Restaurant Business Plan 13
Business Plan
Glossary
SWOT ANALYSIS
A SWOT analysis explores the restaurant’s internal strengths and
weaknesses and its external opportunities and threats. It outlines what
success factors are in a business’s control, which ones are not and what
can be done to help the restaurant compete. Learning how to build a
SWOT analysis for a restaurant business can be done here.
This glossary explains some of the key terms used throughout this template. It can be kept as is, deleted if not
needed, or altered to add more terms that may need an explanation.
BREAK EVEN
Break even is the point in either time or dollars where a business earns
back all of the money it spent up until that point, after which it will be
protable. The formula for calculating break even point in dollars (or
sales) is explained here.
Break even point, in time, is determined by comparing sales forecasts
with break even in dollars to estimate how long it will take for the
business to achieve that break even point.
PRO FORMA INCOME STATEMENT P&L STATEMENT
A pro forma income statement is a projected prot and loss (or P&L, for
short) statement. Based on sales and costs estimates, it shows whether
or not a business will be protable at a set point in the future. When
making a P&L statement for a business plan, it’s wise to project it for the
expected break even point so investors will know when they will see a
return on their investments. Projected pro forma income statements are
further explored here.
Opportunities ThreatsWeaknessesStrengths