant concept includes your style of service, type of food available, and the look/feel of your restaurant. Your restaurants brand is one of the most important aspects of your business, and is the image you will use to attract potential future customers.

Based on your chosen restaurant brand, the interior and exterior of your restaurant should be easily recognizable to customers and effectively communicate who you are. Designing a restaurant in a way that effectively showcases and matches your brand will leave a lasting memory with your customers, raising the likelihood of repeat business. Choosing a functional, memorable concept/design that targets a specific local demographic is a key factor to a successful restaurant in Canada.

Do you plan on having a bright and energetic atmosphere, or an upscale lounge with a dimly lit – laidback style? This is a crucial step in planning the future of your restaurant.

2. Decide on What Items to Serve

Before you open your doors to the public you’ll need to know what you will serve and be known for. Deciding what will be on you restaurant menu is another key aspect of restaurant ownership, this will also tell you what commercial food equipment you will need, what staff to hire and what customers you hope to attract. For the more serious entrepreneurs, a good suggestion would be to meet with a restaurant consultant with experience in your style of cuisine. A restaurant consultant can navigate you towards popular and trendy dishes that will drive more customers in your restaurant. Right now, your menu does not need to be 100% complete, however, you should have a good idea of the type of food you will serve in your establishment. Later on, in the restaurant development process you should create and design your menu based off which food items sell well and which don’t. As mentioned before, a restaurant consultant can be an effective resource for this part of the process.

3. Create a Restaurant Business Plan

Creating a solid business plan is essential to your restaurants success. In order to receive funding or external investments, financial advisors, lenders, and venture capitalists will want to see a well-thought out and strategic plan for the future. It will also help you develop your brand into a regional or national powerhouse which will attract a lot more customers and take out the guesswork.

Below are the main aspects to include when creating a restaurant business plan (in order):

  • Executive Summary
  • Description and Overview of your Company
  • Market Analysis
  • Business Offerings
  • Management / Organization
  • Marketing / Social Media Strategy
  • Financial Projections

3. Obtain Funding or Pitch to Investors

You should then create a budget and financial projections in order to receive the commercial loans / financing needed to begin construction on your new restaurant. This is also a good point to add any additional costs you expect your business will need to stay in business until your business grows to profitability. Also, you should include the costs you expect to incur for any licenses/ certifications and permits such as building permits, liquor licenses, etc. 

If you are still unsure what is needed consider contacting a commercial financing expert for more information. A Canadian financing expert can evaluate what type of funding that you need in order to fully build and open your restaurant. They can also find any government grants available which can help alleviate any additional financial burden off your business. 

5. Buying a Location or Commercial Leasing

Ah,  Commercial Real Estate ! This is where we really shine! This part of the process is best left to the professionals . Call or meet with a commercial real estate expert who knows the specific area you’re interested in, they can help find the perfect location for you for maximum business exposure within your budget.

If you do choose to find a location yourself, or are picking out ideal real estate locations for your commercial real estate agent, below is a list of things to keep in mind and a list of aspects we put a large focus on during the  real estate consultation  process.

Visibility and Accessibility – Look for spots that have good street visibility and are easily accessible for patrons in wheelchairs. It’s easy to choose a busy main road in your hometown, however, with a busier road typically you will pay a little bit more for the prime location. Another thing to look at is available parking – your potential customers need somewhere to park, right?

Demographics – Another thing to consider is the local demographic. If your business caters to a younger population, you should look for trendier areas in town or areas frequented by younger people. This will have a higher likelihood your business will be frequented by your chosen demographic and be, ultimately, more successful.

Staffing Costs and Wages – It’s important to take into consideration the cost of staffing your new restaurant. You need to figure out how many people you will need at certain times such as dinner or lunch. This includes kitchen staff, waiters/waitresses, hostesses, etc. If you know dinner will be your busiest time, you should alter your employees hours to fit that demand. You also need to think about the local minimum wage or what the typical restaurant in your area pays their employees.

Competition – A little competition can actually have its benefits, but you should be wise enough to have enough of a distance away that you can still attract a local following of customers who won’t be “stolen” away to your competition.

When it comes to finding a space, we at  Abeco Group  strongly recommend  commercial leasing .  Leasing a commercial space  allows you more flexibility should you choose to expand down the road or have issues when you first start out.

6. Permits, Licenses and Certifications

To open a restaurant in Canada you need to  apply for specific Canadian licenses , and permits to be able to serve to the public. This can include food vendors license, liquor license, business license, building permits, certificate of occupancy, etc. It could be worthwhile to work with a legal counsel to make sure all applicable paperwork is filled out correctly.

7. Find a Local Commercial Equipment Supplier

Finding a reputable, reliable source of quality commercial equipment fixtures at a reasonable price can make the world of difference for your restaurants profitability. Working with a wholesale commercial equipment supplier, can help you find everything you need at good prices. From Kitchen Equipment to utensils and more! If your budget is more on the smaller side, most commercial equipment suppliers also can provide used equipment cost which can help save more costs for future expenses.

8. Designing & Building Your 1st Location

9. hiring proper staff and employees.

The next major step of opening your own restaurant is hiring the correct staff to work there. Hiring experienced restaurant workers can help smooth any hiccups in daily operations and can provide great advice to business owners regarding service, branding, and efficiency. All employees should have a proven track record of teamwork and are able to stay calm under pressure. Front-of-house staff should provide warm, cheery, professional service to customers at all times.

Some examples of potential restaurant roles include the following:

  • Executive / Head Chef
  • General Manager
  • Hosts/ Hostesses
  • Waiters / Waitresses
  • Food Runners / Bussers

Advertising and Marketing your business is crucial for success. 20-30 years ago you could post an ad in your local newspaper and/or buy billboard space, however, these days you need to be a bit more creative. First, your customers should be easily able to locate your basic information online. Second, they should feel excited to visit your new restaurant. 

Below, are some ideas to help you achieve both simultaneously. 

  • Leverage the Power of Social Media – The first thing you should do is create social media pages for your business filled with bright pictures showcasing the most important aspects of your business. Common social media platforms for business include  Facebook ,  Instagram ,  Twitter , etc. When posting pictures you should consider spending a little bit of money to have quality, professional pictures taken of the food, kitchen, dining area that effectively showcase your brand to the world.
  • Build a Yelp and Yellowpages Account  – Allowing customers to leave you reviews can greatly boost your restaurants reputation. Since, the internet plays such a big role in our day-to-day lives, research has shown more than 85% of Canadians research your business before visiting. That means they will judge your business based off online reviews. Also, since  Yelp  and  Yellowpages  are such authoritative websites, it can actually help boost your website ranking on Google.
  • Build a Captivating Website – Your official website should be both; mobile friendly and easy to navigate. It should include basic information about your business including an About page, Menu, Contact Information, Good Quality Pictures, Other Locations (if applicable), etc.
  • Local Newspaper Ads  – Believe it or not, the newspaper is still a strong way to reach a local audience. We recommend contacting a local newspaper and asking about having your restaurant featured as an article. Examples such as the  Toronto Star ,  Vancouver Sun ,  Montreal Gazette , etc. A journalist will come out, ask you some questions and do a quick walkthrough to build an article introducing people to your new restaurant. There are also other local and National digital blog sites such as  Blog T.O ,  Narcity ,  Toronto Life ,  Taste Montreal , and  Curiocity Vancouver  which put a large emphasis on Local food hot spots. These types of websites have a large regional/national following and would be an excellent way to let the world know who you are and what you offer.
  • Loyalty / Reward Programs  – Depending on the size of your restaurant, loyalty programs can be a great way to build a strong following. Pizza shops like  Domino’s ,  Pizza Hut , and other local Pizza shops typically offer deals or cards where you could buy “5 Large pizzas get a Medium Free” for example. These types of programs reward repeat customers with items that make it beneficial to be a customer and leaves them coming back time and time again.

11. Plan a Soft Opening Event

Another thing you should do is host a soft opening for a few key individuals such as journalists, bloggers, Instagram influencers, neighboring businesses etc. These people have extensive authority locally, regionally, and sometimes nationally which can give your restaurant a much needed boost in local or regional popularity. This strategy also allows you to hone in on which times are more popular and find potential issues before they become problems. 

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restaurant business plan toronto

The Ultimate Guide to Opening Your Own Restaurant in Canada 2021

The ultimate guide to opening a restaurant in canada.

With over 60% of Canadian adults eating out at least  1-2x per week , the restaurant / food service industry is one of the fastest growing industries in Canada today. While restaurant trends typically come and go, it is doubtful Canadians will stop visiting eating establishments anytime soon. If you are interested in starting your own restaurant or food service business- you’ve come to the right place. GTA General Contractors have been in the restaurant construction business for 29 years and have helped local and national brands build amazing well-known restaurant concepts. We compiled a list of our top things you should do before opening your restaurant to the public.

How to Start a Restaurant in Canada

With 2020 just around the corner, many first-time entrepreneurs are beginning to plan their restaurant businesses for the new year. Starting your own restaurant is not for the “faint of heart”, it takes alot of expert planning, dedication, and strong will to open a successful restaurant in Canada.

It requires the ability to juggle many moving parts to streamline operations and can sometimes feel like the most difficult undertaking. With that said, when you work with restaurant professionals the process can be a lot more manageable and under control.  GTA General Contractors  has created  The Ultimate Guide to Opening your Own Restaurant in Canada for 2020.

1.Choose your Restaurant Idea, Concept or Brand

Before you start a restaurant construction project in Toronto, you should have a clear idea of your restaurants concept and brand. A restaurant concept includes your style of service, type of food available, and the look/feel of your restaurant. Your restaurants brand is one of the most important aspects of your business, and is the image you will portray to potential future customers.

Based on your chosen restaurant brand, the interior and exterior of your restaurant should be easily recognizable to customers and effectively communicate who you are. Designing your restaurant in a way that effectively showcases and matches your brand will leave a lasting memory with your customers, raising the likelihood of repeat business. Choosing a functional, memorable concept/design that targets a specific local demographic is a key factor to a successful restaurant in Canada.

Is your restaurant bright and energetic, or an upscale lounge with dimly lit – laidback style?

2. Type of Food Served / Menu Items

Before you open your doors to the public you’ll need to know what you will serve and be known for. Deciding what will be on you restaurant menu is another key aspect of restaurant ownership, this will also tell you what  commercial food equipment  you will need, what staff to hire and what customers you hope to attract.

Right now, your menu does not need to be 100% complete, however, you should have a good idea type of food you will serve in your establishment. Later on, in the restaurant process you should create and design your menu based off which food items sell well and which don’t.

3. Create a Restaurant Business Plan

Creating a solid business plan is essential to your restaurants success. In order to receive funding or external investments,  financial advisors, lenders , and venture capitalists will want to see a well-thought out and strategic plan for the future. It will also help you develop your brand into a regional or national powerhouse which will attract a lot more customers and take out the guesswork.

Below are the main aspects to include when creating a restaurant business plan (in order):

  • Executive Summary
  • Description and Overview of your Company
  • Market Analysis
  • Business Offerings
  • Management / Organization
  • Marketing Strategy
  • Financial Projections

4. Obtain Funding

You should then create a budget and financial projections in order to receive the  commercial loans / financing  needed to begin construction on your new restaurant. This is also a good point to add any additional costs you expect your business will need to stay in business until your business grows to profitability. Also, you should include the costs you expect to incur for any licenses/ certifications and permits such as building permits, liquor licenses, etc. 

If you are still unsure what is needed consider contacting a commercial financing expert for more information. A  Canadian financing expert  can evaluate what type of funding that you need in order to fully build and open your restaurant. They can also find any government grants available which can help alleviate any additional financial burden off your business. 

toronto building permit assitance submission gta

5. Buying a Location or Commercial Leasing

This aspect of business ownership is best left to the professionals. Call or meet with a  commercial real estate expert  who knows the specific area you’re interested in, they can help find the perfect location for you for maximum business exposure within your budget.

If you do choose to find a location yourself, or are picking out locations for your real estate professional, below is a list of things to keep in mind.

