Free VC Directory
With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans

Are Updated for 2017



Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Restaurant SWOT Analysis

 

Strengths

 

Restaurants, among all types of businesses, generally have least number of strengths as it relates to operating a profitable entity. The hours are long and the margins are low. For many people, it seems that starting a restaurant is more of a calling. However, once a restaurant establishes a strong presence in any market - the strength of that business is a true business asset. If a company is able to operate a restaurant well, the more people will leave reviews and frequent the restaurant more often. This leads to a tremendous amount of economic stability. However, it is, again difficult to get to this point. For high end restaurants that require a substantial amount of upfront capital, a strong barriers to entry is created.

 

Weaknesses

 

As stated above, one of the primary weaknesses faced by all restaurants are the extremely complicated operating issues that must be dealt with on an ongoing basis. Overhead costs are usually very high. Additionally, restaurants face the continuous issue of food spoilage. The final weakness faced by restaurant businesses is the ongoing competitive issues faced by these businesses. In any market, there are a number of restaurants that are competing with one another for businesses. This is especially true in tourist heavy markets.

 

Opportunities

 

Most commonly, the biggest opportunities for restaurant owners is to establish multiple locations once the initial location becomes highly successful. Additionally, restaurants - if the location allows - can expand its operations by adding seating capacity. Also, many successful restaurant owners seek to develop catering services or provide small meals via a food truck. The last two opportunities usually occur among popular restaurants in cities where the development of additional locations might be cost prohibitive. For restaurants that offer catering services, there can be a substantial increase in visibility.

 

Threats

 

The primary threat by most restaurants is the ongoing competition that the business will face. Secondly, and this is especially true for restaurants that use a number of specialty ingredients, is that cost driver prices can suddenly increase. This can cause fluctuations in the restaurant's profit and loss statement.

 


Be sure to take a look at our Business Plan Templates.