Restaurant Pitch Deck

The profitability of many restaurants are hit or miss until they begin to franchise and scale. Once a restaurant has demonstrated its profitability, it may then franchise, which is usually the point at which investors really start to see a substantial return on investment. Therefore, most investors in the restaurant industry (aside from private investors) are looking for a business model that may be scaled and replicated relatively easily. However, this is not always the case if you are building a very large restaurant in a premium location, in which case private equity investors generally review the investment in-itself. This article will help you to understand what to include in a restaurant pitch deck and how to structure it in a way investors are receptive to.

The restaurant industry can be very profitable for those who understand how to manage it effectively. However, it takes someone very experienced who understands all the dimensions and few investors are willing to make a bet on someone new to the industry unless they have demonstrates the success of the restaurant or concept in some other fashion. Hence, its critical to communicate that the restaurant owner understands how to Startup, grow, and exit a restaurant ideally not only once, but systematically.

Related: Avoid these 7 Pitch Deck Mistakes

The financial forecasts for a restaurant are often very similar – but typically are controlled by the cost of goods sold, the wages & payroll, and rent costs. Other fees are negligible compared to these so it is critical to reach an appropriate combination that is reasonable and if not based on historical metrics, comparable to other restaurants in the same category. For instance, some may have a relatively high cost of goods sold they expect to compensate by increased sales, the same could be said for increased staff for in-house entertainment or a premium location. However, everything should be relatively aligned with other companies in the restaurant industry.

Related: Approaching Investors for Capital