  • Visibility and Accessibility –  Look for spots that have good street visibility and are easily accessible for patrons in wheelchairs. It’s easy to choose a busy main road in your hometown, however, with a busier road typically you will pay a little bit more for the prime location. Another thing to look at is available parking – your potential customers need somewhere to park, right?
  • Demographics  – Another thing to consider is the local demographic. If your business caters to a younger population, you should look for trendier areas in town or areas frequented by younger people. This will have a higher likelihood your business will be frequented by your chosen demographic and be successful.
  • Staffing Costs and Minimum Wage  – It’s important to take into consideration the cost of staffing your new restaurant. You need to figure out how many people you will need at certain times such as dinner or lunch. This includes kitchen staff, waiters/waitresses, hostesses, etc. If you know dinner will be your busiest time, you should alter your employees hours to fit that demand. You also need to think about the local minimum wage or what the typical restaurant in your area pays their employees.
  • Competition  – A little competition can actually have its benefits, but you should be wise enough to have enough of a distance away that you can still attract a local following of customers who won’t be “stolen” away to your competition.
When it comes to finding a space, we at GTA General Contractors strongly recommend commercial leasing. Leasing a commercial space allows you greater flexibility should you choose to expand down the road or have issues when you first start out. GTA General Contractors, 2020

6. Permits, Licenses and Certifications

To open a restaurant in Canada you need to  apply for specific Canadian licenses , and permits to be able to serve to the public. This can include food vendors license, liquor license, business license, building permits, certificate of occupancy, etc. It could be worthwhile to work with a legal counsel to make sure all applicable paperwork is filled out correctly.

7. Find a Local Commercial Equipment Supplier

Finding a reputable, reliable source of quality  commercial equipment fixtures  at a reasonable price can make the world of difference for your restaurants profitability. Working with a  wholesale commercial equipment supplier , can help you find everything you need at good prices. 

Toronto Construction Company

8. Design Your Restaurant and Layout

When starting a restaurant, you should put very careful thought into the design and layout of your commercial space. Using a commercial interior designer can help bridge any gaps in abilities. Finding an interior designer that specifically deals in restaurant construction and design is key, as they know what works and what doesn’t. Your restaurant should be designed in a way that encourages open spaces between tables for waiters/waitresses to move and serve customers. 

Your main goal should be to create an effortless flow from the kitchen to the table to serve customers in the most efficient way to reduce wait times for your guests.

9. Hire the Proper Staff

The next major step of opening your own restaurant is hiring the correct staff to work there.  Hiring experienced restaurant workers  can help smooth any hiccups in daily operations and can provide great advice to business owners regarding service, branding, and efficiency. All employees should have a proven track record of teamwork and are able to stay calm under pressure. Front-of-house staff should provide warm, cheery, professional service to customers at all times.

Some examples of potential restaurant roles include the following:

  • Executive / Head Chef
  • General Manager
  • Hosts/ Hostesses
  • Waiters / Waitresses
  • Food Runners / Bussers

10. Advertise / Marketing Plan

Advertising and Marketing your business is crucial for success. 20-30 years ago you could post an ad in your local newspaper and/or buy billboard space, however, these days you need to be a bit more creative. First, your customers should be easily able to locate your basic information online. Second, they should feel excited to visit your new restaurant. 

Below, are some ideas to help you achieve both simultaneously. 

  • Leverage the Power of Social Media – The first thing you should do is create social media pages for your business filled with bright pictures showcasing the most important aspects of your business. Common social media platforms for business include  Facebook ,  Instagram ,  Twitter , etc. When posting pictures you should consider spending a little bit of money to have quality, professional pictures taken of the food, kitchen, dining area that effectively showcase your brand to the world.
  • Build a Yelp and Yellowpages Account  – Allowing customers to leave you reviews can greatly boost your restaurants reputation. Since, the internet plays such a big role in our day-to-day lives, research has shown more than 85% of Canadians research your business before visiting. That means they will judge your business based off online reviews. Also, since  Yelp  and  Yellowpages  are such authoritative websites, it can actually help boost your website ranking on Google.
  • Build a Captivating Website – Your official website should be both; mobile friendly and easy to navigate. We suggest using  WordPress . It should include basic information about your business including an About page, Menu, Contact Information, Good Quality Pictures, Other Locations (if applicable), etc.
  • Local Newspaper Ads  – Believe it or not, the newspaper is still a strong way to reach a local audience. We recommend contacting a local newspaper and asking about having your restaurant featured as an article. Examples such as the  Toronto Star ,  Vancouver Sun ,  Montreal Gazette , etc. A journalist will come out, ask you some questions and do a quick walkthrough to build an article introducing people to your new restaurant. There are also other local and National digital blog sites such as  Blog T.O ,  Narcity ,  Toronto Life ,  Taste Montreal , and  Curiocity Vancouver  which put a large emphasis on Local food hot spots. These types of websites have a large regional/national following and would be an excellent way to let the world know who you are and what you offer.
  • Loyalty / Reward Programs  – Depending on the size of your restaurant, loyalty programs can be a great way to build a strong following. Pizza shops like  Domino’s ,  Pizza Hut , and other local Pizza shops typically offer deals or cards where you could buy “5 Large pizzas get a Medium Free” for example. These types of programs reward repeat customers with items that make it beneficial to be a customer and leaves them coming back time and time again.

11. Plan a Soft Opening Event

Another thing you should do is host a soft opening for a few key individuals such as journalists, bloggers, Instagram influencers, neighboring businesses etc. These people have extensive authority locally, regionally, and sometimes nationally which can give your restaurant a much needed boost in popularity. This strategy also allows you to hone in on which times are more popular and find potential issues before they become problems. 

Opening a new or first restaurant can seem like an impossible task to many. However, as the Canadian Restaurant Industry continues to grow and expand there will be more room for another unique, extraordinary restaurant construction project. The most important thing to remember is business ownership is all about thinking ahead, with detailed planning and execution, you can build a successful, flourishing restaurant establishment. The important thing is to find a reputable commercial contractor in Toronto to assist you with design and restaurant construction so you put your best foot forward.

SharpSheets

Restaurant Business Plan Template & PDF Example

Avatar photo

  • July 23, 2024
  • Business Plan

the business plan template for a restaurant

Creating a comprehensive business plan is crucial for launching and running a successful restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let’s dive in!

Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

  • Executive Summary : Offers an overview of the restaurant’s business concept, market analysis , management, and financial strategy.
  • Restaurant & Location: Describes the restaurant’s prime location, size, seating capacity, and distinctive design, emphasizing its appeal to the target demographic.
  • Supply & Operations: Outlines the supply chain management, focusing on local sourcing and quality ingredients, and details the operational aspects, including kitchen layout, equipment, and front-of-house operations.
  • Key Stats: Shares industry size , growth trends, and relevant statistics for the full-service restaurant market.
  • Key Trends: Highlights recent trends affecting the restaurant sector, such as health-conscious dining, sustainability, and technology integration.
  • Key Competitors: Analyzes the main competitors in the vicinity, showcasing the restaurant’s unique selling proposition in comparison.
  • SWOT : Strengths, weaknesses, opportunities, and threats analysis.
  • Marketing Plan : Strategies for promoting the restaurant to maximize visibility and customer engagement.
  • Timeline : Key milestones and objectives from the initial setup through the launch and operational optimization.
  • Management: Information on who manages the restaurant and their roles.
  • Financial Plan: Projects the restaurant’s financial performance, including revenue, profits, and expected expenses, aiming for profitability and sustainable growth.

restaurant business plan toronto

Restaurant Business Plan

restaurant business plan toronto

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your restaurant’s business plan, offering a concise overview of your establishment and its offerings. It should detail your market positioning, the variety of cuisines and dining experiences you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your restaurant will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your restaurant’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the restaurant’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your restaurant’s financial plan.

Restaurant Business Plan Executive Summary Example

Restaurant Business Plan executive summary1

Business Overview

The  business overview  should detail the restaurant’s specific features, such as its seating capacity, ambiance, and supply chain practices. It’s important to emphasize how the restaurant caters to its target demographic through its strategic location and operational model.

Example: “[Your Restaurant Name],” located in [specific area or neighborhood], covers [total square footage] sq ft and includes a main dining area, bar, and outdoor patio, offering a total of [number of seats] seats. The restaurant’s commitment to quality is reflected in its locally sourced produce and sustainable supply chain practices, catering to a diverse clientele.

Market Overview

This section involves analyzing the size, growth, and trends of the full-service restaurant market. It should address the industry’s digital transformation, health-conscious dining preferences, and eco-friendly practices, positioning the restaurant within the broader market context.

Example: “[Your Restaurant Name]” enters a U.S. full-service restaurant market valued at $293 billion. The restaurant’s focus on technology, healthier menu options, and sustainability aligns well with current  market trends  and consumer preferences, setting it apart from six main competitors in the area.

Management Team

Detailing the management team’s background and expertise is crucial. This section should highlight how their experience in culinary arts and restaurant management contributes to the success of the restaurant.

Example: The Executive Chef and Co-Owner of “[Your Restaurant Name]” leads menu development and kitchen operations, ensuring high-quality food preparation and presentation. The General Manager and Co-Owner manages daily operations, staff, customer service, and financial aspects, ensuring a seamless dining experience.

Financial Plan

This section should outline the restaurant’s financial goals and projections, including revenue targets and profit margins, providing a clear picture of its financial aspirations and health.

Example: “[Your Restaurant Name]” aims to achieve $2.7 million in annual revenue with an 11%  EBITDA  margin by 2028. This financial goal is supported by a focus on quality dining experiences, strategic marketing, and operational efficiency, positioning the restaurant for growth in the  competitive  full-service restaurant market.

For a Restaurant, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Briefly describe the restaurant’s physical environment, emphasizing its design, ambiance, and the overall dining experience it offers to guests. Mention the restaurant’s location, highlighting its accessibility and the convenience it offers to diners, such as proximity to entertainment venues or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Operations

Detail the range of cuisines and dishes offered, from appetizers and main courses to desserts and specialty beverages. Outline your sourcing strategy, ensuring it reflects a commitment to quality and sustainability, and matches the market you’re targeting.

Highlight any unique culinary techniques, exclusive ingredients, or innovative kitchen technologies that set your restaurant apart. Discuss your operational strategies, including inventory management, supplier relationships, and kitchen workflow, to ensure efficiency and consistency in delivering exceptional dining experiences.

Business Plan_Pizzeria restaurant

Industry size & growth

In the Market Overview of your restaurant business plan, start by examining the size of the restaurant industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key market trends

Proceed to discuss recent market trends , such as the increasing consumer interest in farm-to-table dining, ethnic cuisines, and experiential dining experiences.

For example, highlight the demand for restaurants that offer unique cultural dishes, the growing popularity of health-conscious and dietary-specific menus, and the integration of technology in enhancing the dining experience.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your restaurant in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your restaurant’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Restaurant Industry

To comprehensively understand the competitive landscape, start by identifying both direct and indirect competitors in your area. Direct competitors are restaurants offering similar cuisines or targeting a comparable customer base. For instance, if your restaurant specializes in authentic Mexican cuisine, other nearby Mexican restaurants are direct competitors. Indirect competitors may include food trucks, cafes, or even fast-casual eateries offering diverse menus that overlap with your offerings.

Leverage digital tools like Google Maps, Yelp, or food delivery apps to map out the locations of your competitors. Reviews and ratings on platforms like TripAdvisor and social media can offer valuable insights into competitors’  strengths and weaknesses . Positive reviews highlighting exceptional service or a unique dining experience at a competitor’s restaurant can signify an area of focus for differentiation and improvement.

