FREE 7+ Restaurant Contract Proposal Samples in MS Word | Google Docs | Apple Pages | PDF

Write the list of sections you will include in your proposal. Include the following sections: concept, market research, marketing plan, projections, startup costs, operating costs, budget, experience and support documents.

Provide a description of your restaurant concept that goes beyond the cuisine and menu items. Discuss why this type of food will sell well in a specific geographic area to a specific audience. For example, you might be proposing a low-cost pizzeria in a college town that has only one other restaurant that sells pizza as part of its more expensive Italian sit-down menu.

Outline your target audience, competition, pricing strategy and unique selling differential in your market research section. Demonstrate the demand in the marketplace for your restaurant and back it up with research and data.

Explain how you will market your restaurant. Include what type of media you will use, such as print, newspaper, radio, TV, websites, direct mail or social media sites. Explain why you have chosen your media, who it will reach and what the annual cost will be.

Project your monthly and annual sales figures and annual profit projection. Provide projections for the first three years, which might include a loss for the first six months to one year, a period of breaking even and a profitability date. Give the date by which an investor will recoup his initial investment. Just because you reach profitability after one year does not mean the investor will make a profit, because that positive cash flow must first repay the initial startup costs.

List the startup costs, which include the expenses to open the restaurant and operate it until you reach the break-even point. Divide your expenses into food costs and non-food, or overhead, costs. Demonstrate that you have set your prices based on an analysis of your food costs, operating costs and profit margin. Include an annual master budget listing all of your expected expenses, by type and per month.

Include biographies of all key owners, operators, staff members and consultants who will be part of the launch and operation of the business. Emphasize any restaurant experience these people have, and note any investment they are making in the company.

Summarize the report, including the requested funding. Do not provide detail or support in the summary, but simply recap the information you have presented, highlighting the demand in the marketplace for your concept, your ability to operate a restaurant and the projected profit potential.

Provide support documents in an appendix, which might include marketing, food or overhead budgets, menus, surveys or cash flow projections. Refer to the appendix in the main body of the proposal when you need to make an assertion but don’t want to provide detailed support with it.

The cover page should include your contact information, a contents page and an executive summary, which will start the proposal. Keep the executive summary to approximately half a page, briefly describing the concept, financial projections, your expertise and the investment needed with no detail or support.

FAQs

Once you’re done drafting the contract, make sure to review it first and check to see if there are any errors or wrong information being input. Discuss it first with your client and reach a mutual agreement with the contents of the contract before signing it. To help you get started making the contract, download our free sample templates above to use as your guide!