Restaurant Business Plan key competitors

Restaurant Competitors’ Strategies

To conduct a comprehensive analysis, delve into various aspects of your competitors’ operations:

  • Menu Offerings:  Assess the breadth and uniqueness of dishes offered by competitors. Take note if any local restaurants are gaining traction by focusing on farm-to-table ingredients, regional specialties, or offering innovative fusion cuisines, as these aspects often indicate emerging  market trends .
  • Service and Ambiance:  Evaluate the overall customer experience. Identify if there’s a competitor renowned for its fine dining experience, another known for its trendy and vibrant atmosphere, or one that excels in providing a casual, family-friendly environment. These elements significantly contribute to a restaurant’s success and differentiation.
  • Pricing and Positioning:  Compare pricing strategies . Determine whether competitors are positioned as budget-friendly eateries or if they adopt a more upscale approach with premium pricing, highlighting gourmet ingredients, or exclusive dining experiences.
  • Marketing Channels :  Analyze how competitors market their restaurants. Do they leverage social media platforms for promotions, engage in collaborations with local influencers, or host special events or themed nights? Understanding their marketing tactics provides insights into effective promotional strategies that resonate with the  target audience .
  • Operational Efficiency:  Observe if competitors have adopted technological advancements such as online reservations, mobile apps for ordering, or contactless payment systems. These innovations not only streamline operations but also contribute to an enhanced customer experience.

What’s Your Restaurant’s Value Proposition?

Reflect on what uniquely distinguishes your restaurant from the competition. It could be your innovative fusion of cuisines, a strong emphasis on locally sourced and sustainable ingredients, or perhaps a distinctive ambiance that reflects a particular cultural theme or historical narrative.

Listen attentively to customer feedback and observe emerging industry trends to identify gaps or unmet demands in the market. For instance, if there’s a growing interest in plant-based dining experiences and competitors have not tapped into this niche, it could present an opportunity for your restaurant to cater to this demand and stand out.

Consider how your restaurant’s location influences your strategy. A downtown location might warrant a focus on quick service and catering to office lunch crowds, while a suburban setting could embrace a more relaxed, family-friendly dining environment.

Restaurant Business Plan strategy

First, conduct a SWOT analysis for the restaurant , highlighting Strengths (such as a unique menu and exceptional customer service), Weaknesses (including potential high operational costs or strong competition in the area), Opportunities (for example, a growing interest in diverse cuisines and healthy eating), and Threats (such as economic downturns that may decrease consumer spending on dining out).

Restaurant Business Plan SWOT

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, food blogger outreach, and community involvement, such as local events or charity sponsorships.

Marketing Channels

Utilize various marketing channels to engage with your audience and attract new patrons.

Digital Marketing

  • Social Media:  Utilize social media platforms such as Instagram, Facebook, Twitter, and TikTok to showcase your restaurant’s ambiance, signature dishes, behind-the-scenes glimpses, chef profiles, and customer testimonials. Regularly engage with your audience by responding to comments, hosting interactive polls, or sharing user-generated content.
  • Email Marketing:  I mplement an email marketing strategy to build a loyal customer base. Offer incentives such as exclusive recipes, promotional offers, or early access to special events in exchange for subscribing to your newsletter. Regularly communicate with your subscribers, sharing updates, promotions, and stories that resonate with your brand.
  • Website and SEO:  Maintain an  informative website showcasing your menu , chef profiles, reservation options, and reviews. Optimize it for local SEO to ensure visibility in searches related to your cuisine and location.

Local Advertising

  • Printed Materials:  Distribute well-designed flyers in nearby neighborhoods, advertise in local magazines, and collaborate with tourism centers or hotels for exposure.
  • Community Engagement:  Sponsor local events, collaborate with food bloggers or influencers, and participate in food festivals or charity events to increase brand visibility and community involvement.
  • Partnerships:  Forge partnerships with complementary businesses (such as wine shops or local farmers’ markets) for cross-promotions or collaborative events.

Promotional Activities

Engage potential customers through enticing offers and events.

  • Special Offers:  Launch promotions like ‘Chef’s Tasting Menu Nights’ or ‘Happy Hour Discounts’ to attract new diners and retain regulars.
  • Loyalty Programs:  Implement a loyalty system offering rewards for frequent visits or referrals, such as a free appetizer or dessert after a certain number of visits.
  • Events and Special Occasions:  Host themed nights, seasonal menus, or exclusive culinary events to create buzz and attract diverse audiences.

Restaurant Business Plan marketing plan

Sales Channels

Efficiently manage  sales channels  to maximize revenue and customer satisfaction.

In-Restaurant Upselling

  • Menu Strategies:  Highlight premium dishes or chef’s specials, offer wine pairings or dessert suggestions, and train staff to upsell without being pushy.
  • Merchandising:  Display branded merchandise, specialty sauces, or cookbooks for sale to complement the dining experience.

Online Ordering and Delivery

  • Online Ordering Platform: I mplement an easy-to-use online ordering system for takeout or delivery orders. Offer exclusive online discounts or bundle deals.
  • Delivery Partnerships:  Collaborate with food delivery services or establish in-house delivery for customers’ convenience.

Reservation Management

  • Reservation System:  Utilize an efficient reservation platform to manage bookings. Offer incentives for off-peak reservations or special occasions.

Membership and VIP Programs

Developing membership and VIP programs can cultivate a loyal customer base and drive recurring revenue:

  • VIP Memberships:  Create exclusive membership tiers offering perks like priority reservations, chef’s table access, or private event invitations.
  • Reward Programs:  Develop a digital loyalty system where customers earn points for every dollar spent, redeemable for discounts, exclusive menu items, or special events.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the restaurant’s opening, marketing campaigns, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Business Plan Gym Timeline

The management section focuses on the restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the restaurant towards its financial and operational goals.

For your restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Restaurant Business Plan management1

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Restaurant Business Plan financial plan1

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How to start a restaurant or catering business in Ontario

Table of contents.

Introduction Getting started Regulations Taxation Financing Other resources

Introduction

There are many different kinds of restaurants and catering services. Whether you are interested in starting a café, bar, family-style restaurant or event catering business, you will be part of the food services industry.

Popular types of restaurants and catering businesses include:

  • Gourmet and casual dining
  • Fast-food and food trucks
  • Pubs, bistros and brasseries
  • Coffee shops and cafeterias

This guide focuses on operating an independent restaurant or catering business. For information on buying a franchise, visit the  Canadian Franchise Association  website or call them at  1-800-665-4232 .

Getting started

When you start a business there are several things to consider before you can sell your product or service. Most businesses in Ontario need to complete a minimum of three basic steps:

  • Find out what licences and regulations apply to your type of business
  • Choose a business structure and register or incorporate your business
  • Determine if you will need to collect and remit HST

Our Starting a business guide will give you more information on these steps and other basic requirements for starting a business in Ontario.

Read online: Starting a business

Regulations

Your business may need licences and permits from the federal, provincial and municipal levels of government.

In addition to the information you will find in this guide, you can use BizPaL to find licences and regulations that may affect your business.

Use online: Permits and licences search

Restaurants and catering services are highly regulated in Ontario. Some common regulations that may apply to your business include:

Food safety and labelling

Your local health unit is the main contact for information on food safety and inspections.

Contact your local health authority to arrange an inspection of your business location, equipment and processes and make sure your business is complying with provincial and federal legislation.

The following link provides contact information for local health authorities that inspect food businesses in Ontario.

Read online: Local public health contacts  

You also need to follow safety standards and labelling rules if you produce, service, process or manufacture food.

Canadian Food Inspection Agency (CFIA)

Most businesses that buy, sell, ship, process or manufacture food will have CFIA regulations to follow.

These regulations may require you to:

  • Obtain a licence
  • Keep records
  • Properly label packaged foods

Activities that are regulated include:

  • Importing foods for re-sale
  • Selling food to the public, retail food sales
  • Shipping food products to another province or territory
  • Producing, manufacturing or advertising food products

Check with the CFIA to find out which requirements apply to your business.

Contact CFIA: 1-800-442-2342 Food licences Food safety for industry Toolkit for businesses Labelling, standards of identity and grades

Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)

You may have regulations or inspection standards to follow if you produce, transport or manufacture specific food products in Ontario. Regulated products include dairy, eggs, fish, meat, honey and other plant-based products. Contact the Ministry directly to find out what will apply to your business.

Contact OMAFRA: 1-877-424-1300 Food Inspection Programs

Ontario Ministry of Health

Home-based food businesses are allowed to sell low-risk, home-prepared foods and are exempt from certain regulatory requirements, such as specified handwashing stations in food premises, compliance with commercial dishwashing requirements and food handling training certification.

Low-risk food items are generally considered non-hazardous and do not require time and temperature control. Some examples of low-risk foods include:

  • Most breads and buns (without meat, cream filling, etc.)
  • Most baked goods (with no custard)
  • Chocolate, hard candies and brittles
  • Fudge and toffees
  • Pickles, jams and preserves
  • Granola, trail mix, nuts and seeds
  • Cakes (icing that doesn’t require refrigeration), brownies, muffins and cookies
  • Coffee beans and tea leaves

For more information contact your local public health unit: Ontario Ministry of Health - Food handler training and certification Local public health contacts

Food licensing municipal

Municipal regulations.

Many municipalities have licences specific to food handling or food preparation. If your municipality is not listed in BizPaL, or you are not sure what municipality your business falls under, you can contact the Association of Municipalities of Ontario (AMO) for information on what municipal regulations, licences or permits will be needed to operate your business.

1-877-426-6527 Association of Municipalities of Ontario

Single-use plastics rules and restrictions

There are rules and restrictions for using, selling, importing and exporting single-use plastics that may apply to your business. The regulations include common items such as plastic bags, cutlery, straws and various containers. Refer to the Environment and Climate Change Canada’s website for the regulations and guidance on alternative products for your business. 

Contact Environment and Climate Change Canada: [email protected] Single-use Plastics Prohibition Regulations

Tips and gratuities

As an employer in Ontario, there are rules set out in the  Employment Standards Act, 2000   (ESA) that you need to follow when handling tips and other gratuities in your workplace. Generally, you cannot withhold, make deductions from or make your employees hand over their tips or other gratuities. Find more information about your responsibilities and best practices for handling tips on the website of the Ontario Ministry of Labour, Immigration, Training and Skills Development or contact the ministry directly.

Contact Ministry of Labour, Immigration, Training and Skills Development 1-800-531-5551 Tips and other gratuities

Smoke-Free Ontario (Not Selling)

Smoke-free ontario.

The Ontario government prohibits smoking in all enclosed workplaces and enclosed public places. Find out what your responsibilities are, what is required for inspections and how to get “No Smoking” signs.

Contact your local Public Health Unit: Public Health Unit Locator

Selling, serving and delivering alcohol

If you plan on selling, serving or delivering alcoholic beverages, you will need one or all of the following:

Liquor sales licence

You will need a liquor licence for your business if you sell or serve alcoholic beverages in an area where light meals are available.

Contact the Alcohol and Gaming Commission of Ontario (AGCO) 1-800-522-2876 Liquor sales licence

Bring your own wine (BYOW)

The BYOW endorsement allows customers of your licensed establishment to bring unopened wine from home. If you are interested in getting a BYOW endorsement for your business, contact the AGCO.

Contact AGCO: 1-800-522-2876 Apply for a bring-your-own-wine endorsement

Catering endorsement

Your business can get a catering endorsement from the AGCO if you wish to sell and serve liquor at catered events in an unlicensed area.

Contact AGCO: 1-800-522-2876 Apply for a caterer's endorsement

Liquor delivery services

If you are involved with the delivery of alcohol to individual consumers in Ontario, you will need to have a provincial liquor delivery service licence and meet requirements for training on handling alcohol and for record keeping.

Contact AGCO: 1-800-522-2876 Liquor delivery service

Special occasion permit

You will need a permit to serve alcohol at special events, such as weddings or charity fundraisers. Special occasion permits cannot be issued for a private residence.

Contact the Alcohol and Gaming Commission of Ontario (AGCO): 1-800-522-2876 Special occasion permits

Maintaining high health standards

Your restaurant or catering business will be inspected and appraised, so you should strive to maintain high health standards. There are several standards that you may need to be aware of including:

  • Food temperature control
  • Protection of food from contamination
  • Employee hygiene and hand washing
  • Maintenance and sanitation of surfaces and equipment that come into contact with food
  • Maintenance and sanitation of surfaces and equipment that do not come into contact with food
  • Maintenance and sanitation of washrooms
  • Storage and removal of waste
  • Pest control.

For further information, call your local  Public Health Unit .

Music licence

When your business uses recorded music, you are responsible for getting the right licence(s) for that use. Contact the following organization for more information:

Organizations that use music are legally required to get the applicable RE:SOUND and SOCAN licences. Businesses can get both licences through Entandem to ensure that they are using music ethically and legally.

Contact Entandem: 1-866-944-6223 [email protected] Entandem

Legal questions

You can contact Pro Bono Ontario’s free legal advice hotline to enquire about getting help with your everyday civil legal needs (no family law, immigration or criminal law). The service is generally aimed at those who cannot afford a lawyer.

Note that  service is not guaranteed  and you will be asked questions as part of the qualifying process, such as the amount of personal income earned by your household, your name, postal code and age range.

Contact Pro Bono Ontario’s Free Legal Advice Hotline: 1-855-255-7256

Read online: Pro Bono Ontario - Free Legal Advice Hotline

You can also contact the Law Society of Ontario's Law Society Referral Service if you have legal questions of a business nature. The service may be able to assist you in finding a lawyer or paralegal, based on your needs.

Use online: Law Society Referral Service

Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.

Read online: Taxation guide

If you sell goods and services in Ontario, you may need a business number to collect and remit the Harmonized Sales Tax (HST). Most businesses that make less than $30,000 in any 12-month period are not required to charge HST; however, you can register voluntarily and claim input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA: 1-800-959-5525 Canada Revenue Agency

Additional tax requirements that may apply to restaurants and caterers in Ontario include:

Prepared food and beverages

The following will help you understand how to charge the Harmonized Sales Tax (HST) on prepared food and beverages.

Contact CRA: 1-800-959-5525 Harmonized Sales Tax for Ontario - Point-of-Sale Rebate on Prepared Food and Beverages

Coupons and gift certificates

If you offer coupons and gift certificates, find out how to apply the HST when you sell them and when you redeem them.

Contact CRA: 1-800-959-5525   How to treat  coupons  and  gift certificates

Alcoholic beverages – Beer and Wine Tax

In addition to charging HST, you need to know how much tax was collected on beer and wine products you sell to customers. Ontario manufacturers charge a special beer and wine tax to suppliers which is included in the price you pay for your inventory. If requested, you need to be able to tell your customers how much beer and wine tax was paid.

Contact the Ministry of Finance: 1-866-668-8297 Beer and Wine Tax

Grants, contributions, subsidies and loan guarantees are available from various government sources. Use Innovation Canada’s online search tool to look for programs and services that may apply to your business.

Search online: Business Benefits Finder

Other resources:

Industry-specific information

  • Accommodation and Food Services (NAICS 72): Ontario

1-888-576-4444

Contact us by email

Top business essentials

  • Business plan guide
  • Business regulations guide
  • Employment regulations: Hiring
  • Financing a business guide
  • Marketing plan outline
  • Starting a business
  • Taxation guide

Restaurant Business Plan Sample

Hospitality is competitive, and has a major requirement for working capital.  Opening a restaurant can be a great idea, but only if you’re prepared!  The following restaurant business plan sample will show you what it takes to develop a plan that answers all the major questions in operations, marketing, HR and financials.

1.0 Executive Summary

In the summer of 2021, Sample Restaurant operating as “Sample Restaurant” is set to serve the Ottawa-Gatineau metropolitan area with world-renowned, modern Mexican cuisine.  With 14 years of culinary experience spanning over three continents, Executive Chef and Owner, Max Smith looks to offer the National Capital Region a truly distinguished dining experience.

Located in Gatineau’s newly developed Sage Complex, Sample Restaurant is positioned to attract a loyal customer base from residents within the Sage Complex, downtown Ottawa, and the nearby Hull-Aylmer district.  Moreover, the Ottawa-Gatineau region has a substantial median household income of $82,053, and median family income of $105,050 which positions Sample Restaurant in one of Canada’s highest earning metropolitan areas.

Sample Restaurant’s launch is timed favourably, considering the surrounding community that is eager to get back out, and enjoy food and drinks with loved ones again.  As many bars and restaurants have barely weathered the effects of Covid-19, Sample Restaurant will launch on what is anticipated to be the last twelve months of this pandemic.  Year 1 will be foundational to the long-term success of Sample Restaurant by utilizing a defensive strategy that focuses efforts on takeout, and building brand awareness.

As the pandemic subsides the restaurant will welcome more and more guests to dine in.  Sample Restaurant’s open concept, vibrant feel and warm ambience will set the tone as the National Capital Region’s new place to be.  Overtime guests will stay fulfilled through an innovative and eclectic menu developed by Executive Chef and Owner, Max Smith.  At the bar, guests will be transported from tradition to novelty.  A selection of wines, spirits, and cocktails (Mexican emblematic distilled) will be carefully chosen to create a wonderful modern Mexican experience.

Sample Restaurant’s total budget for the leasehold improvements, equipment, inventory, furniture and decor is $384,312.  Sample Restaurant is seeking a $60,000 loan from Futurpreneur Canada, and a $324,312 loan through the Canadian Small Business Financing Program (CSBFP).  Even with conservative projections the restaurant  anticipates an annual net income before interest, tax, depreciation, or amortization of $114,418 in Year 1, $200,232 in Year 2 and $235,108 in Year 3.  In addition to being one of the region’s most sought-after restaurants, Sample Restaurant will  be recognized as a fair and equitable employer.

2.0 Business Overview

Sample Restaurant, operating as “Sample Restaurant” (12721716 Canada Inc.) was incorporated in the Province of Quebec on February 8, 2021.  Sole shareholder, and Executive Chef, Max Smith seeks to utilize over two decades of culinary expertise through Sample Restaurant.  Although the Covid-19 pandemic has largely been a loss for full-service restaurants, Sample Restaurant is positioned to develop brand awareness via social media and food-delivery partnerships throughout the latter part of the pandemic.  In 2022, as the pandemic subsides, the restaurant will shift its efforts to welcome more and more guests inside.

2.1 Business Summary

With a population of 1,408,000, the Ottawa-Gatineau region 1 is Canada’s sixth largest metropolitan area, and has the third highest median family income at CAD $105,050.  Sample Restaurant is located at the heart of this booming metropolis, in the ultramodern Sage Complex.  A perfect location, in an exceptional area when we consider that 52.1% of industry revenue in 2020 came from the “middle-income quintile”.

To lead Sample Restaurant is an individual with a lifetime of culinary experience, rooted in a passion for good food and people.  Mr. Smith’s culinary journey started at the helm of his mother, learning to cook traditional Mexican food in his family’s kitchen.  This experience grew into a passion that has taken Mr. Smith to the highest levels of the culinary field in Italian and Mexican cuisines.  In addition to over two decades of experience, Mr. Smith possesses an impressive culinary academic background.

With a lifetime of experience and knowledge, Mr. Smith will develop Sample Restaurant into the Ottawa-Gatineau region’s leading modern Mexican restaurant.  Furthermore, Sample Restaurant will be located in the cutting edge Sage Complex, an area with high earning individuals and families, plus additional establishments attracting even more of the region’s affluent population.

Restaurant business plan financials

2.2 Industry Overview

In 2020, Canada’s “Full-Service Restaurant Industry” had a gross revenue of $33.1 Billion CAD, and over the five years to 2025 the industry is forecasted to expand at a compound annual growth rate (CAGR) of 3.4% to $39.1 Billion CAD. 2   The “Full-Service Restaurant Industry” NAICS (North American Industry Classification System) code 7225, comprises establishments primarily engaged in providing food services to patrons who order and are served while seated and pay after eating.

Consumer spending is projected to continue growing, driven by relatively low unemployment and high levels of disposable income. Corporate profit, which enables businesses to allocate more funds to entertaining clients and prospects at restaurants, is also expected to improve in coming years, bolstering industry growth. Furthermore, strong growth in the number of households earning more than $100,000 per year will likely lead to greater spending in the industry’s high-end segments.

Like many other industries, the Covid-19 pandemic has brought challenges to the Full-Service restaurant industry.  However, where some industries will be permanently transformed, the Full-Service Restaurant industry differs.

Throughout the many closures and reopenings of full-service restaurants in Canada and across the world, meeting with loved ones for food and drinks has stood the test of the pandemic.  Therefore, the Covid-19 vaccination is largely seen as the saving grace for the full-service restaurant industry, and will indefinitely provide a strong return to industry health.

Some notable changes have come with “young adults” recently surpassing “baby boomers” as the highest spending demographic in the Canadian Full-Service Restaurant Industry.  This new wave of consumers are driving demand for health conscious options including vegan and vegetarian cuisine.

2.3 Mission Statement

Sample Restaurant’s mission is to deliver impact to all five senses; by creating a modern restaurant that has the style of an art gallery, taste and aroma of modern Mexican cuisine, touch of eclectic design, and the universal sound of good music.

2.4 Vision Statement

Sample Restaurant’s vision is a connected supply-chain of our restaurant, customers, local farmers, and latin american artists; where stakeholders are encouraged to be their authentic selves.

2.5 Company Values

Sample Restaurant’s Company Values:

Respect: Understanding that everyone is entitled to their own opinion, and that we must work to be courteous with others regardless of any differences.

Excellence: Excellence starts with ourselves, by ensuring that our side of the street is clean.  From there we can inspire our colleagues to reach higher, and to provide the ultimate customer experience.

Love: We work to maintain an environment of love and compassion, then we ensure our customers feel that love through a warm ambience, thoughtful food and drinks.

Creativity: Ask questions, be curious, and use your imagination as a tool to solve problems and prevent potential problems from happening.

Care: We are all responsible for executing on these values, and to be accountable for our own actions.

2.6 Goals and Objectives

  • Secure funding for capital expenditures.
  • Complete all required renovations.
  • Purchase equipment, inventory, furniture and decor.
  • Hire and train staff.
  • Launch Sample Restaurant on July 1, 2021 (Canada Day).
  • In Year 1, establish our brand in the Ottawa-Gatineau region through consistent social media engagement, and a food-delivery partnership.
  • Significantly scale up our “dine in” operations in Year 2.  Welcome the region back to normal with Sample Restaurant as the new place to be.

2.7 Key Success Factors

Sample Restaurant has identified the following key success factors:

  • To maintain a clear market position as a “modern Mexican restaurant”, therefore differentiating ourselves from our
  • Ensuring an appropriate pricing policy. To maintain costs and profit on meals, we must ensure that our pricing and portion control process is reviewed regularly.
  • Ability to control stock on hand. Controlling orders, stock and food waste, which are major cost areas, will reduce unnecessary expenses.
  • Maintaining our location within the Sage Complex, Gatineau. This location is easily accessible to the broader Ottawa-Gatineau region.
  • Maintaining access to a multi-skilled and flexible workforce: Access to suitably skilled and trained staff on hourly rates is required to meet peak customer demand.

2.8 Staffing

Back of House

Executive Chef: Will oversee all kitchen areas, logistics, management, plus the creation of new menus and concepts.

Sous Chef: Responsible for kitchen operations, to supervise, train and support kitchen staff, and to be the Executive Chef’s replacement.

Chef De Partie 1: (Dinner) To prepare cold food items including salads, ceviches, cold cuts and salad dressing.  To prepare supplies, food items for production, and dishes.

Chef De Partie 2: (Dinner, Part-Time) To prepare hot food items including sautes, grills, rice, and prepare supplies, food items for production, and dishes.

Chef De Partie 3: (Lunch) To prepare cold food items including salads, ceviches, cold cuts and salad dressing.  To prepare supplies, food items for production, and dishes.

Chef De Partie 4: (Lunch, Part-Time) To prepare hot food items including sautes, grills, rice, and prepare supplies, food items for production, and dishes.

Dishwasher 1: (Dinner) Responsible for the cleanliness and sanitization of the kitchen area, dishes, tableware, glassware, pots, pans, and utensils through manual and machine cleaning methods.

Dishwasher 2: (Lunch) Responsible for the cleanliness and sanitization of the kitchen area, dishes, tableware, glassware, pots, pans, and utensils through manual and machine cleaning methods.

Front of House

Restaurant Manager: Responsible for leading the front of house, restaurant administration, recruiting, hiring restaurant staff, training, and supervising the bar, as well as greeting and serving restaurant guests.

Server 1: (Dinner) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.

Server 2: (Dinner, Part-Time) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.

Server 3: (Lunch) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.

Server 4: (Lunch, Part-Time) Responsible for taking orders, answering questions about the menu, selling the restaurant’s food, drinks, taking payment, communicating orders with the kitchen staff, seating customers, and helping with customer service and cleaning.

Bartender 1: (Dinner) Responsible for mixing and serving alcoholic beverages based on customer requests, verifying the identification and age of customers, accepting payment from customers, cleaning glasses, bar utensils and recording sales.

Bartender 2: (Lunch) Responsible for mixing and serving alcoholic beverages based on customer requests, verifying the identification and age of customers, accepting payment from customers, cleaning glasses, bar utensils and recording sales.

Host: Responsible for greeting guests, providing accurate wait times and escorting guests to the dining and bar areas.

2.9 Management

Executive Chef and Owner                                                                                                   

Experienced Chef, degree in culinary arts, with a wide knowledge of international cuisine specializing in Italian and Mexican. Quality-focused, specializing in implementing innovative culinary techniques and developing complex flavor combinations.  Has successfully lead teams for over two decades.

  • Dynamic, perceptive and focused on details
  • Solid interpersonal, strong leadership with exceptional team building skills
  • Efficient multitasker
  • Wide knowledge in food handling (HACCP) – Certified Food Handler
  • Strong knowledge on inventory control
  • Focused and disciplined
  • Oriented to new trends, innovative and creative
  • Attentive to productivity and financial goals
  • Strong training in HR, energetic work attitude

Languages                                                                                                                                                                                    

3.0 Products & Services

Sample Restaurant is committed to providing an innovative and eclectic menu, in addition to a premium dine in service.  Executive Chef and Owner, Max Smith will oversee the evolution of the menu, and ensure the Sample Restaurant team delivers on the highest possible service standards.

3.1 Dine In

It is Sample Restaurant’s perspective that the food and drinks customers receive is equally as important to their general experience in our restaurant.  From the moment customers walk in they are greeted with the accepting, relaxed ambience of our team.  Sample Restaurant’s Front of House staff work diligently to ensure each customer is heard, and through consistent improvement in “Front of House to Back of House” communication, our kitchen staff delivers delicious, modern Mexican cuisine, tailored to our customers desires.

3.2 Takeout

Sample Restaurant offers a takeout service for customers who live nearby, or are passing by the restaurant.  The benefit of takeout over food-delivery is that the restaurant keeps one-hundred percent of the sale with takeout.  With the emergence of food-delivery apps, takeout is declining in popularity, thus Sample Restaurant will offer it as a service, but will invest minimally in advertising it.

3.3 Food-Delivery

For Sample Restaurant’s first year of operation the restaurant will work to use food-delivery service, Skip the Dishes, as a means to infiltrate the market.  The restaurant recognizes Skip the Dishes and competing food-delivery service, Doordash as unsustainable options for long-term growth due to an approximate 20-30% commission charge.  Although, while the tail-end of the Covid-19 pandemic is upon us, Sample Restaurant will partner with Skip the Dishes to advertise on the app in the Ottawa-Gatineau area.  This immediate investment will familiarize the local market with Sample Restaurant and assist in the transition to our dine in service in Year 2.

MERENGADO GUANAVANA 13

Guanavana Cremoso, vanilla merengue, peach gel, candied cacao nibs.

EL ITALOMexicoANO  12

Lucuma/mascarpone tiramisú, lady fingers, cocoa powder and espresso syrup.

QUESO APACIONADO  13

Passion fruit cheesecake bar, graham cookie butter crust, cheese, passion fruit coulis.

ALFAJOR AL PLATO  12

Broken alfajor, pate brisee, dulce de leche, coconut ice cream, lemon zest.

EL TRADICIONAL  19

Classic Mexican ceviche, red snapper, tigers’ milk, caramelized sweet potato, chulpe corn.

EL APALTADO  18

Sockeye salmon Ceviche, yellow tigers’ milk, charred avocado, purple potato chips.

EL CARRETILLERO 22

Inspired in the vibrant Guadalajara’s street food, Red snapper, and octopus ceviche, rocoto

tigers’ milk, calamari chicharron, chulpycorn, seaweed.

TIRADITO DE ATUN 22

Albacore tuna slices, citrus ponzu sauce, sesame tossed avocado, plantain chips, cilantro sprouts.

Tender Octopus, botija olives sauce, creamy avocado and garlic crostini.

LOMO SALTADO  34

Tenderloin Beef stir fry, soy/oyster sauce, purple potatoes, Mexican corn/roasted garlic rice.

ARROZ VERDE  32

SECO DE CABRITO 36

Braised lamb shank, cilantro jus, navy beans, mint pico de gallo.

Braised short ribs, garlic mash potato, grilled bb carrots, panca red wine jus.

PESCADOS Y MARISCOS

ARRISOTADO  28

Grilled octopus, aji panca, butternut squash and black mint risotto, feta, fava beans.

ARROZ CON CONCHAS  29

Grilled scallops, shellfish rice, Mexican corn, carrots, peas, and yellow tiger’s milk.

Black cod, shellfish brood, blistered cherry tomatoes, shallots, colored potatoes.

CHICHARRON  36

Black cod/octopus/calamar chicharron, crispy black yucas, criolla and trio sauces

(herbed chimichurri, huancaina and rocoto sauce).

CAUSA JARDINERA  17

Beets, peas, avocado, olive sauce, spiced vegan mayo, aji Amarillo and potato dough.

HUERTO PACHAMANQUERO 26

Baby carrots, baby corn, sweet potato, dry fava beans, soft tofu, Andean herbs

Chimichurri.

CARAPULCRA HINOCENTE 29

Sun dried potato spiced stew, shiitake, grilled bok choy.

ENSALADA Sample Restaurant 15

Asparagus, blueberries, quinoa, feta, greens, spicy dressing – vegetarian.

4.0 Operations

Sample Restaurant has a standard full-service restaurant operations plan.  Through a hiring process of experienced front and back restaurant staff, Sample Restaurant will execute on operations methodically, and with safety at top of mind.  Our operations plan will be reviewed and updated quarterly, incorporating ideas from our staff that improve safety and efficiency.

4.1 Location

According to Statistics Canada’s 2019 Population Growth Rate Study, Ottawa-Gatineau ranks as the third fastest growing metropolis in Canada 3 .  This region is not only fast growing, but also high-earning.  Moreover, the Ottawa-Gatineau region has the third highest median family income in Canada at CAD $105,050.  This is especially important when  realizing that 89.5% of industry revenue comes from the middle and top income quintiles.

The Sage Complex within the Le Plateau district, is close to everything, from Gatineau Park to downtown Gatineau, only 8 minutes away from Ottawa, near public transportation, schools, clinics, and stores.  This sprawling community encapsulates our target customer: social and affluent.

4.2 Equipment

  • Gas Countertop Heavy Duty Charbroiler
  • Gas Countertop Heavy Duty Griddles
  • Bottom Mount Reach-in Refrigerator
  • Bottom Mount Reach-in Freezer
  • Full-size Gas Convection Oven
  • Vacuum Machine
  • Standard Top Sandwich Preparation Table
  • Under Counter/Worktop Refrigerator
  • Coffee/Espresso Maker
  • Coffee Grinder
  • Glass Door Back Bar Refrigerator
  • Self-Contained Ice Machine
  • Tables/Chairs
  • Hood System
  • Smallware (Pots, Pans, Utensils)

4.3 Inventory

  • Canned Goods
  • Herbs and Spices
  • Jars, Cartons, Condiments
  • Fruit, Vegetables, Produce
  • Baking Goods
  • Cleaning Supplies

4.4 Health and Safety

Food Safety Plan

Sample Restaurant’s Food Safety Plan incorporates best practices and regulations from the Canadian federal government, Quebec’s Food Regulations (sections 1.3.1.2.1 and 2.2.4) and the City of Gatineau.  Sample Restaurant works to uphold the highest food safety practices by ensuring the following:

  • Our Executive Chef to show proof of Food Establishment Manager training before applying or reapplying for a business licence.
  • An active business license through the Quebec Ministry of Agriculture, Fisheries and Food
  • A record of training certificates for all current employees and past employees who have worked in the past 12 months.
  • Either one employee or 10% of our staff on any given shift with a valid Food Handler certification
  • At least one member of our team, or 10% of our team present on any given shift with a valid Food Handler Certificate

Covid-19 Safety Plan

Sample Restaurant’s Covid-19 Safety Plan works to monitor the information provided by our local, provincial and federal government, and adapts this very plan as new information is provided.  The health and safety of our staff and patrons is of our highest priority.  This plan outlines the policies, guidelines, and procedures we have put in place to reduce the risk of Covid-19 transmission.

First, we will educate staff on when to stay home.  Any staff member that has symptoms of Covid-19, or has been in the presence of someone with the virus should stay home. Masks will be worn when within 6 ft of coworkers or customers.  Hands are to be frequently washed throughout the day, under warm-soapy water.

As the employer, Sample Restaurant will ensure there is an adequate supply of personal protective equipment, sanitizers and cleaning agents.  Ventilation systems are to be checked monthly, and running smoothly to ensure sufficient air flow.  Between booths and tables there will be a minimum of 6 ft between either party, and plexiglass barriers will be utilized to keep our guests as safe as possible.

As regulatory changes unfold, Sample Restaurant’s management team will update staff via email.  The restaurant will always have a designated Covid-19 point of contact that will receive comments and concerns from team members.

5.0 Market Overview

Despite a significant revenue drop in 2020, the Canadian Full-Service restaurant industry is poised for growth in the next 5 years.  Furthermore, strong growth in the number of households earning more than $100,000 per year will likely lead to greater spending in the industry’s high-end segments. Overall, industry revenue is forecast to increase at an annualized rate of 3.4% to $39.1 billion in 2025. 5

5.1 Market Segment

It’s important to note the broader Canadian Foodservice Industry, which the Full-Service Restaurant Industry belongs to.  The Canadian Foodservice Industry is segmented into full-service restaurants, quick-service restaurants, self-service restaurants, cafes/bars, home delivery and takeaway stores. By structure, the market is segmented into chained restaurants and independent restaurants.

According to IBIS World’s, 2020 Canadian Full-Service Restaurant Industry report, Mexican and Latin American restaurants only make up 3.3% of the national market.  This means Mexican and Latin American restaurants are the third least saturated  segment, thus offering greater opportunity for expansion.

restaurant business plan toronto

Of the Mexican and Latin American segment, Mexican cuisine is even more unique.  Mexico has a varied cuisine with essential ingredients such as potato , uchu, avocado , lúcuma , pineapple , deer ( taruca ) , and llama .

The combination of new and old Spanish culinary traditions, resulted in new meals and ways of preparing them. The arrival of Africans, Chinese and Japanese immigrants in the 19th century also resulted in the development of Creole cuisine in the city of Guadalajara , where the vast majority of these immigrants settled.

5.2 Market Trends

  • Unequal economic growth has assisted the industry. Specifically Canadian households that earn above $100,000 per year growing at a rate of 2.3% is accretive to Full-Service restaurants.
  • Rising food prices and labour costs have placed downward pressure on industry profits.
  • Demand from everyday Canadian households has surged in recent years.
  • Due to the Covid-19 pandemic, takeout has been an emerging trend in the restaurant industry.
  • Over the next five years, per capita disposable income in Canada is expected to rise at an annualized rate of 0.9%, enabling a greater number of consumers to increase discretionary spending on meals at full-service restaurants.
  • Rising health consciousness is also expected to affect the overall performance of industry players by rewarding operators that expand their menu choices to include healthy meal options, among other more indulgent food items.

5.3 Competition

Technically, all upscale restaurants in the Ottawa-Gatineau region are competitors of Sample Restaurant, although the following three competitors put specific pressure on Sample Restaurant to differentiate as much as possible:

restaurant business plan toronto

https://towncitizen.ca/

restaurant business plan toronto

https://labelleverte.ca/

restaurant business plan toronto

https://chezfatima.ca/

restaurant business plan toronto

5.4 Competitive Advantage

From the moment our guests walk in we want them to feel at ease.  Executive Chef and Owner, Max Smith is driven to deliver on an experience as much as on delicious meals.  Sample Restaurant’s warm ambience isn’t by accident, through a supportive company culture our staff treat one another with the same compassion we provide to our guests.  Aesthetically, the restaurant has similarities to an art gallery, serving as a window to showcase Latin American visual and plastic arts, thus attracting high level clientele.

Every successful company has a secret sauce.  Sample Restaurant differentiates itself in a number of ways, one of them being its offering of modern Mexican cuisine in the Ottawa-Gatineau region.  Furthermore, Executive Chef and Owner, Max Smith has a track record of developing new, complex flavours from a wealth of international culinary experience.  The Sample Restaurant menu will evolve overtime with Mr. Smith and his team at the forefront of its evolution.

The first step to delivering to our guests is curating a team with a passion for the culinary arts.  Sample Restaurant aims to provide an upscale culinary experience, and in order to do this an experienced and dedicated team is required.  By focusing on the “end result”, or how our guests enjoyed their meals, beverages and experience we can pinpoint areas of improvement.  Sample Restaurant’s obsession with delivery, is a key differentiator and competitive advantage over our competition.

5.5 Risk Analysis

The following is a list of potential risks and how Sample Restaurant plans to mitigate them:

A Drop in Household Disposable Income

The Full-Service Restaurants industry in Canada is sensitive to factors that affect the growth in household income because disposable income is required to finance restaurant and dining expenditures.  As long as perpetual economic growth continues our target, “middle-high income quintile” customer will continue to grow their expendable income.

Rising Food Prices and Labour Costs

Rising food and labour costs have put pressure on profits in the full-service restaurant industry. 6   However, by putting a focus on portion control, waste reduction, and operating efficiences Sample Restaurant will be able to ensure profitability.  Moreover, with annual inflation the restaurant will be able to gradually increase the costs of menu items.

The Covid-19 Pandemic

For the past year Sample Restaurant’s management team has seen the effects of the Covid-19 pandemic on industry operators, and their respective responses.  The risk of Covid-19 on the restaurant’s staff, customers, and business is an inherent part of this very business plan.  By executing a defensive strategy in Year 1, which puts a focus on partnering with popular food-delivery app, Skip the Dishes, Sample Restaurant will build brand awareness within the Ottawa-Gatineau area; therefore, laying the groundwork for a bustling “dine in service” in years 2, 3, and on.  For further information on Sample Restaurant’s approach to the Covid-19 Pandemic please see “3.4 Covid-19 Safety Plan”.

6.0 Marketing Plan

The first step to developing an effective Sales & Marketing Plan is establishing a clear competitive advantage. Therefore, establishing Sample Restaurant as the Ottawa-Gatineau region’s “go-to modern Mexican restaurant”, paves the way to defining our target customers, and the channels in which they are best reached.

6.1 Target Customer

Sample Restaurant has two target customers:

Young Professionals

Young adults between 19 and 30 are delaying marriage and having children later. This enables young consumers to spend a greater portion of their income on dining out. In fact, young adults in this age bracket spend more of their food budget on eating out than any other age group.

  • 19 – 30 years of age
  • All genders, all ethnicities
  • Disposable income (Gross income of $50,000 – $75,000)
  • Lives in the Ottawa-Gatineau metropolitan area
  • Looking for a fun atmosphere to meet friends, eat and often drink
  • Expects a modern experience and ambience

High-Earning Households

Households earning $100,000 or more per year are one of the biggest drivers of industry demand, particularly for the high-end dining segment. This demographic is expected to grow at an annualized rate of 3.5% over the five years to 2025, which should give rise to greater spending at restaurants.

Unequal economic growth, whereby the lowest income earners experience their incomes rising at a slower pace than high earners, has assisted the domestic Full-Service Restaurants industry over the past few decades. If this trend continues, it will likely continue to benefit the industry as high-income households will eat out more often.

  • 30 – 55 years of age
  • Often married, or common-law, and collectively earning above $100,000
  • Often have 1-2 children
  • Looking for an atmosphere to meet friends, family and business colleagues
  • Expects quality service and food

6.2 Key Channels

Food-Delivery Apps

In Year 1 Sample Restaurant will utilize Skip the Dishes, as our preferred food-delivery provider.  By taking it a step further and becoming a Skip the Dishes Partner, Sample Restaurant will be seen over our competitors, when prospective customers sign into the app.  By reaching these customers through a food-delivery app in Year 1, we will lay the foundation for dine-in customers for Years 2, 3 and so on.

Social Media

Considering the B2C (Business to Customer) nature of Sample Restaurant we have identified Instagram and Facebook as our two preferred platforms for social media development.  Through instagram we’ll portray our brand message to young professionals, and through Facebook we’ll increase brand awareness with high-earning households.

Google Search

Our website is at the centre of our sales and marketing plan.  In order to appease all target customers we’ll include an online reservation system for greater ease and functionality.  Customers can stay up to date with our menu, news, promotions, videos and images.  Through a long-term SEO (search engine optimization) strategy Sample Restaurant will work to rank on Google for relevant keywords, thus ensuring long-term visibility for target customers.

6.3 Sales Funnel

Our target customers will gain awareness of Sample Restaurant through our partnership with Skip the Dishes, activity on social media, and our website.

Consideration

A strong presence on the above platforms is key, but not enough to convert from prospective customer to customer.  Sample Restaurant will execute on the following strategies in order to convert prospective customers:

  • Through Sample Restaurant’s Google My Business listing we will encourage, friends, family and loyal customers to provide genuine Five Star reviews, thus social proofing our product and services
  • Tantalizing images of our delicious, modern Mexican cuisine for our website, social media, and food-delivery platforms
  • Professionally developed videos of our team, story, and the experience we provide. These will be utilized primarily on social media and our website

The part we love, serving our incredible customers!  From the back of the house ensuring every meal is cooked to the highest standards, to our front staff ensuring our customers experience a fun and welcoming ambience.  This is where the Sample Restaurant team shines, providing innovative food and drinks in a special atmosphere.

Loyalty can be developed from consistency.  Consistency comes from a strong management team, and staff base.  By incentivizing the right people, and treating them with dignity and respect, we can ensure our beloved customers keep coming back for more.

The greatest form of advertising comes from satisfied customers.  By focusing on the above sales funnel, our customers will become advocates of Sample Restaurant, and tell their friends about their experience at our restaurant.

6.4 SWOT Analysis

Restaurant SWOT

7.0 Financial Projections

restaurant business plan toronto

7.1 Capital Expenditures

restaurant business plan toronto

There will be leasehold improvements of $120,000 and additional supplies, equipment and decor that brings Sample Restaurant’s total start-up costs to the sum of $384,312.

7.2 Breakeven Analysis

restaurant business plan toronto

Sample Restaurant can cover fixed costs when revenues are less than a quarter of projected sales.  Even during challenging economic times Sample Restaurant can support itself.

7.3 Income Statement

restaurant business plan toronto

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Restaurant in Toronto

Licenses and Permits Required to Open a Restaurant in Toronto

To open a restaurant, you need to understand the regulations that govern the industry. This article gives you all the information you need about the licenses and permits you need for operating a restaurant in Toronto.

The restaurant industry in Toronto is booming, and if you want a slice of the  $27 billion pie , you need to know the laws of the restaurant business. Whether you want to enter the restaurant business or are an existing business owner, you should be aware of the essential licenses and permits.

Restaurants are classified under the category ‘food premise’ and need to comply with the Ontario Food Premises Regulation. One of the requirements under this regulation includes allowing inspection by Public Health Inspectors. The results or inspection notice would either be Closed, Conditional Pass, or Pass and will be posted on the Dine Safe website. You’ll have to find out about the legal requirements through the Toronto Public Health.

Compliances for Starting a Restaurant in Toronto

Before you start a restaurant in Toronto, you need to inform the Medical Officer of Health. Here are the three broad categories of compliances you need to know:

Licenses and Regulations

These include the laws to follow for a food business. As a restaurant owner, you need to comply with:

  • The requirements of the Ontario Food Premises Regulation 493/17. The regulations are part of the Health Protection and Promotion Act.
  • Chapters 520 and 545 of the Toronto Municipal Code define the new requirements.
  • Ontario Food Premises Regulation (493/17) states the specific requirements to be followed by any food premises business. These cover personal hygiene, food temperatures, dishwashing, sanitation, and food handling. Any establishment selling, displaying, distributing, transporting, manufacturing food or milk comes under these regulations.
  • Toronto’s Municipal Code: Chapters 520 and 545 need food premises to display the food safety inspection notice where it is clearly visible. The Toronto eating or drinking establishment license should be placed next to this. You should communicate changes in management of your restaurant to the Toronto Municipal Licensing and Standards Division. Changes in Risk Classification could be required if there is a change in your operations.

Structural Requirements

These include the structural requirements to be met for operating a food services business. The equipment you need for a restaurant business is defined under the Ontario Food Premises Regulation.

  • Building Structure : Areas covered under this heading include ventilation, walls and ceilings, lighting, floors, and washroom facilities. Hygiene is important for all areas. Lighting should conform to the Ontario Building Code. Non-absorbent, smooth and tight floor coverings are allowed. Washrooms must be equipped with paper towels, soap, toilet paper, garbage containers, and a regular supply of cold and hot running water. Ensure that your ventilation complies with the Toronto Building Code.
  • Storage Equipment : This comprises refrigeration, racks and shelves, waste storage, staff storage area, and chemical storage. Make sure the indicating thermometer is functioning. Maintenance of racks and shelves should be easy. Garbage containers should facilitate the efficient storage of organic waste without any spillover. A separate area should be allocated for staff storage. You should carefully store chemicals in containers to avoid any hazards.
  • Cooking Equipment : Thermometers and cooking equipment are included here. To ensure the right internal temperature, the indicating probe thermometer should be accurate. Apart from being non-absorbent and corrosion-resistant, the equipment should be easy to maintain.
  • Sanitation Equipment : This category includes handwashing sinks and dishwashing equipment. You need commercial-grade dishwashing equipment that you can effectively sanitize. A two or three-compartment sink can be used depending on whether multi-use items are being used for customers or not. Depending on the size of your restaurant, you need more than one handwashing sink, and these should not be used for dishwashing.

Submitting Plans

All renovated and newly constructed premises will be reviewed by Toronto Public Health. You should contact TPH before you begin construction or renovation. You will need to submit detailed plans to TPH to ensure they comply with the required regulations, including the Ontario Building Code. Making changes to your restaurant and then consulting the TPH could prove costly due to penalties and reconstruction charges.

You should share your plan with the Healthy Environments Division of Toronto Public Health. The plan will be checked for adherence to the Ontario Food Premises Regulation. The detailed layout, equipment, and plumbing fixtures should be part of your construction plan.

Don’t try to save on architecture fees when designing the plan. Engage with professional Architectural Design Firm like  Orana , who can help you get the required permits for your food services business. We are aware of the various zonal bylaws, and their experienced architects will ensure that your plans get the required permits and clearances on time.

You can share your ideas with them, and their talented designers will design interiors and exteriors that get you the attention you need from your customers.

Important Authorities To Be Contacted

The following licenses are important for your restaurant business:

  • Toronto Building : You will get information on zoning, HVAC permits, plan reviews, mechanical permits, building permits , and sign permits here.
  • Municipal Licensing and Standards : Find out about municipal permits for restaurants, cafes, bars, and pubs from the Toronto Municipality.
  • Alcohol and Gaming Commission (AGCO) : If your restaurant serves alcoholic beverages, you need permission from the Alcohol and Gaming Commission. These include the manufacturer’s license, special occasion permits, liquor delivery, ferment-on premise.
  • Canadian Food Inspection Agency (CFIA) : Animal, plant health, and food inspections are covered by this agency. All establishments registered under the Federal Law are inspected and regulated by CFIA. They specifically inspect food products moving across provinces or outside the country. This ensures the well-being of Canadian citizens, the economy, and the environment.
  • Ministry of Agriculture, Food, and Rural Affairs : The ministry enforces regulations to lower risks of food safety in edible oil products, slaughter of animals, fruits and vegetables, dairy processing plants, dairy farms, maple and honey products.
  • Ministry of Natural Resources: Food products made of fish sold in Ontario are inspected by this ministry.

Final Thoughts

Restaurants offer a profitable business opportunity, but you need to ensure that you have all the required licenses and permits in place before starting one. When it comes to the building plans for your restaurant, get in touch with  Orana . They will help you get the licenses and permits you need, and you can concentrate on creating a world-class restaurant for the citizens of Toronto!

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How To Optimise Your Toronto Restaurant Business Plan

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A business plan is a must when starting any business type, especially when opening a new restaurant. Business plans outline your business objectives and goals. It informs investors and lenders how and when you intend to make money. A business plan can also guide you when making important decisions on how your restaurant works. We have compiled a list of tips to help you optimise your restaurant summary and turn an average business plan into an excellent, well-structured one.

Keep Your Information Organised

A good business plan is well-organised. It’s laid out to make it easy for others to skim or scan the content and find the information most important to them. You may also find an organised business plan more convenient since you can quickly turn to the executive summary or financial plans as needed. A descriptive table of contents can also help others easily review your business plan.

Competitive Analysis

A detailed competitive analysis helps you better understand your ideal market. It helps you identify competitors in your area and devise a strategy for securing some of the market share. Being as detailed as possible gives you a better understanding of your competitors and helps you pinpoint exactly what works and what doesn’t, ultimately saving you money.

Detailed Costs

A good business plan should also include a detailed financial document with anticipated revenue compared to expenses. Try to anticipate all expenses, including both short and long-term. Include things like location rent, utilities, kitchen equipment, staffing, and food supplies. You’ll also want to include well-researched financial projections with income statements, balance sheets, and cash flow statements.

Try to break this information into categories: weekly, monthly, quarterly, and annually. Don’t forget to include information about extra necessary expenses, like business insurance .

Funding or Investment Request

If you plan on funding your new restaurant through loans or grants, you’ll also want to include a request section. In addition to asking for the funds, discussing how the collected funds will be used specifically is important. Be as descriptive as possible, including information on where to allocate the funds. If you want to buy a restaurant business that’s already established, include information about how much the company is already earning. Include local-area information to support your predictions. For example, if you’re opening a restaurant in Toronto, you might discuss current population rates or tourism statistics.

Owner Background

Whether acquiring funding through a loan or an investor, many potential lenders will want to know why you’re qualified to own a restaurant. You’ll want to be as thorough as possible with your relevant background in this section. Talk about education or work experience that will help you manage a successful business.

This is also a good section to include any training or certifications you’re working toward that may help the business. When possible, include supporting documents. This might include a copy of your resume, certifications, license, or diploma.

Organisational Layout

Potential lenders don’t just want to know about your relevant experience, they also want to know what other owners, members, or board members bring to the business. Your business plan should include the legal structure of your business, including whether or not you plan to file for a limited liability corporation (LLC) . It should also include the education or work experience of all managing partners. Some businesses may even include a resume or CV for each member.

Service or Product Information

Make sure your business plan includes detailed information about your products. This is the menu you’re selling, and before opening a business, you’ll need to sell it to the investor or lender. Take an okay business plan to an excellent one with ample research. This shows potential investors that you’re an avid researcher and that you have the dedication needed to make the business successful.

Marketing Information

A good business plan also includes detailed marketing information. A clearly defined marketing plan lets investors know how you plan to bring customers to your restaurant. The marketing plan may include a mix of digital or physical marketing trends. Be sure to include information on how much you expect to spend on marketing and how it’s likely to result. Business owners can also use this section to share information from market research.

Demonstrate Passion

Most restaurant business plans carefully list important information, like finances and owner experience. You can make your business plan stand apart from others by expressing your passion or dedication to the industry. Investors are far more willing to invest in a business owner who is passionate about their project than someone who came up with a new business idea a few weeks ago.

These tips can help your business plan stand out. Whether you’re seeking funding or simply want to share your restaurant idea with others, a business plan is the tool you need.

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20 . September . 2023

How to Launch Your Own Food Delivery Business in Toronto: Step-by-Step Guide

Learn how to create your own food delivery app and join the ranks of successful Toronto-based businesses. Our step-by-step guide will navigate you through the process, from inception to implementation.

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Launch Your Own Food Delivery Business in Toronto

Introduction: A Toronto Food Odyssey

It's a crisp morning in downtown Toronto, and the city is waking up to the tantalizing aroma of freshly baked croissants from local bakeries and the sizzling sounds of bacon and eggs sputtering in breakfast joints. As commuters rush to work, bustling streets become a microcosm of diverse culinary experiences.

In the heart of Toronto, every day starts with an orchestra of flavors. From the buttery croissants that beckon from the corner bakery to the sizzle of eggs and bacon in the local diner, this city is a gastronomic playground. The vibrant streets, where cultures converge, offer a mosaic of tastes and cuisines.

In this dynamic metropolis, where food culture thrives, launching your own food delivery business is like embarking on an epic culinary odyssey. The city's hunger for convenience, paired with its love for gourmet delights, creates the perfect recipe for success.

Restaurants in Toronto

Restaurants in Toronto

Toronto is not just a city; it's a culinary journey waiting to be explored. And what better way to explore it than by launching your own food delivery business? Toronto's residents are known for their appreciation of convenience without compromising on quality. They crave a variety of flavors, and they're ready to embrace your food delivery service as part of their daily lives.

Multiverse Software , your partner in technological innovation, is here to guide you through the exciting journey of establishing your food delivery empire in Toronto .

At Multiverse Software, we understand that innovation goes hand in hand with great food. We're more than your tech partner; we're your collaborators in creating a unique culinary experience for the diverse and discerning Toronto audience.

Chapter 1: The Recipe for Success

Success in the food delivery business begins with a clear vision and robust strategy. It's like crafting the perfect recipe.

  • Defining Your Niche: Before diving into the world of food delivery, take a moment to define your niche. Toronto is a city of diverse tastes, from trendy health-conscious options to exotic international cuisines. Consider what sets your food delivery business apart – is it a focus on locally sourced ingredients, a specific cuisine, or perhaps a fusion of flavors? Understanding your niche is like choosing the perfect ingredients for a signature dish; it's the essence of your business.
  • Market Research: In a city as vibrant as Toronto, understanding your competition and potential customers is crucial. Dive into market research to identify gaps and opportunities. Toronto has over 7,500 restaurants across 140+ neighborhoods . This makes it vital for yo to find your niche and stick with it. Explore the city's food delivery landscape, study your competitors, and pay close attention to customer preferences. This research is the secret sauce that will help you refine your strategy.
  • Legal Considerations: The legal landscape is the canvas on which your food delivery business will operate. Toronto, like any city, has its own set of regulations, particularly in the food industry. Ensure you comply with food safety standards, business permits, and other legal requirements. It's like adhering to a tried-and-true recipe – following each step ensures a successful outcome.

Chapter 2: Building Your Food Delivery App

Your food delivery app is the heart of your business, just as a chef's knife is their most crucial tool.

  • Choose Your Tech Partner: This is where Multiverse Software comes into play. Collaborate with experts in app development who can bring your vision to life. The Toronto audience expects seamless technology, and partnering with a trusted tech partner is like having the best sous chef in your kitchen. Together, we'll create an app that caters to the unique preferences of Toronto residents.
  • User Experience (UX) Design: The success of your food delivery business hinges on the user experience . Imagine your app as the digital storefront of your restaurant. It should not only be functional but also user-friendly. Toronto customers have high standards, and a smooth and appealing interface is your chance to make a great first impression.
  • Features and Functionalities: Your mobile app 's features are like the ingredients in your signature dish – they need to be carefully chosen and combined. Implement essential features like real-time order tracking, secure payment gateways, and customer reviews. Toronto's food enthusiasts rely on technology for their culinary adventures, so ensure your app meets their expectations.

Food delivery app for your restaurant

Food delivery app for your restaurant

Chapter 3: Sourcing Culinary Talent

The heart and soul of your food delivery business are the talented chefs and kitchen staff who craft delectable dishes.

  • Partnering with Restaurants: Collaborating with Toronto's culinary gems is like adding rare spices to your recipes. Forge partnerships with local restaurants to expand your menu offerings. Toronto is home to a myriad of eateries, and joining forces with them can help diversify your food delivery options.
  • Hiring Chefs: The kitchen is your laboratory, and your chefs are the scientists crafting culinary masterpieces. Hire experienced chefs who can ensure consistency and quality in your food offerings. Toronto's food scene is competitive, and exceptional chefs are the key to creating dishes that stand out.
  • Efficient Kitchen Setup: Efficiency in the kitchen is your secret ingredient. Optimize your kitchen layout for maximum efficiency in food preparation and order fulfillment. Toronto's fast-paced lifestyle means that timely deliveries are essential, and a well-organized kitchen ensures you meet these expectations.

Chef for your food delivery app in Toronto

Chef for your food delivery app in Toronto

Chapter 4: Delivery Logistics

Efficient delivery is the backbone of your food delivery business.

  • Driver Recruitment: Your delivery drivers are the couriers of taste, ensuring your dishes reach customers' doors in pristine condition. Hire reliable drivers who know the ins and outs of Toronto's streets. They should be as familiar with the city as a sommelier is with fine wines.
  • Delivery Routing: Utilize technology to optimize delivery routes and reduce delivery times. Toronto's traffic can be unpredictable, so efficient routing is like having a GPS for culinary delights. Keep your customers eagerly waiting, not hungry and frustrated.
  • Customer Communication: Keep customers informed with real-time updates on their orders. Communication is like the secret ingredient that enhances the dining experience. Toronto customers appreciate transparency, so ensure they know when their food will arrive.

Chapter 5: Marketing and Promotion

In a city as vibrant as Toronto, effective marketing is your megaphone.

  • Social Media Mastery: Toronto residents are active on social media, sharing their culinary adventures. Leverage platforms like Instagram, Facebook, and Twitter to showcase your dishes, engage with customers, and run targeted ad campaigns. Social media is like the spices that add flavor to your brand.
  • Local Partnerships: Collaborate with local influencers and bloggers like todotoronto who can help spread the word about your food delivery business. Toronto's food influencers have a significant impact on the dining choices of residents, and their endorsement can be a game-changer.
  • Customer Loyalty Programs: Toronto diners appreciate loyalty rewards. Implement a customer loyalty program that offers discounts, special deals, or exclusive access to new dishes. Loyalty programs are like the icing on the cake – they sweeten the deal for repeat customers.

TodoToronto- social media bloggers for your restaurant

TodoToronto- social media bloggers for your restaurant

Chapter 6: Ensuring Food Quality

Consistency is the hallmark of a successful food delivery business.

  • Quality Control: Maintain strict quality control measures to ensure that every dish leaving your kitchen meets the highest standards. Toronto's food enthusiasts have discerning palates, and consistency is the key to earning their trust.
  • Packaging Solutions: Invest in eco-friendly and efficient packaging to keep food fresh during delivery. Packaging is like a protective cloak for your culinary creations, ensuring they arrive at their destination in perfect condition.
  • Customer Feedback: Encourage customers to provide feedback on their dining experience. Listen to their suggestions and concerns. Toronto residents appreciate businesses that value their opinions, and constructive feedback is your recipe for improvement.

Chapter 7: Scaling Your Business

Expanding your food delivery business is the final chapter of your culinary journey.

  • Explore New Neighborhoods: Toronto is a city of neighborhoods, each with its own unique vibe and preferences. Consider expanding your delivery service to new neighborhoods to reach a wider audience.
  • Diversify Your Menu: As your business grows, explore new cuisines and menu options to cater to evolving tastes. Toronto's culinary scene is ever-changing, and adapting to these changes is your path to long-term success.
  • Invest in Technology: Continue to invest in technology to streamline operations and enhance the customer experience. Multiverse Software can support your growth by providing scalable tech solutions tailored to Toronto's dynamic food delivery landscape.

Your Toronto Food Empire Awaits

As the sun sets over Toronto, casting a warm glow on the city's bustling streets, you realize that your food delivery business is not just about delivering meals; it's about delivering experiences.

Multiverse Software, with its expertise in app development and technology solutions, is your partner on this exciting journey. Toronto's food scene awaits your unique flavor, and the city's hungry residents are ready to savor your creations.

With our step-by-step guide and your passion for food, you're ready to launch your own food delivery business in Toronto and become a culinary legend.

We've walked this path before, helping businesses like yours bring their ideas to life. Our experience in app development and technology solutions can turn your vision into a reality. Together, let's make Toronto fall in love with your food delivery service.

Hire Multiverseapp.com for your Mobile App development. Unlocking possibilities, one app at a time.

Hire Multiverseapp.com for your Mobile App development. Unlocking possibilities, one app at a time.

Praharsh Bhatt · Founder, CEO

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Choosing the Right Tech Stack for Scaling Your Business: A Roadmap to Digital Transformation

Choosing the Right Tech Stack for Scaling Your Business: A Roadmap to Digital Transformation

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How Oliver & Bonacini, a storied Toronto restaurant business, plans to expand its empire across Canada

Lessons learned by a young Andrew Oliver in the kitchen of one of his father's restaurant's will serve him well in his bid to kick the business up a notch, despite flat growth in the sector

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TORONTO — When Andrew Oliver, the son of renowned Toronto restaurateur Peter Oliver, was 18 and getting ready to head off to McGill University, he thought it would be smart to hone his culinary skills. But it wasn’t because thought he was going to be the next Wolfgang Puck.

“I thought it would be super sly for me to learn to cook to impress women, effectively, there is not a better way to put it,” Oliver, now president of Oliver & Bonacini Restaurants, said with a chuckle.

How Oliver & Bonacini, a storied Toronto restaurant business, plans to expand its empire across Canada Back to video

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Oliver ended up taking an apprenticeship for a few weeks at French restaurant Auberge du Pommier, still one of Toronto’s toniest dining establishments, and while he was there picked up some of his most critical business skills — although nowadays he leaves the cooking to the pros.

  • How one Toronto restaurateur plans to take fresh, authentic Italian cuisine to the U.S.

“The experience still shapes my thinking,” Oliver said. “It kind of shaped my career going forward in the finance world.”

A key one is “surround yourself with great talent,” he said. “If you are not good at something then it’s OK … There are always onions to be peeled and there are always potatoes to be mashed. I learned that it was better to leverage the skill sets of experts so they are free to create.”

The next kitchen lesson — don’t let anything go to waste — was learned the hard way.

“I remember getting reamed out by the chef (at Auberge du Pommier) for throwing out rosemary sprigs and stems and thyme sprigs and stems. I told him I was trying to be clean and he said: ‘There is no garbage in my kitchen. I can use those stems and sprigs for stock. That is as if you are throwing out money. This isn’t a business that is so lucrative you make dollars; we are lucky to make nickels, so don’t ever throw anything out without talking to me.’”

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It was a brilliant lesson to learn early, Oliver said. “The restaurant business is essentially a subsidized business, with the majority of businesses going out and under,” he said. “Everyone who eats at a restaurant gets a meal for less than it really costs. The difference between a good chef and a great chef is one who can manage your costs and design menus and products that can be interchanged to make it work when it is such a complex, difficult business.”

The roots of Oliver & Bonacini began when company founder and co-owner Peter Oliver, left a career as a stockbroker to open Oliver’s Old Fashioned Famous Bakery in 1978 on Yonge St. in Toronto. He went on to open Auberge du Pommier.

Peter Oliver’s partnership with chef Michael Bonacini in 1993 formed the company that exists today, beginning with the Bay St. staple Jump, followed by Canoe, Biff’s Bistro and a handful of restaurants under the banner Oliver & Bonacini Café Grill.

Andrew Oliver started a career in finance and asset management before joining Oliver & Bonacini Restaurants in 2010 to lead the company’s private dining and events division. He was named president in 2012, and is credited with driving strong corporate growth through deals such as a multi-format agreement with Hudson’s Bay Co. for event spaces and restaurants.

“HBC has such iconic stores that have been great for us. On the flip side we are creating destination spots that also bring some people to their spaces that might not otherwise be there.”

Now, Oliver is most excited about the company’s move outside Ontario, where the company has 14 restaurants and seven event spaces including The Carlu, Malaparte, Aperture Room and Arcadian Court and the catering business O&B Events and Catering.

Later this year, the company is opening restaurants in Montreal, Calgary and Edmonton as well as two in Toronto, bringing its total number of restaurants to 19 by year’s end.

Oliver is projecting revenue of $130-million for the company in the next 12 months, excluding the $25 million to $30 million it will make from investments with Libretto Group and the expanding food court business iQ Food Co., up from $100 million last year.

In five years, I know we will have a substantially bigger part in Alberta based on our partnership with the Katz Group in Edmonton, working to revitalize the downtown. We are constantly looking at good opportunities, be it Vancouver, the east coast, or anywhere in between.

“We definitely have a lot more room to grow at home in Canada,” Oliver said. “In five years, I know we will have a substantially bigger part in Alberta based on our partnership with the Katz Group in Edmonton, working to revitalize the downtown. We are constantly looking at good opportunities, be it Vancouver, the east coast, or anywhere in between.”

It’s a bullish move given growth in the full-service restaurant sector has been flat since the last recession, even as the quick-service sector — Tim Hortons, Freshii, and the like — continue to grow. Industry agency Restaurants Canada estimates the overall sector will grow 3.8 per cent this year to $62 billion, with most of that growth occurring on the quick-service side.

That’s where some of Oliver’s kitchen lessons come in handy, he said, even though today he admits cooking is not his forté.

“Without that driving strategy of being the most efficient possible, you are never going to be able to offer great food at great value and great prices to your guests,” he said.

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boom breakfast

Toronto restaurant shuts down after landlord breaks lease to start own business

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A popular Toronto brunch spot recently took to Instagram to announce they'd be shutting their doors after their landlord pulled the plug on their lease eight years early.

For the past 17 years, Boom Breakfast & Co  has been a fixture on St. Clair West, adding a much-welcomed weekend hangout to the stretch of the avenue between Westmount and Oakwood.

The St. Clair restaurant was the second for the chain, which was founded in 2003 by Tony Cappellano and wife Muffy Santos with their still-running College flagship.

In the years following, Tony and Muffy also opened locations on Dundas West and in Vaughan, expanding their fleet gradually, but always to ample enthusiasm from their regulars.

According to a recent Instagram post by the chain, though, Boom's ranks have officially fallen by one, as Boom confirms the permanent closure of their St. Clair location at the hands of a particularly entrepreneurial landlord.

View this post on Instagram A post shared by BOOM | Break the Fast (@boom_breakfast)

"As you already know, unfortunately, our landlord has decided to take a different direction than us," reads the caption of the post, which claims the restaurant's landlord opted to pull out of the lease eight years early in favour of starting his own business in the space.

In spite of the sudden closure, though, the post also confirms that the Boom team is hard at work searching for a new location to call home in the St. Clair West area.

The caption of the post assures that the closure is not a permanent one, but more so "just a pause before the next chapter."

In the meantime, though, Boom Breakfast & Co's two other Toronto locations remain open seven days a week, at 808 College and 2840 Dundas West.

Boom Breakfast via Uber Eats

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A Brazilian steakhouse in downtown Toronto is closed until further notice after city health inspectors found several violations.

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Brazilian steakhouse on Danforth shut down by health inspectors Back to video

Rodeo Brazilian Steakhouse, located at 95 Danforth Ave., prides itself on being the city’s first all-you-can-eat Brazilian steakhouse, serving up everything from delicious barbecued meats and seafood, appetizers and salads.

Rodeo received a closure notice from Toronto Public Health on Friday for 10 infractions, but it was one crucial violation that forced the shutdown.

“Food premise maintained in manner permitting health hazard (insects),” resulted in a summons and health hazard order, pending Monday, according to Toronto Public Health’s DineSafe website .

A TPH spokesperson said that “the presence/evidence of insects in the food premises caused conditions resulting in a health hazard,” prompting the closure. They said a second crucial infraction, “‘food premise maintained in manner permitting adverse effect on food,’ may be cited on a conditional pass.”

The restaurant was also served five significant infractions and three minor ones.

View this post on Instagram A post shared by Rodeo Brazilian Steakhouse (@rodeo_toronto)

TPH said inspectors found Rodeo failed to ensure equipment surfaces were cleaned as necessary, failed to clean multi-service articles after use and the hand-washing station was used for something other than hand-washing for employees.

They also said the restaurant failed to protect against the breeding of pests and did not retain records of pest-control measures taken for one year.

As for the restaurant’s three minor violations, it failed to ensure food-handlers protected against contamination by hair, failed to protect against the entry of pests and the walls in the food-handling room were not maintained in good repair.

A detailed list of infractions at Toronto restaurants can be found on DineSafe .

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‘I let my work talk’: Toronto chef on new restaurant already fully booked

Nobu, the worldwide celebrated restaurant co-founded by legendary Japanese chef Nobu Matsuhisa, Robert de Niro and film producer Meir Teper, recently opened its doors in Canada, with Nobu Toronto reinforcing the city’s reputation as a global dining destination.

Alex Tzatzos, the restaurant’s executive chef, joined BNN Bloomberg Friday to discuss his experience opening Canada’s first Nobu restaurant. The Mykonos native says opening Nobu Toronto was a big challenge, but one he enjoyed.

The two-floor space designed by Studio Munge has a Japanese-inspired design, featuring a Sake bar. According to Tzatzos, the restaurant is fully booked for the foreseeable future and beyond. The restaurant will feature signature dishes and cocktails such as the iconic Yellowtail Jalapeño and the Lychee Martini, it also offers many exclusive creations such as the Grilled Salmon with Ginger Garlic Yakiktori and the Midnight in the 6ix cocktail.

In order to craft a menu that would appeal to the Canadian market, Tzatzos said he spent nine months walking around the streets of Toronto, trying to understand “how the city’s culinary world works” before opening the restaurant. He added that he searched for the best suppliers and farmers as he likes to cook with local products.

“I let my work talk and not my mouth,” said Tzatzos, adding that simplicity and discipline have been key ingredients to accomplish a successful career.

“We keep all our dish creations within the Nobu concept, nice and clean,” he said.

Tzatzos also noted that his path to success was not linear. Moving to London in his early 20s, he worked at two Michelin star restaurants Le Gavroche and The Square, before landing at Nobu London. He said that working at high-end restaurants at a young age was part of his goal, but also one of “the hardest things he did in his life.”

With 12-hour shifts and a lot of pressure on his shoulders, Tzatzos said learned an important lesson regarding the importance of being disciplined not only in the kitchen but also in life.

When it comes to his expectations for Nobu Toronto, Tzatzos says his first goal is to focus on quality and consistency and to grow the restaurant slowly and one step at a time.

“I want the guests to come back again and again,” he said.

“I think Nobu Toronto will be one of the biggest and busiest restaurants in town.”

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    This webpage is intended to provide basic information that you will need to consider prior to starting, constructing or renovating a food premise in the City of Toronto. Food Premise Definition A food premise is where food is manufactured, processed, prepared, stored, handled, displayed, distributed, transported, sold or offered for sale. A home kitchen in […]

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    1.Choose your Restaurant Idea, Concept or Brand. Before you start a restaurant construction project in Toronto, you should have a clear idea of your restaurants concept and brand. A restaurant concept includes your style of service, type of food available, and the look/feel of your restaurant. Your restaurants brand is one of the most important ...

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    A restaurant business plan is a document that outlines your restaurant's concept, goals, target market, marketing strategies, operations, and financial projections. It serves as a blueprint for your business, helping you make informed decisions and attract potential investors or lenders. A well-developed restaurant business plan not only ...

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    Step 8: Apply for a Business License. You may need a business license to operate a business in Toronto. Use the online business permits and licences service, BizPaL , to search for permits and licences (municipal, provincial and federal) you may need to start or grow your business.

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    How Oliver & Bonacini, a storied Toronto restaurant business, plans to expand its empire across Canada. Lessons learned by a young Andrew Oliver in the kitchen of one of his father's restaurant's will serve him well in his bid to kick the business up a notch, despite flat growth in the sector.

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